Who’s that annoying co-worker a few cubes down who keeps giggling at some stupid video on Friday afternoon? Just go home already, ya jerk! Yeah, that was me, watching this Daily Show clip making fun of financial pr0n channel CNBC.
The first part is about Rick Santelli’s rant about “loser” homeowner bailouts, but the good stuff starts at about 2:45 minutes in. I wonder how many hours they spent compiling these clips!
“If I only followed CNBC’s advice, I would have a million dollars today! …Provided I started with a hundred million dollars.” – Jon Stewart
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Silly stuff… gotta side with Rick though. The bailouts of irresponsible buyers is purely populist and punishes the responsible. The govt caused this problem to begin with and Bush and Obama both will and have made it worse by getting govt even more involved.
Ah well, it’s unavaoidable I suppose. I guess we should welcome our socialists overlords. 🙂
Oh yeah. I loved this one. It was classic! Another great one was the stock market ticker one where he makes fun of using the performance of the Dow as a litmus test for the success Obama is having as president less than two months in.
It’s weird, the guy in the office next to me had this playing today. I stopped in and watched it with him.
I wish I had more time to watch Stewarts show, it continues to be a sad fact that comedy central tells more truth through news satire than all the normal networks combined.
Anyway, thanks that was priceless.
This is why I don’t watch CNBC. Crazy stuff lol.
Lol @ Ray, clearly you haven’t realized that the market went bust because ***deregulation*** allowed banks to give out all those bad loans.
As Stewart noted, how were those “loser” homeowners supposed to know that the AAA banks giving them these loans were being so irresponsible?
Oh yeah, put all the blame on the wasteful homeowners and the Obama administration 2 months in, Santelli.
You go STEWART! Tell it like it is. Lots of Greedy Greedy Greedy people.
We are all in this together.
Regardless of what you think of homeowner bailouts (I disagree with the implementation), Jon Stewart’s point was that these huge financial companies got a much LARGER bailout. But the Wall Street trader Santelli wasn’t bitching about that, was he? So it’s a bit hypocritical in that regard.
“Yeah man! Wall Street is mad as hell! And they’re not going to take it anymore! Unless by it you mean $2 trillion in bailout money. That they will take.”
Their negligence in the whole lead-up to the crisis is inexcusable. But interesting that some are defending the financial reporting field. Here’s what one has to say: http://www.thedeal.com/dealscape/2009/03/financial_journalism_and_its_c.php.
I find the grievances somewhat outrageous, and had a bit of a rant on my blog in response to it: http://www.investoralist.com/media-extricates-from-financial-crisis-responsibility/
Excellent. A good laugh…thanks Jonathan!
Stewart is an expert at comedy; not business or economics. Santelli is 100% right!
On the topic of bailing out the banks, it’s a necessary evil- capitalism cannot exist without a functioning banking system.
If anyone cannot see the difference between bailing out the banks vs bailing out homeowners/auto companies; read, study, learn economics.
It would be funnier without the disingenuous beginning on Santelli. The rest of the video is exactly why I don’t watch CNBC – it’s more show than news.
Thanks for the chuckle Jonathan.
Ray: The government caused the meltdown? That is the most ridiculous thing I’ve ever heard. The govt didn’t invent the securitizing of debt, nor the moral hazard the practice created within banks. You are clearly simply parroting those talk show hosts who’ve run out of ideas. If socialism does come, it will have been the banks and investment firms that opened the door to it.
That was great Jonathan. Thanks for that post.
It’s been more than a year that I’ve stopped watching CNBC, but I have to admit, I used to watch it religiously. I also used to follow Morningstar ratings very closely. There was even a time when I thought Janus was a great mutual fund company. I thought I was sooooo smart just because I watched and listened to CNBC. It took me a long while to remove the “kick me” sign planted on my back.
