Investors now have to gauge not only the reality of economic data, but its predictable willful misrepresentation by the press. We therefore have to speculate not only on underlying conditions, but on the effectiveness of the effort to scupper Main Street confidence.
More – “The prophets of recessionary doom, such as former Fed Chairman Alan Greenspan, Republican adviser Martin Feldstein, ex-Democratic Treasury Secretary Lawrence Summers, and bond-maven Bill Gross have been proven wrong once again.”
@David:
There’s a reason for that paradox: the investment markets are much more convenient than, say, an eBay that’s set up on similar lines. Not only are the transaction costs smaller (no mailing), but there’s also “instant delivery.” As a result, it’s a lot easier to flip.
The real estate market is a glaring exception, of course, but the sums involved are relatively huge, and real estate normally goes up. Nevertheless, real-estate flipping is usually froth on the top of a bull run; it disappears when flipping turns into desperation.
The reason most of the American MSM is badmouthing the economy is POLITICAL, NOT ECONOMIC.
Firstly, the vast majority of those MSM “journalists” are ignoramuses about economic matters (along with most other things). They have zero credibility, IMO.
However, having failed to significantly dent Republican strength with attacks on Bush & Co., on the Republicans in Congress, on the Iraq War, the majority of the MSM are trying to create a very negative public impression on the economy TO HELP THE DEMOCRATS WIN THE WHITE HOUSE.
They are well aware that the marked trend in American history is to NOT switch parties at general elections UNLESS the economy is in the toilet. It’s the electorate’s way of expressing disapproval and wanting it fixed.
And in case anyone bothers to ask me, ‘do you really think the MSM are that disloyal?’ Yes, I do. They’re no less disloyal and loathsome than the Democrats, who have been and are doing their best to sabotage America’s war effort for reasons of domestic political gain.
It’s almost funny in a sad sort of way to watch this negative spin-doctoring of the American economy.
So, tell me, when the oil speculation bubble bursts, (and it will) and prices drop to their “true” level of about $38.00/barrel, and the global economy truly tanks, what will the MSM be saying then?
Damn, we had it good when housing prices were only off by 6.6% or so.
Corrections happen in more than real estate values.
@Dave in Pa:
Some, who do tend to know what they’re talking about, may be advancing that goal cynically. There are a lot of old conservative who would like nothing better than to have a Democratic President tarred with the “new Hoover” brush.
(Of course, I’m referring to the hardcore who actually believe that another crisis is coming.)
IMHO the following article is a must read whatever your opinion on the current state of affairs of the American economy. It is well written and at the very least will provide food for thought.
http://www.gold-eagle.com/editorials_05/willie122607.html