Cramer: Yesterday was a travesty
Jim Cramer | firstname.lastname@example.org
Of course, nowhere. We know that.
Yesterday's three-hour Nasdaq halt was a total travesty. We all know that there are plenty of back-up exchanges available that could have been ordered into action by the government
We know that if the SEC demanded it, the Nasdaq would have had to put up a redundancy system. We know that if the SEC demanded it, someone from Nasdaq would have had to come out and say something--anything--about what was happening.
And worst of all, we know that the odds are we will never know what really happened, just like we never found out what really caused the flash crash and we never got any clarity on the what happened in the Facebook IPO.
Just a totally disappointing day all the way around EXCEPT for the stock market itself--which was, quite frankly, huge, led by the transports and not even stopped by the decline in Hewlett-Packard's earnings.
I think that unless we get something fixed here with the trading systems, unless we get answers, we will, once again, have still one more wave of people getting out of the market.
We never really recovered from the flash crash, which was more severe in terms of the psyche of the investor that almost anything other than the week of the Lehman collapse. Some would say it was worse than that because we could never trust the asset class again.
I can't blame a soul for pulling out of the stock market after today. Without answers about what happened, it makes a ton of sense. Because this whole business of stocks has been sacrificed on the altar of high-frequency trading and the protected broker interests and nobody is protecting the little guy any more.
Disclosure: Cramer's charitable trust is long FB.