Jim Cramer’s 2006 interview on TheStreet.com is now the stuff of legend thanks to John Stewart. But the most amazing aspect of the interview is something that didn’t come up in the course of Stewart ripping Cramer a new one:
Cramer advocated using the scrutiny-free airtime CNBC provided to manipulate the market.
Check out the transcript below. For context: Cramer’s recapping how to artificially drive down the shares of BlackBerry producer Research in Motion starting at about minute 5:35 before he drops the bomb about his future employer at 6:14:
CRAMER: Who cares about the fundamentals? Research in Motion just blew out the quarter. But look what people can do. That’s the fabulous thing. The great thing about the market is that it’s got nothing to do with the actual stocks. Maybe two weeks from now the buyers will come to their senses and realize that everything they heard was a lie. But then again Fannie Mae lied about their earnings for $6 billion. It’s just fiction and fiction and fiction. And I think it’s important for people to recognize that the way the market really works is to have that nexus of: Hit the brokerage houses with a series of orders that can push it down. Then leak it to the press. And then get it on CNBC — that’s also very important. And then you have kind of a vicious cycle down. And it’s a pretty good game. It can be played for a percent or two.
OTHER DUDE: And then you go long before Mac World?
CRAMER: You drove it down, you certainly have to use the other side.
Seriously, why isn’t this guy in jail?