Jon Stewart On the Economy, Bathtubs, and Jibberish

Funny Jon Stewart interview with CNN’s Gerri Willis where he tries to get under the hood of the current economic troubles:

Jon: So, we did the war thing, and everyone got really mad at us. But what they didn’t realize is that while they were looking here, we went around and left the bathtub on.


  1. Jon and his guest got it wrong at the end of the clip there. Their understanding of shorting is flawed. What the potato head CNBC guy was saying is that since the market opened 500 points down now would be a good time to cover your shorts, meaning that you should replace the shares you borrowed because there has been a marked decline in the index. He then goes on to say you could take a shot on the long side, meaning that you could go long on the companies you had previously shorted in anticipation of a broad based market rally. A little more complicated than Jon and his guest wanted to make it on the show, but worth understanding to see why traders prefer volatility to calm markets.

  2. I love Jon stewart, but that was so frustrating!
    Apparently his guest didn’t know much. Very disappointing stuff.

  3. Basically what they were saying is if you are part of the top tier that’s been earning money hand over fist, you can pick up some rental homes since they qualify for very low interest rates. Problem is, no one will be able to afford to live there but no worries, upper tier just takes a right off….
    My solution to the subprime problem: instead of forcing everyone into foreclosure, back off interest rate to their original rate + 2%. Keep the people in their homes and begin to repair the damage we sold throughout the world. Otherwise, there will be continued rightoffs of billions each month as rates continue to adjust.
    Unfortunately this is just the tip of the iceberg unless bankers become more like a Bailey than a Potter (ref. It’s a Wonderful Life). Credit card companies that have rapacious policies also need to show some grace. Not sure they’re capable.

  4. C. Chapman says:

    I also liked it right up to the point where they got the comments about covering shorts completely wrong, calling a widely-used term “gibberish” and getting the meaning backwards. Now I’m wondering how often he does that and I don’t catch it because it’s not something I’m knowledgable about.