Posts Tagged ‘Jim Cramer’

How not to ask right questions (an ongoing series)

22 August 2009

When he made Sicko, Michael Moore got into a flap with CNN on the mainstream media’s inability to ask tough, searching questions.

“Just apologize to the American people and to the families of the troops for not doing your job four years ago. We wouldn’t be in this war if you had done your job. Come on. Just admit it. Just apologize to the American people.”

Now, Moore returns with Capitalism: A Love Story.

Again, you wonder whether the slowdown and recession and the bailout would have happened had the media asked the right questions.

Also read: Michael Moore takes on CNN’s Sanjay Gupta

Why a music magazine has to take on Goldman Sachs

Interview of the year: Jon Stewart takes on Jim Cramer

How come media did not spot Satyam scam?

When a music magazine takes on Goldman Sachs

12 July 2009

It is probably applicable to other spheres of journalism as well, but it is surely no exaggeration to state that business journalism has completely lost the ability to tell it like it is.

Unless, it is some small, worthless, unimportant target.

Reporters, writers and editors, fearful of losing “access”, are held hostage by PR, freebies, and worse. Publishers and proprietors, trying to squeeze every dollar, are indebted to advertising. Etc.

Result: readers, viewers, listeners, surfers are served up numbers and theories held up by hope.

Little wonder it took a comedian (Jon Stewart) to buttonhole a “mad” CNBC anchor (Jim Cramer).

Little wonder it has taken a music magazine to throw light on the “great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”

Take a bow, Matt Taibbi (in picture).

The Rolling Stone columnist, who has been compared to Hunter S. Thompson, sticks a long, sharp knife into the investment bank in the latest issue of the magazine, calling it a “planet-eating Death Star of political influence”, accusing it of engineering every major market manipulation since the Great Depression of 1929.

The internet bubble, the housing bubble, the oil-price bubble, and the coming “carbon-credit” bubble (hello, Jairam Ramesh) are all the handiwork of Goldman Sachs, writes Taibbi, accusing the company of an incestuous old boy network to shut out competitors, prevent regulation, and stay out of trouble in perpetuity.

“They achieve this using the same playbook over and over again. The formula is relatively simple: Goldman positions itself in the middle of a speculative bubble, selling investments they know are crap. Then they hoover up vast sums from the middle and lower floors of society with the aid of a crippled and corrupt state that allows it to rewrite the rules in exchange for the relative pennies the bank throws at political patronage. Finally, when it all goes bust, leaving millions of ordinary citizens broke and starving, they begin the entire process over again, riding in to rescue us all by lending us back our own money at interest, selling themselves as men above greed, just a bunch of really smart guys keeping the wheels greased.”

Goldman Sachs responded to Taibbi’s article through Reuters blogger Felix Salmon, calling the Rolling Stone piece “hysterical”; “a compilation of every conspiracy theory ever dreamed up about Goldman Sachs”.

“We reject the assertion that we are inflators of bubbles and profiteers in busts, and we are painfully conscious of the importance of being a force for good,” Lucan Van Praag, Goldman Sachs’ top flack, writes.

Matt Taibbi responds in kind, answering every spineless reporter/editor’s feeble excuse about “giving the other side a chance”, about being “balanced” and “objective”.

“My feeling is that companies like Goldman Sachs have a virtual monopoly on mainstream-news public relations; for every one reporter like me, or like far more knowledgeable critics like Tyler Durden, there are a thousand hacks out there willing to pimp Goldman’s viewpoint on things in the front pages and ledes of the major news organizations. And there are probably another thousand poor working stiffs who are nudged into pushing the Goldman party line by their editors and superiors….

“Goldman has its alumni pushing its views from the pulpit of the U.S. Treasury, the NYSE, the World Bank, and numerous other important posts; it also has former players fronting major TV shows. They have the ear of the president if they want it. Given all of this, I personally think it’s absurd to talk about the need for “balance” in every single magazine and news article. I understand that some people feel differently, but that’s my take on things.”

There have been even wild accusations of “anti-Semitism” in Taibbi’s piece (he is Arab-American) against “the most prototypically Jewish firm around.”

Taibbi has also been accused of picking on Goldman Sachs when there were plenty of other bandicoots with their hands in the loot, like, say, Morgan Stanley.

“Why didn’t we write about Morgan? Because we didn’t. Because it’s your turn, you assholes. Maybe later someone will tell the story of the other banks, but for now, while most ordinary people are only just learning about the workings of the financial innovation era that blew up in their faces last year, the top dog in that universe is going to be first in line to get the special treatment.”

Read the Rolling Stone article: The great American bubble machine

Read Matt Taibbi’s blog: Taibblog

Read an interview with Matt Taibbi

Visit Goldman Sachs’ unofficial blog

MUST WATCH: Business interview of the year

13 March 2009

Question: How did the mighty American media miss the financial meltdown?

Answer: The same way the mighty American media missed George W. Bush‘s lies on Saddam Hussein‘s weapons of mass destruction.

That’s not a Q&A from Jon Stewart‘s grilling of Jim Cramer, host of CNBC ‘s revealingly titled show, Mad Money, but it could well have been.

Cramer, “the Howard Beale of business journalism”, popped up on The Daily Show on Thursday night, obviously to defend the business channel which had been roasted by America’s #1 comedian for not  being alert, for not doing its job, for being reckless in its advice and analysis.

What Cramer got was not the chance to clear the channel’s name but the kind of lashing that should remind journalists in general and business journalists in particular that, in the end, our profession is really about the people, the man on the street, the aam admi, the average Joe.

# “I understand that you want to make finance entertaining, but it’s not a fucking game.”

# “Instead of being a very powerful tool of illumination, it feels like we [the people] are capitalizing your [CNBC's] adventure by our pensions.”

# “It is a game that you know is going on, but you go on television as a financial network and pretend it isn’t happening.”

# “Isn’t there a problem selling snake oil as vitamin tonic? What is the responsibility of the people who cover Wall Street? Who are you responsible to?”

Watch the full episode: The Daily Show

Also read: How come the media didn’t spot Satyam fraud

Biggest corporate fraud is now biggest coverup

Romenesko: ‘An entertainment show on business’

Businessweek: Stewart thrashes Cramer

Associated Press: Stewart hammers Cramer

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