Comments on: Cramer and Personal Responsibility http://thetradingdigest.com/blog/2007/03/21/cramer-and-personal-responsibility/ Tue, 02 Dec 2008 23:56:00 +0000 http://wordpress.org/?v=2.6.3 By: Critical Brain Candy » Blog Archive » The market movers http://thetradingdigest.com/blog/2007/03/21/cramer-and-personal-responsibility/#comment-2476 Critical Brain Candy » Blog Archive » The market movers Tue, 07 Aug 2007 15:08:57 +0000 http://thetradingdigest.com/blog/?p=69#comment-2476 [...] On the end of the “illegal spectrum,” a few months ago market commenter (and former hedge fund manager) Jim Cramer admitted that fund managers will call news organizations and plant completely fake stories to help them make a profit. See some discussion of that here: Cramer and Personal Responsibility. [...] [...] On the end of the “illegal spectrum,” a few months ago market commenter (and former hedge fund manager) Jim Cramer admitted that fund managers will call news organizations and plant completely fake stories to help them make a profit. See some discussion of that here: Cramer and Personal Responsibility. [...]

]]> By: The Trading Digest » Blog Archive » Those who can’t (or won’t) criticize http://thetradingdigest.com/blog/2007/03/21/cramer-and-personal-responsibility/#comment-1876 The Trading Digest » Blog Archive » Those who can’t (or won’t) criticize Sat, 30 Jun 2007 03:10:23 +0000 http://thetradingdigest.com/blog/?p=69#comment-1876 [...] the message boards for and against Tim remind me of those aroused by Cramer who I defended in this post.  While I know far less about Tim than I do about Cramer, what I do know is that by actually [...] [...] the message boards for and against Tim remind me of those aroused by Cramer who I defended in this post.  While I know far less about Tim than I do about Cramer, what I do know is that by actually [...]

]]> By: mdawsz http://thetradingdigest.com/blog/2007/03/21/cramer-and-personal-responsibility/#comment-24 mdawsz Sun, 25 Mar 2007 06:41:24 +0000 http://thetradingdigest.com/blog/?p=69#comment-24 This is an excellent post. I am most impressed with your "deal with it" response to the matter. I personally feel the same way. This stuff happens, learn it, trade it, profit from it. This is an excellent post. I am most impressed with your “deal with it” response to the matter. I personally feel the same way. This stuff happens, learn it, trade it, profit from it.

]]> By: admin http://thetradingdigest.com/blog/2007/03/21/cramer-and-personal-responsibility/#comment-20 admin Fri, 23 Mar 2007 00:34:15 +0000 http://thetradingdigest.com/blog/?p=69#comment-20 Neil, You make a very good point. I do recall that case where the teenager was thrown in jail. Obviously in that case prosecutors probably had logs showing him posting the false news on the message board at such and such a date. With CNBC, and any "real news organization", they have a tendency to protect their sources and are _supposed_ to at least attempt to verify a story before reporting it. Obviously when they preface something as a "rumor" (ie the rumor of MOT buying PALM they mentioned yesterday, etc), things get extremely gray. Which leads me to think that they (the news organizations) share a large percentage of the blame as they allow themselves to be manipulated like puppets. Neil,

You make a very good point. I do recall that case where the teenager was thrown in jail. Obviously in that case prosecutors probably had logs showing him posting the false news on the message board at such and such a date. With CNBC, and any “real news organization”, they have a tendency to protect their sources and are _supposed_ to at least attempt to verify a story before reporting it. Obviously when they preface something as a “rumor” (ie the rumor of MOT buying PALM they mentioned yesterday, etc), things get extremely gray. Which leads me to think that they (the news organizations) share a large percentage of the blame as they allow themselves to be manipulated like puppets.

]]> By: Neil Thier http://thetradingdigest.com/blog/2007/03/21/cramer-and-personal-responsibility/#comment-19 Neil Thier Thu, 22 Mar 2007 17:08:34 +0000 http://thetradingdigest.com/blog/?p=69#comment-19 Hi John, I agree with most of your post. I don't personally believe that performing actions in the market to force a particular reaction should be illegal. As you point out, the trader is risking their own capital to make that play. Further, proving intent would be difficult, at best. I do however have an issue with his comments about calling reporters and planting completely false stories. It doesn't matter that anyone's an idiot for acting on such a story; the action by the trader is malicious and explicitely trying to move the market under false pretenses. From a legal standpoint what I don’t understand is how a teenager got thrown in jail a few years ago for going on message boards and making up news to move a stock, but a hedge fund manager can call real news organizations, plant completely false stories to move the market, and that’s all OK. Hi John,

I agree with most of your post. I don’t personally believe that performing actions in the market to force a particular reaction should be illegal. As you point out, the trader is risking their own capital to make that play. Further, proving intent would be difficult, at best.

I do however have an issue with his comments about calling reporters and planting completely false stories. It doesn’t matter that anyone’s an idiot for acting on such a story; the action by the trader is malicious and explicitely trying to move the market under false pretenses.

From a legal standpoint what I don’t understand is how a teenager got thrown in jail a few years ago for going on message boards and making up news to move a stock, but a hedge fund manager can call real news organizations, plant completely false stories to move the market, and that’s all OK.

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