Cramer came out today once again pumping Countrywide as a possible buy out target by Merril Lynch. He postulated that Merrill would buy the "last man standing" in the mortgage business citing the fact that Merrill is still looking to expand its mortgage business. Cramer has been a big proponent of Countrywide since he recommended this stock earlier this year, only to see it slide 20% or more.
I do not know what motivation this Cramer has. But one has to wonder what type of insider information that he possesses to come out publicly and "postulates" that Countrywide will be bought out by Merrill? I believe this stupid action by Cramer is even more irresponsible and arrogant than the previous rants about how the hedge funds manipulate the markets and implicating himself in these "illegal" actions while managing Cramer Berkowitz, his hedge fund. This time, he goes out in the open and saying with audacity and authority that Countrywide will be bought out by Merrill.
It is surprising that SEC has not began a investigation into Cramer's actions on the TV. It is no secret that his recommendations on TV moves stocks which can be manipulated. He claims that he manages the Action Alerts Plus Charitable Trust where he is restricted from doing certain things to avoid conflict of interest. Yet, no one ever considers what he does for his own portfolios, possible partnership LLC's and other activities that he might not have disclosed that might in fact BE conflict of interest.
My feeling on Countrywide has always remained negative and more so each day. If not for insider selling activity that is on the verge of breaking the Guiness Book of World Records, key insider departures from the company, to continued pumping of the stocks and other unsetltling activities within the company, that leaves more questions than answers. Had Countrywide been a buy out target by Merrill with favorable buy out conditions, the insiders would not be selling right now but buying, there would be no insider departures, and most importantly, regardless of whether or not Angelo Mozilo might retire, he would be maximizing his estate by holding onto his shares.
No, I believe what Cramer did must wake up the regulatory body that is called the SEC and began a serious inquest into what actually is going on behind the scenes at James Cramer's empire. It is possible that his Hedge fund buddies are complicit in pumping up the share value of Countrywide but life is fair in the end and truth will eventually come out.
SEC where art thou? Aren't you supposed to be protecting the very issues that are arising in Countrywide and the loud mouth Jim Cramer?
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2 comments:
where is the SEC? lol...the SEC is full of former leaders in the banking industry and cronism is alive and well. They're too busy covering up the massive naked-shorting exposure of these hedge-funds to even allow their conscience to wake up long enough even to punish someone just to put some lipstick on their pig. The abuses have become so rampant and endemic that you now see someone like Cramer just come out and tell it like it is, as it's just everyday reality and has become 'normal' to manipulate the markets. I'm even inclined to believe the conspiracy guys about 9/11 and how, it's alleged, that the SEC piled all their evidence on the naked shorting scandal into WTC Building 7 and then conveniently blew it up while they were leveling the Towers with explosives as well...the Towers had a big construction flaw involving galvanic corrosion with the steel/aluminum contact points and they were terminal. Kill two birds with one horrific stone. The naked-shorting situation is so incredibly massive and un-recoverable that if the extent were truly known, all faith in our present financial system would evaporate overnight. That's why they would go to such extreme measures before the crap hit the fan...plus get everyones attention diverted (conveniently on 9/10/01 Rumsfield admitted that 2 billion pentagon dollars had vanished...that became a footnote after the events of 9/11). This country has been bent over and screwed 4 ways to the wind and the men in power are all going to cover for each other as long as they can......just my opinion :D
An interesting point and thank you for your post. I welcome all view points, though, I wouldn't go as far as the "conspiracy" theory regarding World Trade Center. Perhaps it is true but the painful memories just keeps me from going there. Is it possible? Perhaps.
As you know, if you have been reading my blog, I subscribe to the broad conspiracy theory when it comes to the markets. I believe, similar to you, that the main stream media is merely a propaganda machine for the large banking institutions, brokers, and hedge funds. It is designed to facilitate retail investor's behavior as they see fit.
Cramer continues to make me nauseous and his blatant non sensical rants are causing people to lose their hard earned money. Most notable recently is that he is now recommending Qualcomm when he was so bearish and bashing on that stock a few months back.
His support of Countrywide to "jack" up the share price is inexcusable and in my opinion illegal.
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