Power Lunch

CNBC Host Blames 'Overpaying' Howard Stern for XM Sirius Woes
By Jeff Poor | August 6, 2009 | 5:43 PM EDT

Times have been tough financially for media companies across the board and satellite radio has been no exception.

On Aug. 6, Sirius XM Radio (NASDAQ:SIRI) posted a second-quarter loss and the company hasn't lived up to expectations after Sirius and XM completed a merger a little over a year ago. According to "CNBC Reports" host Dennis Kneale, part of the satellite radio's problem is shock jock Howard Stern's compensation and the company's debt.

"I feel so, bad - there's, being run by one of what I think is the best executives in media, Mel Karmazin, a great salesman," Kneale said on CNBC's Aug. 6 "Power Lunch." "But in the end, does it turn out they just overpaid for Howard Stern and they have too much debt? I wonder if John Malone bailed them out temporarily hoping that they kind of go belly-up so they can get a hold of those assets really cheap."

CNBC Goes into 'Crisis' Mode at Height of ObamaCare Debate
By Jeff Poor | July 31, 2009 | 12:32 PM EDT

Balanced? Sure. Hyperbolic? Definitely.

Invoking the word "crisis" might conjure up images of a Category 5 hurricane bearing down on the U.S. Gulf Coast or some other situation where decisive action much be taken to avert impending doom. But, is it appropriate to suddenly attach it to the key issue put forth by Obama administration, such as health care?

On July 30, CNBC dedicated its three-hour morning show "Squawk Box" to the issue and labeled the special coverage: "America's Healthcare Crisis." CNBC used the word "crisis" despite polls (including a July 30 Time article) that found 80 percent of the respondents satisfied with their health care.

Santelli Blasts Obama's Warning on Taking 'Reckless Risks' as 'Un-American'
By Jeff Poor | June 9, 2009 | 4:52 PM EDT

Should it be the role of the government to determine what amount of risk is appropriate in the private sector? President Barack Obama could have been interpreted as suggesting that much in comments he made about TARP repayments on June 9.

CNBC's Rick Santelli responded to those comments earlier in the day from Obama, "that those who seek reward do not take reckless risks." Santelli said on CNBC's "Power Lunch" that it's not the role of the government to make those judgments.

"It makes me a little nervous and some of the people on the floor express this - whether it was the end of the last administration or the current administration, you know to really understand what's wrong and what needs to be right - that statement's very un-American," Santelli said. "You know, why should the government think they know the magic blend of risk and reward? It's the government's role not to fall asleep at the switch, not to have products that are unregulated and to have speed limits."

Santelli Claims Geithner 'Lying to the American People' on Monetization of Debt
By Jeff Poor | June 3, 2009 | 2:39 PM EDT

With the federal government issuing massive amounts of debt and the Federal Reserve purchasing it in the name of keeping interest rates down, questions have arisen about impact on the U.S. dollar.

On June 2, CNBC's "Power Lunch," aired a clip of the network's chief economics reporter, Steve Liesman interviewing Secretary of the Treasury Timothy Geithner. Geithner claimed the Federal Reserve wasn't monetizing the debt the government was accruing. Following that clip, CNBC's Chicago Mercantile Exchange floor reporter Rick Santelli, famous for inspiring the anti-tax-and-spending tea parties, questioned Geithner's denial of debt monetization.

"Well, you know the first part of that question was economists are worried about quantitative easing - are we monetizing?" Santelli said. "And his answer was no, we have a strong independent central bank. Now the latter may be true but it certainly isn't an answer to the question and I put forth, and I'd like feedback everybody - that quantitative easing can't exist without the monetization process. We issue debt; we print the money to buy it. That is monetizing. I can't believe that was his answer."

(h/t The Radio Equalizer: Brian Maloney)

CNBC Contributor Howard Dean: 'I Think We Had Quite Enough Capitalism'
By Jeff Poor | May 8, 2009 | 1:53 AM EDT

Back in March, CNBC in what seemed to be an effort to pander to critics on the left, officially named former DNC chair and former Vermont Gov. Howard Dean a CNBC contributor.

But aside from campaigning for left-wing MoveOn.org causes in his spare time, Dean will appear on daily CNBC programming. But on the May 7 "Power Lunch," Dean, a contributor for the network with the slogan, "First in Business Worldwide," explained to viewers we've had enough capitalism after conservative radio talk show host Jason Lewis derided the president for supporting bailouts over bankruptcy. (h/t IHTM)

"I think we had quite enough capitalism in the last eight years and I think we need some regulation now," Dean said.

Santelli Excoriates Liesman for Acting Like Nixon, Saying 'Dumb Things'
By Jeff Poor | May 5, 2009 | 3:36 PM EDT

CNBC's Steve Liesman has always gone after tea party inspiration and network floor reporter Rick Santelli for his views, but this time it was Santelli playing offense.

The CNBC "Power Lunch" crew was discussing Bank of America (NYSE:BAC) CEO Ken Lewis and disclosure of details surrounding his bank's acquisition of Merrill Lynch May 5. Santelli accused Liesman, CNBC's senior economics reporter of saying "dumb things" and acting like Nixon, when he suggested there could be a compelling reason for Lewis was not forthcoming about the acquisition.

"Ask the question in a more compelling way which is - I want you to save the world and not disclose," Liesman said.

