Thursday, July 16, 2009

Delusional CNBC Needs To GO!

Today was the last straw for me.

CNBC needs to be shutdown. Period. This network is completely out of control as they desperately attempt to pump the market and cater to the oligarchs on Wall St.

There were two instances today where this network blatantly misrepresented the facts. Larry Kudlow was guilty of the first act today as he somehow attempted to defend Ken Lewis and Bank of America after the bank refused to tell shareholders about its plans of acquiring Merrill Lynch.

Bank of America's stock price has fallen as much as 79% since Ken Lewis made this "brilliant" acquisition. Mighty Merrill lost $20 billion in the 4th quarter when Bank of America acquired it at a whopping $29 a share.

This incident occurred during an interview with Rep. Dennis Kucinich who was absolutely flabbergasted at what was coming out of Kudlow's mouth. Take a look:





My take:

Unbelievable isn't it? Rep. Kucinich couldn't believe what Larry was saying. Kudlow's defense was BofA did tell shareholders in Jan about the plans to acquire Merrill. The problem is this was months after the acquisition was agreed upon. Larry then said he "thought" BofA had warned shareholders of the acquisition before January. There is no evidence to support this and Rep. Kucinich called him on it.

His reaction to Kudlow's theory was "Come on. Whats with the media? Your making this up!". He continued by firing a second shot at the network by asking "You've got to be kidding me! How can you even have a show about this?"

Great question Dennis. Its become clear that this network has a bigtime bullish agenda. There is nothing "newsworthy" about this network.

The second incident occurred when the network reported that bearish economist Noriel Roubini had declared that the recession was over and the worst was behind us.





Roubini angrily denied that he ever said this on his blog tonight:

"“It has been widely reported today that I have stated that the recession will be over “this year” and that I have “improved” my economic outlook. Despite those reports - however – my views expressed today are no different than the views I have expressed previously. If anything my views were taken out of context.

“I have said on numerous occasions that the recession would last roughly 24 months. Therefore, we are 19months into that recession. If, as I predicted, the recession is over by year end, it will have lasted 24 months with a recovery only beginning in 2010. Simply put I am not forecasting economic growth before year’s end.

“Indeed, last year I argued that this will be a long and deep and protracted U-shaped recession that would last 24 months. Meanwhile, the consensus argued that this would be a short and shallow V-shaped 8 months long recession (like those in 1990-91 and 2001). That debate is over today as we are in the 19th month of a severe recession; so the V is out the window and we are in a deep U-shaped recession. If that recession were to be over by year end – as I have consistently predicted – it would have lasted 24 months and thus been three times longer than the previous two and five times deeper – in terms of cumulative GDP contraction – than the previous two. So, there is nothing new in my remarks today about the recession being over at the end of this year."

Bottom Line:

CNBC needs to be taken off the air if they continue to call themselves a news network. If they want to come out and admit that they are an entertainment network then they can have at it. However, they must use the same fat disclaimer that they slap on Jim Cramer's show and then air it repeatedly throughout the day.

The reason I say this is because the people watching this cesspool actually believe what they are being told because they think its a news network. Americans are raised to trust the news. Millions use this network for financial advice.

Millions more will plan their retirements based upon what the "green shoot" bulltards tell them hour after hour day after day on this channel.

Making matter worse is the fact that CNBC has blatantly lambasted any bearish commentator that comes on the network. Most of the time their appearances are cut short. The talking heads are famous for mocking them and trying to make them look irrelevant.

You would think the bears would have at least as much airtime as the bulls on a financial news network considereing the fact that they been right the last few years.

I'm sorry folks but this isn't how the news is reported. "Fair and balanced" are two words that CNBC has never heard of.

If the market blows up again(which is highly likely) CNBC will once again be guilty of destroying millions of people who listen to their "market pumping" advice and invest accordingly. they need to realize that they have a serious responsibility to look at both sides of the market and to keep the facts accurate if they want to call themselves a news network.

