In the past when Warren Buffett has spoken out the "super rich" needing to pay a higher tax rate, the media have hung on his every word. But, now that he has spoken out against a windfall profits tax on oil, will they notice?
"I think it is very hard to have windfall taxes," Buffett said. "Steel has doubled in price. Is that a windfall for the steel producers? Sure. Corn is $7 a bushel; soybeans are at $15 a bushel. I don't think any candidate in his right mind with the number of electoral votes in farm states would say you ought to tax farms specially because they are getting a windfall."
Not a mere hell-freezes-over-moment. Call it–in honor of Chinese Olympic diving which made the NY Times today–a a triple-twisting forward three-and-a-half flying pig, pike position. An MSM reporter has condemned socialist big-government programs, adding a pitch for unrestrained free-market forces. Check the end of this item for a factoid making the moment even more remarkable.
CNBC's Michelle Caruso-Cabrera made the stunning statement on Morning Joe today while reporting on a change in Chinese policy that should lower the price of crude oil world-wide.
Pushing a liberal social agenda is the last thing you'd expect to see on CNBC's "Squawk on the Street." But the network's June 16 mid-morning show featured a segment praising the California Supreme Court for legalizing same-sex marriage because of a predicted economic benefit.
"This time around, one study expects over 100,000 gay couples will tie the knot, providing a boost to California's ailing economy hit hard by the real estate foreclosure meltdown," CNBC Silicon Valley Bureau Chief Jim Goldman said.
Goldman cited data from the pro-gay Williams Institute, a division of the University of California Los Angeles School of Law. According to its Web site, the Williams Institute "advances sexual orientation law and public policy through rigorous, independent research and scholarship, and disseminates it to judges, legislators, policymakers, media and the public."
Think it's hot outside? "Good Morning America" wants you to think it is your fault - at least that's why an expert featured on the June 9 show told viewers it is hotter outside.
Stanford University professor Dr. Stephen Schneider said that methane and carbon dioxide in the atmosphere are making hot temperatures even hotter.
"While this heat wave like all other heat waves is made by Mother Nature, we've been fooling around by turning the knob and making a little bit hotter," Schneider said. "[W]e've already increased by 35 percent the amount of carbon dioxide which traps heat. We've added 150 percent more methane, which also traps heat."
Ironically, in 1971, Schneider co-authored a research article that explored both warming and cooling of the Earth, warning that a certain level of aerosols entering the atmosphere could trigger an ice age.
Today's dramatic $6-a-barrel spike in oil has been blamed on a couple of factors - a forecast by Morgan Stanley (NYSE:MS) claiming oil would hit $150 a barrel by July and a weakening dollar off news unemployment increased half a percent for the month of May.
But CNBC contributor John Kilduff, who is also the vice president of risk management for MF Global (NYSE:MF), told viewers on the June 6 "Squawk on the Street" geopolitical factors, specifically remarks from an Israeli official about attacking a nuclear facility in Iran, is behind the spike.
"[W]hat's really lit up this market big time here is, which hasn't been really mentioned. I haven't heard too much and I'm surprised at, is deputy minister in Israel said this morning that an attack on Iran's nuclear facilities is quote, ‘unavoidable,'" said Kilduff on CNBC's "Squawk on the Street."
Not sure that would be a winning campaign slogan for Barack Obama, but on today's Morning Joe, Mika Brzezinski expressed skepticism as to whether Americans really care about winning in Iraq. Mika made her comments in the course of touting Frank Rich's NYT column of yesterday [on which I commented here].
Brzezinski was clearly eager to make her point: after reading an extended excerpt from Rich's column and inviting comment from the panel, she didn't let a bemused John Harwood of CNBC/NYT get more than a few words out before cutting him off to express her own opinion.
MIKA BRZEZINSKI: Anyone want to comment?
JOHN HARWOOD: Well, I don't think Americans forgot Iraq --
BRZEZINSKI: You know what? I think Americans are tired of being duped, and I think this is coming back, from the McClellan book. I mean, everyone talks about how Americans want to win, want to win. I don't know so much with Iraq.
