EXCLUSIVE: Cramer admits the markets are manipulated

The markets are manipulated.  All markets are manipulated.  What's the 'take away' ?  You have several choices:

  • A Get a job at one of the manipulators, break off and start your own manipulation firm
  • B Find out how they are doing it and do it yourself (if you have a really rich Uncle, otherwise this option won't work for you)
  • C Find a crack in the market manipulation engine and exploit it
  • D Day Trading (but this is really, really, really tough and even if you can manage it, your years are limited.)

Ways to not win, or barely beat inflation:

  • X Buy and hold
  • Y Stock picking
  • Z Buy and hope

Both methods, statistically, will lead to ruin.  You would have been right buying and holding the Amazons (AMZN) and the Googles (GOOG) but how about the Worldcoms, the Enrons, the Kodak's.. The Refcos.. (we did HODL to Refco and we got a check for .30 cents on the dollar via bankruptcy court).  Stock Picking and Market Timing (when will the market bottom or top) is also dangerous because even if you're a well funded Genius, you can't be right all the time. This blast from the past is inspired by a first screening of the original "Fight Club" with the family all together, the inspiration of the theme of this site.  We tried to cover this topic on a high level in our work Splitting Pennies - but although this video is still on youtube, the meme remains well hidden from the masses.  Even Zero Hedge, if you ask most people, think that we're some political site.  Is it left?  Is it libertarian?  No man, it's just free.  They don't know what free is, being overwhelmed with thousands of 'media missiles' every day.  Democrats, Republicans, and all in between are brainwashed by their own propaganda, their own Dogmas. This interview is just fascinating.. in many ways, most notably how Cramer easily switches from the 'hedgie predator' to 'party line' as if he's 2 different people.  Cramer is a smart guy, one wonders what a smart guy is doing as a TV personality, but then again, a TV icon recently became president.

A Summary from Wikipedia:

In March 2007, a December 2006 interview from TheStreet, Inc's "Wall Street Confidential" webcast stirred controversy after it appeared on YouTube.com.[31] In the video, Cramer described activities used by hedge fund managers to manipulate stock prices—some of debatable legality and others illegal. He described how he could push stocks higher or lower with as little as $5 million in capital when he was running his hedge fund. Cramer said, "A lot of times when I was short at my hedge fund...When I was positioned short—meaning I needed it down—I would create a level of activity beforehand that could drive the futures." He also encouraged hedge funds to engage in this type of activity because it is "a very quick way to make money."[32] Cramer stated that everything he did was legal, but that illegal activity is common in the hedge fund industry as well. He also stated that some hedge fund managers spread false rumors to drive a stock down: "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."[32] Cramer described a variety of tactics that hedge fund managers use to affect a stock's price. Cramer said that one strategy to keep a stock price down is to spread false rumors to reporters he described as "the Pisanis of the world." The comment was a reference to CNBC correspondent Bob Pisani, who reports from the trading floor of the New York Stock Exchange. "You have to use these guys," said Cramer. He also discussed giving information to "the bozo reporter from The Wall Street Journal" to get an article published.[33][34] Cramer said this practice, although illegal, is easy to do "because the SEC doesn't understand it."[35] During the interview Cramer referred to himself as a "banking-class hero."[36]

Think about that next time you pickup your mouse and want to go long.  And one other thought - if 'Big Money' or as Cramer calls it "Smart Money" is able to manipulate the stock market, then how much does it take to manipulate Bitcoin, or any other Crypto?  We all know about the not so secret Goldman Holdem Crypto desk, we can only imagine how deep their paws are into Crypto pies, as makers and takers.   Markets are manipulated.  Accept it, learn it, in case you forgot - repeat it.  Markets are Manipulated. So consider this next time you're watching a YouTube video by a 20 year old with multi colored hair talking about Bitcoin going to 1 Million.  Remember that more than 60% of the Bitcoin 'float' is controlled by 1,000 people who are all 'White Libertarian Bros' who are all friends. Thanks DB for the reminder about the 'Washing Machine' so interesting!  The game evolves but it doesn't change.  Crypto isn't any different, it's just window dressing, but without the regulation. To learn more about Market Manipulation checkout Splitting Pennies and then Graduate to Splitting Bits.

Comments

TeethVillage88s Sun, 02/11/2018 - 08:42 Permalink

News are Manipulated, Markets, Politics, anything involving Bankers or Lawyers, Offshore Tax Havens, Unlimited Imports to make a few people Sickly Rich,... War Policy in USA is Manipulated like Foreign Policy and 'having no exit strategy'...  We DO Look like Russia!! USSR!! Maoist China!!  DNC & Clinton Foundation are just glaring examples of what looks like a page from Communist/European History.

" But today the American public, looking more than ever like Soviet Russia, has just one rule for entertainers: Don’t rock the boat. "

out of context maybe... https://nypost.com/2018/02/10/the-woke-police-have-ruined-entertainment/

headhunt Sun, 02/11/2018 - 10:48 Permalink

Tell all the Muppet's the view is great at the top.

Pack all the Muppet's into elevator and take them to the top and push the Muppet's out.

Close the doors and take elevator all the way to the bottom.

Muppet's press button to bring elevator back up but nothing happens.

Muppet's jump out window

yellowsub Sun, 02/11/2018 - 10:49 Permalink

Everything is manipulated to serve their greater purpose.  

When you have people wanting America to continue their War on Terror is when you know they have succeeded...

