Retrospective: Stewart vs. Cramer - Artful Cheap Shot

Opinion from Frank Cioffi, Apple Investor News:

I’m a big fan of Jon Stewart. I often learn more from “The Daily Show” than from network newscasts. But his artful, well researched skewering of Jim Cramer this week was still a cheap shot, an easy way to blow off populist steam about the financial crisis.

While I agree with Stewart’s premise that most major financial media failed us, making Cramer the poster boy for the crisis, in essence associating him with the liars and thieves, went too far. It’s also ironic to me that Stewart would attack a financial journalist who consistently provides information that attempts to level the playing field between the institutional financial complex and the average investor.

Jim Cramer saw this crisis looming, and called it before almost anyone else in his famous “rant” months before the October 2007 market peak. He also suggested some investors exit the market on “The Today Show” when the Dow was around 10,500. That advice saved a lot of people almost 4,000 points.

Cramer is an easy target because of his visibility, his bombastic style and because he makes many market and stock recommendations, some of them wrong. CNBC is easy game too. You can pull 20/20-hindsight video clips all day and make a good case against the network.

Of course, it’s not hard to see that most of the large financial media are as much a part of the problem as the financial institutions themselves. As Cramer admitted, “we can do a lot better.”

Yet while the highly publicized “Stewart vs. Cramer” episode will ultimately compel better reporting, I fear it may also further cement black-and-white populist thinking on the financial meltdown. This is a highly complex crisis requiring us to make finer shades-of-grey distinctions about what happened, how to fix it, and how to move forward productively.

One of the lessons of this crisis is the need to distinguish between real content and window dressing. This applies to journalism as well as earnings reports. While I see the clowning Jim Cramer does to be entertaining, I also see his knowledge, perspective and willingness to call it as he sees it. To me, he’ll always be the guy who “got it” a year before Ben Bernanke did.

Similarly, I hope more investors will be able to see beyond the reserved, steady and credible demeanor of the many mainstream financial media which let us down. During the height of the crisis those media maintained their demeanor, when maybe what we really needed was a guy screaming at us.

Comments

[John Lee]

Certainly Stewart has good reason to be mad at the manipulation of stocks using the rumor mill, but what I don't understand is why Stewart directed all of this anger towards Cramer -- the person who was calling out the manipulators.

[BMWTwisty]

You're delusional or a Cramer apologist. Cramer is a self-serving hukster who's been documented more than sevaral times admitting how he's manipulated Apple and other stock prices. He's a disingenuous clown-show. The short-selling manipulation of Apple stock is a textbook case of abuse. He deserved everything he got. I generally can't stand Stewart and the fact that you actually consider him a source of news information reveals your aptitude or dedication to getting factual information. Cramer should pay along with many others who have cost individual investors millions. You should be ashamed for defending him.

[Ted cranny]

No, he didn't miss the point, cramer is the only guy who let's us know what really goes on. I sure hope this attack doesn't make him feel his attempts will only get him into trouble. Cramer agrees with your point 'where is the SEC'. I hope we don't kill the only true ' cross-over' guy with this escapade.

[Frank Cioffi]

My point is that I ultimately believe Cramer talks about this stuff to illuminate what IS, where most other media don't even talk about it. The SEC has been alseep at the wheel. Let's see what the Obama team does.

[Dale Smith]

You have completely missed the point of this interview. The video of Cramer using hedge fund methods to kill Aapl versus the average investor that believes in the company is the most important thing that Stewart mentions. He is mad and so am I that this BS is allowed. The rumor mill around Aapl and Rimm is out of control. Where is the SEC?