The economy plodded ahead at a 0.9 percent pace in the first quarter - slightly better than first estimated - but still underscoring caution on the part of consumers and businesses walloped by housing, credit and financial problems.
The network news broadcasts are to blame for the American people's widely held misconception that the U.S. economy is in a recession, according to Media Research Center founder and President L. Brent Bozell III.
"How in the world is it that 81 percent of the American people believe that we're in a recession?" Bozell asked on CNBC's "Kudlow and Company" May 2. "Maybe it's because the national networks this year, and we've counted it, have talked about a recession over 500 times."
Dittoheads, you've been dissed. Chris Matthews has dismissed you as "manipulable"— mind-numbed robots, you might say. CNBC's John Harwood seconded the snub. It happened on this evening's Hardball as Matthews mused about the potential impact of Operation Chaos on the upcoming primaries.
CHRIS MATTHEWS: How much of a move do you hear, John Harwood, the so-called Operation Chaos is going to play next Tuesday in Indianapolis [sic], the effort by Rush Limbaugh, the lovable Rush Limbaugh, I must say, to encourage Republicans, registered Republicans, to go vote for Hillary just to cause chaos and perhaps get her the nomination? How big a role will that be?
JOHN HARWOOD: My suspicion, Chris, is that's a lot more talk than action. I think there aren't that many voters who can be manipulated in that way to go make trouble in a primary election. And one of the things that's striking--
MATTHEWS: Butwhen you call yourself a "dittohead," it seems to me you've already defined yourself as someone who is, uh, let's put it this way—manipulable.
It's no longer profitable for networks to have their own news organizations, according to CNBC's David Faber.
In the wake of the news that CBS is in negotiations to outsource its news division to CNN, Faber explained on CNBC's April 8 "Squawk on the Street" CBS's news division is a victim of an evolving business.
"The news that CBS is once again considering a deal under which it would outsource some of its newsgathering operations to CNN - certain to get those critics out there who say, ‘Oh, this is the end of news as we know it on television,'" Faber said.
"Well, if you haven't noticed, news on television ended a long time ago, other than '60 Minutes,' which is by the way a CBS program. I challenge you to come up with actual newsgathering that is taking place on the networks," he said. "That ship has sailed."
Coming off his April 2 interview with Democratic presidential hopeful Sen. Hillary Clinton (D-N.Y.) on his show "Mad Money," CNBC's Jim Cramer told "Squawk Box" his job entails some hazards.
"You know, look, obviously I've had a lot of death threats," Cramer said on CNBC's April 3 "Squawk Box." "They're actual death threats. And, you go to the state police and the state police go to the local police and the local police call the guy and that's what you have to do, or you bring suit against them. I've had to do a lot of that."
Cramer emphasized his active response to anyone who threatened his life.
"You know, the death threats are not cool," Cramer said. "You know, anybody with a death threat, I go after them with everything I have."
"The American public don't know jack," Cramer said in response to a question from CNBC correspondent Michelle Caruso Cabrera about justifying the move to the American public. "They're just glad they're just not going to lose their job. I mean, this thing was so out of control. Everybody on Wall Street thought they were going to lose their jobs 10 days ago. We're thrilled."
In a response to an e-mail posted on his Web site on March 11, Cramer said Bear Stearns (NYSE:BSC) wasn't in trouble and advised the writer to keep his money in the investment bank:
"Dear Jim: Should I be worried about Bear Stearns in terms of liquidity and get my money out of there? --Peter
Cramer says: "No! No! No! Bear Stearns is not in trouble. If anything, they're more likely to be taken over. Don't move your money from Bear."
On the day Cramer posted that on his Web site, Bear Stearns had a stock price of $62.97. As of noon March 17, the stock price had plummeted to $3.80 a share after the market opened. On March 16 it was announced that J.P. Morgan Chase & Co. (NYSE:JPM) was purchasing the beleaguered investment bank rocked hard by the mortgage fallout.
