When it comes to the world of investing, "fomenting" (spreading false information about stocks to create self-fulfilling prophecies) is like breaking the speed limit - it's illegal, but everybody does it, and it's impossible for the police to stop any but the worst and most reckless offenders. Here, in a 2006 interview, Jim Cramer explains how it works. People say that this makes Cramer a crook, and technically they're right, but actually I think that blowing the whistle on this common practice is the most important and excellent piece of journalism Cramer has ever done - far better than his bogus stock tips. The financial crisis has highlighted the need for the news-reading American public to understand more about how finance works, including the shadowy parts.
The upshot of "fomenting" is that no matter what stock you own, there is a good chance that somebody out there is trying to make a quick buck by making that stock's price swing around more. So if you see wild swings, don't assume they represent real or inside information; if you don't know who the sucker is, chances are it's you.
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