The Golden Truth: CNBC's Ratings Take the Proverbial Cliff Dive

Friday, August 7, 2009

CNBC's Ratings Take the Proverbial Cliff Dive

I said after the Nasdaq/Tech crash in 2000 that, ultimately, the Bear market this country is heading into will not be over and a true bottom established until the Dow was somewhere between 2000 and 3000 and CNBC was off the air. I don't know about the ultimate fulfillment level of my Dow target, but it looks like CNBC is rapidly losing viewership:

http://www.businessinsider.com/cnbcs-ratings-fall-off-a-cliff-2009-8

Assuming the Dow/gold relationship reverts to its occassional and gold bull market ending ratio of 1, gold is headed to at least $2000-3000/oz. before the gold bull ends...

5 comments:

EconomicDisconnectFriday, 07 August, 2009
Another great set of posts today. This site has become a daliy stop for me, thanks for the information!

On a gold related note, I found this story a great take on gold and the banking system:
http://www.ritholtz.com/blog/2009/08/trade-of-the-century/
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Dave in DenverFriday, 07 August, 2009
Hey gyc: thanks for posting that article. I usually surf ritholtz's site but missed that one.

Please post anything you find that you think would be of interest. I may take that article and expound upon it on my blog this weekend - there's several different ways of backing into a $5000-6000k price of gold. Had not seen that one yet.
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[Mis]InheritanceFriday, 07 August, 2009
I would agree with Zerohedge. they need to report news objectively.
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Dave in DenverFriday, 07 August, 2009
@Mis: part of it is about how skewed their reporting is. part of it is that i think people have figured out that the anchors are borderline morons (Liesman doesn't even have a degree in Economics). but the biggest part of it is that the individual trader is disappearing. we saw that with Schwab's numbers last week and with the fact that program trading and high frequency trading make up something like 80% of the volumn now. in other words, a large portion of former "small traders" have lost complete interest in the market. i also think a large part of their audience was retired males sitting at home watching CNBC during the bull market thinking they were getting educated. i think a lot of those folks have lost complete interest in the stock market.
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[Mis]InheritanceFriday, 07 August, 2009
DiD, that is definitely it. CNBC is more entertaintment than it is news. Sadly, Bloomberg--although its much better--seems to be heading down a similar path.

Most of the good news has made its way online. Sites like ZH, calculated risk, and credit writedowns have great information that would not otherwise be reported much on the news. And having it online is much more accessible.

But your right, most of the individual traders have lost interest in the market as a result of hi-frequency trading. We'll see how government handles the directedge flash order business.

I look forward to seeing your posts.
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.