Jim Cramer is known for wearing his heart on his sleeve. But the host of CNBC's "Mad Money" normally lets his emotions show over matters financial. In August, for example, he went ballistic at Ben Bernanke, pleading with the Fed chairman to lower interest rates in the face of widespread home foreclosures.
This morning, however, Cramer got verklempt not over the discount rate but at the falling fortunes of his friend Eliot Spitzer. Cramer went to Harvard Law with the embattled governor and his wife Silda, and over the years has defended Spitzer against the torrent of criticism directed at the so-called sheriff of Wall Street for his high-handed tactics.
Cramer appeared on this morning's Today to discuss with Meredith Vieira yesterday's dramatic Fed move. But at the end of the interview, Vieira raised the Spitzer situation, and that sent Cramer to the verge of tears. The transcript below doesn't do justice to just how emotional Cramer became, so readers might want to view the video.
They're starting to get it. The media are figuring out government meddling in U.S. energy policy is taking a toll on the American economy.
On February 20, the Labor Department reported that the Consumer Price Index (CPI), a key inflation reading, rose 0.4 percent in January, matching December's rise. Why? Increased food costs because corn is being used for ethanol.
"Farmers are replacing wheat fields with corn to meet the demand for alternative fuel, but that means higher flour prices - and in one Pennsylvania pizza shop, more expensive pies," NBC News correspondent Chris Jansing said on the February 27 "NBC Nightly News."
For years, NewsBusters and the Business and Media Institute have informed readers about how the press, since George W. Bush was first elected, have tried to create a self-fulfilling prophecy by misrepresenting economic data in as negative a way as possible.
This is likely the cause of the public's continued pessimism about economic conditions even as the economy has expanded for 25 consecutive quarters.
On Tuesday, in an interview on CNBC, Los Angeles Times and Chicago Tribune owner Sam Zell took this thinking a little further when he suggested to "Squawk Box" anchor Becky Quick that many of the economic problems facing the country today are caused by fear-mongering and politicking by Hillary Clinton and Barack Obama.
"And John Kilduff, who I know you speak with often, as well, Brian, he says we could see prices at the pump as high as $4 a gallon," Burnett said. "And that could be by the middle of February. So it could be anytime in the next six weeks. So that's going to be an increase, and we've seen it across the board, Brian. Commodity prices are going up, and that is causing worry for stocks."
One home supposedly burned because Sheryl Christman, a 38-year-old Michigan woman, was three days short of foreclosure. She pleaded no contest after the Sept. 1, 2007 arson. The other case was a Colorado arson where a man "may have" committed arson before an "imminent foreclosure."
"He will make Cheney look like Gandhi," Buchanan said.
Buchanan participated in a panel with former Bill Clinton political adviser Paul Begala and liberal Air America radio talk show host Rachel Maddow on NBC's February 6 "Today." Buchanan told "Today" host Matt Lauer that McCain will have to shift focus from the economy to other issues.
"[T]here's a system out there where basically what happens is the government makes some assumptions about how many jobs are created or lost every month," Burnett explained. "How many businesses are created - they can't check it every single month, so they have to make some assumptions. It turns out if you look out over history they always do the ‘businesses dying estimate' in the month of January - as a matter of fact, always in the month of January."
On January 18, Cramer appeared on MSNBC's "Hardball with Chris Matthews" and warned if the government didn't intervene and prevent the failure of two large insurance companies, Ambac and MBIA, the Dow Jones Industrial Average would drop 2,000 points in the upcoming weeks. Cramer isn't talking about that sort of collapse anymore.
"For months I was worried about [MBIA CFO] Chuck Chaplin and MBIA (NYSE:MBI) and ABK [Ambac Financial Group, Inc.] (NYSE:ABK)," Cramer said on the January 31 "Street Signs." "Everyone's worried about it now? Why should I be worried about it? When you have a problem on your hands and everyone's worried knows about it, [New York State Superintendent of Insurance] Eric Dinallo to [President of the Federal Reserve Bank of New York] Tim Geithner, it's done. It's done."
Recession stories have a lot in common with global warming stories - there are a lot of them and you hear only one side. And like global warming, recession is the subject of a Newsweek cover story, appearing on the front of the magazine's February 4 issue.
