Its a contest to demonstrate who knows the least about lending and legal fraud:

Category: Video

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

59 Responses to “Predatory Lending on CNBC”

  1. Dennis says:

    This is unwatchable idiocy

  2. Matt SF says:

    Geez, that’s almost as bad as the scam that somehow got an ad on CNBC in late 2008.

  3. asiankida says:

    When did CNBC decide to let their reporters gang up on a guest like that?

  4. Moss says:

    Typical card carrying RepubliCONS, playing a usual partisan line of thought.
    If u don’t agree with them then u are wrong regardless of the facts.

  5. Dave J says:

    Growling on air to keep a guest from being heard. I nominate Larry Kudlow for the Pulitzer Prize in journalism.

  6. [...] Its as if Charlie Gasparino never left: Be sure to see the discussion — more of a yelling match — of Predatory Lending on CNBC. [...]

  7. sainttjames says:

    CNBC is but a mirror of what is taking place in society at large….

  8. foxmuldar says:

    Put a bag over the lady in Red. She is irritating the hell out of me now. This whole video reminds me of hollywood squares.

  9. b_thunder says:

    Dave J Says:
    “Growling on air to keep a guest from being heard. I nominate Larry Kudlow for the Pulitzer Prize…”

    .. and I nominate him for the the “Pulitzer Putz”

  10. EAR says:

    CNBC noted that the DOW climbed 9 points during the discussion. Expect more.

  11. theorajones says:

    Unbelievable. These hosts live in a fantasyland where everyone speaks legalese. “Don’t sign a contract you don’t understand…” That’s the POINT of the consumer protection agency. To translate these loans into something that normal people understand! To make sure that these products actually are what they look like! So that people of normal intelligence can make a rational choice!

    I just don’t think it was ridiculous for normal people to assume the guy from the bank, wearing a suit and carrying a briefcase, wasn’t a loan shark. That, you know, when he made them the loan for the house he did it because he thought they could repay it. Were people foolish to assume that the whole request for paystubs and bank account information wasn’t a kabuki performance, and that the lending norms which had prevailed for the better part of 100 years still applied? Seriously?

    You want a financial system that depends on people understanding every detail of every financial interaction? Then you don’t want a functioning financial system. Because the transaction cost for every single action anyone ever takes will be simply staggering. “Wait, when I sign this receipt after using my credit card to buy this pack of gum, am I agreeing to buy a pack of gum here every week for a year? Can you put it in writing that I’m not agreeing to that? Are you legally allowed to come after me personally if the credit card company stiffs you? No? Can you please put that in writing…”

    That’s the kind of behavior you get when customers have no confidence that a deal is what it appears to be. The only people who benefit from markets without consumer protections are sharks and snake oil salesmen. I find it absolutely amazing that the CNBC crowd thinks a good market is one where fraudsters thrive, and the buyer must beware everything. Those are bad markets, not just for the consumer, but for the person who wants to sell anything.

  12. callistenes says:

    I can’t believe Kudlow was acting like a tard. I think I’m gonna barf now.

  13. Moss says:

    I don’t think they are ignorant at all they know exactly what they are saying and who it will appeal to. The ideology itself ‘takes arrogant pride in ignoring facts’. Kudlow will never change, always looking for the partisan, ideological angle to make his opinion the one that matters, facts be dammed. These people are a symbol of the times we live in.

  14. Its Me says:

    Ahh come on the lady red is cute.

    Apparently we need all those banking regulators to explain to the bankers the dangers of investing. If I heard right the professional bankers were the ones duped. It was the non-bank loan makers, which I don’t who that is other than my brother Jimmy, who made loans that went bad. The bankers were swindled. They need protection from the Federal government. More regulators are needed to train banker on – banking and investing.

    PS for anyone who disagrees with me, gggrrrr and ggggrrrrr!

  15. bobmitchell says:

    I can’t believe he was right under my nose the entire time. I was waiting for the 2010 political equivalent of hitler to come along. Santelli has it nailed. He yells alot, blames everything on stupid people, and has a lot of dumb rich people that like what he says. He now wants to set up special schools for the financial illiterate.

    Just add the stache and tell me I am wrong.

  16. Joe Retail says:

    I particularly like the swooping logo and irrelevant announcements popping up. Between those and the shouting it reminds me of the classic snake-oil salesmen – or the Wizard of Oz: “look over here, don’t pay any attention to the man behind the curtain.” Makes me wonder what they’re trying to hide.

    Don’t know how it ended; couldn’t handle watching the whole thing.

  17. tagyoureit says:

    Ahoy, Davy J! I second the nomination! Argh! ARGH!

