"It's not a F*ckin Game!"

For those of you who haven't seen the Jon Stewart vs. Jim Cramer Interview on the Daily Show, here's the link: "Get Ready to Buy Low! and Sell Die"

In the cordial discussion between Jon Stewart and his guest, Jim Cramer (financial analyst on CNBC), Jon points out how the financial goals of the Buy and Hold Investor are in direct conflict to the short term trading investors. Jon shows Jim several clips from Jim Cramer wherein Jim enumerates the different manipulation practices of hedge funds to achieve their short term trading goals.

To this Jon Stewart responds "It's not a F*ckin' Game!"

The problem that I saw with the interview is that "Wall Street Traders" or "Short term traders" were lumped in with "hedgefund manipulators" or "backroom dealers" or cocaine users or hookers.

Question: Is a Long term investor more noble than a Short term investor?

Answer: The length of the holding period has nothing to do with it. The key is, is the person or company an investor or gambler. An investor is an individual who does their homework and responds to those results. If as a short term trader (holding period of a few minutes to a few weeks or months), I respond to news and technical indicators and place a trade, then I've done my homework and I am an investor. If as a long term trader (holding period of 1 year or more) I throw a dart at a list of stocks and buy ACME company, because that's where my dart hit, then I a gambler not an investor. As a gambler then, if I lose all of my money, then I shouldn't be crying for the government to fix it or have the short term traders vilified because they made money on their homework.

Jon Stewart is right, "It's not a F*ckin' Game!". Long term investors need to stop thinking they can buy a stock and never stay on top of it. I know people who spend more time researching the best flat screen TV to buy, then they do studying the companies that they want to buy stock in.

Is stock manipulation wrong? Yes, and those who do it should be prosecuted for not playing by the rules. Are short term investors at fault for causing the downfall in the market? No. Are long term gamblers at fault for causing the downfall in the market? Yes. Are short term gamblers or manipulators at fault for causing the downfall in the market? Yes.

Remember, the length of holding period of any asset (gold, real estate, stocks, bonds, classic cars, tulips, etc.) is not the problem.

Risk Taker #2: Mark Cuban offers his own Stimulus Plan for Entrepreneurs (2/9/2009)

Risk Taker #2: Mark Cuban offers his own Stimulus Plan for Entrepreneurs (2/9/2009)

Here’s my response to the article I wrote entitled “Where have all the Risk-Takers gone?”, I decided to do a survey of financial risk-takers from history past who stepped in to save financial systems when markets were crashing.

Although Mark Cuban only posted this idea about a week ago, I think it's Brilliant! The best way to get this country's economy moving again, is to activate the self-interest of individuals to make money, which will generate economic activity from the ground up. The Federal Government has got it all wrong. They are throwing mountains of money at the problem trying to prop up failed institutions. If they would just invest 1% of the money they are giving away to corporations, to private entrepreneurs they would get the economy turned around in 6 months!

Read his proposal for yourself at: The Mark Cuban Stimulus Plan