Hedge Funds Cash In on AIG

[Fastfade]

I admit I'm naive when trying to understand the financial crisis we're undergoing but after watching Jim Cramer on Mad Money tonight, I was stunned at the piece he did on Sell Block: Hedge Funds Cash In on AIG.

Here's a link to the article and the Video of the segment (the video is much more thorough than the text portion):

Mad Money: Sell Block: Hedge Funds Cash In on AIG - Sell Block Archive - CNBC.com

Is this an accurate version of what really happened?

I have a fair understanding of CDS's and their impact but this is the first I heard about the connection between Hedge Funds managers, Lehman Brother's and AIG.

Did the SEC really let this happen or were they naive like me?

If this is accurate why is it not getting more play? Will it after October 21st?

 

[jazz4cash]

sheese...Cramer...what a show..You'd think they could at least get the date right:

Hedge funds, which have been selling stock endlessly to meet client redemptions, must be frothing at the mouth for next Tuesday, Oct. 18.

 

[Marquette]

You might want to search the boards for naked short selling.. some pretty interesting and enlightening discussions.

 

[Fastfade]

sheese...Cramer...what a show..You'd think they could at least get the date right:

Hedge funds, which have been selling stock endlessly to meet client redemptions, must be frothing at the mouth for next Tuesday, Oct. 18.

Cramer gets the date (10/21) correct in the video... the text portion has the 18th.

 

[jazz4cash]

Cramer gets the date (10/21) correct in the video... the text portion has the 18th.

oh yeah I forgot that part....just want to warn anyone using this info to be careful about the date, you know those short naked people Marquette was talking about

 

[audreyh1]

Are there naked short people running around?

Audrey

P.S. Not that naked short selling was not a serious contributor to the "sudden death" nature of our financial blowup. Someone(s) have been making out like bandits! SEC looks the other way.

Morgan Stanley was almost brought down last Friday through rampant rumors and a massive stock decline - shorting financial stocks had just be allowed again the previous day - and the US Govt had to step into backstop Mitsubishi so the deal with Morgan Stanley could close the next Monday.