Jon welcome to the daily show i just dislocated both my shoulders. laughter jon im jon stewart, baby. Its go time cheers and applause in just a few moments of host of cnbcs mad money with jim cramer, jim cramer hes sitting right there and i jon stewart of the daily show with jon stewart, i will be sitting where im sitting right now. laughter jon probably not going to be moving. Well be discussing the intricacies of the world financial markets. As you can imaginatives been training all day. What does pe stand for. How many stocks in the dow. 30. Biggest software kpon ept. Microsoft. Biggest hardware component. U. S. Steel. Wrong maggot. What is tier 1 capital. A core measure of expo tension equity Equity Capital and cash reserve but. But also possibly including the receivable amount of preferred stock and retained earnings. Lets do this thing yeah cheers and applause jon im ready, baby. Ive learned it all. Ive been studied. Did you know that the guy on the 20 was a president but the guy on the 100 is just some [bleep] guy . laughter jon i didnt know that. So what was my opponent doing today to prepare . Please welcome jim cramer. applause jon yes, to prepare for the skirmish he appeared in public with a convicted white collar criminal. laughter jon not sure how thats going to help him. So you are mad at somebody like make believe this is jon stewart. Now it is cold, you did that very well. laughter jon mr. Cramer, dont you destroy enough dough on your own show . cheers and applause jon boom goes the dynamite. How weird is our world . When jim cramer is on tv baking pie and Martha Stewart is the one who went to jail for securities fraud . laughter jon thats weird. Actually, jim cramer and cnbc are not the financial villains today. This morning the tire some word alleged was officially removed from bernie madoff, aka arthur ponzerelli who pled guilty to 11 counts of fraud for his 64 billion scam. We have also been telling you there is a maximum sentence here of 150 years in jail. As you well know, he is an older man. He is 70 years old. So obviously this would pretty much translate into a life sentence. Jon yeah, im pretty sure 150 years is a life sentence for anyone. laughter jon except perhaps madoffs accomplice tortoise pete. 150 years for him, he would get out in time for his midlife crisis but will his turtle wife wait for him . Hello, doris. Madoffs 4,000 victims include Nobel Laureate and holocaust survivor eli weiszel and actor kevin bacon, so if madoff has accomplished nothing else, he is now connected kevin bacon to hitler in only two degrees. laughter jon of course i enjoy a challenge. You could still do it the hard way. Hitler was in triumph of the will which was directed by leny reachenschtall who was in who was in death dell doctor danwits with maximillian schells who who was in telling lies in america with kevin bacon. cheers and applause jon but of course this is not why you came here tonight. So lets get to the main event. What weve all been waiting for or 150 or so people here. The host of cnbcs mad money please welcome to the program, jim cramer. Sir cheers and applause jon how the hell did we end up here, mr. Cramer . What happened . I dont know. I dont know. Big fan of the show. Who has never said that . Jon well, many people. laughter jon let me just explain to you very quickly one thing that i think is somewhat misinterpreted. This was not directed at you per se. I just want to let you know that. We through some banana cream pies at cnbc. You got a little obviously schmuts on your jacket from it took exception. I think that everyone should come in under criticism because we all should have seen it more. Admittedly this is a terrible one and everybody got wrong, i got a lot of things wrong because i think it was kind of one in a million shot. But i dont think anyone should be spared in this environment. So. Jon so then if i may why were you mad at us . No because i was under the impression that we thought we were being unfair. No, you had my friend joe on and joe called me and said jim, do i need to apologise to you. I said no we are fair game. Were big network. Weve been out front and weve made mistakes. We got 17 hours of live tv a day to do. But i certainly. Jon maybe you could cut down on that . laughter were going to go away were going to come right back with jim cramer right after this. cheers and applause with at t, strong can turn a simple lunch break. Into advanced economics. At ts network has the nations strongest 4g lte signal. So what im saying is, people like options. 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Get 1 2 price apps late afternoons and as always, late night. New and only at applebees. Ah aflac . Aflac i thought you said this guy was the best . Oh, hes a horrible stylist. Gah . But hes the best at paying claims fast really. Mmhmm. Paid mine in just one day. One day . Yea. Aaaflaaaac in just one day, we approve and pay. One day pay, only from aflac. [cheering and applause] welcome back to the program. Were here with jim cramer. So let me tell you why i think this thing has caused some attention. Its the gaffe between what cnbc advertises itself as and what it. And the help that people need to discern this. Let me show you this is the promo for your show. Okay. Jon all right so, this is jim cramerso. In an economy of from fall investments on the brink. When you dont know what to do dont panic cramers got