This just 5 days before Bear Stearns sold to JP Morgan for $2 a share, in a Fed brokered bailout.
“You know, a lot of times when I was short at my hedge fund and I was positioned short, meaning I needed it down, I would create a level of activity beforehand that could drive the futures. It doesn’t take much money.”
Jim Kramer saying how he'd use his CNBC program, "Mad Money" to game the stock market and make money, lots and lots of money.
A liar is a thief is a liar is a crook is a liar is a con artist. Man, that's "Mad Money" for you!!
As you ponder that, consider this excerpt from testimony given at the Friday, June 3, 1932 Senate Committee on Banking and Currency hearings:
William A. Gray, Counsel to the Committee: So that the committee may understand the matter which I am now going to present, permit me to say that I am going to show by Mr. Lion himself that he is a publicity man, and that for a period of three years he was acting for numerous brokerage houses in the city of New York, that he furnished through various journals, including radio speeches, publicity for certain stocks, pools which were then being operated by the brokerage houses, he being paid for such by cash and by being given calls on the particular stocks in questions, at prices that he could sell them to his advantage, the brokerage house of course giving him credit for same in an account which he carried and settling with him the same as they would settle with any other person who had actually bought and sold, he not being required to put up any cash at all. Now, Mr. Lion, please give us your full name.
Mr. Lion: David M. Lion…
Mr. Gray: What is your business?
Mr. Lion: Financial publicity.
Mr. Gray: How long have you been engaged in that business?
Mr. Lion: Five years or more.
Mr. Gray: Prior to engaging in that business and for the past five years have you at any time conducted a paper of your own?
Mr. Lion: Yes.
Mr. Gray: What was the name of that paper?
Mr. Lion: The Stock and Bond Reporter…
Mr. Gray: How long did you continue the use of the radio for the purpose of disseminating information about stocks?
Mr. Lion: I used it all of 1929…
Mr. Gray: Now, you did not do your own radio talking, did you?
Mr. Lion: No, sir.
Mr. Gray: What was the name of the man you employed to do your radio talking?
Mr. Lion: I employed William J. McMahon…
Mr. Gray: Who is he?
Mr. Lion: He was an economist…
Mr. Gray: Each of his talks was devoted to a particular stock, wasn’t it?
Mr. Lion: No.
Mr. Gray: Sometimes only one stock?
Mr. Lion: Yes, sir…
Mr. Gray: But when he ended up his talk as a usual thing he referred to a particular stock and boosted it. That is true, isn’t it?
Mr. Lion: Yes, sir.
Mr. Gray: And he was a salaried man on your staff for that purpose, wasn’t he?
Mr. Lion. Yes, sir.
The con hasn't changed, only the faces pulling the wool over our eyes has.