Jon Stewart mauls Jim Cramer, best interview ever

[Dezzimal]

Watch the uncut versions, and if you don't call that a mauling you weren't paying attention to what was being said. It was done as politely as could be done but Jon definitely had him stumbling over his own words and backpedaling the entire interview.

[Eaglestrike]

Watch the uncut versions, and if you don't call that a mauling you weren't paying attention to what was being said. It was done as politely as could be done but Jon definitely had him stumbling over his own words and backpedaling the entire interview.

Like with every clip, lol.

I think Cramer handled it well. And I hope, truthfully, that Cramer either was not in on any scheming or reforms and can go against it. Like Jon said, he wants there to be an organization to help uphold laws and such, and CNBC could be that. I hope this thrashing gives them some motivation to clean itself up.

It's sad that this country has to lean on comedians to get honesty out to the public.

[MF Perm tha Fineass]

I watched and waited for a mauling and it never happened.

Daily show needs to stick with funny and not this serious bullshit

It's ok, I don't expect anyone with an IQ lower than the average amount of words they use in a post to understand the context of mauling in that interview.

[isladar]

It's sad that this country has to lean on comedians to get honesty out to the public.

That is what good comedians have always done. That is what they should be doing.

[Davricle]

It's sad that this country has to lean on comedians to get honesty out to the public.

Someone hasn't seen the watchmen.

[Septimus]

Too many people think that the Daily Show is real news, primarily because the real news won't do their damn jobs. It is a sad commentary on the state of the media that it is up to a comedian to highlight fraud and simply explain a complex economic graft.

It's great that Jon Stewart can pour out all sorts of copious win, but there are a bunch of 24 hour news networks that should be doing this sort of thing, and he should be making jokes about that.

[ozz]

Daily Kos: State of the Nation

[Skjie]

The whole thing is for their benefit and not yours. I can't believe people are so retarded to not get that...

http://books.global-investor.com/images/books/22581.jpg

Hard to read:
Where Are the Customers' Yachts?
Or A Good Hard Look at Wall Street

[Eaglestrike]

That is what good comedians have always done. That is what they should be doing.

While I agree, it shouldn't be the ONLY source of truth, which is what I meant.

And yes, I've seen the Watchmen If anything my statement doesn't really work against the storyline there. Just because that's how it is, doesn't mean that's how it should be.

[Plow]

I just got on because I was going to make a post about this if there wasn't one already.


It's not as meaningful since there's a full unedited copy in the OP, but just in case anyone wants to see it, it will be airing (for the last time on tv I believe) again here in about 15 minutes.

[chazzyphizzle]

Lolol, holy shit at the self ownage on Cramer's part with that video clip they showed of him pretty much admitting he manipulates his stocks price when he's "a little short".

[Talus]

Lolol, holy shit at the self ownage on Cramer's part with that video clip they showed of him pretty much admitting he manipulates his stocks price when he's "a little short".

Isn't he always "a little short," I mean the dude is what, like 5'7?

[Skjie]

Lolol, holy shit at the self ownage on Cramer's part with that video clip they showed of him pretty much admitting he manipulates his stocks price when he's "a little short".

Any successful investor/financial planner will admit the same thing. How do you think they're all rich?

[Anton]

All bull markets end on fanatical optimism.

All bear markets end on hysteria.

John is absolutely right, but he is too narrow, only targeting one particular group of people: Hedge funds and crooks, or just crooks is easier. There are a ton of CEO's who saw the facts:
The US was running an 8 trillion dollar deficit at almost 1 billion per day. Financed entirely by loans.
The leverage ratio (a limit on how much debt can take on relative to its assets) was increased to 25:1
The interest rate was 1% for years and years.
The Credit default Swap market was a clever loophole past the regulated leverege ratio, allowing banks to take on other people's debt risk.
Real estate prices country wide were up 30% on top of inflation.
Stocks at their highest in history.
Consumer spending at its highest.
And decided to pilliage the company and peace with retirement plans.