CNBC, its time to clean up your act. You crossed the line twice big time today and I for one am very sick and tired of it.

35 comments:

getyourselfconnected said...

Some serious crossing of lines going on all over the place today. The Roubini mishandle was pretty blatant. Zero Hedge has a hilarious video of a trader (in Europe i think) saying Goldman Sachs is stealing 100 million a day from trading floors!
This stuff is coming to a head.

PS.
Your article from last night that I excerpted was on Seeking Alpha today as well.

Jeff said...

Get

Yeah I saw that.

Thanks again. Getting some new viewers thanks to that. Another great article.

Keep em coming.

Minton Mckarkquey said...

I called out Bloomberg on the same Roubini issue - they refused to respond. Total f***** BS if you ask me... he's clearly pissed about the whole thing.

CNBC has become the Fox News of Business. It's not only not worth watching, but actively trying to create markets that would be illegal if a trader did the same thing. A total disgrace.

bdrube said...

Is what CNBC is doing now really all that different from what the regular cable news channels did in the early stages of the Iraq War? They relentlessly promoted the war's cheerleaders and ridiculed anyone who said the war would be a disaster. At least no gets killed from CNBC's BS.

All MSM outlets have become mere tools for TPTB. That ANYONE still trusts what they see on the "news" is a constant source of amazement to me.

Jeff said...

Minton

I hear ya.

I was so pissed about this today. You are right, its all of the media outlets at this point.

CNBC is by far the worst. "A total disgrace" is the perfect way to put it

Jeff said...

Bd

good points.

I guess the difference here is the viewers run the risk of financial ruin from CNBC whereas the Iraq war effected public opinion. Although the families of the hero's that died in battle would certianly have a reason to be angry.

Some will wish they were dead when they get wiped out for a third time this decade.

Anonymous said...

hi everyone. i have slightly different opinion on the CNBC stuff. Are you saying that they are propping the market by running bullish stories? well, if one can "con" you to buy by telling you someting - it is not their fault but yours! I mean if someone starts airing stories that dog poop is gooing to be in short supply and be worth price of gold - you are not going to run out and buy it, are you? And price of the poop will not go up (well, maybe jusy a little pop). But at the end the stock prices will be decided by the market. Just do not buy it, do not follow their advise. But do not demand them to be taken off the air. Let them spew thei sh*t. Who cares? If you thin you are right and it is all "brown shoots" - fine, thank them becasue by raising the market they allow you to short even from better levels! At the end - there is some other force that lifts the market and it is not CNBC. Any comments?
Disclosure: i dispise them all, all the usual characters starting but not ending with DK "the real deal".

Minton Mckarkquey said...

Anon - there's a difference between talking crap and representing a financial network that regular people put their trust in to direct their 401k.

If the President started to sell you on the Shamwow, we'd all be demanding his resignation.

getyourselfconnected said...

anon,
I would only argue that CNBC affects trader psychology. I know real market players watch it, not for substance, but for sentiment pushes. If CNBC is making false claims for a quick move that traders then exit ASAP after some play they are contributing to the mess. Just my 2 cents.

CT-Hilltopper said...

I agree with everything you've written about CNBC.

I couldn't believe what happened with the whole Roubini situation. I was watching "Fast Money" when Roubini's disclaimer was read aloud as Breaking News. For most of the afternoon, people were trading on erronious information. Way to go CNBC.

I am beyond disgusted.

But then, I think CNBC needs to go whenever I see Steve Liesman, a journalist, pretending to be an economist. I can feel my blood pressure starting to rise now, just typing his name. What a waste of somebody else's oxygen. Same for Dennis Kneale.

By the way Jeff, I have a feeling I know who the lucky recipients of the next round to government bailouts are going to be. I have a prediction, and I'm going to make it right here and right now, in the comments secion of your blog.

