The Absurdity that is CNBC (Part 1 of Many More to Come)

When studying at home, I probably have CNBC tuned-in on the background more than any other TV network. This is not such a compliment to CNBC's product as it is the pitiful production of TV in general. The only reason I can justify having the network on during the day is because after years of investing and studying the principles of business and writing for The Motley Fool, my ears have become adept at weeding through the fluff and puffery they are shoveling out. The sad thing is, CNBC could be a vital network to help everyday investors navigate the increasingly complex and convoluted world of business and capital markets. Instead, it is a panderer preying on the investing ignorance of the general public; it's a proselytizer of outdated ideologies of laissez faire economics and "self-interest" centered libertarian politics; it's a peddler of complete nonsense (see below from one of its many illogical pieces of advice). Moreover, this dangerous network suffers from the worst case of amnesia I have ever seen. Almost every rational economist agrees that the U.S. economy was on the brink of collapse in the Fall of 2008 and had it not been for unprecedented bailouts of the banks by the U.S. Government, it would have been as Warren Buffet predicted..."back to the stone age." Yet, CNBC commentators loathe the regulatory hand of the U.S. Government that history has proven necessary to protect the public from future Wall Street abuses. CNBC simply does not represent the interests of the average investor, the people who dominate its audience; CNBC represents the interests of the Wall Street elite first and foremost.

Over the course of this blog, I will comment regularly on the baffling content on CNBC. Here is one example... Everyday I listen to the network, I am amazed by its shortsightedness. Yesterday, CNBC had two analysts on that basically said the same thing - "I am a buyer of the S&P 500 if it stays above 1120, I am not a buyer if it goes below 1120." READ that statement carefully and see if you can make sense of it. I hear this kind of nonsensical analysis almost everyday on CNBC. Basically what they are advising here is to buy a bag of peanut M&Ms for $1.00, but don't buy the same bag for $0.90. Does that advise make any sense to you? Of course it doesn't. Yet that's exactly what CNBC is advising you to do. This isn't investing, it is Las Vegas gambling (what they refer to as trading). I call it complete bullshit and a total sham. It is a guaranteed way to lose money. Why? Because, as you buy a stock for a higher price as they instruct, there is a seller on the other end of that deal who is cashing out. Please, do not be a sucker by listening to CNBC.

If you want to learn to really invest, read about Warren Buffet and Peter Lynch and Tom Gardner. But whatever you do, pay no attention to CNBC. I cannot express this point enough.

On that note, have a Happy New Year. The upcoming year will offer many challenges as every year does. In the process of confronting these hurdles, remain thankful for what you have in your life.

Peace

JMac