Even CNBC's Mad Money host Jim cramer gets how nutty yesterday's announcement about the change in naked short selling rules is.
Securities and Exchange Commission Chairman Christopher Cox doesn't know his own rule book, Cramer said during Wednesday's Stop Trading!, according to Tom Brennan at CNBC.
According to an SEC regulatory manual Cramer held in his hand during Stop Trading!, "Selling stock short and failing to deliver shares at the time of settlement with the purpose of driving down the security price is illegal." The report was dated April 11, 2005.
"I don't know what these emergency powers are," Cramer said of Cox's special announcement, "nor do you have to stop [enforcing the naked short selling rule] 30 days from now."
"I think Commissioner Cox should go back over his Division of Market Regulation bulletin," Cramer continued, "and realize he's had this power to stop this all the time." But the SEC has "not cared the least bit about this."
And he capped it off with this very insightful observation:
The regulators, frankly, are very naive about what really goes on.
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