The next round of "Government Bailouts for Dummies" will go to...the States! Yup! Cali, CT.,many of the other states that can't balance their budgets. It'll be "acronymed" as some kind of stimulus, but what it will actually be is one big huge multi-state bailout extravaganza.

Helicopter Ben will be printing money all over again.

I know you probably think I'm nuts, but just think about it. They're starting to lube us for it already.

We are "Screwn" Beyond Belief.

Jeff said...

Anon

The problem is the average person doesn't know enough at investing realize that this is nothing but garbage.

YOu and I won't fall for it because we keep up on this stuff. J6P doesn't and they are eassy targets.

That's the problem I have with it. Someone needs to be out there protecting the little guy from these sharks.

Jeff said...

"shamwow"

LOL

Maybe Obama can start being a pitchman and replace that dude with the beard that died last week.

Minton Mckarkquey said...

I live in Cali. I can feel the lube already. Yikes.

Jeff said...

Get

Good point on the sentiment. I felt like today was just a bunch of momo traders riding the wave.

WAit until the tide goes out. These fellas will be left naked wondering what happened.

CT

Whats so bad about Liesman is he has no education in economics.

State bailouts? Hmmm...WOuldn't be surprised. They have bailed everything else out. If they let California fail then we will have our answer.

If you are crazy then I am crazy because we all think alike on here for the most part!

Minton Mckarkquey said...

Ever noticed how your bank account's interest is lower than those guys in the market? Want to get a billion dollars of government money for free? Have you ever wondered about their *secret*? Wonder no more...

If you call us right now, we'll tell you the things that Wall Street and the Fed don't want *you* to know! And if you call us right now we'll throw in the State of California for free, with free shipping in the contiguous United States.

Call 1800-555-FUKD*.

A HousingTimeBomb company insured by the Interwebs.

Jeff said...

I tried to call the number.

It's busy. It would be if it was for real since we have 30 million unemployed people in this country!

I guess all you can do is laugh at this point.

Futes are -4 btw. WOuldn't be surprised to see a pullback tomorrow.

getyourselfconnected said...

What I never get is a false rumor or info is worth 1% to the upside (at least) but the dressing down of same exact rumor/info is only worth like .1%. Natural tendencey to optimism? As I have said, up is all anyone knows so enjoy deflation while it lasts.

Anonymous said...

yea but the CNBC is not elected like the prez, they are just bunch of actors on a TV channel.
------------
Futes are -4 btw. WOuldn't be surprised to see a pullback tomorrow.
Jeff, common, market is up like 50 points off 880 and you get exited by -4? :-) By the speed they are taking this up i will not be surprised they blast us through 950 to suck every person off the sidelines. Disclosure: short NAZ via QID.

John Maynes said...

Jeff, why are you so angry? CNBC's mission is clear: tell the world all doomsayers turned bullish and the recession is over. It started with Meredith Whitney when you said she was still so credible. She made herself a medium for the media and making trading calls for herself and her clients of her own outfit.

jeff said...

Anon

Blowoff top perhaps?

Getting in front of this freight train is risky but it could be very profitable.

GL

jeff said...

Get

Don't they say that the market moves higher 70% of the time?

I think thats the right number.

John

Yeah she got this party started.

They tried to do the same with Roubini tonight and he told them to go pound sand.

jeff said...

More green shoots:

"Worries about the fate of CIT Group Inc. cascaded through the retail and manufacturing industries on Thursday, as companies stopped shipments and businesses worried about cash being tied up at the lender should it file for bankruptcy-court protection.

The disruptions were an indicator of the potentially wide fallout from a failure of CIT, which was unable this week to persuade the government to provide financial assistance.

CIT executives are scrambling to line up private-sector financing of $2 billion to $3 billion, according to people familiar with the matter. In addition, CIT bondholders were discussing a plan Thursday evening to swap $5 billion in debt for equity, one of these people said. The company could file for bankruptcy protection as early as Friday if it can't raise emergency funds, these people said."

http://online.wsj.com/article/SB124779123756354885.html#mod=testMod

snood said...

