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Jon Stewart Throttles CNBC


Jon Stewart absolutely destroyed CNBC last night on The Daily Show. The first half of the bit (Approximately the first 4 minutes) goes on the offensive against Rick Santelli who was supposed to be a guest on the show before he “bailed out.” Santelli is one of the few rational, intelligent, and authentic personalities on CBNC, frequently going against his peers’ opinions. Even so, he is still on CNBC. Since CNBC is basically a rah-rah cheerleading outfit for Wall Street, Santelli’s attack on mortgage payment subsidization (See Santelli’s Chicago Tea Party) makes him an easy target.

So that is funny, but it isn’t the best part. Stewart goes on to illustrate just how wrong CNBC has been throughout the emergence of the recession / bear market / depression / bubble bust. He does it with video clips from CNBC that pump Bear Stearns, Lehman Brothers, Merrill Lynch, Wachovia, AIG, Bank of America, and General Motors (GM). He takes jabs at Fast Money and Squawk Box — “Reasoned financial reporting that combines the raw speed of fast money with the intelligence of a box of parrots. You just had to know how to listen!”

He has clips from Wall Street executives (i.e. John Thain) where they say essentially “everything is ok!” And what takedown of CNBC wouldn’t be complete without clips of Jim Cramer? So he nails that, too.

“If I’d only followed CNBC’s advice I’d have a million dollars today provided I’d started with $100 million dollars.” How do they do it?”

And to cap off Stewart’s hilarious piece, he ends with a gut-busting clip from an interview between Squawk Box‘s Carl Quintanilla and Ponzi-criminial Sir Allen Stanford that you just have to watch yourself.

Well done Jon Stewart!


One reply on “Jon Stewart Throttles CNBC”

I love the ending by John Stewart in response to Sir Allen Stanford.

Making ironic jokes is John Stewart’s job and it’s an easy one right now. Anyone who watches CNBC or invests in the stock market should know that the only person responsible for your investing strategy is yourself. I wanted to liquidate my whole portfolio the day after Lehman Brothers went down but was talked out of it by my brother whom I was seeking advice from. I ended up selling a third of my holdings. Now I wish I had sold it all, but can I blame my brother? No. He knew just as much as I did. It was ultimately my decision. I took the risk by investing, I took the risk in not selling at the right time.

You can also see in a lot of clips CNBC reporters are merely reporting what the CEOs of these companies are telling them. Everyone should know that, while CEOs are closely regulated by the SEC on what they can say, they will always put a positive spin on a bad situation. That is their job. The price of their stock, which investors and their employees own, directly responds to the sentiment of investors. You have to understand where you information comes and what their motives are. Much of their salaries are in options, which value’s are determined by stock prices. You need to know the motivation of your source before being able to understand the information.

If you are investing in the stock market, watching CNBC, or listening to CEOs, you should be able to filter the information you are getting. That’s why the saying goes, “invest in what you know.” It’s not “invest in what other people are telling you to invest in.”

Even the most respected equity investor, Warren Buffet, is wrong sometimes. Investing in the stock market is only educated guesses. That’s why it is riskier than other investments. If you don’t want the risk put your money in a safer investment.

It’s like blaming the weather channel for not knowing how severe Hurricane Katrina was going to be.

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