Jim Cramer the Manipulator?

There’s a recent video of Jim Cramer talking about how he used to manipulate the stock market. Personally, I think he’s just showing off for his audience, but The New York Post hints that he might have said too much.
John Carney adds: “One added thing to watch for: Jim Cramer takes a swipe at easily manipulated financial reporters, who he calls ‘the Bob Pisani’s of the world.’ We’re sure his CNBC colleague appreciates it.”
Jon C. Ogg at 24/7 Wall Street doesn’t think it’s a big deal. He points out that the NYP is owned by Murdoch who will soon be launching a competitor to CNBC. Naturally, they want to take JJC down a peg or two.
Bess Levin adds:

A few people also seem to believe that the SEC can make Cramer “give back ill-gotten gains,” especially since they apparently “hate him.” But Cramer seems to rest assured that his relationship with Eliot Spitzer, forged at Harvard, will protect him. At a lecture at the 92nd Street Y a few months back, Cramer told the audience that a reporter had called him to get dirt on the couple, and his response was “I’m never going to say anything bad about the Spitzers.” When pressed further for comment, Cramer asked him, “What do you need to know?” the answer apparently being “Something no one’s ever said about Shiva (Eliot’s wife).” Cramer offered, “She’s a knock-out.” That kind of street cred has got to count for something.

My issue is that the video contradicts Cramer’s earlier stand. From The Fortune Tellers: Inside Wall Street’s Game of Money, Media and Manipulation:

For all his bravado, Cramer could be hypersensitive to criticism. He called up some of his detractors after the SmartMoney fiasco and yelled at them. When he felt himself under assault, his rapid-fire cadence turned faster, his high-pitched voice a little squeakier. Cramer had no ability to hide his constant swirl of emotions. Once, after Lisa Napoli of The New York Times wrote a mixed profile about his activities and potential conflicts, Cramer declared: “I wish I had been a vicious spinmeister and just beaten the shit out of her and gotten her exactly where I wanted her…Give me a fucking break. Come on, I’m not this huge manipulator of stocks.”

When in doubt, I always refer to Jim’s 25 Rules of Investing. Specifically, Rule #21: “Just because someone says it on TV doesn’t make it so.”
Exactly. That’s why I use the Internet.

Posted by on March 20th, 2007 at 3:22 pm


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