your back. Mad money with jim cramer. Jon isnt that you know look were both Snake Oil Salesmen to a certain extent. But we do label the show as snake oil here. Isnt there a problem selling snake oil as vitamin tonic and saying it cures impetigo, et cetera, et cetera, et cetera, isnt that the difficulty here . I think that there are two kinds of people. There are people who come out and they make good calls and bad calls and theyre financial professionals. And then there are the people who say they only make good calls and theyre liars. I try really hard to make as many good calls as i can. Jon i think the difference is not good call, bad call. The difference is real market and unreal market. Let me show you this is you ran a hedge fund. Yes, i did for many years. A lot of times when i was short at my hedge fund and i was positioned short meaning i needed it down i would create a level of activity beforehand that could drive the futures. It doesnt take much money. Jon what does that mean . Okay this was a hyperbolic example of what i was trying to get people you had a great piece about shortselling earlier. I have been trying to reign in shortselling, trying to expose what really happens. This is what december on what i am trying to say s and i didnt do this but im trying to explain to people, this is the shenanigans. Jon it sounded like you were talking about that you had done it. Then i was inarticulate because i did i barely traded the futures. But i will say this, i am trying to expose this stuff exactly what you guys do. And im trying to get the regulators to look at it. Jon see, that is interesting. Roll 210. I would encourage anyone in hedge funding to do it because its legal and it is very quick way to make money. And very satisfying. By the way, no one else in the world would ever admit it but i didnt care. Thats right, and you can say it here. Im not going to say it on tv. laughter were on tv now. Jon i want the jim cramer on cnbc to protect me from that jim cramer. I think the way you do that is to show applause okay, thats the regulators watch the tape they realize the shenanigans that goes on. They can go after that. They didnt catch padoff. Jon when you talk about the regulators why not the Financial News network. Thats the whole point of this. Okay. Jon cnbc could be an incredibly powerful tool of illumination for people that believe that there are two markets, one that has been sold to us as longterm. Put your money in 401 ks put your money in pensions and just leave it there. Dont worry about it its all doing fine. Then there is this other market, this real market thats occurring in the back room where giant piles of money are going in and out. And people are trading them. And its transactional and its fast. But its dangerous. Its ethically dubious and it hurts that longterm market. So what it feels like to us and im speaking purely as a layman it feels like we are capitalizeing your adventure by our pension and our hard earned and that it is a game that you know, that you know is going on but that you go on television as a Financial Network and pretend isnt happening. applause okay, my first reaction is absolutely we could do better. Absolutely, there are shenanigans and we should call them out. Everyone should. I should do a better job at it. But my second thing is is i talk about the shorts every single night. Ive got people in congress who i have been working with to try to get the uptick, it is a technical thing but it would cut down a lot of the games that you are talking about. Im trying. Im trying. Jon but the gentleman in that video is a sober rational individual. And the gentleman on mad money is throwing plastic cows through his legs and shouting sell, sell sell and then coming on two days later and going i was wrong you should have bought. Like i cant reconcile the brilliance of knowledge that you have and the intricacies of the market with the crazy [bleep] i see you do every night. laughter jon thats english. That is treating people like adults. How about if i try it. Jon try what . Try doing that. I will do that. Look anything. Jon that would be great but if not its not just you. Its Larger Forces at work. It is this idea that the Financial News industry is not just guilty of a sin of omission but a sin of comission, that they are actually in bed with this idea no, we are not in bed with them. No, i dont think that is fair. Honestly. I think that we try to report the news. And i think that some people. Jon a couple of guy does this guy faber. He is fabulous, he is fabulous. And he has done some things that really have blown the cover off a lot of stuff. Jon but this thing was ten years in the making. Right. Jon and its to the going to be fixed tomorrow. But the idea that you could have on the guys from bear stearns and Merrill Lynch and guys that had leveraged 35 to 1 and then blame mortgage holders, i means thats insanity. I never did that. You are i always wished that people would come on and swear themselves in before they come on the show. I had a lot of ceos lie to me on the show. Its very painful. I dont have subpoena power. Jon but you are pretending that you are a doeeyed innocent. Roll laughter jon i mean if i may just you your show for heavens sake. Jon roll 21. Not 212. You can that is a violation of you cant foment you cant create yourself an impression that a stock is down. But you do it anyway because the sec