Hedge funds operated on the slogan "alpha returns". What this means is even during crappy times, they generate positive returns through 'skillfull trading'(the alpha part). How do you make money on a losing market? You short. Plebe version: You can sell shit you don't have, hoping you can buy it back at a cheaper price. The opposite of Long: buying cheap stocks, hoping for them to rise.
Hedge funds are a bit shady. Firstly, never losing is an obvious myth. That's just too much crack in one pipe. They have, in fact, lost before. Secondly, there are no legal ramifications holding a hedge fund accountable for your money. All someone needs to do is say "Sorry, we're out of money. Here's 25 cents for every dollar you gave me", leave, and start up a new one a few months later. Finally, it promotes bad trading practice. You can go try that newfangled numbers and letters, or just give your money to me, and hope I do well with it.

But it wasn't just crooks, everybody was in on it. The world held on to an idea that this could just happen forever. With the interest rate so low, and for so long, and George bush urging people to "shop, or the terrorists win", personal spending was above and beyond anything in history. Why save money at a 1% interest rate? The banks are offering you shit all for saving it, and you can just get loans anyway. People were going through money like retard gilbuyers during FF inflation. Spend and go get more. The average american household in 02-03 was losing about 1000 dollars per year. In Ft. Lauterdale, FL harbour, over half of the boats were bought by people who took out a second mortgage on their house to pay for it. That's taking a mortgage on top of your initial mortgage, to buy an asset that only goes down in value. Like a car. Or a boat, in this case.

You could go to the banks and just get more cash, even with tons of debt. Run more cards, who cares? Ever heard of a ninja mortgage?
No Income, No Job, Approved!

So it's not entirely the crooks fault that people worldwide (but mostly in American borders) blew it.

Real estate was so hot, worldwide, that it became THE market for banks around the globe. Countries like:

Iceland- They're currently living off handouts because all of the government banks were profiting like crazy, and decided to get in on the hottest market in town: American real estate. They have no money at all.

China - American real estate. Hell, America has been borrowing money from them for decades. With americans buying so much chinese crap, China flourished as a source of cheap labour. China entered the world markets, and the people with them. China's economy is down, what, 60% now? It was 55 at one point. The Shanghai index alone is down 80%.

Every European country-Though more regulated than American banks, european banks were still allowed to leverage themselves more than before. They spent it on.... real estate. No wonder housing prices were so damn high, you had banks worldwide attempting to cash in on the hottest market in town. So many people wanted real estate, that the banks were running out of real estate to sell. So, they created the demon seed that would set several unrelated maladies into a death spiral.

It's called securitization. A securitization is a real-estate package, including some homes of value, and some really shitty ones to balance it off. But theres more: You don't actually own anything! What you have is a deed to 1/20th of several different houses. So, right now, a foreclosed house in Oklahoma is probably currently divided into 20 pieces, all owned by different people in different countries, on a piece of paper that says they own 1/20th of that and 8 other houses. Man, was this this paper hot! The values just kept going up and up! Everyone did it, too.
They tried turning real estate into stocks. But while you might like 1/20th of a company someday, you can't do anything with 1/20th of a house. So now nobody wants to buy them. Since no one wants to buy them, no one can price them. Finally, since no one can price them, banks cannot accurately tell how much debt they have, or what the things they own are worth.
Enter September 2008. With real estate falling like a rock on Bush's June announcement that "Something is seriously wrong" with the markets, banks are coming to a sad realization. These "sub-prime" (IE: Not very good) mortgages were going negative. That is, with real estate falling, houses were being worth less than what the tennants paid in mortgage. So they just gave their keys to the bank. Now, banks want mortgages, but they are not real estate agents. So someone finnaly said to his debtors "Pay Me Back" And the world shit itself. I can't pay you back, because I owe so and so, and so and so. The stage we're currently at is a massive unwinding of debt, with nobody spending. But if no one buys anything, then why should you have a job? This is the paradox of thrift: If everyone saves their money, nobody makes any money.
"Everyone jumps in the ocean when the water is high, but when the tide rolls out, you can see who forgot their swim trunks" ~Warren Buffet

tl;dr version of securitization.
Banks sold multimillion dollar pieces of paper with the word "Real Estate" printed on them. Dumbshits around the world went into debt to buy them. Housing prices fell on reduced demand. Someone panicked, and wanted their money back. Divide by Zero.

