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Wednesday,
February 25, 2009
(Cont'd from
above)...
Jim (cont'd):
Well, he is going to
restore order… and
take the fates of
the banks out of the
hands of the
short-sellers… who
have hammered this
group into… yes
indeed… oblivion…
wait a second, it
gets better… not
only did he make me
feel confident that
the great
academically
inspired we must
take over and
annihilate all the
banks financial
rescue plan is now
dead… rescue plan…
that is a rescue
plan that is like
let me give them a
choke hold, we will
save them… anyway,
he even made the
point that we might
not have been in
this pickle with the
stock tails wagging
the bank dogs… if it
were not for the
relentless short
selling without
upticks of the bank
common stocks… what
we have been saying
on Mad Money all
along… oh my, here
at last a grown up
in government… who
recognizes what we
have been saying for
two years… that the
uptick rule, the
rule that used to
protect you from
short sellers from
hammering down your
stocks…. needs to be
resurrected… the SEC
created this rule…
it was a brilliant
rule… after the
Great Crash, because
short sellers acting
in concert drove
stocks into oblivion
with major bear
raids… something
that Joe Kennedy,
who started the SEC,
realized because he
was part of the mob…
you see, the short
sellers back then
panicked people into
pulling money out of
the banks… panicked
people into selling
bank stocks… and
actually wrecked the
companies… because
when it comes to
bank confidence, it
is every thing.
Does that sound
familiar… that is
what is happening
everyday… every
since they got rid
of the uptick rule…
that same thing from
29 to 32... where is
the book… never turn
your back to the
camera… I got all
the lessons… this
book tells you all
about it… it is my
handbook as to why
we need the uptick
rule… the uptick
rule simply forces a
short seller to wait
until… well, an
uptick… when a buyer
comes in and has to
pay more, higher,
for a stock rather
than previous trade…
that way he is not
able to pile drive a
stock down with
rapid fire selling…
no pauses, and no
misery… hey, you
know what… I am
liking this guy so
much… I am actually
putting him on the
show… listen to
Bernanke.
Bernanke clip: “On
the uptick rule,
obviously that is an
SEC responsibility,
I know that they
have been looking at
it and thinking
about it. The
traditional
literature on this
doesn’t seem to find
much affect of the
uptick rule, but I
have to concede that
in the times that we
have seen more
recently, that it
may have been in
effect, it may have
had some benefit.”
Might have been some
benefit… alright, so
he is not Knute
Rockne, give me a
break… you heard, he
said that it might
have had some
benefit… now, it
goes on even better…
it goes on even
better… but I will
say it in my words
because I am
obviously more fired
up than Ben
Bernanke… he says,
it is worth bringing
it back… and even
tell us… and these
are his words, “I
would tell that to
the new Chairwoman
if she asked me.”…
he would recommend
that the uptick
rule, which the
repel of has
destroyed capitalism
as we know it… and I
say it, hallelujah…
the short sellers
unshackled by the
uptick rule have
crushed every bank
stock after bank
stock… they have
caused runs on
banks… and they have
all been aided by
the SKF, a vile ETF
that allows you to
short a stock well
beyond what the
margin rules allow.
At times more than
half the volume
trading in bank
stocks has been
short selling… I
think the relentless
pollaxing of the
financials have sown
the seeds of
destruction… seeds
that may ultimately
require us to spend
trillions of
taxpayer dollars in
order to save the
system… money that
would never have had
to be spent… if the
previous SEC
Chairman, Chris Cox,
winner of the
Plaxico Burress
Award for Good
Judgment, hadn’t
invented such
nonsense… this is
great news… Bernanke
is on our team… he
is an actual adult…
a grown up… unlike
Tiny Tim Geithner…
he is willing to
take the glare and
crush the
nationalizers… and
now he is willing to
stand up to the
shorts too… he is my
hero.
Hey, let me give you
another ray of hope…
alright, get this…
Sheila Baer… FDIC
Chair… the woman who
keeps your deposits
save at the bank…
she is on board
considering this
idea of forbearance
for the banks…
giving them capital
in return for a
promise to return
the money… this is
the 1982 to 1990
Federal Savings &
Loan Insurance
Corporation Plan
that worked to save
the system… you can
hear her views on
this issue… and the
competence she
exudes… in a special
Town Hall, starring,
well me… and Erin
Bernett, airing at
10 pm tonight
Eastern… I have to
admit, it kind of
rocked… anyway,
hearing these two
talk makes me think
that the government
understands at last
that it needs to
control of the
banking system… but
not the banks
themselves… the
Vladmir Lenin/Roubini
plan, we are putting
that in the closet…
scary closet,
monsters in there
right… I mean like
Scooby-Doo… anyway,
we might be able to
do some capitalist
preservation… that
was Scooby- Doo on
Monster Island,
maybe this time the
monsters are real…
alright, anyway…
capital preservation
without sentencing
the banks to a
stress test/lethal
injection is the way
to go… I have to
admit… as an early
critic of Ben
Bernanke… I know
feel like he is the
no nonsense, clear,
coherent, in charge
guy that I always
hoped that he would
be… Obama listen to
him… do what he
says… not the silent
and hiding Geithner…
Bernanke knows what
has to be done… the
bank stocks were
down this morning
before he spoke…
clearly not
impressed by the
words of the
President.. but the
combination of the
positive Geithner
leak, the
reassurances that
you can watch from
Cramer fave Sheila
Baer, tonight at 10,
and most important
the grownup Bernanke
keeping the
legislative jackals
at bay… while
recommending a
restoration of the
uptick rule… well,
it is enough to make
me say that when it
comes to this rally…
maybe we are not
done yet.
