Susan Krakower and CNBC: The Stock Tip Masters

A poster the other day wrote:

Am I the only one who thinks CNBC does not spend anywhere near enough time investigating the GE collapse? I mean the GE Capital disaster is as bad as AIG and worse than Bank of America and Citigroup! GE will be a HUGE bailout for the U.S. taxpayers (50*1) leverage and CDS insurance that is to the moon. Can you say huge bailout that will dwarf AIG! Armageddon.

Another posted wrote:

Good point! Why isn’t Faber doing an investigative piece on the GE Ponzi scheme?

A documentary about CNBC/GE would be outstanding. And if you criticize them? They will fight back for sure. I expect it. For example, in early 07 CNBC invited me to their offices. Paid my travel. I did not have specific knowledge of what they wanted, but I knew I was meeting with Susan Krakower the producer who invented Cramer’s show. I assumed they were looking for content and I was right. I was led into a small office with Krakower and her two lieutenants. Seinfeld fans? Remember when Jerry and George went to meet with NBC. You know that odd feel that was portrayed with media executives? Where their offices had promotional posters all over? That was Krakower’s office. A big Cramer poster hanging behind her desk. Krakower herself was mid-50ish and her two lieutenants mid-thirties. They flanked me on either side. I was triangulated so to speak and peppered with questions. I am still not sure how they decided they should talk to me as they seemed to have no clue what I did, what I wrote about or what my thinking was. Would it surprise anyone that when Krakower asked me to hypothetically program 10 hours of airtime for CNBC that I said my programming would be nothing like the tips and fundamentals of Cramer? I pretty much said all of that was bunk. Clearly, I am not very good at playing the game and could immediately tell that my comment had just insulted the CNBC cash cow. We bounced around for 30 minutes and we never had a further conversation. It was quite an experience. What struck me the most was the manufacturing of the business news there. All that on air talent that looks overly excited every single minute they are on air is all a mirage. Once they walk off set (which you can see when you are there), they go back to their desks. Just normal people eating lunch and doing whatever. There is no excitement in the studio and offices. The excitement is only on the TV.

Fast forward from that early 2007 meeting to late 2007 and I was square in the middle of my documentary production. Trying to get their view, their opinion on market events, I made little progress. I sent this email to Cramer:

Hi Jim, I asked someone who knows you why you would turn us down and they said you were a “control freak”. I am not buying it. You seem like you would take anything head on. I just interviewed Bill Miller. Harry Markowitz and David Harding of London based Winton Capital are coming up. Half hour of your time that’s it. What’s there to lose? I want to see you get your point of view out there, instead of us just using b-roll of you.

Cramer responded to me:

While I would love to help I am sorry but I can’t.

I thought that was an odd response, but was not deterred as we did land Maria Bartiromo…until she canceled at the last minute leaving me a classic meandering voice mail. So, yes, I think the CNBC/GE story would be fantastic. While the media likes to portray the image of being on the peoples’ side, they are really just on their side.

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21 thoughts on “Susan Krakower and CNBC: The Stock Tip Masters

  1. Remember back in November GE Capital received 138 billion dollar debt guarantee through the Temporary Liquidity Guarantee Program operated by the FDIC, which is the same as a bailout…Now I realize why CNBC was shinning the bailout spotlight elsewhere. More corporate welfare for idiot CEO’s running the company into the ground. I would express outrage but nothing surprises me anymore….

  2. CNBC doing an expose on GE would be like looking up its own asshole, which will never happen. They are in on the “fix”… they control what you see, so you’ll never see a “documentary” about how fucked up GE is. Every time I hear the financial MSM makes me think of propaganda pumped into POW prison cells by the Nazis. Anybody who really believes the crap they spit out needs to get a clue.

  3. Again i must say that i don’t follow “guru’s” but prefer trend trading, Schultz is more of interest for his PT multi-flag theories than tips. Still bloke is 80 years old & still kicking.

  4. Speaking of CNBC stock tip masters, I see where Cramer late last week stated that the Dow may go down some more, but what made me sit up straight was his matter of fact statement that it would not go lower than 5,320. Now that’s some masterful knowledge for sure, I’m impressed with his ability to pinpoint the exact potential bottom, not 5,300, but 5320!. But of course one of CNBC’s guests, Doug Kass, stated on the program earlier in the week that the “market lows for the year would happen within the next three days.” Next three days is now history. If indeed Friday (3/6/09) turns out to be the bottom of 2009 (intraday low included), then I would liken that to the old saying about how even a blind squirrel eventually finds a nut.

  5. Let’s see, CNBC has a strong, financial relationship with GE Capital and you guys are wondering why they won’t do an expose on a sister company? Why should they? Would you?

    No, you would not, any more than you would hit yourself in the forehead with a clawhammer.

    Besides, it is not like it is any secret they are in trouble. Now, if NOBODY wanted to do an expose on GE then that would be a big story. You know, like why we keep on bailing out AIG with no details as to where the money is going, or the two trillion dollars the Fed does not want to account for?

