Editor’s Note:
In this new series of articles, we include important or interesting
videoclips with brief comments. Our Web Software does not permit
embedding of the clips into our articles. So we shall have to be
content to include the links to the actual videoclips.
This is an
article that expresses our personal opinions about comments made on
Television and in Print. It is NOT intended to provide any investment
advice of any type whatsoever. No one should base any investing
decisions or conclusions based on anything written in or inferred from
this article. Investing is a serious matter and all investment
decisions that should only be taken after a detailed discussion with
your investment advisor and should be subject to your objectives,
suitability requirements and risk tolerances.
Two weeks ago, we featured a CNBC Hall of Memories clip of Jim Rogers and Larry Kudlow trash talking the US Dollar and the abilities of the Fed Chairman, Ben Bernanke. Then we asked the question whether that giddy segment would end up signaling the bottom in the US Dollar. So far, it has.
Wednesday June 10 was the day of the 10-Year Treasury Auction. This was a big event and CNBC devoted a great deal of coverage to this auction. Predictably, the coverage was about how long maturity US Treasuries were a terrible asset class to own because the deluge of debt offerings from the Treasury Department. Even Jim Cramer got into the act by heaping scorn on bond buyers by proclaiming “Let them trade bonds, I am buying a building.”
James Grant, Editor of the Grant’s Interest Rate Observer, was invited as guest on CNBC Squawk Box on June 10 to discuss his anti-Treasuries views. Jim Grant has termed CNBC as Bubblevision in the past. So CNBC’s David Faber asked Anchor Joe Kernan why they invited some one so critical of CNBC. Joe Kernan demurred but we can guess. Like Jim Rogers, Jim Grant is very negative on long term US Treasuries and that made him acceptable to CNBC Squawk Box.
We ask whether CNBC’s anti-Treasury hype on June 10 would end up signaling a peak in long maturity Treasury Rates. So far it has.
This week, we introduce a videoclip that is not investment related but is newsworthy because of an unusually strong and innovative defense by a wife of her husband.
We feature the following clips in this article:
- CNBC Anchor Larry Kudlow berating CNBC’s knowledgeable and honest reporter Diana Ohlick for being factually straightforward and firm – June 19
- Charles Biderman with Maria Bartiromo – June 19
- Fast Money Traders discussing the above Charles Biderman interview – June 19
- Gary Shilling discussing possibility of long term Deflation in America with Maria Bartiromo – June 16
- Marc Faber discussing certainty of long term Hyper-Inflation with Erin Burnett – June 19
- Jordan Kotick discussing a Summer Correction with Maria Bartiromo – June 18
- Larry Summers with Maria Bartiromo – a Three Part Interview – June 17
- Mrs. Ahuja claiming her Bollywood actor husband, Shiney Ahuja, was “framed” and offering an strong and unusual defense.
1. Has Obama’s Housing Bailout Gone Bust? – Anchor Larry Kudlow berating Reporter Diana Ohlick simply for stating facts – June 19, 11:20 am
We have written in the past that CNBC has excellent reporters who are very knowledgeable, fair in their presentation, firm in their convictions and unafraid of the anchors who try to browbeat them. We have praised Rick Santelli, Phil LeBeau and Diana Ohlick for these qualities.
We are delighted to state that Diana Ohlick justified our trust by standing up to browbeating anchor Larry Kudlow and responded to his attacks with firm statement of facts. We encourage all readers to watch this clip. The first exchange between Kudlow and Ohlick begins at minute 02:18 of the 07:13 minute clip.
- Ohlick – Larry, I got to disagree there.
Larry Kudlow tries to mock Ohlick but Ohlick continues.
- Ohlick – 5.5% is where most people refinanced or bought their homes during the housing boon. If they need to refi to a lower rate, it has to be under 5%.
- Kudlow – You don’t know that
- Ohlick – I do know that. I know it from the facts.
- Kudlow – You are misleading people if you say that.
Then Kudlow begins speaking to others. When Kudlow begins to hype the housing sales in Southern California, Ohlick corrects him and lays out facts and her views. So Kudlow attacks Ohlick again (minute 06:30 of the clip).
