Now, I am all for free journalism. It is what keeps information flow honest. But when that freedom is blatantly abused and manipulated that destroys the very foundation of free speech and the freedom of the press. Yet this is what goes on daily at CNBC. It is no longer a medium of free and honest information but propaganda and sheer fraud.
There is no doubt that CNBC is the de facto standard source for financial information for the American investment community. Yet it has morphed into something more sinister. It is a medium of rumor mongering and cheer leading. The fact that they have the capacity to influence the markets the way they do, and not for honest purposes mind you, it has become the place for desperate hedge funds or companies to drop "rumors". Last time I checked, CNBC is a financial news organization. Doesn't rumors and speculations belong in the tabloids? Is that what CNBC has become? Should they change their name to CNBS?
Today, you could feel the desperation in the air as the markets broke through key support levels on the S&P 500 Index, a widely known level of 1320 was convincingly broken today, only to reverse late in the day.
Why?
It all started with what seemed to be a well coordinated onslaught of propaganda. First, Charlie Gasparino (I would like to refer to him as "Gasbagarino" because that is what he is) appears and makes the entire market believe that the Ambak deal is imminent, "within hours". That was at mid day, by that time, the market was clearly in full swoon with the Dow down more than 200 points for the day. It seemed to have limited effect as the markets began to melt down further. Then the news of Cisco Chairman John Chambers affirming 12 to 17% growth, further tried to prop up the markets. Then another rumor was floated that the FED was cutting 50 bps imminently which started to infuse some hope into the markets and the indices began recovering from its lowest points. Then at 3:20 EST, GASBAGARINO came out with an urgent breaking news update that while AMBAK bail out did not come to fruition, it should be completed within days and that the banks involved will work on this throughout the night to get the deal done. By this time, Nasdaq was in positive territory and majority of stocks shook off the early losses and turned them into gains.
Where are the cops?
If I tried to do this, I would have the FBI breaking down my home door within hours.
What gives CNBC the power to do this? Are they immune to morality? I don't know. All I do know is that Charlie Gasparino has been at this for over 1 month. Please consult my last blog regarding my rant on Charlie Gasparino.
Market cycles are inevitable part of investing. By doing the "stick save" today, not only did the market not get the cleansing it requires for an honest leg up, it has perpetuated the vicious cycle of range bound volatile market. Unless this stops, we can expect a slow bleed of the market place where only short term day traders like myself prospers.
SEC where are you? What about FBI? I think there is enough evidence here.
Friday's job report will be interesting. I wonder how many time old Charlie G will come out that time?
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