It's not like nobody saw this coming, though. Jim rogers (commodity trader), in his book Hot Commodities, predicted this very crash. If you get a copy for whatever reason, read the section on America, specifically Fannie Mae and Freddie Mac. Word. For. Fucking Word. And the book came out in 04. Fairfax financial, a small insurance and investment firm, refused to buy any credit default swaps or securitization, and paid a financial price. They are currently a massive insurance firm, sitting on wads of cash, and gobbling up failures and other firms at bargain bin prices. Understand: Not everyone loses in a Depression.


Now for the Tl;dr version of everything so far.
Banks actually don't care about their customers interests.
The Bush government, and Greenspan under both the bush and clinton administrations, were pants on head retarded.
Several factors came together to the point where American real estate ran the global banking system.
No one can pay their debts, because banks don't know what they're worth. And they aren't paying anyone until they know they wont die (like, unfortunately, Lehman. Someone in power must not have liked them or something)
Panic in the streets.
"We're holding people accountable!" News at 11
----------------------------------------------------------------------------------------
So don't blame it all on Cramer. But he's definitely the wrong person for financial advice. And it's not entirely any one ceo's fault, they were just trying to make money on a hot market. Honest people try to do this sometimes. If anything, blame stupid americans, rich and poor, for being such a boneheaded consumer culture. Your government has been printing and borrowing, mostly from China, for 15 years! If you still have unpaid credit cards, it was you.

Let me explain. I Am Canadian. Our government didn't let our banks leverage more when they wanted too. Our government didn't let them buy US banks. Our government didn't let them buy each other, and our government pretty much directly regulates our banks. So for years we were the kid nobody played with. At this moment, we have the most stable banking system in the world. Go look it up, it's true. Not ONE canadian bank is at any risk of defaulting, and many started holding on to capital as soon as the troubles started. Believe me, when they want to be cheap, they are cheap as fuck.

But are we superior? No. Canada is a commodity economy. In a boom period, like 2007-2008, the canadian dollar was worth more than the american dollar, because we had all the raw materials for the shit you need. There's a warning sign right there, nutcases! That should not happen lol. Well, now that nobody anywhere is buying many houses or anything, as the christmas consumer confidence index showed us, for that matter, we are super fucked.

tl;dr
Story of Canada. When we beat america, we lose because america wasn't 1st.

[Skjie]

Interesting to note a surprising number of our commodities companies are owned by the Chinese.

[Silenka]

Absolutely there are shenanigans, and they need to be called out!

[Demosthenes11]

It's ok, I don't expect anyone with an IQ lower than the average amount of words they use in a post to understand the context of mauling in that interview.

OH GOD DUDE YOU GOT ME

I said i was hoping to see a mauling - you know, like a bear attack. I don't watch the daily show to watch a war of words, I watch for funny. While this is a little funny, they need to stick to what they do best

[Beckwin]

what's always chuckle-worthy is the insecurities young conservatives display when talking about TDS.

[Anton]

Abu Dhabi recently bought canadian company NOVA Chemicals. This is not their first aquisition in the oil sands.

There are no Canadian Auto companies, only american departments. Along with fast food, department stores, and Molson Canadian.

Being a commodities country basically means you get economically divided.

[Demosthenes11]

what's always chuckle-worthy is the insecurities young conservatives display when talking about TDS.

do you like having that condescending attitude or are you trying to get rid of it?

I like daily show / colbert and watch it a few times a week typically. That clip is not what the show is about though and it really takes a lot of the funny out of it. Them being zany and funny is a lot better than seriously stanley. I don't even know how you turned it into conservative/liberal.

The clip was unfunny on a show that is supposed to be funny. end of story