- Kudlow – You can look at the glass half-empty as much as you want
- Ohlick – I am not looking at the glass half-empty, I am looking at it clearly.
As we said, we are proud of the courage and steadfastness of Diana Ohlick. It is this viewer’s opinion that Larry Kudlow was misleading viewers and Diana Ohlick was presenting facts. But then, Larry Kudlow has transformed himself from an economist to a politician. That is his choice. It is also his choice to present a hyped version of facts and events to meet his politico-economic convictions. But, as CNBC viewers focused on getting investment value from CNBC, we think Mr. Kudlow should restrict his biased views to his 7:00 pm show. As an anchor of a 11:00 am show during market hours, Mr. Kudlow should behave in an unbiased, thoughtful manner for the benefit of the show’s viewers.
2, Tracking Market Flows – Charles Biderman with Maria Bartiromo – June 18, 4:28 pm
Charles Biderman, CEO of TrimTabs Research, has the best market data on the street. His views are highly respected and followed. This is his 3rd interview of 2009 with Maria Bartiromo. Like the previous two, this five minute clip is a must watch.
3. Are We Just Suckers? – Fast Money Traders discuss Charles Biderman Interview – June 19, 5:15 pm
The fact that Fast Money devoted a segment to the Biderman interview shows the respect of the trading community for Mr. Biderman. Not to be picky, but we wish to point out that Fast Money Trader Guy Adami seems to have misunderstood Mr. Biderman’s point. Mr. Biderman was talking about Insiders not buying their company’ stock for their personal account. Mr. Adami incorrectly interpreted this as Companies not buying stock for their Corporate account, a completely different thing.
We want to give a shout out to the entire Fast Money Trader Team for warning viewers about the possibility of a correction in stock prices. Guy Adami was the initial leader and the rest of the team has followed his example by warning viewers. Joe Terranova has been very good in asking viewers to get off the Energy and Natural Resources trades before this week’s correction. Well done Fast Money. This viewer thanks you.
4. Pricing Pressures Ease – Gary Shilling and Steve East with Maria Bartiromo – June 16, 3:41 pm
This is a segment devoted to discussing the prospect of inflation or deflation in America. Both experts agree that currently America faces deflation. Then Gary Shilling goes farther and states his view that America faces the prospect of Chronic Deflation for the next 10 years. This is a must watch clip for all serious investors.
What we found amazing is that a CNBC Anchor tolerated this viewpoint and actually let Gary Shilling state his case of long term deflation without unduly interrupting him. But then, we are becoming fans of this balanced, rational Maria Bartiromo. She also seems to have accepted the current state of US Economy. We know this because she mocked the notion of green shoots in a conversation with her colleagues on her show.
We have a great deal of respect for Gary Shilling. It was Dr. Shilling who gave us his data and showed us that 25 Zero-Coupon Treasuries have dramatically outperformed S&P 500 since 1982. For more details, see our August 2008 article Are CNBC Anchors on a Mission Against US Treasuries? – A Viewer’s Perpsectives.
5. The Gloom & Doom Trade – Marc Faber with Erin Burnett – June 19, 2:48 pm
Didn’t we know it? When Maria Bartiromo does an interview about Chronic Deflation in America, then Erin Burnett would do an interview about Hyper-Inflation in America. (If you do not get the connection, read our April 18 article CNBC’s Bartiromo And Burnett – The Rivalry Continues And Evolves Into A Proxy War?)
Marc Faber is a well-known commentator and his Gloom, Boom & Doom report is widely read around the world. We encourage all readers to listen to this interview.
Unlike Gary Shilling who makes his points softly and almost diffidently, Marc Faber favors a more bombastic style and flamboyant predictions. Gary Shilling has a superb track record of being correct on the US Economy. Marc Faber unfortunately has a more spotty track record.
At the end of the interview, Marc Faber says that he does not like US Real Estate. Then he adds, “I would rather be in real estate than in 30-year US Government Bonds”.