    LK makes a fine pirate quartermaster.

  18. Mr.E. says:

    The reinforces BR’s quest as persona non grata at CNBC, as this segment alone proves that the only real requirement to be a CNBC contributor or anchor is a low IQ.

  19. RandyClayton says:

    I thought Bill Isaac and Janet Tavakoli raised this to a level above the usual CNBC noise. And, it was only a ’5′ box … I’ve seen as many a ’9′ talking heads go at it at once on CNBC without a single voice of reason.

  20. Mannwich says:

    This is precisely why you shouldn’t worry about not being on this crappy-ass channel anymore.

  21. cognos says:

    Best quote (so far) — “How do you trick someone to borrow money”? “Did you put a gun to their head?”


    If you dont read sub-2mm text… you wont notice MOST of the fees.

  22. cognos says:

    I am always surprised the govt doesnt regulate TEXT SIZE on OPENLY POSTED and standardized fees.

    Isnt this the heart of competition?

    For example, on ATMs… I want AT LEAST 2-inch block text that shows a) Withdrawl Fee and b) Cash Limit. Then everyone will compete on fees. As it is currently, I dont know the fee until I read fine print or wait in line, insert card, type pin, etc.

    Its just competition by manipulation. Not good. So simple.

  23. troubled times says:

    Yep….Rogar Ailes ( this is the last time i mention him, i swear ) is so good he foxified he his number one rival , CNBC , and those dumbies don’t even know it.

  24. Forbes says:

    I find that many of the blogs love to hate CNBC but continue to post links to their videos. Zero Hedge would be the greatest offender in that category. Surely there is sufficient content such that CNBC could be, dare I say black listed. Only then is there a chance that they will dump the goofy formats and intolerable anchors/guests. Bloomberg is a good alternative and available online for free.


    BR: CNBC has some good content, but they also have some examples of extreme idiocy.

    Since they are the market leader in the space, it is incumbent upon fair minded observers to point our when they go off the rails — as above.

  25. DC says:

    Rick Santelli, Emperor of the Tea Bag Nation and Douchebag Laureate of the United States.

  26. dead hobo says:

    Sorry, I don’t see it. What’s different about today?

  27. gavingunhold says:

    Thanks for reminding me why I don’t watch CNBC anymore.

    Their hosts really don’t know anything.

  28. Mannwich says:

    @dead hobo: LOL. No kidding. Precisely why I haven’t watched this tripe in well over a year now. I know I’m not alone.

  29. troubled times says:

    DC Says ……Yep, Santelli is perhaps one of our nations biggest asswipes , yep

  30. budhak0n says:

    Even though I’m one of the great offenders of this past 2 years ( Only in the unsecured market and I paid it all back), I find myself siding with Santelli.

    It sucks when you have to side with the people who you enriched LOL.

    I’m just mad because they shut down my unsecured side. No more free money without strings attached?

    You Bastages! Rofl

  31. franklin411 says:

    Barry, you are clearly a mad bolshevist. How dare you undermine the free market ideology that drives Krudlowism.

    If a person is cheated on a mortgage app–whether through the use of legalese, whether they’re not informed about more affordable interest rates they qualify for, whether their mortgages are based on faked appraisals that put the home’s value at double its actual value, whether their forms are actually forged after the fact…All of that is merely a legal issue and we can’t have big government getting in the way.

    And we certainly don’t need a big government agency helping people like that out. If they have any trouble, Ma and Pa Kettle should simply call their corporate counsel and act accordingly.

    What? Most people don’t have attorneys on retainer? Most people can’t afford to watch their life savings (if they have any!) eaten up by the legal system as their deep-pocketed opponents bleed them to death through delays? Impossible.

  32. budhak0n says:

    It never surprises me how people can analyze the Truth in some many different “forms”.

    What did Santelli say that was incorrect? And why does everybody think everyone else is out to get them?

    For god’s sake, if you’re in a home you can’t afford … SELL IT to somebody who can!

    No buyers ? Oh well. Easy come. Easy go. Serves ya right ya lout.

  33. Marcus Aurelius says:

    What people need (as opposed to what they might want) is a regulatory body that is not populated by the people who are being regulated. What is so goddamned difficult to understand about that?

  34. budhak0n says:

    Frankly I saw people build all kind of stuff in my neighborhood while I had to remain humble and stick with what I’ve got.

    Didn’t make any huge expenditures. Didn’t get into the development business. Didn’t Leverage.

    So according to the World according to Garp, I should suffer for having been conservative. And the m.o.r.o.n. should win because , well the m.o.r.o.n. always wins in America, don’t you understand that yet?


