Tag Archives: CNBC

Required Reading for All Investors

President Obama just finished speaking about the economy from Nellis Air Force Base in Las Vegas, NV. Very positive, uplifting, well-laid speech – something we can finally say about our President again. If you don’t know how the markets have been responding to our President, then you probably don’t know what’s been going on in the markets in general. This post would be a novel if i tried to go over just what’s happened this week, and Monday was a Holiday. So, thankfully here’s an article that kind of sums everything up nicely and in such a simple manner, my 10 year old little brother might be able to beat the average investment manager after seeing this. I like how the article was published kind of in tandem with The President’s speech today. Enjoy!

Oh, just in case you didn’t know, the 20-day simple moving average on the Nasdaq crossed over the 200 yesterday. Let’s see if that GDP number on Friday can help the Dow and S&P catch up. Happy Trading.

Great pic from The Huffington Post

Great pic from The Huffington Post

Jon Stewart Conducts the Modern Day “Frost/Nixon” Interview!

Yesterday was truly an amazing day for American history!

First off, Bernie Madoff went to court and tried to play “Let’s Make a Deal” with his sob story of a guilty plea, but the judge wasn’t having it! More on that later.

Last night, Jon Stewart exposed not just Jim Cramer for the Krustonian Clown that he really is, but also CNBC as the Stanford Group/Madoff Securities of the “Financial News” media that they truly are, all in one interview!

Jim Cramer Wants to Make You Money? Yeah Right!

Jim Cramer Wants You for Cramerica!

The scene of Stewart “training all day” for the interview is personally reminiscent of my own time studying for the Series 7 some time ago, so I particularly enjoyed that. Then we see how Doughboy Cramer prepared for the interview – by baking with Martha Stewart and pounding dough with a rolling pin in true Neanderthal fashion, after Martha suggests he think of the dough as Jon Stewart. Stewart responds with the comment, “Mr. Cramer, don’t you destroy enough dough on your own show?”

 

Once Jim Cramer stepped out onto that stage though, it wasn’t exactly war immediately, as Stewart let Jim know that none of his previous comments about CNBC and its coverage of financial news had ever been aimed directly at Jim Cramer. He in fact later informs Cramer that he feels bad that Cramer has become sort of the face of what Jon Stewart has been vehemently and very precisely attacking. Cramer certainly accepted that he understood Stewart’s point and agreed that in the current environment, CNBC and he himself, was “fair game” for criticism. Once all those “courtesies” were taken care of, it was certainly “ON!” and all the fun and games stopped, as Jon Stewart conducted the interview like Jack McCoy trying to squeeze a dirty witness into a deal for more information on the “Big Fish.” And Stewart was out to reel in CNBC and its reputation as a credible financial news media outlet. The war was on!

Stewart hits him with the evidence: clips from a December 22, 2006 interview that was obviously never meant for TV, as Jim Cramer clearly states in the interview that he is making statements and revealing things about his own activity as a former Hedge Fund Manager that he cannot say on television!

 

The Statements: I can’t even say that Cramer all but admit to futures trading manipulation – which is just as simple and illegal as manipulating the trading of a low-volume stock (see the movie Boiler Room) – but that’s exactly what he admitted to doing. That’s why he can’t say it on TV! “Welcome to Mad Money. The show where I tell you what will make you do what we CEO’s need you to do in order for stocks to move in the direction we want it to move in, and yes sometimes that direction is down.” That just wouldn’t work as a marketing scheme, and Cramer, stumbling and stammering like a lion on ice skates, readily tried to use marketing as an excuse for why he acts the way he does and does the “crazy Bull(Bleep)  I see [him] do every night” as Jon Stewart so rightfully and eloquently put it.

 

 

The Meeting (And the Proverbial “Nail in the Coffin: Stewart had Cramer so off-guard from the beginning of the interview with those video clips, that it was a side of Jim Cramer that I’m sure too many Americans were not used to seeing, and were probably pretty worried to see –and we should all be worried! Jim was stuttering and stammering like Jimmy, from South Park, trying to defend himself and his Network, CNBC,  just like the guys on Law & Order that try to hold out on McCoy – like we don’t know they’re gonna get broken down to where they end up revealing every element of the crime. Feeling the heat from Stewart’s poignant, targeted, incriminating questions, Cramer readily admit that he as well as others could have all done a “better job” – spotting the oncoming crisis, calling out the mistakes that were made, and doing their own due diligence on the information they received from corporations (and they frequently receive “insider information”– “Absolutely, I truly wish we had done more.”

Then he goes into this spiel about how he tries to be “truthful” on his show, and expose “these guys” as much as possible, still oblivious to the fact that he admitted to being one of “these guys” during those clips at the beginning of the interview.

 

But then he surprised me and everyone else with enough financial knowledge to know that there’s a reason why you don’t say certain things on TV or anywhere that you can be recorded saying it for that matter. It’s the same reason why you take the 5th on the stand. But Cramer – I guess because he, like Madoff and most other people who have been running scam-like enterprises, got drunk off the illusionary power that enterprise (his show) created, that he felt as if he was a made of Teflon – didn’t plead the 5th! He continued trying to play this investor advocate role, talking about how he readily bad-mouths CEO’s and companies that make mistakes and don’t do well for their investors, as he proceeds to implicate himself in a grand scheme of manipulation of insider information using his show as a vehicle!

