‘Tis the season to bring up old Cramer clips. Jon Stewart has been doing it profitably, and now HuffPo jumps on as well, posting an old video from TheStreet.com, in which Cramer explains to Aaron Task how a hedge fund can easily manipulate the market. HuffPo seems to think it’s scandalous, since the Mad Money host is talking about how easy it is to throw off other traders and evade detection of the SEC.
But actually it’s great that he’s talking about it. For one thing, day-traders don’t have any right to not get manipulated. The stock market is a game, especially at the trader level. That’s why people like it and are obsessed with it. Would it be scandalous if a poker player revealed that he bluffed sometimes and tried to psych his opponents out through chicanery? Duh, no. And to the extent that he thumbs (or thumbed) his nose at the SEC, well, as we know the agency was pretty much asleep at the switch.
Either it should enforce the laws on its books against manipulation or it should take them off, so that nobody is under the impression that they’re being protected. Having laws that aren’t enforced are the worst of both worlds.
Anyway, Cramer bashing is popular sport, and we’ve done it ourselves. Maybe you’ll agree with HuffPo’s take.