The same Marc Faber says in his June 15 interview in Barron’s – “I would short US Treasury Bonds when the yield declines to 2.8% to 3% on 10-year notes.”. Hmmm! If the 10-year note yield were to decline from today’s 3.78% to 2.8%-3%, the price of the 30-Year US Treasury Bond would go UP by about 15%-20%. Seems like a nice trade to us and seems like in the short term, Marc Faber is actually bullish on 30-year treasuries and not bearish as he said to Erin Burnett.
Another example of an expert making anti-Treasury comments on Erin Burnett’s show while saying something different to other journalists? The other example was that of Bill Gross on May 21, 2009 in his segment Will US Eventually Lose AAA Rating?
6. Signs of a Summer Correction – Jordan Kotick with Maria Bartiromo – June 18, 4:49 pm.
Jordan Kotick is a well-known technical analyst and he has been right on the markets for the past several months. So, we present his views about a summer correction to our viewers. Briefly, Mr. Kotick thinks that a 10%-20% correction in the stock market is likely and he thinks money will rotate from stocks to bonds during this correction. He also thinks that the US Dollar will get stronger. Larry Kudlow, are you listening?
We have praised Maria Bartiromo for bringing on her show experts like Gary Shilling & Don Galante who are bullish on long term Treasury bonds, especially the 30-Year Treasury Bond. But, we know that Maria Bartiromo is a CNBC anchor and the anchor who was the biggest cheerleader for equities during the boom years. So we were not surprised when Maria Bartiromo refused to discuss Mr. Kotick’s comments about Bonds being a good buy and when she redirected the conversation to other types of equities.
Come on, Ms. Bartiromo! It is OK to talk about buying US Treasury Bonds and it is OK to ask your viewers to consider buying Treasuries. Try it. You might even like being bullish on Treasuries.
7. Larry Summers, National Economic Council Director, with Maria Bartiromo – June 17
This is a three-part interview. Larry Summers is the National Economic Council Director and a confidant of President Obama. So his views are important to the global markets.
One On One With Summers, Pt 3 – 4:16 pm – Maria Bartiromo, to her credit, asks the trillion dollar question about the desire of Mr. Summers to become the Chairman of the Federal Reserve by replacing the current Chairman Ben Bernanke in 2010. Larry Summers refuses to give a direct answer. This question and answer is worth watching.
Summers On Regulation Revamp – 3:17 pm – Mr. Summers talks about the new financial regulations.
One On One With Summers – 2:00 pm – This short clip is notable not for its content but for its time slot. We find it interesting that the Summers interview with Maria Bartiromo was launched on Erin Burnett’s show. As a result, Erin Burnett and Maria Bartiromo end up speaking to each other and actually exchanging pleasantries. Our is an evidence-based blog and so, with this clip, we have to shelve our series on these two anchors that included articles like CNBC Stars – Bartiromo and Burnett – A Bollywood Rasik’s Perspective.
8. A woman can rape too – Mrs. Ahuja in defense of her husband Shiney Ahuja – Times of India clip
Shiney Ahuja is a well-known Bollywood actor. From Indian media reports, we learn that Mr. Ahuja has been accused of rape by their young maid. Mr. Ahuja, we understand, has claimed that it was consensual. Mrs. Ahuja has stepped forth and strongly defended her husband. Mrs. Ahuja has claimed that her husband was framed. She said she has known him for 15 years and he is incapable of such a terrible act.
So far, Mrs. Ahuja has followed the noble example of wives who loyally and resolutely step forward to defend their husbands. But as this clip shows, Mrs. Ahuja has now mounted an unusual defense. Our words cannot do justice to this news conference and this clip must be watched to get the full impact (http://timesofindia.indiatimes.com/A-woman-can-rape-too-Shineys-wife/videoshow/4672501.cms).
Below we include Mrs. Ahuja’s remarks at the beginning of the clip.
- “Rape as a word is a very heinous crime. In today’s world, rape cannot just be committed by a man, it can also be committed by a woman. We all know that and I am sure our judiciary system as it evolves and as it supports(!), will come out with laws that protect both the genders. That’s all I have to say.”
We do not know the facts and we might stepping out of our comfort zone by discussing this topic. But, we confess that we admire Mrs. Ahuja’s courage and determination. Watch her face angry questions after making this statement.
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