 

Thinking he’s in line for the Academy Award for this performance, he opens up and goes into a story about a meeting he had with one such CEO, whom he had previously admonished on his show. Without going into the details of the meeting, Cramer – in true Blagojevich fashion – tells a lot more than he probably should have and seems to be realizing it as he’s telling Jon Stewart how this meeting basically compelled him to refrain from talking down that CEO on subsequent shows. Now you don’t need to be a lawyer, a DA, or a Law & Order fanatic like myself to know that Jim Cramer must have gotten something to have readily gone against his own previous rebuke of a stock or CEO. Obviously, Cramer wouldn’t want you to think he received money in exchange for his silence and cooperation, and he’s probably smart enough not to accept any “money” so as not to leave himself open to easy interrogation. So, Cramer’s implication, what he wants you to believe, is that the CEO of that company gave him some “information” about the company that put him “at ease” about whatever it is that caused him to rant negatively in the first place. And therein lies the rub, because chances are, it wasn’t information, it was “money,” or “gifts,” or “favors,” whatever you want to call it.

 

Let’s say it was information though. Most likely, that “information” was inside information, which is info that only company officers, directors, and other high level employees or partners would be privy to, as it is non-public information. If that is the case, then my belief is that a strong case can be made against Cramer, and possibly CNBC, for stock manipulation and a form of insider trading, at least manipulation of insider information. Jim Cramer already provided all of the evidence!

 

If I was meeting with CEO’s and buying stock in their companies, and a good majority of investors out there watched my show, hell yeah I’d use it to manipulate perceptions as much as I could to my benefit, the same way I’d take a bag of money out of an open unguarded safe.  What Jim Cramer does however, is equivalent to putting on a guard’s uniform and telling people that the open safe is secure because he’s guarding it for you, more people come and put their money in the safe, and when it’s packed nice and tight, he slams the door shut and makes off with the money, in search of another area or arena where he will be able to pull off the same scheme over and over and over again. It’s criminal how he’s able to get away with it, and he and all that help these “shadow government” wheels go ‘round should be held responsible for their actions.

 

Now I know most likely, that this will not happen, and that’s because the Wall Street “Back Room” that Jon Stewart alludes to is real and is in power, running this whole game. The American Financial markets (and the Healthcare and Social Security Systems for that matter) is nothing but a nationwide Ponzi scheme authorized and run from the highest levels. We invest our hard earned money in these companies, whether we want to or not. Just working at a company that trades publicly means that your 401K is invested in the market through them, on your behalf. Individual and Online Investors, can only purchase a handful of all financial products. The rest, especially the “sophisticated” ones, you have to buy or sell through a financial institution aka a brokerage firm. Then, with our 401K, IRA, and pension accounts financing the whole show, these institutions trade with each other as much as possible, constantly turning over (churning and burning) our accounts – which now combine to be lump sums of billions, even trillions of dollars – for them to take bets as risky as possible, and then manipulate and control the markets so that those ridiculously risky (no risk, no reward!), overleveraged bets actually do end up working out through their own magical “invisible hands,” – thier hands in our accounts/pockets! Then you have CNBC and guys like Cramer, Kudlow, and the whole CNBC crew, who all think of themselves as modern day Ruggedo‘s, feeding us the information that fuels the very rumors these company CEO’s and Directors want to use to perpetuate this “Oz-ian Fantasy Land,” where we can all make “Fast Money,” to manipulate any and everyone involved if it will lead to more profits.

This type of manipulation of the American public is 100% legal. It’s the American Way!

 

*Watch the uncensored version of the interview here.

 

The only good thing that may have come about as a result of the Bush Administration is that he and his posse made the abuses perpetrated on the poor and middle class by the American Upper class so blatant, flagrant, and out in the open that he may just end up being the straw that breaks the camel’s back. As more and more information about what went on during his “Animal House” of an administration, hopefully we as Americans will continue to wake up from our greed/profit-induced slumber, and will continue to awaken to the presence of the modern-day financial “matrix” where the few control the behavior of the masses. Just like our current banking system, we are the living dead, afforded just enough to keep trucking along in this zombie-like state, as our pensions, 401K’s, and nest eggs are raped and pilaged, traded hundreds of times over for sport. Just like Morpheus says in The Matrix, it is hard to tell how people will react to finding out that the world that have become used to is nothing like what it seems. No one enjoys finding out that they are being manipulated, taken advantage of, and ultimately “you are a slave.” Jon Stewart should be commended for his targeted, well publicized assassination of Jim Cramer “the financial guru”, and for revealing Cramer as a bozo-the-clown like, wild and crazy financial version of Pee-Wee Herman that he is – going nuts in his “Cramerican Play House” during the day, while meeting with shady characters to conduct underhanded, devilish, back-alley deals behind the scenes. Cramer, your hands are just as dirty as those of Dick Fuld, Henry Paulson, and all these brokers and managers at these financial institutions that when they knew their assets weren’t worth anything, used the guise of international investments to spread this garbage around the globe. To pretend as if you are an advocate of the “ordinary American” is not just “disingenuous,” it is criminal, and one way or another, your chickens will hopefully come back to roost. Only time will tell.