« Wendy Starbuck, blogger of note | Main | U.S. Jobs Report Friday at 8:30am ET »

January 6, 2005

Taking a Breather

Today has been a trying experience for me. Trying to catch up! But I did have time to read plenty of mail re my comments yesterday about Larry Kudlow of CNBC. And now I can take a quick and refreshing break by getting back to my blog.

SG wrote "Kudlow is as value added as a stopped clock. Always bullish, always pro Republican, always annoying. He must have incriminating pictures of CNBC management - how else could he continue to be on the tube??"

Actually I get this kind of comment whenever I write about Larry or his sidekick Jim Cramer.

Although you may not like it, here's my answer: Sounds like someone is envious :-)

Actually there is, for all of us, a Kudlow-type amongst our closest friends and family, so I try not to make my comments about personalities like him too personal.

Well, it could be worse, I suppose.

You know really why I take shots at people like Kudlow and Stonecipher and Bob Froelich for example? I just want every reader to realize that these market insiders are no different than any one of us. They may look good and have the patter down right, but having worked alongside some of the people you frequently see on TV, I can honestly say that WYSIWYG.

Yes, we all ought to spend less time putting some of these people on pedestals and more time trying to take actions that lead to improving our own wealth, health and social equity, which is something in our power to accomplish.

Now, please don't take me wrong on this. I am a free enterpriser. So I do not advocate egalitarianism. I treasure the opportunities provided by society for me (or you) to create value and to be either financially rewarded or otherwise recognized for it because that serves to improve society.

But I feel that investors give far too much latitude to Wall Street insiders like CEO's, analysts, fund managers, etc -- allowing them too much control to take down compensation that bears virtually no relation to the value add, to withhold "public" info, and to cover up personal agendas with spin, and so forth.

Thankfully, most of the TH's we get to see on TV are even known on Wall Street as entertainers. Most of these people with titles like Managing Director and Chief Strategist and so forth are presented to look like the industry's movers and shakers, but they are not.

And the corporate leaders we used to see paraded in front of the cameras, like the Global Crossing guy, or the Tyco guy, or the AT&T guy, or the Krispy Kreme guy, all seem to vanish after their fifteen minutes on the stage.

As I see it, in the realm of entertainment, listening to most TV personalities is acceptable (because we have our own filters to put on and if the canned message gets to be excessive we can just turn it off).

But when it comes to people managing assets or corporations that we have an equity interest in, then that form of communication is not acceptable. Nevertheless it goes on and on, and it's even getting worse.

The American proclivity to develop and exploit the "star" system is ok for all forms of entertainment and sports, but there is no place for it in the nightly news or the capital markets. Unfortunately, the sell-side does not agree.

As for Kudlow, as long as he has no agenda to personally profit from his remarks, I can accept him. I think ten or twenty years ago he might have been taken more seriously, but today's marketplace is more sophisticated. People now understand he's an entertainer, and I happen to think he's a pretty good one.

In terms of his one-sided message, it gets a little boring, I agree, but whenever I watch his show I do so for the nuances.

On any subject, we know Kudlowspeak is spin. While it is not objective, it is part of the Wall Street landscape. Trying to find an objective perspective on Wall Street requires knowing where to go looking for it, which is a role that bloggers can play.

That reminds me of the Leo Cullum cartoon in Barron's showing a New York City street vendor handing over a hot dog to his customer: "I believe Dijon is available at our Madison Avenue location."


006a.gif


When it comes to getting something you need, it's out there. "Clean" data doesn't take more than 5 minutes to find. Looking for it is all part of Main Street's learning how to deal with Wall Street.

Tomorrow is the first Friday of the month, the day that the U.S. Jobs Report is published by the Bureau of Labor Statistics. It's an important report that has implications on consumer spending, which is the major driver of the economy. On this particular day every month, Larry Kudlow is always one of the lead CNBC analysts, and since we know from experience his analysis of the Jobs Report is more spin than anything, we know we have to go directly to the line items in the actual report.

I'll see you there.


BCara@BillCara.com

Posted by Posted by Bill Cara on January 6, 2005 04:23:56 PM | Category: Blogging World

Discourse

I personally like Kudlow though I don't see him on tv. But to me it's a little more than economic. He represents a political vision and this vision is cutting out all information it doesn't like to see and making data fit it's certainties.

This isn't confined to the right, Krugman has become pretty distorted in the "entertainment style" polarization. With Krugman it does matter more because he is symbolic of the political perception that currently controls Washington. Even if you think they are generally correct on certain issues, the general vision is not the pragmatic implementation; and this refusal to evaluate and eform threatens us in everything from Iraq to taxes to social security.

Entertainment is very much a shaper of thoughts and it's reforming is in my opinion a part of the revolution you are advocating.

From a financial point of view this guy touches on it a lot:

http://bigpicture.typepad.com/

Especially critiques of the music industry and how it is failing. Then TV is losing "eyeball time" to the net, you are seeing the gradual shifting.

In my opinion this is going to be inceasingly artist control of distrubution, distribution channels linked to "commununities," in which the fans feed back and create relationships with artists and a wide variety of products are spontaneously inclded into the mix. We are reaching the point where technology cuts out the moddle man. You can offer the public on a webbsite, people can spread it throgh their own mediums, integrate it into new artistic forms.

The cellphone will revolutionize this, you can link to a "net station" already, soon bluetooth and other systems can pick up neighborhood channels.

The tools for creatings are coming into everyones hands so various collages of music, graphics, text and game become possible.

An entirely different relationship towards art may be emerging. And it does make a difference. When I was a kid sports was big. Most males had played them when young and kept connected. this declined and I remember going to giants games in the seventies and getting in for a buck. Then guys who had never played decided to prove their manhood by being huge fans and it's a huge industry, but not something directly related to most watchers experience. There's some fundamental shifts in the culture. Good and bad. Now things are changing again.

And these styles of relating do transmit to other things.

I'm in a hurry and can't remember a tenth of the stuff I've thought on this, but I think you're wrong when you say the form of entertainment doesn't matter. I think it does and I think the changes it's beginning are going to tie into the changes in the ways people manage their money.

- David Bennett

Posted by: david bennett [TypeKey Profile Page] at January 6, 2005 5:54 PM [link]

1) Why are you watching TV for anything other than entertainment? You know better; One certainly doesn't watch it for intelligent or illumin ating commentary about the stock market (OK -- on rare occasion maybe you can glean a tidbit of good info)

2) Kudlow at least wears his politics on his sleeve -- consider all the nefarious economists who pretend they are neutral, when they are little more than cheerleaders and syncophants;

3) Cramer is every bit Kudlow's equal, and not a mere sidekick;

4) the good news is the cheerleaders and broken clocks end up getting demolished!

patience . . .

Posted by: ritholtz [TypeKey Profile Page] at January 6, 2005 10:30 PM [link]