Cramer's Stop Trading! Volcker's Out-of-Touch Fan Club (2/22/10)

Includes: DIA, QQQ, SPY
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV Program, Monday February 22.

At first it might seem impressive that five former Treasury Secretaries - W. Michael Blumenthal, Nick Brady, George Schultz, John Snow and Paul O’Neill - signed a letter urging President Obama to adopt Former Federal Reserve Chairman Paul Volcker's proposal to end proprietary lending by banks. However, Cramer noted that not all of the names on the list are quite so stellar, given that O'Neill was fired and Blumenthal served in the Carter Administration, when the economy was in deep decline. Cramer added; "When you delve down into it, you tend to realize that perhaps this is just part of that same out-of-touch group who’s trying to stop what is considered to be Barney Frank’s excellent reform.”

Massachusetts Representative Barney Frank proposed a more gradual implementation of Obama's reforms, and suggested banks should limit the proprietary lending practices (investing on their own behalf rather than on behalf of their clients) but should make these changes over a longer time frame. Cramer thinks Frank's more moderate proposals have been derailed by the more extreme agenda.


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