  35. teraflop says:

    These Octa-Quinta-Quatro-gons are like some venereal disease – they cause brain damage.

    I’m on the Santelli side, disregarding his approach of communicating: every single loan I’ve obtained, it’s been quite clear these were loans. Never mind if balloon or ARM, I understood I owed someone alot of what would have been discretionary income over the next couple decades. One day someone offered me an Option ARM loan. Hmm… there’s that word loan again. If I put the word Option in front of it, it still says loan, right?

    ’nuff said, tempted to bait but won’t.

  36. dead hobo says:

    Mannwich Says:
    March 4th, 2010 at 12:45 pm

    @dead hobo: LOL. No kidding. Precisely why I haven’t watched this tripe in well over a year now. I know I’m not alone.

    I’ll watch when important numbers are announced an hour before the market opens and then turn it off. Usually I regret even that because of the frequent ‘exceeds expectations’ drivel, or missing analysis, or other annoyance. Basically, they show up on time so they get 5 minutes of my day a couple of times every week or two.

    BR, why do otherwise smart people waste their time on CNBC? I understand why sales pundits show up. Why do useful people appear there? I automatically assume anyone I don’t know who shows up on CNBC (and I don’t know most of of them) is a sell side loser who snagged some probably free air time for a quick pitch and is otherwise an empty suit.

  37. budhak0n says:

    And these same dopes that are WAY Flipped on whereever they have a piece of property in my neighborhood would be the first to show up low balling me on the property I have available for sale because the “market is down”.

    Yeah right like I’m going to sell now.

    Seriously, the human capacity for actually believing your adversaries are stupid is astounding.

  38. dead hobo says:

    budhak0n Says:
    March 4th, 2010 at 1:27 pm

    Seriously, the human capacity for actually believing your adversaries are stupid is astounding.

    Don’t confuse someone being sneaky with high intelligence. It doesn’t take a lot of brains to lie, withhold information, abuse a trust, or go passive aggressive. Often, these people assume you are honest at the moment and are going to follow some rules. Howard Hughes had stalling down to an art form. I admire him for that. You can sometimes get a little truth if you break someone’s rhythm. I also admire Captain Kirk’s tendency to change the rules.

  39. Mannwich says:

    There is such a thing as being “criminally stupid”……..

    I think that’s been proven by now…….in spades.

  40. crunched says:

    CNBC still doesn’t understand THEY are a large part of the problem. Created during the early days of the bull market in the 80′s, the era they were a part of is ending. Yet they still desperately try to push investors back into their bad habits that got us into this mess. It’s sickening, pathetic, and a beacon for everything that is wrong with the the investing world and the economy. Watch at your own risk.

  41. Bokolis says:

    Cast was lacking for grown-ups. Tavakoli did retaliate with a few interjections (and a needle or two) of her own and she got off a lot more than I would have figured based on the lead-in post. The hosts were actually the worst offenders, Santelli wasn’t far behind and the funeral home guy was a gentleman.

    BR can say whether Kudlow’s being a showman or he’s just that far sunk into his ideology. Bug-eyes still hasn’t formed an ideology; this is classic regurgitating Ivy League dogma.

    The answer, of course is somewhere in between. But, if they brought in someone like that, he’d get yelled at by everybody.

  42. Mannwich says:

    @crunched: It’s not really that. I just think they don’t care.

  43. daniel k says:

    I saw this the first time. It was sad then–sad because CNBC is one of the principal venues for public awareness of economic issues, and yet so poorly represents mainstream economic thought. Joe Stiglitz is the world’s most commonly cited economist, yet CNBC promotes 1920s Lords of Finance views. Not one CNBC regular has been held accountable for failing to foresee the crisis, and not one of them has changed their line of argument post-crisis. It’s the same pablum as ever.

    However, we should note that Obama has opened the door to this sort of attack, because he hasn’t taken on the basic ideologies that have governed this country for the last 30 years; often he even endorses wingnut goals and uses the same language.

  44. bonghiteric says:

    By Santelli’s logic I should:
    Take a couple years of med school so I understand the physiology and lingo of my doctor
    Take a couple classes at my local Vo Tech so I can better understand my engine in case my mechanic tries to screw my.
    While I’m at it take a couple more HVAC classes at the Vo Tech, so I know when my water heater and a/c really need to be replaced

    etc., etc.

    We must extend a modicum of trust to many individuals in our day-to-day life. Its not unreasonable to expect the same of our lenders. It strikes me that the ladies of CNBC, (MCC, Melissa Francis, MB, Joe Kernan) are the most elitist of the whole crew. I’d pony up $100K to see them on Deadliest Catch

  45. DeDude says:

    Lots of windows with lots of people that have a lot more opinion than their brains can handle.

