A mockery? A squeeze? Fair or unfair?
The opinions may vary on the recent Reddit-induced madness in the stock market, but Jim Cramer made his stance very clear.
What Happened: GameStop Corp GME shares were halted several times in the last half hour of Wednesday's trading session. Shares closed up 103.9% to $91.71 and were up another 86% in the after-hours session.
Several other popular stocks of the r/WallStreetbets community, like AMC Entertainment AMC and BlackBerry BB, also surged higher although not nearly as much as GameStop.
"We need fair, deep markets," Cramer said in an evening tweet. "We want investing, good investing and we want to trust prices. What happened at the end of the day was a mockery of what is supposed to happen. Where is the government?"
Why It's Important: U.S. President Joe Biden has picked Gary Gensler to head the Securities and Exchange Commission, but Gensler's confirmation hearing doesn't take place until March 2. The SEC has not had a formal chairman since Jay Clayton stepped down from his role on Dec. 23, 2020.
"It is imperative that someone at the SEC say that it is looking into what happened because we need to know the markets aren't just plain phony," Cramer said in a different tweet. "But there's no confirmed head and no enforcement that i can see. The SF SEC should be making calls right now."
Big Bets: Earlier Wednesday, Berkshire Hathaway Vice President Charlie Munger gave his take on the recent GameStop madness.
“That’s the kind of thing that can happen when you get a whole lot of people who are using liquid stock markets to gamble the way they would in betting on racehorses. And that’s what we have going in the stock market,” Munger said.
GameStop's stock traded around $166.55 at the time of publication in the after-hours session.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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