Free Exchange

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MARCH 14, 2009 4:37AM

Stewart's point

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Jim Cramer, the host of CNBC's investment show "Mad Money", and Jon Stewart, the host of Comedy Central's "The Daily Show with Jon Stewart", spent twenty minutes together on Stewart's show. Actually, to be precise, Cramer spent twenty minutes with Stewart being lectured to.

Here it is: http://www.thedailyshow.com/video/index.jhtml?videoId=220510&title=basic-cable-personality-clash

I looked a the comments below the video. I think some people are missing the point of the interview:

1. "I've been watching Cramer's show for years, and I've read his books. He always says, "Do your homework". So anybody who buys stocks "because Jim said so" is not following his lessons. Since Oct. '08 the market has lost 40-50%, and I've lost only 20% because I followed his rules, not his stockpicks. In a recession you get into high dividend stocks, food and drug stocks, and cash. Don't chastise him because most of his stock picks went down. 90% of the market went down. He teaches the fundamentals of the market. Thanks to his lessons, I stayed away from banks. They were too volatile, even if Jim thought they would rebound. He always said they were high risk. Jon is disregarding Jim's frequent disclaimers.
by wally48159"

2. "MONDAY, FEBRUARY 9, 2009 Cramer's recommendations underperform the market by most measures. From May to December of last year, for example, the market lost about 30%. Heeding Cramer's Buys and Sells would have added another five percentage points to that loss, according to our latest tally http://online.barrons.com/article/SB123397107399659271.html
by johndaman"

They miss the point. Mr Stewart is not angry that Mr Cramer was wrong; Mr Stewart is incensed because Mr Cramer, along with the financial experts hosted by news corporations, don't act as reporters but as entertainers. Mr Stewart plays video clips of Mr Cramer, taken in context, advising hedge fund managers to spread disinformation to cause the stock market to go broadly down so that hedge funds can make money off short selling. Mr Cramer then, in the same video, uses Apple as an example to explain in greater detail how to spread disinformation.

Mr Cramer has since left the financial sector to join a media giant. Media is supposed to side with the powerless; they report and expose what the powerful are doing and how it might hurt the powerless. Instead of pointing out disinformation regularly and taking men like Dick Fuld to task, Cramer and his counterparts in other media giants like CNN and MSNBC host shows called "Fast Money" and "Mad Money", becoming themselves an outlet for disinformation and market manipulation.

Mr Stewart points out, quite rightly, at the end of the interview that Mr Stewart, the comedian, should be making fart jokes and toilet jokes, not doing the serious reporting that Mr Cramer, as a financial expert, ought to be doing. The point is not that Mr Cramer made mistakes; the point is that Mr Cramer was and still is in a position to publicly expose different market movements as disinformation to protect the public though he chooses not to.

Mr Cramer may claim all he wants that he always opposed manipulation: video evidence proves the contrary. But even more to the point, Mr Stewart said it best when he said that the mark of a man is not what he says after the fact but what he does in the eye of the storm.

That fund managers use the media to spread disinformation for their own profit at the expense of 401ks and pensions, and that many people in the media know this but choose not to expose it publicly, is the point of Mr Stewart's interview with Mr Cramer.

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I think the other thing worth pointing out is the mistake involved in thinking Cramer's disclaimers make everything OK. Disclaimers can be a good thing, but they don't absolve the speaker of responsibility for the things they say, their tone of voice, etc.