In a standard act of post mortem, 20/20 hindsight, "we saw it coming", "as we all know" investigative journalism that CNBC has become world renowned for, they are all over the story today!
One just might be inclined to ask the world leader in business the question; what took so long? I will offer 4 guesses as to why. Hint, the first 3 don't count.
1) David Faber too busy following the Ron Insana school of career counselling with a new book and hedge fund...oooops I got ahead of myself there.
2) Dennis Kneale too busy struggling with his own relevance, calling recession bottoms and fighting with "idiot bloggers".
3) Carl Qunitanilla too busy asking penetrating questions such as "What's it like being a billionaire", of disgraced ponzi scheme operators.
4) Petrified that any critical look at a Wall St. player or outfit will "shut down" Wall St. access and more importantly ad dollars.
Hey Bill Griffith, Cerberus' problems must be issues of liquidity and would have nothing to do with their Greenspan/Bernanke Fed sponsored "free money" influenced investment decision making now would it? Like a trained parrot, any and every problem is liquidity!
Given all the discussion, I thought I would take a peek back at my one, of my many posts on Cerberus, in particular the one back on July 2, 2007 Calling Bud Fox in which I stated the following;
Wasn't Cerberus the outfit that had reams of people going over the Rescap deal, like honeybees on a flower if memory serves me. But this is not about the quality of the steak, heck they don't care if there even is a steak. It's all about the sizzle and doing the deal. I read a study a while back that stated something like 90% of buying decisions are emotional. Ya think? oooops there is that bad word again. These institutional accounts and hedgies would sell their own mother(COD according to Larry Wildman) for 50 beeps in yield and we all know when you reach for yield you get your hand chopped off.
I bring this up, not because what I stated was ground breaking in any way, frankly I thought it was obvious at the time, rather I bring it up because CNBC purportedly claims to be a bastion of "fast, accurate, actionable, and unbiased" information.
I simply offer this as a counter argument to the claims made by the 'boobs and boobs in chairs at CNBC that the 'idiot bloggers', of which I am one, can write anything they want on a whim. For what it's worth Diana Olick, Rick Santelli, Mary Thompson, Phil Lebeau and Sue Herrera are hereby excluded from all above negative references to CNBC as they actually report instead of cheerlead.
Before I go I wanted to take an opportunity this morning to offer some congratulations. The Wall Street Cheat Sheet First Amendment Award for Outstanding Journalism are out and I want to offer congratulations to the winners.
Best Blog - Zero Hedge
Best Reporter - Matt Taibbi
Best Book - Bailout Nation by Barry Ritholz
Best News Anchor- Dylan Ratigan
In particular I want to offer congratulations to Dylan in particular as I was very aggressive in taking him to task early into the meltdown back when he was on CNBC. As the crisis evolved he started to show that he was and is one of the VERY FEW who not only see what is happening but is prepared to call "them" on it and ask the career threatening questions his "boobs and boobs in chairs" former colleagues back at CNBC are petrified to. Way to go Dylan!
Again well done to all the winners, my sincerest congratulations !
A reader, thx K.O. sent me a note which has been making the rounds on the net. Someone called it a CNBC stock market cheat sheet.
Cheat Sheet for Reacting to Market Data Releases:
weak data = Fed ease, stocks rally
consensus data = lower volatility, stocks rally
strong data = economy strengthening, stocks rally
bank loses $4bln = bad news out of the way, stocks rally
oil spikes = great for energy companies, stocks rally
oil drops = great for the consumer, stocks rally
dollar plunges = great for multinationals, stocks rally
dollar spikes = lowers inflation, stocks rally
inflation spikes = will inflate all assets, stocks rally
inflation drops = improves earnings quality, stocks rally
Absolutely spot on hilarious!
Good speculating and remind them to please don't ever forget that "an investor is a speculator who made a mistake and will not admit it".
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