"The Great Global Market Freak-Out of 2008 has everyone asking whether the United States - already on the road to recession - is entering into a protracted period of economic trouble where jobs will be slashed, prices will continue to rise and the dollar will keep falling; and if so, whether the declining U.S. economy will pull the rest of the world down with it," Gross wrote. "A recession is defined as a widespread contraction in economic activity lasting more than a few months, and because of the lag in financial data, recessions typically aren't officially declared until long after they start. In short, the United States could already be in one."
It's really frightening to imagine that people who get the bulk of their news from Comedy Central's "The Daily Show with Jon Stewart" will be making what they probably think are educated decisions at the ballot box come Election Day.
Stewart, who is now a self-proclaimed economist, said on his January 23 show, "Our economy is tanking." And now you can add financial media critic to Stewart's list of titles.
"For insight, I turned to the two major financial networks to find out what is going on, or as they're known around here, ‘hot ladies talk economy with bald dudes,'" Stewart said.
Billionaire investor George Soros called for more government monitoring and involvement in markets in an interview on CNBC January 23.
"Now we really have to reconsider the whole policy, which has been in my opinion misplaced, of relying on the markets to police themselves," Soros told Maria Bartiromo in Davos, Switzerland, "to recognize the risks. And there are risks which it is the job of the authorities to control, and the authorities have abdicated their responsibilities. So did the rating agencies."
Soros slammed the government for "not taking the right steps in dealing with" what he called upset financial markets. "[T]he authorities ought to move into the market makers, look at the books and make sure that the bad risks are recognized and reassure the markets that the main actors, the banks that are too big to fail, will not fail, that they will in fact be bailed out the same way as Northern Rock was bailed out even if that means wiping out the shareholders or greatly reducing their benefits."
After the Fed made an "emergency" 75-basis-point rate cut this morning, CNBC's "Mad Money" host Jim Cramer, who has gone from bull market cheerleader to bear market doom and gloomer in the last six months, said it was too little too late.
"[T]his is obviously the kind of action I was most fearful of - which is that they would have to go panic and that they would get way behind the curve," Cramer said on CNBC's January 22 "Squawk Box." "But, you know but once they do it, I'm less ... I can't hammer them as much. This is the kind of action if they had done it three months ago, we would have been safe."
On MSNBC's January 18 "Hardball," Cramer predicted the Dow Jones Industrial Average would decline 2,000 points over the next couple of weeks. However, he was a little less pessimistic after this rate cut.
H/t David Shuster. What's that? David Shuster, liberal MSNBC avenger, now a NewsBusters source? Not exactly, but read on . . .
Watching a special Saturday-morning edition of Morning Joe, I was surprised by CNBC chief DC correspondent John Harwood's willingness to pronounce Fred Thompson's political epitaph even before voters went to the South Carolina primary polls today. Shuster was similarly struck, going so far as to suggest a headline.
MIKA BRZEZINSKI: What about Fred Thompson? Is it the end of the line, John, for him tonight, or is there a way he can rejuvenate his campaign?
Of course, Cramer is a regular on NBC's "Today" and "Nightly News" as an expert on the economy. On December 19, Cramer appeared on "Today" and was very critical of Fed Chairman Ben Bernanke for not cutting interest rates more than a quarter point. In another "Today" appearance on January 17, he declared the economy was in a recession, a 180-degree change from his comments earlier in the month when he declared "sunny skies" were ahead for the economy.
American capitalism - it's so great even the Chinese Communist government loves it!
That's sounds like it ought to be a bumper sticker, but the January 16 "NBC Nightly News" advised it is something we should be cautious of.
Foreign investors have been on a buying spree in the U.S. stock markets - as stock prices have fallen with all the skittishness in the wake of the credit crunch.
"So far foreigners buying chunks of Wall Street has not triggered the same political uproar as a Dubai company's ill-fated effort to take over operations of U.S. ports, perhaps because politicians know the alternative could be painful," NBC correspondent Lisa Myers said.