Stewart was hilarious, but the content wasn’t. Cramer, Bartiromo, and whomever else we once thought were so brilliant are just people with graduate degrees who have done nothing else but frame words that have suckered millions of investors. I agree with Luke, CNBC’s more show than news.
We should have let the banks fail. And should have let GM fails.
Well, if you have been watching cnbc, santelli is the only guy who spoke against all bailouts. This particular one got attention via drudge…
BTW if you follow this guy, he has been taking down cnbc for a while now…And he also has videos of santelli ranting against all bailouts and taking on cramer, liesman and all cnbc truthers…
http://www.youtube.com/user/donharrold
Catch22 is right: Santelli has been consistently and vociferously against pretty much all of the government-funded bailouts. The clip is showing Santelli’s reaction to the government’s proposed bailout of a portion of homeowners and should not be thought of as representative of Santelli’s views on the aggregated bailouts thus far. So, Jonathan, with all due respect, I don’t think Santelli is being hypocritical.
Santelli is getting pounced on by members of the media for being a callous shill of the financial industry, which he most certainly is not.
That being said, I did enjoy the roasting of Cramer.
One last point: Santelli is also affiliated with the Chicago Mercantile Exchange. I’m not so sure it’s fair to lump those guys (who seem to share Santelli’s sentiments re: bailouts) with the Wall Street folks.
I don’t see any lashing out at CNBC; however, it would seem that there are less that do not watch it.
According to their website, “CNBC is the recognized world leader in business news, providing real-time financial market coverage and business information to more than 340 million homes worldwide, including more than 95 million households in the United States and Canada. Viewers of CNBC business news programming are business executives and financial professionals that have significant purchasing power.”
Jim Cramer did to many investors what his former classmate Eliot Spitzer did to those high-priced call girls. And who knows what CNBC’s biggest star, Maria Bartiromo, did while racking up frequent flier miles on the Citigroup jet.
I’m not lashing out at CNBC. I just don’t recognize them as a “world leader.”
I watch the Daily Show daily, but I thought this bit was in poor taste and very unfunny. Sure CNBC didn’t see this coming, but name the media outlet that did. CNN? Any of the major newspapers or magazines? Why lash out against CNBC in particular?
lashing out at cnbc because of their criticism of obama. jon stewart is a big supporter.
@Mike S:
So, you’re saying that the banking industry should be exempt from the dangers of capitalism? If so, that means that our government and our citizens are basically hostage to the whims of the banks. Should we just keep propping up failed businesses and socialize the loses because it’s a “necessary evil?” It’s easy to criticize when you have a couple billion in bailout money coming your way.
You say “loser homeowners,” I say “loser managers.”
If anyone has a link to his rant on bailing out the banks and insurance companies, please share because I can’t find one. Bonus points if he calls the executives losers. 🙂 But really, I don’t mind Santelli because he’s saying what a lot of people are thinking.
CNBC part is just funny! I’m sure they could do the same with Bloomberg or Fox Business.
santelli rarely rants. he one of few smart ones on the program. hes against all bailouts.
santelli also refused to go on stewarts show.
Hi
This is santelli talking against govt. involvement bailing out Wallstreet, calling the stockmarket effectively as the govt.
Anyone ever hear of The Community Reinvestment Act (CRA) ? It is US Federal Law – see Title 12, Chapter 30, Section 2901. It was signed into law by President Jimmy Carter in 1977 and has seen changes by several Administrations.
Many people feel that the CRA causes banks to lend to people who normally would be rejected as bad credit risks. It has subsidized low-income housing by pressuring banks to serve poor borrowers and poor regions of the country. In other words, many think the CRA law pressure banks into subprime lending. In fact, the Department of Housing and Urban Development (HUD) required Fannie Mae it to dedicate 50% of its business to low- and moderate-income families. Sounds to me like this is yet another fine example of a US Federal program with painful unintended consequences.
http://www.law.cornell.edu/uscode/12/2901.html
The Congress finds that:
(1) regulated financial institutions are REQUIRED BY LAW to demonstrate that their deposit facilities serve the convenience and needs of the communities in which they are chartered to do business;
(2) the convenience and needs of communities include the need for credit services as well as deposit services; and
(3) regulated financial institutions have continuing and affirmative obligation to help meet the credit needs of the local communities in which they are chartered.
http://www.law.cornell.edu/uscode/12/2901.html
@brian + @David:
So the GSE’s are doing just fine then? No problems at Fannie & Freddie?
