Hedge funds, market risks, and James Cramer

By Thomas Lifson

Noel Sheppard of Newsbusters raises very important questions about the major media ignoring a revelatory disclosure by CNBC host and market guru James Cramer, a former hedge fund manager himself.

In an interview with TheStreet.com TV, Cramer

...told TSC's executive editor Aaron Task about how he used to manipulate stocks and the market when he was a hedge fund manager, and explained how such people today can't "do anything remotely truthful" if they want to make money (video available here).

Given the huge weight hedge funds now wield on the stock markets, the apparently commonplace, and apparently legal (in some cases) maneuvering described bears investigation. I hope that Chris Cox, the extraordinarily able new chairmen of the Securities and Exchange Commission, puts his staff to work on this admission.

The media normally love to demonize Wall Street, The silence on this story is perplexing.