  46. SteveC says:

    Kudlow is unwatchable. 5-8 boxes all talking (or shouting) at once gives me a headache. The mild mannered Louis Rukeyser is rolling over in his grave now that financial television has come to this.

  47. schirimiester says:

    REPEAT : Kudlow is an ASS.

  48. Mr. Partridge says:

    CNBC is all drek, all the time.

    “The world leader in BS”.

    It’s presented by arrogant, rude, and just generally all around annoying idealogues that haven’t got a clue.

    It’s one of those objects in the rear view mirror, getting smaller…and smaller…and smaller….

    I’ve got my foot on the gas, speeding away from those yapping morons as fast as I can.

  49. Sunny129 says:

    Long time ago, I quit watching CNBC. It is simply hopeless and waste of time. Worse, it irritates so much my BP went up many a time. I know now, where the term IDIOT BOX came from!

  50. MinnItMan says:

    The point is that consumers have not been bailed out, but the lenders were and are. I seriously doubt consumer protection rules make much of a difference (and I’m a consumer protection lawyer).

    Too much factless discussion. Wells Fargo Financial, Chase Home Finance, Citi, Countrywide Bank were/are bank lenders. In addition, what bad (non-bank regulated) paper did originate outside of the bank system, usually ended up with them anyway.

  51. Mannwich says:

    Speaking of Wells, the CEO raked in $21MM last year, the most of any TBTF bank. Nice, right?

  52. Thor says:

    One must ask the obvious question – why would any sane person continue to watch something they ridicule? Who’s the idiot there?

  53. lol, I like being the one whose CNBC comments gets edited out of a CNBC complaining post. I’m on the right path.

    Thor–a lot of trading floors are tuned to CNBC despite traders’ objections. Some like it, some don’t. I think the news comes in on the Bloomberg terminal and the noise on the TV.

  54. MorticiaA says:

    Thanks for the reminder: I want Kudlow to appear as a guest on The Daily Show. It’s time for him to experience some Stewart take-down.

  55. Eric Davis says:

    In the morning, it’s like Jr. High School. Opening bell is OK.Then it’s a game show until the last 2 hours. When it becomes Barely watchable. They are as clueless now, as they have ever been.

    80% of the guests are treated like they, aren’t “in the club”.

    It’s hours and hours of lost time.

    What is interesting, is that they had to get Brokaw to do the “Boomer” special, since nobody has any credibility left on CNBC, even Faber gets painted with their brush.

    Lay down with dogs.

    Of course it’s all economics 101, Most of economics ends up being political propaganda.

  56. Black Hills Observer says:

    Dah! They never-ever blame the dip stick bank that assumed the risk of lending our money to people who couldn’t afford to payback the debt?

    It is just more rhetoric vomit spewing from both side. Just let them fail, end the entitlements and get back to capitalism.

  57. fugazzi says:

    Seems to me the people like Janet Tavakoli should just stop discussing as if it were a real discussion.

    I’m surprised no one as ever used the image of drug consumption in parallele to credit/abusive mortage. Maybe because it’s not PC? What those guys are saying in essence, is that the addict is the guilty party. The dealer can sell all it wants, make as much money as it wants, leave the addict an empty shell, it’s normal, the addict should have known better. I wonder why we arrest drug dealers then.

    Even if that image is a little extreme, you could simply point out the unusual treatment that the financial industry receives. I mean, if those guys (Kudlow & Co) went to buy a “certified pre-owned car” and it fell apart 2 weeks later, i’m sure they’d sue the dealer. They would not consider it their business to assess the car themselves, whereas a mecanic would say, “dude, it’s your fault, if you’d just looked under the hood, you’d have known right away”…or if you go to the hospital and they tell you they’ll do so and so and then you’ll be fixed, and then they do something else and you die…your family would sue, wouldn’t they…the hospital wouldn’t say “well, it’s his fault, he should have made sure they were doing what they told him they were gonna do”…

    Point is, the financial industry is the industry that promises the most, delivers the least, and where people make the most money for it…and we seem unable to honestly put it on the table…ain’t it beautiful…?

  58. kaleberg says:

    SteveC mentioned Louis Rukeyser. Wow, do I miss his show. I used to watch it with my parents. My favorite was always the New Year’s roundup when the whole gang got together to compare their forecasts with the facts. Everyone looked kind of sheepish, even when they hadn’t done all that poorly. Does anyone in the media ever do anything like that anymore? Probably not. That’s why I ditched cable and stick with the blogs.

  59. If you missed it when it was originally posted, check out How to Fix Financial Television