Squid Viscous Sun, 02/11/2018 - 12:01 Permalink

cramer the non-manipulated stock picker:

 

you want winners? You want me to put my Cramer Berkowitz hedge fund hat on and just discuss what my fund is buying today to try to make money tomorrow and the next day and the next? You want my top 10 stocks for who is going to make it in the New World? You know what? I am going to give them to you. Right here. Right now.

 

OK. Here goes. Write them down -- no handouts here!: 724 Solutions ( SVNX), Ariba ( ARBA), Digital Island ( ISLD), Exodus ( EXDS), InfoSpace.com ( INSP), Inktomi ( INKT), Mercury Interactive ( MERQ), Sonera ( SNRA), VeriSign ( VRSN) and Veritas Software ( VRTS).

 

update:

INKT - In March 2000, Inktomi stock peaked at a price of $241 per share.[17]

In 2002, after the burst of the dot-com bubble, the company restructured and Keyur Patel joined Inktomi as senior vice president, strategy, marketing and technology.[3]

The restructuring led to the sale of the Ultraseek Server product (renamed Inktomi Enterprise Search) to Verity in late 2002 and the sale of the rest of the company to Yahoo! for $1.63 per share, or $241 million, completed on March 19, 2003.

 

INSP: By June 2002, the company's stock price, which reached $1,305 in March 2000,[11] had dropped to $2.67.

 

MERQ - From 4 January 2006 until its acquisition by Hewlett-Packard, Mercury Interactive was traded via the Pink Sheets as a result of being delisted from the NASDAQ due to noncompliance with filing requirements

VRSN - was $200/share now has recovered to $103 /share 18 years later

ARBA - In 2000, the stock value continued to climb, and Ariba's market capitalization was as high as $40 billion.[9] With the bursting of the dot-com bubble, Ariba's stock price fell dramatically to the low double digits in July 2001, where it remained for the rest of its life as an independent company

Peter41 Sun, 02/11/2018 - 12:13 Permalink

Whoa, Nelly. Is the truth going to get the attention of the regulators? Or, are they going to sleep at the switch, since they are in on the conspiracy. Interesting that the precious metals manipulation wasn't mentioned by Cramer. Maybe it is too obvious.

JLM Sun, 02/11/2018 - 12:23 Permalink

Everything is manipulated.   I remember my daughter at school in Grade 2.  Went in to the teacher interview and heard how well she was doing in reading.  Of course.  I taught her to read myself using phonics before she got into kindergarten.  Teacher told me my daughter had "great decoding skills".  When discussing this with her I learned that she is not allowed to use the phonics method and will in fact be fired for using it if it comes to the principles attention.  I said that is insane and she agreed.  Her approach was to use phonics in the classroom in sneaky ways by calling it something else. Her goal was to educate while avoiding the minefield. Damn cultural Marxists and corrupt bureaucrats are every where.  

As to the markets ha ha.  Beware.  Know the party line and also the unofficial reality which this video shows in spades and act accordingly.

What a world we live in. 

InnVestuhrr Sun, 02/11/2018 - 12:37 Permalink

One of the reasons why I don't invest in equities, only bonds, credit, REITs, etc.

On the occasions that I do just trade equities, I am always amused by watching the tick data closely and seeing how orders of very low quantities, eg 1, are used to push prices up on my buys and down on my sells.

Downtoolong Sun, 02/11/2018 - 13:07 Permalink

You must add the caveat, “don’t get caught” to option “C”. Because, if the Big/Smart Money catches you beating them at their own game you are definitely going to jail.

menchivist Sun, 02/11/2018 - 13:22 Permalink

Just ask Cramer how much he made off of shorting the market back in 2000.  Shepwave has been calling these moves is all we know on Zerohedge. 

truthalwayswinsout Sun, 02/11/2018 - 13:47 Permalink

The last time we had an honest government was after WWII when the Republicans took control and cut the federal government after WWII instead of continuing WWII spending levels. Since then it has been one continual con job after another without end.

helloimjohnnycat Sun, 02/11/2018 - 14:43 Permalink

More joo spin for the cattle.

Defining " the market " as if an inanimate construct operates on its own power is deflection.

Obviously, the problem with a market originates and expands with those who control, coordinate, and rig the action.

Most people with a modicum of education know the score, but weakness overwhelms their ability to think rationally and they're led to act against their own interests.

If genuine WHITE Americans never elected one joo-lawyer / kike-shyster to make laws governing our American system,  " the markets " would work according to supply & demand as opposed to being manipulated casinos.

The fate of the American Republic was sealed when the public allowed its collective life to be controlled & taxed by phony-Jews whose only god is their own greed.

The cabal of moneyed-zionists expanding / invigorating their private banking in America and legislating tax laws to levitate credibility into financial schemes & manipulations was brilliant in concept. 

A strong case can be made that WW I & II was orchestrated because the kikes' Divide & Conquer Incrementalism needed a rapid and sustaining acceleration. Here in USA, that their ploy's ongoing success and effectiveness has stuck for over one hundred years could also be ascribed to dumb-luck.

One day, the ill-conceived power base of the false-Jews will be destroyed.

 

 

 

 

 

 

Jamesf1010 Sun, 02/11/2018 - 17:43 Permalink

I remember Cramer on his show telling people to buy real estate right before it all collapsed and home prices were cut in half. I knew how over-priced they were and never listened to him again.