Oh? There are? Well no way any one in government could have forseen it. Not with all the campaign contributions Fannie and Freddie were making.
http://www.youtube.com/watch?v=_MGT_cSi7Rs
I wonder if steroids in baseball are really worth all those congressional hearings after all?
@Mike S. & @Rich:
You’re moving into a circular trap here.
Mike says that we needed to bail out the banks and Rich says: If so, that means that our government and our citizens are basically hostage to the whims of the banks…
But what you’re missing here Rich is that citizens technically already are hostage to the whims of the central bank. If the central bank wants to print away your life’s savings, they are free to do that.
I’m really not a big fan of the bailouts, but to some extent the banking system needed saving. If too many banks fail, the government basically becomes the banks.
All of these banks are FDIC-insured. So if the bank goes under we are all on the hook for the money in those banks. So you either prop up the bank a little with government money, or you let the bank die and then you’re on the hook. If you look at the current situation, the government has finally accepted that the herd must be thinned. So we’re going to let a bunch of banks die and try to salvage the strongest ones.
But yeah, you can’t bail out GM… I mean we tried, but it was doomed to failure from day one. However, bailing out a bank that you’ve insured is really a different ball game.
@Frank Curmudgeon: …but name the media outlet that did….Why lash out against CNBC in particular?
Given that CNBC is paying the specialists in the field, if they don’t see it coming who else is supposed to? And look, it could just as easily have been Bloomberg who got lambasted. But CNBC runs shows like Mad Money, so they draw the extra attention from being so sensationalist.
I saw this bit on TV with my wife. When he opened with the CNBC logo I said “Honey, this is like shooting fish in a barrel, they could do a whole show on this.”
Ron Paul has been calling this economic collapse for years.
Stephen Leeb wrote a book about it.
Peter Schiff wrote a book about it. Heck he’s been talking about it publicly for years.
(they even argued about the bailout)
Watch that last video. Watch the reactions of everyone else on the panels. Look at the dates. Peter Schiff called it while being literally laughed at and demeaned. He called all of the pieces.
Here are the major news outlets, the CNBCs of the world that are supposed to be populated with specialists, with experts and professionals. And the one guy who sees it coming is being poo-pooed by the other 5 people on the panel.
And you want to know why we’re picking on CNBC? Isn’t it obvious that they’re pretty clueless?
The fact is the majority of the people were all “losers.” If we collectively really knew what was going on, we wouldn’t be in this mess. It’s easy to find experts who called it after the fact, these experts were cassandras who were ignored. The fact is that the majority of the people have been complicit directly or indirectly for the bubble that’s now popping. It’s not the Government’s fault. Fannie and Freddie made bad loans, but private banks were already doing so without government intervention. Why? Because it was a great way to make money on the rise. Was it foolish? Of course it was, but for the bankers involved it made complete sense. The lack of real ownership on the part of shareholder is really to blame. Did people buy too much house? No doubt about it, but you could’ve told that to someone in 1996 and they’ll swear it was the best decision they made. Timing is everything, and clearly not everyone can time the market.
Santelli isn’t on Wall Street. He is in the CBOE pits where they trade US Treasuries. You know the crap paper that is being used to fund all this stimulus (spending is a much better word). The bond market will have a say on all this spending.
The bond market controls/allows what Washington does, not the politicians. When HilaryCare was tried, it was the bond market that gave the President the finger. He knew that the market would not finance the plan.
