Did they know the crash was coming?
This continues my look at Jon Stewart vs. Jim Cramer, the overhyped battle that teaches us that, if nothing else, investors should stay far away from television if they’re seeking sound investment advice. If you missed part one, CLICK HERE.
Jon Stewart took issue with Rick Santelli’s classification of foreclosed home buyers as “losers.” Not only is it easy for Santelli say that – he is far from the demographic at risk in this economic stew of trouble – but Stewart touched upon a serious issue. CNBC (and other TV network) Wall Street analysts like Santelli who dance about the airwaves with their bluster and decorated history, telling consumers when to buy and sell, knew that the crash was coming but said nothing. They knew how the tricks of the market – derivatives, short selling – worked, but failed to warn people who could ill afford to lose so much that they’d need more payday loans than they’re comfortable with.
Jim “Mad Money” Cramer came to CNBC’s defense
Jim Cramer, the man who bears the albatross of the moniker “In Cramer We Trust” on CNBC network commercials, called out Stewart as a mere “comedian,” someone who couldn’t possibly understand how Wall Street really works. He thought was ready to stand against the Doctor of the “Daily Show.” A war of words from a distance ensued.
On the night of Thursday, March 12, 2009, the distance was bridged. Cramer agreed to appear on “The Daily Show” to debate Stewart over whether CNBC is serving or slamming the masses with its stock market advice.
So begins the conversation
Here are some of the telling highlights of a conversation that says much about both the behind-the-scenes manipulation of Wall Street and the sorry state of what some still continue to call journalism…
The “smoking gun,” so to speak, that Stewart offers against Cramer and similar TV financial pundits is a December 2006 video interview from a financial blog in which Cramer speaks freely about what he did as a hedge fund manager:
Cramer (vlog interview): “A lot of times when I was short at my hedge fund, I would create a level of activity beforehand. It doesn’t take much money. (It’s) short selling. I didn’t do it, but I’m trying to explain this to you.”
Stewart (on Daily Show): “It’s sounds like you’re saying you did this (you shorted).”
Note: The manipulative nature of short-selling is largely responsible for sinking investor confidence and keeping the Market in the doldrums.
Cramer (on Daily Show): “If so, then I was inarticulate.”
Find out what else Cramer and his brethren were inarticulate about by clicking HERE.
Related Video:
“Don’t take your money out of Stearns…” Yeah right. Well, he was misquoted, so perhaps that’s unfair. But it is even less fair that a lot of CNBCs anchors have been extolling the idea of the bailout for these grossly overinflated and overextended – read: irresponsible – Wall Street firms yet don’t want a thing done to help out the American Taxpayer…who are bankrolling the bailouts!
Great article Steven, I can’t believe the nation hasn’t taken issue with Rick Santelli’s “loser” comment. How insensitive can you be to a large group of hard working Americans.