Hedge Funds:"What's important when you're in hedge fund mode is to not do anything remotely truthful..."

     You might have a hedge around your house but it won't protect you from the guys in Wall Street who operate multi-million dollar hedge funds to make money make money by leaking false news, subverting the truth.... 

     Just to get a glimpse on the hedging world, the December 22 dialogue between James J. Cramer and Aaron Task on "Wall Street Confidential," a video feature of TheStreet.com, is to say the least revealing. Here are some exerpts, thanks to the June issue of Harpers.

    Cramer: "You've really got to control the market. You can't let it lift."

   Wait a minute! What happened to the so-called free market? You mean a bunch of guys with a lot of dough can control the market?

    Cramer says he knows there are some things you shouldn't do. For example, "You can't create, yourself, an impression that a stock's down. But you do it anyway, because the SEC doesn't understand it. So, I mean, that's the only snse that I would say it's illegal. But a hedge fund that's not up a lot really has to do a lot now to save itself..."

     Well, what are you supposed to do when your company is in bad shape? You try to create the impression that this or that competitor is on the rocks. "So you would hit this guy and that guy, and when you would see a guy who's bidding, you would wipe out that guy very quickly..."

      The hedgers somethimes need outside help so they contact the "Journal," for example, and spread a rumor..."these are all the things you must do on a day like today, and if you're not doing it, maybe you shouldn't be in the game."

     If you are not involved in the hedge business, and if you are naive enough to still believe in those slogans about free market, free press, democracy and so forth, or if you are a reporter new to the business, you might perk up your ears at this:

    "You just create an image that there's going to be news next week that's going to frighten everybody. This is what's really going on under the market that uyopu don't see."

     Woh!

    "But what's important when you're in 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."

     Woh! Goodbye fundamentals, it appears...

     "Who cares about the fundamentals? Look at what people can do. The great thing about the market is that it has noting to do with the actual stocks. Now look, maybe two weeks from now buyers will come to their senses and realize everything they heard was a lie--but then again Fannie Mae lied about their earnings for six billion dollars, so you know..."