doesnt understand it. So you i means thats the only sense that i would say. Jon 216. Another stock a lot of people are focused on is apple. Yeah, apple is very important to spread the rumor that both verizon and at t decide they dont like the phone. An easy one to do because it is you want to spread the human their is to the going to ready for mac world, and this is easy because the people who write about apple want that story. And you can claim that its credible because you spoke to one at sap el because apple doesnt. Jon they are not they are not going to comment. You know. Jon i got to tell you you know, i understand you want to make finance entertaining. But its not a [bleep] game. And dii when i watch that i get i cant tell you how angry that makes me. Because what it is as to me is you all know. You all know what is going on. You know, you can draw a Straight Line from those shenanigans to the stuff that was being pulled at bear and at aig and all this derivative market stuff that is this weird wall street side bet. But dont you want guys like me that have been in it to show the shenanigans. What else can i do. Jon no, no no. I want desperately for that. But i feel like thats not what we are getting. What we are getting is listen, you knew what the banks were doing. And yet were touting it for months and months. The entire network was. And so now to pretend that this was some sort of crazy once in a lifetime tsunami that nobody could have seen coming is disingenuous at best. And criminal at worst. But dick who ran Lehman Brothers called me in when the stock was at 40 because i was saying i thought the stock was wrong. I thought it was the wrong place to be. Brings me in lies to me lies to me, lies to me. I have known him for 20 years. Jon the ceo of a company lied to you. Shocker stop trading. Yeah, i know. Jon but isnt that financial reporting. I mean i guess what do you feel like is the role of cnbc . I have called for i want kangaroo courts for these guys. I really do. I want indictments. Weve not seen any indictments. Where are where is the indictments for aig. I have told the Justice Department heres the way you get the indictments. Jon its very easy to get on this after the fact. The measure of the network and the measure of the man, cnbc could act as, you know, in some ways, look, nobody is asking for them to be a regulatory agency. But cant s whoas side are they are. It feels like they have to reconcile, is their audience the wall street traders that are doing this for constant profit on a daytoday, the short term, these guys at these companies were on a shermans march through their companies financed by our 401 ks. And all the incentives of their companies were for shortterm profit. And they burned the [bleep] house down with our money and walked away rich as hell. And you guys knew that that was going on. applause okay, i have a wall of shame. Why do i have ban an banana creme pies. Because i throw them do you know how many times i panted ceos. Jon but this isnt as carly simon would say this song aint about you. All right, you are right, i dont want to personalize it, but i think we have reporters who try really hard. Were not always tolted the truth. But most importantly the market was going up for a long time. And our real sin, i think was to believe that it could continue to go up a lot in the face of what you describe, which is a lot of borrowing, a lot of shenanigans. And i know i did. I will bring it up. Look, i didnt think that bear stearns was going to evaporate overnight. I didnt. I knew the people who ran it. I had always thought they were honest. That was my mistake. I really did. I thought they were honest. Did i get taken in because i knew them from before . Maybe to some degree. The guy who came on from wachovia was an old friend of mine who helped hire me. Jon honest or not, honest in world, in what world is a 35 to 1 leveraged position sane. The world that made you 30 year after year after year begining from 1999 to 2007. And it became very difficult to. Jon but isnt that part of the problem selling this idea that you dont have to do anything. Any time you sell people the idea that sit back and will you get 10 to 20 on your money. Dont you always know that that is going to be a lie . When are we going to realize in this country, that our wealth is work. That were workers. And by selling this idea of hey, man, i will teach you how to be rich, how is that different than an infomercial . Well, i dont think i think that your goal should always be to try to expose the fact that you there is no easy money. I wish i had found madoff. Jon but the slow is called fast money. I think that people, there is a market for it. And you give it to them. And i think. Jon there is a market for cocaine and hookers. laughter interesting edit point. Jon well be right bac so youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep it all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberry apple scones smell about done. Ahh, youre good. I like to bake. Add new Business Services with at t and get up to 500 in total savings. Feel like a kid again with dunkins new oreo and chips ahoy flavored coolatta and iced coffees. Classic cookie flavor in every sip. America runs on dunkin. Cheesy bites with new crust flavors flavor pizza huts cheesy bites pizza is back with your choice of 1 of 7 crust flavors, like bbq and ranch. No one has more flavor. Only