When someone is positioned wrongly, he tends to get nervous and maybe even dissemble a bit. When many people are positioned wrongly, they start rumors to get their positions right.
That's what is going on right now in the Treasury market. We are getting a ton of rumors, I think all of them false, that some major bank has been hurt by the yield curve and is in trouble.
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Message Boards. This is the game at its most brutal, when people try to manipulate the market for their own good. It drives me nuts. I used to rail about it. Now I use it as an opportunity to buy high-quality banks like
, all of which I have confidence in, are not in trouble in any way, shape or form.
Oh, and I still rail about the rumormongers. But now I profit off their lies.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Chase Manhattan, Goldman Sachs and Citigroup. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at