Santelli, Mark Haines, and the commentator from Fast Money are the only voices of reason on CNBS.
I thought Jon Stewart was hilarious, I have watched him a long time.
That said, I don’t know why everyone has such a problem with socialism. I am born and raised Calfiornia Bay Area, pretty affluent. I am 24 and live in Sweden. Not even a citizen (just residence) I get masters degree for free, healthcare free… 25 paid vacation days + 9 paid sick days.
there is much i love of america, well, love of california, but i dont uncerstand the socialist gripe
Zach, that is a ridiculous comment. How many billionaires are in Sweden? How many are in the U.S? If you don’t care about having a chance to make it big in this world, I guess Sweden would be fine. But if you have ever had the chance to live for a while in the Hamptons or Hawaii, you will realize how good life can get. Its all about maximizing your standard of living. And the possibilities are endless here.
Rick Santelli, on whether or not Wall St. should get bailed out: “I’m not going to make a value judgement either way.”
Ahh… my two favorite shows morph in one glorious monster!
Jon thanks for sharing this is good stuff:)
@ Dan, if the CRA has been in effect since 1977 why didn’t the market crash sooner? It’s hard to ignore the moral degredation that has occured in our society over the last 30 years. Greed has replaced ethical conduct. Lenders chose to do “what everyone else doing” instead of what was right, then blame the government for forcing them to lend to the poor and underserved. That was not and is not the intent of the CRA, but anyone can read whatever they want into something if it means more money in their pocket.
It may be the last sentence but the most important in your link above:
(b) It is the purpose of this chapter to require each appropriate Federal financial supervisory agency to use its authority when examining financial institutions, to encourage such institutions to help meet the credit needs of the local communities in which they are chartered consistent with the safe and sound operation of such institutions.”
The CRA doesn’t absolve lenders from operating in safe and sound manner. I don’t think you have to be a financial genius to realize that you shouldn’t lend money to people who don’t have the ability to pay you back in a manner consistent with lending rules. I don’t think it’s unreasonable to require borrowers to provide proof of income and maintain industry debt to income ratios.
CNBC is nothing more than mindless entertainment, with a few news-worthy facts thrown in every so often.
Anyone who actually takes the advice of the talking heads is doomed to fail. I still can’t get over all the people that actually call into Cramer. When was sound investing ever about spectacle?
A lot of those CNBC clips are taken completely out of context… For every guest they had on to say now is the time to buy, they probably had another guest on who made an equally compelling argument to sell. Heck, most of the time, CNBC usually has two guests on at the same time who take counter sides of the argument.
In an attempt at humor, the Today Show simply showed one half of the argument. CNBC doesn’t really take sides on these things.
Mad Money on the other hand is just that… He does take sides on things and ripping on him is fair game.
I could EASILY make a video with numerous clips of people on CNBC stating that people should have gotten out of the market a while back, or that the subprime/credit mess was going to be a major problem.
Oh, and Santelli’s whole rant was great… I saw it live. He was DEAD on…. For what is is worth, nobody forced any of these homeowners to live beyond their means.
How disengenous to compare Wall St bailouts with homeowner bailouts. The government is taking an ownership stake in companies like Citi. That means they own a piece of it.
Do we all get a stake in our neighbors’ McMansions?
No.
Regardless, I’m against all govt bailouts.
Thanks for sharing the video, it was hilarious!
In case you haven’t heard, this has turned into a bit of a war with Kramer responding and then Jon Stewart responding again:
http://www.thedailyshow.com/video/index.jhtml?videoId=220288&title=In-Cramer-We-Trust
and
http://www.thedailyshow.com/video/index.jhtml?videoId=220510&title=Basic-Cable-Personality-Clash-Skirmish-'09
It’s all blown out of proportion, reminds me of the Stewart vs. Crossfire thing. I mean come on, he’s on Comedy Central and yes the shows are one sided, but its all for laughs!