CNBC: Market crash is all Obama's fault

After Jon Stewart thoroughly embarrassed CNBC on two recent shows simply by showing CNBC clips, Salon.com’s Gabriel Winant watched CNBC all day long so we wouldn’t have to. The report, “Why is Jim Cramer shouting at me?: Is CNBC as bad as Jon Stewart says it is? Yes” is pretty revealing.

CNBC blames the market crash on President Obama, even though: 1) Obama has been in office about six weeks; and, 2) CNBC’s own talking heads now confess they totally failed to see the market crash and don’t know why their former beliefs about markets have failed so miserably:

CNBC has become notorious as a redoubt of talking — no, shouting — heads who insist that the market is tanking because the new president is an incompetent lefty. A Bolshevik even, according to Bloviator-in-Chief Jim Cramer. A squish who hands out free mortgage do-overs to “losers,” according to Chicago trading-floor populist Rick Santelli…

The station’s business model rests on its claim to insider wisdom and market smarts. …Yet the financial future is starting to seem unmanageable, even to the all-knowing pundits of CNBC. Someone must be to blame. Thus the essence of CNBC circa 2009 is an uneasy mixture of despair and boosterism, made to cohere with the liberal application of pure venom. And the venom is directed at the most convenient target: Barack Obama.

…[Cramer] says, “You know what drives market pros and grizzled veterans crazy about this particular market? It’s that no pattern that we’ve had before, ever, nothing that worked before, is working now.” “We’re like navigators operating without a map or compass.” Now, with the Dow below 7,000, he tells us.

…A caller asks him if it’s a good time for new investors to break in. Cramer says there’s no hard-and-fast rule, we’ve got to go case-by-case, and then, without missing a beat, or seeking any further information, says, “Buy Verizon.”

…Cramer warns that the Obama administration might cause another Great Depression, accuses the administration of “wealth destruction,” and compares Obama’s cap-and-trade carbon pricing scheme to the McCarthyite House Un-American Activities Committee. “It’s time to join the witch hunt against known polluters,” he snarks. “Will the Democrats carbon blacklist this company, unless it names names?”

Economist Larry Kudlow… accuses Obama of “waging war against businesses and investors and entrepreneurs.” He tees up guest Art Laffer, a wholly discredited economist, who claims, “The political process started in late 2007. Since that time, the markets have been down 55 percent. Markets are forward-looking, not backward-looking. They saw what was coming in the election. They were anticipating what this guy would do, and they caused a slowdown.”

Got that? It’s not our fault none of the models are working. The economy collapsed because the government broke it. Buy Verizon. If it goes up, Cramer and Kudlow and Santelli are geniuses. If it goes down, it’s Obama’s fault. Either way CNBC wins.

Posted by James on Wednesday, March 11, 2009