Wednesday, September 30, 2009

When Is The SEC Going To Investigate Jim Cramer?

CIT's stock price plunged 45% today as the company collapses under the weight of billions of dollars of distressed assets (bad loans) and appears headed for some flavor of bankruptcy.  YESTERDAY, however, CIT stock ramped up over 31% as a rumor circulated the market that a $10 billion bank loan was being arranged to save CIT from bankruptcy.  The majority of that ramp up occurred AFTTER Jim Cramer came on to CNBC and pounded the table for viewers to load up on CIT stock.  Here's the link (hat tip to  Cramer: CIT to the Moooooon

Anyone who has been following the CIT soap opera knows that Pimco effectively tied up most of the decent collateral, as it engineered (some would say "forced") a $3 billion debt swap in which unsecured bonds were exchanged for super-collateralized bonds.  This basically negated any hope of a larger, secured bank debt deal and would put Pimco in prime position to profit handsomely from any future financial reorganization/liquidation.

How come Cramer did not know these facts?  Why is Cramer allowed to go onto CNBC and continually issue table-pounding stock buys on imminent train wrecks?  He did the same thing a few days before Bear Stearns collapsed.  We know by his own admission that he used to front-run stocks on inside information when he managed a hedge fund.  How do we know he's not pumping up stocks like CIT and Bear Stearns in order to allow his Wall Street cronies to get out of them before they vaporize?
My question is, WHEN IS THE SEC GOING INVESTIGATE CRAMER AND CNBC?  Why is Cramer much different that Madoff?  Both are corrupt snake-oil salesmen.  I hope some burned investors from the current CIT abortion pursue this matter in court.


  1. Cramer was a bull on Bear Stearns too. I think the SEC only gets involved (if they ever do) when you are right about something good, which Cramer never is. I have no sympathy here, anyone in CIT, AIG or many others are always facing a possible zero at market open. Buyer beware.

  2. I don't have sympathy for anyone who listens to Cramer either. He's complete vermin and everyone should understand that by now. But here's the thing, I would bet decent size money that Cramer knowingly pumps situations like CIT to run them up in price and let his big firm buddies unload their positions or establish big short positions.

    Don't forget, Cramer started his career in the mob at Goldman. People at Goldman would sell their mother for a commission. I can say that for fact because I worked at Goldman for 2 years after undergrad.

  3. People need to turn off his show when he comes on. That'll send a message.

    He's no different than any MM on the forums bashing or hyping up stocks with make believe rumors and lies.

    Now if he's paid by them and didn't disclose it then that's something they need to look at.

  4. That's nonsense !

    You just need to look at a CIT Volume report in order to identify lot sizes. Uneven numbers are bought by small investors. Big round numbers are bought by the big players.

    CIT Volume report shows big round numbers!

  5. The SEC gets payed by those criminals.