I think a lot of the problem is how close the reporters and hosts are to the people they are interviewing.

They are far far far from objective.

Peter said...

I know this may sound like a broken record but once again, we have a GE subsidiary involved here. GE is now 100% in partnership with our fascist government, they are using their media arms to promote our administration who will in turn funnel GE billions of dollars in government contracts.

Don't you find it interesting that during the Bush administration the market bears like Schiff and Ritholtz were on all the time and got to get their say in, now with Obama in power these guys can't get two minutes on the air and when they do they are ridiculed non stop? I will once again reference that Bobama was trailing McCain in the polls until the market tanked in October. Coincidence or perfect timing?

And in all honesty, who cares if people are listening to CNBC and losing money? Money, so what? These same people have been listening to main stream media for years and losing their FREEDOM and they don't much care.

snood said...

GE is hip deep in the housing bubble:

Real Estate Worries Some GE Analysts

BY PAUL GLADER

General Electric is likely to meet analyst earnings expectations Friday before the market opens. But investors may ignore that news.

Instead they will look carefully at what GE acknowledges is a trouble spot: real estate.

GE’s profit will be half what it was a year ago, and it can thank the government for a portion of those earnings. GE has been one of the biggest beneficiaries of government-assistance programs.

Jeff said...

Peter

Yep

It seems like Americans are still too busy watching American Idol.

No one seems to care. AS long as they can afford ther $4 happy meal at McDonalds all is ok in the world.

I still hope that one day something is done that infuriates the masses. The way this is going I am sure that eventually the government is going to do something so far over the top that everyone wakes up.

Jeff said...

Uh Oh

Stocks down and treasury yields up.

Not a good sign. TOday could get really interesting. German bonds also sold off and China had a failed bond auction.

Pay attention today folks. We are fairly flat but things could get interesting.

Jeff said...

Snood

Yep GE Capital is a time bomb that will explode at some point.

Lots of loans to Eastern Europe and they have a better chance of seeing god then getting their money back.

Anonymous said...

Pay attention today folks. We are fairly flat but things could get interesting.
-----------------
no they will not. It is going to be another boring day taken up towards EOD. Actually, DOW is already up, others are break even. Nothing is going to happen. They got the finger on the mouse and are pressing buy whenever they want. And after investing so much cash in last few months why would someone suddenly try to bring the market down. Expect long/big rally. Like the one they took the market to 14K with no fundamentals whatsoever.

Jeff said...

Anon

Long rally from here?

Sold to you my friend!

Bond market is selling treasuries off bigtime.

Credit markets are now back in play. If this health care reform continues to make headway its going to get real interesting.

More later.

Toney Brooks said...

I wrote on this topic myself today on my blog.

Bloomberg videos must have referred to Roubini's comments over a dozen times yesterday with different guests providing the boosterism and were still at it this morning even though Roubini clarified.

There is a conscious media effort to hoodwink the public.

snood said...

You can fool some of the people all of the time, and all of the people some of the time, but you can not fool all of the people all of the time even with 24hr cable news!

Jeff said...

I agree guys

MAybe the media learned a lesson from yesterday.

The blogs are all hammering the financial media for the Roubini fiasco.

We saw no apology from any of them today despite being wrong? Not surprised

Anonymous said...

ok, may be i was not clear, let me re-state: banks are backstopped by the gov which makes them reckless buyers of equities. And all the other junk like CIT cause they know there is always uncle sam to lend them more money. Why would anyone even consider buying CIT? Thats the environment we are in. And i am sure you are aware of that too. But you still beleive that sanity will prevail and i am telling you it will not. Like today - GE had 49% downfall and what market did - nothing. I am affraid this has room to run.

Jeff said...

Anon

Oh, I agree with all of that.

The problem is once its exhausted its going to roll over violently.

The bond market woke up this week(see my new post).

The money flowing out of the treasury and into the banks will be stopped dead in its tracks if lending rates soar.