In March 2007, a December 2006 interview Wall Street Confidential webcast stirred
controversy after it appeared on YouTube. In the video, Cramer described activities used by hedge fund managers
to manipulate stock prices - some of debatable legality and others illegal. He described how he could push stocks
higher or lower with as little #$%$ million in capital when he was running his hedge fund. Cramer said,
A lot of times when I was short at my hedge fund...When I was positioned short-meaning I needed it
down-I would create a level of activity beforehand that could drive the futures.
He also encouraged hedge funds to engage in this type of activity because it is a very quick way to make money.
Cramer stated that everything he did was legal, but that illegal activity is common in the hedge fund
industry as well. He also stated that some hedge fund managers spread false rumors to drive a stock down:
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.
Cramer described a variety of tactics that hedge fund managers use to affect a stock's price.
Cramer said that one strategy to keep a stock price down is to spread false rumors to reporters he described as
the Pisanis of the world. The comment was a reference to CNBC correspondent Bob Pisani, who reports from the trading floor
of the New York Stock Exchange. You have to use these guys said Cramer. He also discussed giving information to
the bozo reporter from The Wall Street Journal to get an article published. Cramer said this practice,
although illegal, is easy to do because the SEC doesn't understand it.During the interview Cramer referred to himself
as a banking class hero.