Michael Eisner dismissed the Hollywood writers strike as "insanity" and "too stupid," warning writers that they were sacrificing real income in a bid for revenue that studios do not yet have.

Speaking Wednesday at the Dow Jones/Nielsen Media and Money conference, the former Disney chairman and CEO said writers were premature in pressing for digital revenue when the model was still unproven and should have postponed action for at least three years.

"For a writer to give up today's money for a nonexistent piece of the future - they should do it in three years, shouldn't be doing it now," Eisner said. "They are misguided. They should not have gone on the strike; I've seen stupid strikes, I've seen less stupid strikes, and this strike is just a stupid strike."

Eisner, the founder of the Tornante Co., suggested that studios had embarked on a "harlot's parade" over the past few years, talking up the potential of digital revenue to the point where they could not back down. Writers, he said, were striking for a piece of "a nonexistent (revenue) flow."

"Studios are there because they have to be there - they don't want to be in the transportation business and telling people they should be in the train business. God forbid they should miss yet another track," Eisner said.

Eisner indicated that only content aggregators like Apple Inc. were currently generating income from the digital boom.

"The only real winner here is Steve Jobs ... they should be striking up at Cupertino (Calif.) or wherever he is," he said. Eisner said the studios had been involved in creating a storm of "rhetoric" over something that eventually will be the major avenue of content distribution but is not there yet.

"I don't want to be critical of (studio) people because I would have been in the middle of making mistakes. Digital will eventually be the dominant medium for distribution, but not yet," he said.

Eisner also said that the current financial pain within the sub-prime and mortgage markets could go on for as long as two years.

"It will be a year or two and there will be a lot of pain - we have resetting of rates. Banks maybe have to go back to their original businesses and not be taking fees and handing off to packagers in this whole process of financial musical chairs," he said.

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