I have to remember to eliminate CNBC from even casual viewing.
Today, I was looking for some channels to toggle between while exercising indoors on a cold day today, when I got to CNBC.
It certainly is hard to tell what is advertising and what is information on Bubblevision.
One of the "reporters" was just gushing about what a great deal the 2008/9 bailout of BofA (and its confreres) was for the Treasury. Just look: $1.5 B profit to Treasury from stock warrants. The deal of the century!
This sort of cheerleading can only be done to newbies to the investment field. Anyone who knows anything would mentally gag at this tripe.
For the newbies:
Were it not for the hundreds of billions of aid so far to Fannie/Freddie/housing/AIG, and the trillion-plus additional dollars "printed" and added to the Fed's balance sheet to purchase mortgage-backed securities and Treasuries, the continuation of a zero interest-rate policy (ZIRP), the huge FASB change on recognition of impaired assets, etc., BofA warrants would be worthless. And Citi, even more worthless.
The ads for gold on CNBC are perhaps as objective as some of its "reporters".
Not to mention the commentator Larry Kudlow, who was forced in late 2008 to finally admit that not everything about the American economy is wonderful.
We are Japan. With nukes. And with unreformed, possibly worthless large complex financial institutions that run the show in concert with the Fed and the Feds.
Love those warrants!
Time for the bailout cheer. Give me a B, give me an A, give me a I . . .
Copyright (C) Long Lake LLC 2010
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