It’s probably because he doesn’t own the stock.

There was a study and the results was known as the Cramer Effect and the Jim Cramer Effect. His advice would create a bubble on a buy advice and a dip on a sell/short advice. That bubble or dip would last about 12 market days before things got back to normal for that stock. One could have done the opposite (short on buy advice and flip on the sell/short advice) of Cramer’s advice and still make money.

Be aware of any popular financial advise involving buying or selling, because if 100,000 or a million people start doing the same thing at the same time, it diminishes the gains. That’s why mutual funds that are doing well (the top 20%) will not tell anybody how they are doing it, because if everyone did it, that mutual fund would just end up being average.

Also many advisors don’t actually do what they say. Donald Trump doesn’t buy or sell property with his money. His company uses private bonds from investors to buy and build property which then the company sells or runs. That company has gone bankrupt at least twice. Trump just skims the money off the top for himself. He also does speeches (requiring hundreds of dollars in fees for people to listen to him) on buying and selling property, which he really doesn’t do himself. Many mutual fund operators don’t have money in their own mutual funds. Others such as Suze Orman makes her money from advice books and then buys bonds and real estate to preserve her wealth. Robert Kiyosaki was already a millionare from his step dad and made more money selling books, but he has advised people to buy gold and real estate (but at least he said get out when the real estate bust started to show).

Thank you for the insightssssss.

Jed Clampett

thanks TD, now that is more worthy of National Affairs.

In answer to your question… for the same reason it took more than ten years of prodding the SEC on Madoff and being turned in by his sons to actually stop THAT Ponsi scheme.
Because it’s business as usual. Cramer had no fear of revealing to the guy from The Street his crimes, like I said before, they feel untouchable and therefore break laws without fear; they know the regulatory agencies are understaffed, underfunded, poorly talented and have insiders at the top.
Like Stewart said…”I can’t tell you how angry I get, because what it says to me is that you all know, that you all know what’s going on, you can draw a straight line from those shenanigans to stuff that was being pulled at Bear and AIG and all this derivative market stuff that’s this weird Wall Street side bet”

Can you hear me now?
Test for echo.

It’s Jon, not John.

Jed Clampett

Hey GregD, did you actually misunderstand the entire clip or are you intent on misrepresenting everything you find not congruent with your beliefs?

The clip has nothing to do with Cramer’s advice, or anyone elses advise or opinion; everything to do with his abuse and misuse of the money in the funds he was in control of.
To summarize, if he had set himself up for shorting a particular stock, and the stock wasn’t moving in the direction he needed it to, down, he could use some of the Millions at his command to make several small sells in order to get the market for that particular stock moving in the direction he needed. He ‘fomented’ (or fermented if you prefer, it’s like an intoxicant if you believe the very satisfying part) activity by manipulation of the wealth and the media. He gave two definite examples where he had done or felt it wasn’t reprehensible to do this, RIM and APPLE.
In other words, he inadvertently admitted to a crime. As any good FBI interrogator knows, not a difficult thing to do with a suspect full of hubris and an air of untouchability.
Now, if we could only apply this knowledge to the big players, we may have a fresh water pond to swim in again rather than an artificial tank full of sharks and piranhas.

Yes, but like I said, the research show the stock moved for about 12 days before it went back to normal. If you knew that, you could make the play the other way (buy on a sell recommendation or short on a buy recommendation) and still make money off of Cramer. Now if you wanted to play the sheep, follow his idea, but end it on the third market day, because on days 4-11 that bump has faded fast.

This bump has been known since Aug. 2007 and according to that artical from Smartmoney, Cramer has said that one could play the contrarian and still make money. Of course there is going to be bump everytime there is a buy or sell recommendation by any famous person. Even Oprah could be manipulating the market to support friends who have written books. The law has recognized that there are lots of stock pickers in the business world (including The Motley Fool, barchart and other technical web sites and of course Cramer). Now has Cramer admitted using the press to manipulate stocks for his gain? Yes, it’s in his book called Mad Money under “buzz merchandising.” He feed news on stocks to reporters when he was running his hedge fund (it’s in the smartmoney artical). While running his hedge fund, he was also running The Street which gives stock recomendations. He has gotten away with it, because he wasn’t making contrarian plays.

Jed Clampett

wow, you are still missing the point, or, in light of your first word, diverting from it.

Let me try this… What good is a system of investing, in which an investor must have valid and real information about a company in order to make a decision on whether to support the company with their money, if it can be gamed with such ease by people with popularity, control of large amounts of wealth and no scruples?
Isn’t it little more than gambling in that case? And if so, why was everyone’s retirement directed to the casino tables and one armed bandits? Why was it allowed to make bets in this huge casino on whether a stock would drop, creating the conditions necessary to make the market manipulable by those wishing to demote a certain stock?

Oprah is not manipulating the markets young man, she is promoting a book she likes in those instances. I believe it’s called advertising. It’s not the same as criminally manipulating the markets and the media to force the sheeple to act in a particular way, which is what Cramer admits to on the clip.

He has gotten away with it because the regulatory system has been degraded to such an extent as to make it impossible to oversee and prosecute all the illegal activity going on. He’d make a great example for the SEC to throw the book at. Like Cramer said to Jon in his defense, ‘those CEOs came in my office and lied to my face’… well, isn’t that the pot calling the kettle and the rest of the kitchen implements black? Seems to me a certain president was dragged through the mud sometime back for lying; is truth only important when it’s personally convenient in this nation?

Aha! Jed, you finally hit the nail on the head!

Yes, it’s exactly like gambling. You can either take somebody’s word about a company, or not. You can lay your money on a certain ‘team’ or not. The only difference here is the fact that you can pull your money out before the endgame.

Cramer is no different than those sunday morning ‘advisers’ telling you about their ‘Sure Fire 3-Team Parlay’.

“This video is no longer available due to a copyright claim by thestreet.com”.
Looks like Cramer and thestreet.com are trying to drop this 2006 tape down the memory hole…

Who cares? Cramer is just some TV stock-guy hack like the rest. This is what happens when you consider the Daily Show journalism… and John Stewart as anything more than an angry propagandist with good comedic timing.

“…As any good FBI interrogator knows…”

I am certainly not going to question you, positive you have much more time speaking to FBI interrogators that the rest of us here Jed.

I just came here after Googling “Matt Taibbi.”

Please learn how to spell Jon Stewart’s name correctly.

That is all.

Jed Clampett

Well SOOTSayer, I can understand that from your sheltered foxhole you’ve been unable to read any accounting of the interrogations of Saddam Hussein by experienced FBI agents, and didn’t bother to read the ICRC story that Tim linked to, or any of the countless books written by interrogators and other intelligence experts on the issue.
Don’t worry, we realize it is your own choice to be misinformed, particularly in this day and age when the truth is easier to find with just a bit of work on the keyboard.
It’s also easy to see that neither you nor the prop sniffer have much to contribute, merely words to show your envy and disdain for all things productive.
Keep trying, you guys might just achieve the dissolution of that country you so much despise because of it’s plurality and liberty.
Perhaps your republican leadership will give you a new country where you will fall in line with THEIR dogma and will allow you to BULLY or FORCE others to follow it as well; in the meantime, the rest of us will oppose you until we can no longer do so civilly and are compelled to take up arms.

Cco in re Stewart.

Other angry non-journalists but whom the rednecks idolize are Sean Hannutsy and Rush Limbaughloney.

Cco in re Stewart.

Other angry non-journalists but whom the rednecks idolize are Sean Hannutsy and Rush Limbaughloney.

Kray-merika!

Drunk with power – again!!!