Wednesday, January 23, 2008

Cramer: "It's all fiction!"


(We used to say) “The commissions on structured products are so huge let's JAM IT.” (note “jam it” means foist it on the customer) It's all about the 'commish'. The commission on structured product is GIGANTIC. I could make a fortune 'JAMMING THAT CRUMMY PAPER' but I had a degree of conscience---what a shocker!--We used to regulate people but they decided during the Reagan revolution that that was bad. So we don't regulate anyone anymore. But listen, the commission in structured product is so gigantic. (pause) First of all the customer has no idea what the product really is because it is invented. Second, you assume the customer is really stupid; like we used to say about the German bankers, 'The German banks are just Bozos. Throw them anything.' Or the Australians 'M O R O N S' Or the Florida Fund (ha ha ) “They're so stupid let's give them Triple B (junk grade) Then we'd just laugh and laugh at the customers and Jam them with the commission...That's what happened; that's what happened....Remember, this is about commissions, about how much money you can make by jamming stupid customers. I've seen it all my life; you jam stupid customers.

Transcription of portion near end of the video by Mike Whitney, in "Financial Meltdown: Is This The Big One?" Whitney asks whether this is "smart" or criminal.

At one point, Cramer says we are in "late-stage rapacious capitalism."

He also talks about social pressure not to talk about false financials among the Wall Street crowd who golf together and send their kids to the same private schools.


casseia said...

Hey Ningen,

Did you remove your blog on international law from 911b?

casseia said...

Hey Ningen -- I tried to email you but it bounced back twice with a message that "quota had been exceeded." Just wanted to let you know that I activated your registration "over there" and you can log in now if you like.