Media Talk Up Pot Legalization as Possible Answer to Bad Economy
By Jeff Poor | April 22, 2009 | 8:07 PM EDT

The economy is already in rough shape, but some think we should let it go to pot - literally. Pro-legalization advocacy groups are promoting the possibility that legalizing marijuana could provide some economic relief, and the media has eagerly explored the idea.

On April 20, the National Organization for the Reform of Marijuana Laws (NORML) aired TV ads calling for marijuana legalization. They ran on CNN, Fox News Channel and were covered by CBS News.

"In the spot, Americans say of the drug, ‘you can tax it, you can regulate it, apply age restrictions...create millions of new jobs ... save our economy,'" Brian Montopoli wrote for CBSNews.com on April 20.

With chatter that this could be a campaign issue in 2010, the new Obama Administration's relaxed policies toward the drug and some people's desperate, try-anything approach to solving the government spending deficits and economic woes, the idea of marijuana legalization is gaining traction with the media.

CBS Commiserates Over Higher Bank Credit Card Fees; Ignores Gov't Takeover Threats
By Jeff Poor | April 21, 2009 | 10:57 AM EDT

It was either an effort to avoid blaming individuals for ill-advised borrowing or an effort to vilify the banking system, but a segment on the April 20 "CBS Evening News" took a very one-sided view of credit-card lending. 

On a day bank stocks struggled and dragged the Dow Jones Industrial Average (DJIA) down nearly 300 points, "Evening News" scrutinized the current state of the banking system's credit-card lending. According to anchor Katie Couric, that sell-off of bank stocks occurred as a result of the realization the institutions would be forced to cover bad loans.

"Wall Street had been on a six-week winning streak, but today it suffered its worst drop in two months as investors rushed to sell bank stocks," Couric said. "[T]he sell-off came after Bank of America reported earnings of more than $2.8 billion last quarter, but that good news was offset by the word that the bank has set aside more than $13 billion to cover its losses from bad loans made in the past."

Accident or Commentary? CNBC Personality Drops Expletive During Obama Town Hall
By Jeff Poor | March 26, 2009 | 4:28 PM EDT

CNBC has been a hotbed for commentary - both left and right, from Rick Santelli's call for a tea party on the floor of the Chicago Mercantile Exchange to the hiring of former Democratic Committee Chairman Howard Dean as a CNBC contributor.      

This time, one of the hosts on CNBC's March 26 "Power Lunch" dropped an expletive during President Barack Obama's online town hall meeting as the network broke away from their coverage (h/t Breitbart.tv):

PRESIDENT BARACK OBAMA: One last point I want to make and I know I'm not suppose to talk this long ...

UNIDENTIFIED CNBC HOST: Bull****.

CNBC Anchor: Studio Cheers after Obama Makes 'Openness' Announcement
By Jeff Poor | January 21, 2009 | 4:04 PM EST

After nearly two years of favorable treatment from seemingly every corner of the media since he announced his candidacy for the presidency in 2006, Obama is still finding ways to delight his biggest fans.

On his first day on the job, Obama announced "a new standard of openness" at a swearing in ceremony for senior members of his administration. According to CNBC's Michelle Caruso-Cabrera, that was greeted with cheers from the CNBC studio.

"Not to belabor the whole point of the Freedom of Information Act, but politically brilliant in a way to immediately co-opt the press," Caruso-Cabrera said on CNBC's Jan. 21 "Power Lunch." "I mean a big cheer went up here - journalists of the world rejoice and automatically you have pleased a big part of the folks that are going to be covering you."

One Year Later: Murdoch's WSJ Purchase Not So Bad Says CNBC Panel
By Jeff Poor | December 16, 2008 | 6:14 PM EST
Rupert Murdoch has his critics - from those who think his papers are too tabloid-ish - The Sun, The New York Post - to those who find his cable television networks too right-leaning for their tastes. And back in 2007, there was a fear that his purchase of The Wall Street Journal would result in a hybrid of his newspapers and his cable news channels.

However, a year after Murdoch's acquisition, Newsweek senior editor and financial columnist Daniel Gross said he thought Murdoch has actually improved the Journal.

"I think it's worked out quite well for him," Gross said on CNBC's "Power Lunch" Dec. 16. "He owns one of the best newspapers around. They remade the Journal. The front section is a great kind of political, global coverage."

Gross also said it doesn't look like such a bad deal for the journalists employed at financial newspaper, especially in a time of print newspaper hardships - which have resulted in layoffs and cutbacks - like The New York Times and the Tribune newspapers owned by billionaire Sam Zell.

"I think the journalists - I never thought I would say this - the journalists are quite lucky to be working for Murdoch in this type of environment. You could be working for a company that was owned by Sam Zell or one of his publicly held newspapers."

'I Think Murdoch Will Get the New York Times'
By Mark Finkelstein | December 11, 2008 | 4:43 PM EST
How about Sean Hannity as editor of the New York Times op-ed page?  Maybe O'Reilly and Cavuto in place of Dowd and Krugman as Times columnists?  It might not be as far-fetched as it sounds.  At least, not if Michael Wolff is right.  The Vanity Fair media maven, appearing on CNBC this afternoon, not only said that Rupert Murdoch wants the Gray Lady, but predicted he would get her.  [H/t Gat.]

View video here [via CNBC].
MICHAEL WOLFF: I think that everybody is looking at [the NYT] and waiting for it to kind of go over a brink, to run out of cash, which they're in the process of doing. Or to find itself in a situation where actually, and this is really the key thing, they go looking for a buyer.
A bit later, Wolff, author of a book on Murdoch, mentioned his name as a likely buyer . . .