by John Galt
August 2, 2012 19:30 ET
On CNBC today, Jim Cramer made a big deal about the Knight fiasco and offered his own commentary in support of the average investor:
Yes, Mr. Cramer, we are disgusted with the lack of ethics on Wall Street.
And YES, Mr. Cramer, we are sick and tired of market gurus and sycophants who claim to be for the average man or investor only to discover how corrupt they really are.
For example, this article from the New York Times Business section, Dealbook column of March 20, 2007:
From the piece linked above:
But Mr. Cramer spends most of the interview describing a practice called “fomenting,” where a hedge fund manager essentially creates a false impression about a company in order to drive its stock one way or another — which he says is “blatantly illegal,” but adds that “the Securities and Exchange Commission doesn’t understand it.” While he claims this practice is widespread, he never says he has used it himself.
Also later in the article he states:
“These are all the things that you should be doing on a day-to-day basis and if you’re not doing it, maybe you shouldn’t be in the game,” Mr. Cramer tells Mr. Task.
Mr. Cramer sums up his philosophy this way:
What’s important when you are in that hedge fund mode is to not do anything remotely truthful, because the truth is so against your view, that it’s important to create a new truth, to develop a fiction.
Hmmm, what’s absurd, ridiculous, and infuriating about hypocrisy?
When it acts pompous and self-righteous like numerous talking heads on financial news channels are so prone to do.