I've never been a big fan of Jim Cramer, but I'm especially not now: he's admitted that he engaged in shady trading strategies at his hedge fund:
"A lot of times when I was short, I would create a level of activity beforehand that would drive the futures. . . . It's a fun game," Cramer said in the Webcast, which was moderated by TheStreet.com Executive Editor Aaron Task.
Cramer later said that "no one else in the world would ever admit that, but I don't care."
He added that the strategy - while illegal - was safe enough because, "the Securities and Exchange Commission never understands this."
According to the interview, Cramer used a technique of trading futures to drive share prices up or down and create the appearance of activity. Most interesting was this quote from the interview:
What's important when you are in that hedge fund mode is to not do anything remotely truthful, because the truth is so against your view, that it's important to create a new truth, to develop a fiction.
What a wonderful role model for our nation's youth. I wonder what CNBC will do in reaction this. Probably nothing, given Mr. Cramer's ratings.
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Reader Comments (Page 1 of 1)
3-20-2007 @ 10:46PM
RPR said...
The point is " does what he says make sense"? If you don't think so, why are you wasting your time worrying about him?
3-21-2007 @ 4:22AM
Dave said...
Zac,
Jim hasn't worked at his hedge fund for 5 years.
He says himself that he worked on the dark side and is now reformed.
So he admits to doing something in the past that everyone else probably still does. I appreciate him revealing the dirty tricks the big boys use and I think he deserves credit for that not scorn.