Crames, the new Champion of Naked Short Selling..........

Discussion in 'Wall St. News' started by flytiger, Apr 4, 2008.

  1. Don't sue me Jim. Your pals already held me by the ankles over the stairwell and shook the lunch money out of my pockets. I'ts just I'm such a miserable prick, I survived and will prosper. Kinda like you.

    Jim Cramer Blog
    Too Easy for People to Get Their Rumor On
    By Jim Cramer Columnist
    4/4/2008 10:22 AM EDT

    You know when you have a lost cause? When you are the only one championing
    it out loud except for a few fringe players whom you may not want to make
    common cause with.

    I am talking about the combination of shorting without upticks -- perfectly
    legal -- coupled with rumor-mongering -- legal if you believe it so really
    hard to prove -- and failing to deliver after you raid down a stock.

    There is a debate raging in these pages, with Doug Kass being the most
    vociferous about the other side of this debate, and I am going to link it
    here rather than characterize or mischaracterize it.

    Suffice it to say that I believe that when the fundamentals are not sound at
    a company, its stock makes a good short. I am not saying that's wrong.

    Shorting is fine; it is just the opposite of going long.

    I am saying that causing a panic is bad. I think that in these fragile
    times, a panic can have lasting damage and be self-fufilling if done
    intelligently. I am not saying I know if there was panic sown on the Bear
    (BSC) or on the Lehman (LEH) or Bank of America (BAC) raids. I am saying
    that it is easier to knock down stocks if you don't bother to find stock to
    sell and don't have to worry about delivering, which is how the current
    system has devolved.

    I am saying that without the uptick rule to slow things down, it is much
    easier than ever to take a stock and crush it.

    I am saying that it is easier than ever to rumor a stock down, simply make
    up stuff and spread it, especially to the traders who help you get the trade
    on, particularly options trades.

    Yesterday, the Securities and Exchange Commission said it was looking in to
    whether this stuff has been going on of late with the financial stocks.

    All Christopher Cox (SEC commissioner) had to say on air is, "We are
    subpoenaing the tapes of the trading desks to find out what happened." He

    Everything in our business is taped, so it is easy enough to listen.

    If you want to discourage this behavior, that's one way to do it. Another
    way is to enforce the fail-to-deliver law.

    Now, here is what you need to know about this cause. No one else of any note
    is championing it. They are trying to push me to doing more of it.

    Many people are doing so. But unless some serious hitters demand action, it
    will just be a windmill tilt.

    I am grateful for the outpouring from readers and viewers on this issue.
    However, I know the truth. No one in power either understands this stuff or
    really cares about it. Once again, that's because we are in a laissez-faire
    moment of government in which the actions I am taking are just intrusions in
    the marketplace.

    Plus, those who have been most vocal behind this are either the managers of
    enterprises that have been the targets of shorts because of poor
    fundamentals, or people who have had a habit of attempting to discredit me
    in every venue possible, making the cause all the more difficult.

    Like many things -- misguided or not -- that I believe in, I will speak out
    on this issue.

    I just don't expect anything to happen. And I don't want you to expect
    anything either. The view of Doug Kass will prevail, so you might as well
    get to know it.

    At the time of publication, Cramer had no positions in stocks mentioned.

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  2. Another way is to enforce the fail-to-deliver law.

    Ya fuckin' think, Jim? You think we should enforce the laws on the books, unlike what they do now, which is to ignore them, and then respond to public pressure and do more 'comment letters'.

    No one else of any note is championing it.

    That's odd. We had this CEO of a public company come out and champion it, and you ridiculed him on air, made a mockery of what he stood for until he got discovery vs. Wall St. and Gradiant Rocker Partners. Seems that would make him a person "of note".

    Plus, those who have been most vocal behind this are either the managers of enterprises that have been the targets of shorts because of poor
    fundamentals, or people who have had a habit of attempting to discredit me
    in every venue possible, making the cause all the more difficult.

    First, Short sellers, let me rephrase, those who distort and then use legitimate short selling coupled with illegal short selling and rumor mongering, are not stupid. They dig through trash, pay off people, including the FBI, to get damaging information, and use generally unscrupulous means to obtain information on wounded ducks. But all too often, they kill a healthy patient. Try TASR, CALM, etc.

    Second, you deserve discrediting. You're a shill. Would you like to talk about you and Spitzer blasting Jos. A. Banks on your show, a REGSHO security. Now, the verdict is out. If you'd like to join the human race, there's always room. And we would welcome you , while, as I'm sure you understand, keeping you at arm's length.

    I just don't expect anything to happen. .

    You know something, Hotshot. We got this far without you. We'll finish it - with you, or without you.

    PS. That all being said. You possess a tremendous amount of knowledge that you could have used to help people avoid pitfalls. I'm sorry for you you chose the wrong path. You think I'm a sucker for playing it straight. In part, you're correct. I am a sucker. But, I hold my head up, and I don't worry about the wolf at the door.
  3. When i read 'Confessions of A Street Addict' Cramer came right out and said their team would short stocks and then actively pad the media with rumors and innuendos...

    Is Cramer the same person everyday or
    what. He seems possessed by the flip flop man.


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  4. Remember when The Three Stooges were at that hoity toity party, and even the society dames got in on the pie throwing? Close you eyes, and imaging the scene with Curly, as he saw the pie hurtling at his face. That's Crames.

    I'm sure he knows more than me. And it ain't good. The powers need a scapegoat. They thought it was Patrick Byrne. That's why the SEC initiated the investigation of overstock, what, three years ago? I'm thinking that focus is shifting. Crames is sidestepping, pointing at Herb and the boys. We'll see. Next week will be very interesting.

    I want to remind you, there is a new sheriff at the SEC. Could Cox look anymore pained than here????

    Not nirvana, but the most contrite piece I've ever seen from the Fool. They don't want to quite admit it. But it's a happenin'. I think the behind the scenes pressure is unbearable.

    I'm sorta busy. Commiss Gordon calls three, four times a day. But if we could get a thread going, and share some SHO Stock information, there might be some money to made here.

    I can't believe these fails can land anywhere, and the brokers are going to hammer their best customers.

    FSLR today. I think that's ten percent. :D

    Any takers?