Former congressman calls for investigation of Jim Cramer

Former Rep. Tom Davis (R-Va) is calling for an investigation of Cramer, based on Cramer’s own statements in 2006 about how he manipulated stocks when he ran hedge funds.

“You know, a lot of times when I was short and I was positioned short, meaning I needed it down, I would create a level of activity beforehand that could drive the futures,” Cramer said in the three year-old video. “Similarly, or if I were long, and I would want to make things a little bit rosy, I would go in and take a bunch of stocks and make sure that they’re higher and maybe commit five million in capital to it and I could affect it.”

This would certainly appear to be stock market manipulation, clear and simple.

“I think he’s become a poster child for why hedge funds need more regulation and transparency” Davis said.

It’s becoming increasingly obvious to me that the markets are manipulated. Some days there will be a strong trend one way then at precisely 3:30 pm, 30 minutes before close, it reverses strongly. Banks give out bogus reports to goose their stocks and only a fool would think they didn’t load up on their own stock first. Hedge funds game the system and openly manipulate the market. The bonus system means no responsibility and little accountability. They sold garbage mortgages and toxic securities, made huge money, and probably knew and didn’t care that the whole thing would come crashing down.

You bet we need strong governmental regulation, criminal investigations too.