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The initial overheated tone of this post has been edited to better reflect my points and remove the bad words and unreasoned insults that were placed there in the heat of the moment. I’m glad that the commenter, posing as the real Macke, called me out. AW
10/05/2008 I am removing any references to Mr. Jeff Macke. I am retracting my indictment of him in any way. Instead, I refer people to the CNBC Program Fast Money – to the episode archive where Mr. Macke comments on Senator Shelby’s review of the the first ‘no’ vote on the rescue plan. I will endeavor to get that clip posted. It really set me off. There was no need, however, to put Jeff Macke in the greater mix of my emotions on the dirty deal. I will let the comments stand.
Many financial commentators on CNBC seem to be very free with your money. Some recent comments on Fast Money, tend to say that the Fed and the Treasury should give your money to the banks that screwed us. Despite the fact that professional traders have generally profited and watched while the entire market was leveraged up, that the professional equities trading and management business is taking a beating, (unless the cake is handed out), it is an insult that professional commentators are taking a pro-position on the legislation just passed. Mr. Taxpayer, they got it done. Lambasting Senator Shelby for putting the brakes on this benighted plan to take money out of your pocket and placing it at the disposal of the Fed has me very angry.
The CNBC commentators, it seems to me, dispense superficial commentary. They talk fast and say nothing, covering the same talking points and revealing no insight whatsoever. The only things we hear out of their mouth seems to be positions that bolster what is good for Wall Street.
I usually expect more reasoned argument from Karen Finerman; in the last analysis, however, Ms. Finerman is a trader, and she needs to keep her cake in the oven. Dylan Ratigan seems to be the most level headed of the group, expressing and exposing the counter position sometimes, but overall, he takes the pro position and explains the best he can that this was a necessary deal.
There are other CNBC anchors that take a reasoned approach and who seem to be opposed, if not to the deal itself, to the “hurry up” nature of the deal.
People, we have been taken down this bad road by the people and pols that actually engineered the seeds of the disaster. These are the selfsame people who could have regulated the processes. Instead, they actually watched as it unfolded over a period of years. This is legacy of the Bush administration, their friends the wealthy, and professional traders. They berate those who dare pour cold water on this abominable deal. This was an insult…and more injurious to you the taxpayer, than doing nothing and letting the market take its toll. Let the private equity market make good what it made bad.
Numerous financial commentators have been so wrong on this subject; This should have been a market driven solution that limited the taxpayer’s participation. Many economists have advocated an open, transparent electronic exchange for the distressed assets. That would be a start. Most of the taking heads on networks like CNBC want the cake to be pumped into the selfsame corrupt investment banks that engineered the crisis, and also want interest rates to be essentially cut to approach zero. These are all bad ideas.