    GE is in trouble. So is every major financial institution on the planet who was dumb enough to base trillions of dollars on a model created by Dr. David X. Li, called the gaussian cupola function. Dr. Li is now back in China (hmmm, LOL, bet I could drive the conspiracy freaks just WILD with that) and will not now comment on his work.

    Glad we aren’t stupid enough to do that twice! Except for that climate change thing…

    Wow. We are very, very stupid in the West, aren’t we?

    BTW, this is not a failure of capitalism, this is a failure of a system that concentrated all the power into a few hands. Whether it is a government entity such as the Congress or an NGO such the Fed, is irrelevant. Capitalism did not fail here. Fascism, pretending to be socialism pretending (pay attention, LOL) pretending to be capitalism here is the party at fault.

    Unless you want to blame all the whiney@$$ Americans who believe they have some crazy RIGHT to own a home, free medical care, and all the credit they can run up.

  6. Michael,

    why dont you simply ask Bloomberg to do an investigation on GE/CNBC, or they dont do those sort of investigations? Bloomberg has nothing to lose.

  7. WOW: A news team upset at another newsteam about investigating – you guessed it – said newsteam. A perfect metaphor for today’s elitist journalism and finance.
    Do you ever get the feeling that there are way too many journalists and investment gurus? That none of them really have a clue?
    Notice I have not even mentioned politicians or government workers.
    God save us all. Dig in and hide gold and silver and plant a victory garden. It’s gonna get a lot worse.

  8. Why will CNBC not discuss GEs shortcomings? I would like to see a program on this, and especially here about their CDS exposure.

  9. “BTW, this is not a failure of capitalism, this is a failure of a system that concentrated all the power into a few hands. Whether it is a government entity such as the Congress or an NGO such the Fed, is irrelevant. Capitalism did not fail here.”

    Sorry, but that IS Capitalism and it worked perfectly and just as designed. It raped and pillaged without conscience until it was caught red handed. Someone who would know once said, “Fascism should more properly be called corporatism because it is the merger of state and corporate power.” Who was that wise fellow? Mussolini.

  10. It seems to me there is a lot of complaining about corporate corruption, but where is the outrage by the stockholders? GE stockholders for instance? If the majority of voting stock is held by institutional entities, why do they not exercise their legal power to influence the board member selection that would influence positive change to the benefit of the shareholders and the market in general?

  11. Gibby, I find your Mussolini quote only interesting, in that, perhaps Mussolini’s fascism is indeed taking place right before our eyes aided by our current administration. Guess your Women’s Studies curricula at Barnard didn’t fully prepare you in independent, critical thinking after all.

  12. Not what I think but what I know: I see all this scribling and chitter chatter but I’ve not read or heard anyone who has a clue about whats going on in the world!!! Now let me clarify my statement. I’m talking about the blogs,magazines
    news papers, message boards, radio and TV in general. I do know a few people who knows whats happening and why and what
    to do about it!!! Rich

  13. CNBC is entertainment and that sells advertising. Their panicky focus on each days business events is totally misleading as sensible investment information. Investing is a long term proposition, but they treat it as if we are all day traders. But it is good entertainment, and I watch it for that reason.

  14. Michael, you need to seriously interview Dylan Ratigan fast!

    Dylan was the one honest source of info about the scam of CNBC shilling about this economic empire (including GE).

    You need to get the first interview with Dylan Ratigan to contrast with Cramer and sort out the shilling of this Economic Empire’s financial disaster heaped on the American people.

    GE is as much part of the ruling-elite ‘corporate financial Empire’ that controls our country behind the facade of its two-party ‘Vichy’ sham of democracy (aided by the equally ‘Vichy’ MSM} as is AIG and the rest of the corporate thieves.

    Ratigan knows the truth behind this sham, and was the closest thing we had to an Edward R. Murrow —- stripping the bark off the deceit of economic empire like Murrow did off Sen. Joe McCarthy and the phony communist empire.

    Dylan’s interview of (tutorial to) Austan Goolsbee on MSNBC shortly after Obama’s election (11/24) is a classic of progressive, hard-hitting TV that ranks with Edward R. Morrow taking on Joe McCarthy in my humble opinion:

    http://www.msnbc.msn.com/id/21134540/vp/27888374#27888374

    I firmly believe that Dylan’s pressure for the American people and against this looting Empire had direct influence on the new Obama administration to make some hard decisions about ‘doing the right thing’ in confronting this arrogant Empire, including the actions to ‘claw back’ ill-gotten loot being expropriated on UBS’s ‘Wealth Extraction Express’, as well as stiffening their spine on essential regulations to protect our American ‘commonwealth’ and working class families.

    Interviewing Dylan about the real story would make TV history for the people!

    Alan MacDonald
    Sanford, Maine

  15. 100% agree with Alan Macdonald’s post. Ratigan is the man. He stands out as a real truth teller amidst a sea of phony PC regurgitators. Please interview him before he’s silenced!

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