Bottom line…
▼ ▼
▼ ▼
▼
 The Bottom Line!:
Stay long for a
little longer… the
cavalry is here… the
uptick rule might be
restored thanks to
Ben Bernanke… and
for once it feels
more like Fort
Apache… than Little
Big Horn.
Don’t run for the
hills, I think today
proved that the
Calvary's on its way
to help this
market...
Alright, good old…
no, don’t call it… I
don’t use the term
"Mr. Ben" anymore,
because that is
derogatory… Mr.
Bernanke, welcome
home… you are the
best there is.
[verbatim recap]
▼ ▼
▼ ▼
▼
Jim went on after
this segment to take
questions from
callers, and
responded with his
comments...
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Q:
I am asking a
question about the
housing over supply,
causing deflation
and asset values,
and ruining the
economy. So what do
you think about an
incentive based
moratorium on new
home buildings until
we stop the
deflationary housing
spiral?
Jim:
First of all I think
we were very lucky
that we did a
$10,000 credit if
you bought a new
home… the home
builders by nature,
what they do is
killing us… okay…
but fortunately they
are probably going
to build around
400,000 homes… we
need, and I do not
want to put anybody
out of work… but we
need the
homebuilders to
shrivel and die… now
obviously the home
builders do not want
to do that… and I am
sure that if they
hear that tonight,
they will say that
Cramer he is a…
well, I do not even
care anymore…
because I think that
there are larger
issues than just
like home building
profits… hey, I like
Toll Brothers, okay…
but we need fewer
homes… I like the
idea of the
moratorium…Congress
will never go for
it… because there
are too many… I have
to be very
diplomatic here… let
us just say that
there are too many
Congressional people
with housing mind
share… see in the
old days I just
would have said that
they were in the
pockets of the
homebuilders… but I
have learned that
that is no longer
the kind of thing
that anybody should
say… and I have
stricken that kind
of language from my
vocabulary.
```````````````````````````````````````````````````````````````````````````````````
Q:
I got a two-fer you
tonight. I agree
with the assessment
that the ETF’s, the
ProShares ETF’s have
made the market sell
off. However, could
individuals cashing
in their retirement
accounts to pay
bills, or moving
their retirement
account into safe
havens be a problem
for this market? And
the second question
is, have we lost the
individual investor?
Jim:
Oh man, we lose the
individual investor
every single day…
one of the things
that is hysterical
to me is that people
say that there is
money on the
sidelines… give me a
break man… that
money is moving very
rapidly into
Duxiana, into Sealy,
to Theres & Foster,
and into saves… it
ain’t coming back to
the market… because
we have wrecked the
market without the
uptick rule… with
the short sellers
being in control…
with the government
being absent… with
Madoff… with the new
one today that we
just saw, Nicholson…
nobody trusts
anybody… and I have
to tell you… I don’t
blame them one bit…
after the stuff that
we have been thru in
this country… with
this stock market…
with this lack of
government… with
this lack of
regulation… I can’t
blame one person for
leaving… not one…
made it smart…
remember in October
when I went on the
Today Show… there
was a disappearing
act after there, I
don’t know what
happened… when I
said if you need
money for the next 5
years, the market is
not the place… we
have now downed 3000
points since then,
and it is still not
the place.
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Q:
I have just got to
comment on the way
the banks are
handling things. Up
until now, if you
let a house go back
say you owe $200,000
on it and they sold
it for $150,000,
they 1099 you for
that $50,000 and you
owe the IRS, they
arbitrarily changed
that where now you
walk away scot-free
and some speculators
are walking away
from dozens of
mortgages because
there is no downside
to it. Who has the
authority to do
that? And why?
Jim:
You are right… that
was IRS rule… it was
a bad rule, my
friend Lou Helfer
from Talmadge was
telling me about
that… you are right…
we have got to get
that rule off the
books… you know that
last administration,
man… again I have to
be diplomatic, I
can’t call them a
bunch of idiots…
because that would
be broad and
sweeping… I just
don’t think that
they have did that
good a job… again,
as someone who has
taken his cue from
Ghandi most of his
life, except when he
is talking about
Bishop TuTu… I am
not that happy with
the way the previous
administration
handled things.
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[verbatim recap]
[end of segment]
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