Posts Tagged ‘CNBC’

Sugar Water: Off the Record, I’m a Liar

sugarwater.gif

When things are said off the record in the world of politics, they should stay off the record. Unless I need something to write about, of course.

Last week I brought you an exclusive report on the scripted outbursts Rep. Joe Wilson almost said in place of “You lie!” when responding to President Obama’s position on illegal immigrants receiving universal health care. I obtained the list of outbursts from a congressional aide named Mark Cloth, who asked not to be identified, but I’m not a real journalist with “ethics” or “common decency” — either slip me a Benjamin or suffer the consequences.

I went ahead and used Cloth’s name, but it turns out he was using an alias inspired by Deep Throat, from All the President’s Men. He duped me, but I’m not mad. The way I see it, we both got what we wanted, and neither of us had to look at the other one naked.

On Monday the president was about to be interviewed by John Harwood when the CNBC reporter casually asked him what he thought of Kanye West’s outburst at the MTV Video Music Awards on Sunday night, comparing the hip-hop artist to Wilson. West had interrupted Best Female Video winner Taylor Swift’s acceptance speech by grabbing the microphone from her and complaining that Beyoncé deserved the award instead. Obama’s opinion was “He’s a jackass,” which got some laughs from people in the room, but the president quickly tried to make sure his off-the-cuff comment would stay off the record.

Yeah, right. The tape was already rolling, and Terry Moran, co-anchor of ABC’s Nightline, apparently overheard the pre-interview conversation, because he soon jumped on his Twitter account and wrote, “Pres. Obama just called Kanye West a ‘jackass’ for his outburst at VMAs when Taylor Swift won. Now THAT’S presidential.” And that’s unprofessional, Moron — unless you somehow got a Benjamin out of it, that is. (I wonder if he had to look at Vice President Biden naked.)

(more…)

Where’s the (Tea) Party?

Rick Santelli of CNBC has called for a Chicago Tea Party, a revolt by taxpayers against a government stimulus package that may reward some irresponsible folks for their behavior. Jon Stewart invited him to appear on The Daily Show, but Santelli canceled. Hence, the Daily Show staff prepared a little tirade against Santelli and CNBC for missing the whole market implosion.

So much shouting! Of all the political revolutions coming out of Illinois right now, Santelli’s Tea Party is a strange one. Most folks in Cook County could take paying more in Federal taxes; we’re ticked off about the county board president, elected under questionable circumstances, finding great jobs for his relatives. The foreclosure rate here is relatively low, too, so it’s not like mortgage restructuring offends frugal Chicagoans the way they might upset the frugal in Phoenix.

Santelli covers the derivatives markets. With derivatives, there is a loser for every winner. Because many people buy derivatives as insurance, they are okay with taking small losses on the exchange instead of large losses outside of it. Hence, options and futures traders are no more affected by this market mess than they are by any other bit of news. Whether the news is good or bad, some win and some lose, and those who lose more than they win quit. It’s likely that Santelli and his friends on the floor aren’t suffering the losses that other investors are. I know some people who work at a futures trading firm here in Chicago, and they are so relaxed right now it’s almost scary.

But here’s what Stewart missed: CNBC is entertainment. Jim Cramer is a comedian. Rick Santelli is an actor. All financial news happens too fast for professional investors to rely on the media. If you read about it in the Wall Street Journal, it’s too late to make a trade; investors pay good money for Bloomberg boxes so that they can see the news as it happens. Small trading rooms will sometimes keep CNBC on in the background, more for the activity than for the insight, the same way that I like to go to sleep with the TV on when I’m alone.

But, but, but, you might be saying, some of the stock ideas from CNBC make big money! Of course they do. In theory, the investment markets are efficient. In theory, securities prices reflect the amount of risk that they have, so in theory, you could pick stocks by throwing darts at pages of the Wall Street Journal. (If you read the Journal online, you might want to use spitballs instead.) So, of course some stock pickers and some investment styles are going to be right on occasion. (more…)