In a world where well-meaning blogs reporting what they’re told can turn the stock market on its head, it’s important for the responsible blogger to take stock of where his information is coming. Previously, we’ve kept our financially inclined readers up to date via the words of one Jim Cramer, host of CNBC’s Mad Money. We’d like to take this moment now to say that his recommendations and analysis will appear on our site no longer.
Excerpts of an interview between Cramer and Aaron Task of “Wall Street Confidential” (a video feature on TheStreet.com) have recently been published in the June 2007 issue of Harper’s Magazine. We’ve posted pieces of this interview after the jump, and Cramer’s recommendations to hedge-fund managers should make you livid. You should also notice a few familiar names.
You’ve really got to control the market. You can’t let it life. When you get a Research in Motion, it’s really important to use a lot of your firepower to knock that down, because it’s the fulcrum of the market today. You can’t create, yourself, an impression that a stock’s down. But you do it anyway, because the SEC doesn’t understand it… This is just blatantly illegal.
But when your company may be in doubt because you’re down, I think it’s really important to foment an impression that Research in Motion isn’t any good, because Research in Motion is the key today. When your company is in survival mode, it’s really important to get the people talking as if there’s something wrong with RIM. Then you would call the Journal and you would get the bozo reporter on Research in Motion. And you would feed him a rumor that Palm’s got a killer it’s going to give away. Theses are all the things you must do on a day like today, and if you’re not doing it, maybe you shouldn’t be in the game.
What’s important when you’re in 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… The great thing about the stock market is that it has nothing to do with the actual stocks… It’s just fiction and fiction and fiction.
Cramer also in the interview mentions ways in which someone could affect Apple’s stock via iPhone rumors. Some may say that Cramer is only identifying the mindset of a hedge-fund manager, and not recommending these illicit and immoral (if not illegal) actions himself, but one only has to remember that he himself was once a hedge-fund manager, or scan the latest news and wonder.