at pizza hut announcer you can quit. For free help, call 1800quitnow you should see me when i play basketball. Hey, look, its kevin durant. Hey, were drinking your kevin durant signature slushes. Did you get me one . Pete and tj no. Ill play you for em. All right. One on one . On one . What . Now what are you gonna do . Dont go to the left. Go to the right. I did go right. No, not your right, my right. What are you talk kevin ohh ooh, we got slushed. No, he got slushed. slurping loudly up your game with the new kevin durant signature candy slush, part of our slush headquarters. And try one of our delicious master blasts. clicks jon welcome back. And now, the thrilling conclusion of the jim cramer interview. Jon what is the responsibility of the people who cover wall street . Who are you responsible to . The people in the 401 ks and the pensions and the general public, or the wall street traders, and by the way, this casts aspersion on all of wall street when that is unfair as well. The majority of those guys are working their asses off really grit guys, i know a lot of them. They are trying to do the right thing and they are getting [bleep]ed in this too applause true, true, i think as a network we produce a lot of interviews where i think that there have been people who have not told the truth. Should we have been constantly pointing out the mistakes that were made absolutely. I truly wish we had done more. I think that weve been very tough on the previous treasury secretary, very tough on the previous administration, how they didnt get it. Very tough on ben bernanke. But at the same time i. Jon but hes the guy paulson is the guy who wrote the rule that allowed people to overleverage. I trash him every night i called him a liar on tv. What am i going to do. Should we all call him liars. I am a commentator. You could issue with the fact that i throw bulls and bears and i could still be taken serious. Im not edward r. Murrow im trying to do an entertainment show for people to watch it is difficult to have a reporter saying i came from an interview with hank paulson and he lied his head off. It is difficult. I think it challenges the boundaries. Jon yeah im under the assumption and maybe this is purely ridiculous but im under the a sump slun that you dont just take their word at face value. That you actually then go around and try and figure it out. So again i you now have become the face of this. And that is incredibly unfortunate. I wish hi done a better job trying to figure out the 30 to 1 and whether it was going to blow up. It did. Once it did, i was late in saying that it was bad. It didnt work. Jon so maybe we could remove the financial expert and the in cramer we trust and start getting back to fundamentals on the reporting as well, and i can go back to making fart noises and funny faces. I think we make that deal right here. cheers and applause jon mad money on cnbc weeknights at 6 00. Jim cramer. I really want a cupcake, but not the calories. Lil sweet sliding down the bannister. Ouuuh lil sweet brought you some sweeeet diet dr peppers. Oh yeaahhh. That is sweet. Diet dr pepper. Its the sweet one. You stream music, movies, tv stuff you shouldntwatch in public. Like that guy everythings on demand, so why wait two years to upgrade your phone . What if you made the wrong choice . Or an even wronger choice . Yeah, i know. And you hi im on this phone to tell you more about phones. Oh you actually chose wisely. Introducing jump on demand get the phone you want when you want. Including a new iphone 6 for zero up front and just 15 a month. Sooo, youre all set to book a flight using rewards miles from your Airline Credit card. But then the illusion begins. The flights you really want surprise theyre not available because they cost a ridiculous number of miles. Enough is enough. Switch to the capital one venture card. With venture, youll earn unlimited double miles. And using those miles is easy. Just book any flight you want, on any airline. Then use your miles to cover the cost. No blackout dates. Whats in your wallet . Kitten in the tree. Fix the pipes. Walker texas ranger. Sorry kev. Did it stay tucked . Yup. Yeah. The new stay tucked crew. We tested it so you know it works. Jon thats our show. Oh join us next week at 11 00. I hope that was as uncomfortable to watch as it was to do. Here it is your moment of zen. I love jon stewart. I think hes great. He is almost like i think he does what twittering does, in a way. applause captioning sponsored by Comedy Central captioned by Media Access Group at wgbh access. Wgbh. Org jon im glad you tuned in to todays show. [ laughter ] its an important one. [ laughter ] one that you and your family cant afford to miss. Well, could you miss it, but if you miss it, youll die. [ laughter ] you know, for many years i felt that government when commentently comp tenty run competently run could help the less fortunate. [ laughter ] women voting [ laughter ] i thought it was progress but i didnt realize how sick it was making me. [ laughter ] making all of us. Progressivism the cancer that is destroying our founding values. Progressivism is the cancer in america and its eating our constitution. Jon america, i have cancer. [ laughter ] we in this country have cancer value and document eating cancer. [ laughter ] but the cure is right around the corner. Follow me, america. March 18, 2010, from Comedy Centrals world news headquar