How does the media know this?

[Amy loves Bud]

Have you noticed that the media always knows *why* stock prices rise or fall?

 

When they fell after the Congress voted no on the bailout, it was because we were nervous that it wouldn't pass.

 

When they rose the next day it was because of a renewed hope that the bailout would pass.

 

When they fell after the bailout passed, it was because we were still nervous about the economy.

 

When they rose this morning it was because the fed lowered interest rates.

 

When they fell later this morning, it was because of fears that the coordinated international effort wasn't enough.

 

Now they're back up and it's because of bargain hunters.

 

How do they know all this? :001_rolleyes:

[clarkacademy]

Educated Guesses maybe???

[clwcain]

Wishful thinking. The press pays its bills by selling ad space. To do that, they have to have a story.

 

Traders may have educated guesses as to why the markets are up or down. And that kind of commentary is what you'll hear on CNBC. But everyone else is guessing, usually in line with the "story" they want to tell.

 

No one knows why the markets move in a specific direction or magnitude. Anyone who says otherwise is selling something.

[Guest Virginia Dawn]

Your guess is as good as mine.:-)

 

Dh and I were wondering the same thing.

[tibbyl]

Speculation disguised as news. "Just the facts, ma'am," wouldn't be enough to fill programming time on many news days.

[Guest Virginia Dawn]

Speculation disguised as news. "Just the facts, ma'am," wouldn't be enough to fill programming time on many news days.

 

Yeah. Our local news thinks who won "Dancing With the Stars" is newsworthy. :tongue_smilie:

[Zelda]

Have you noticed that the media always knows *why* stock prices rise or fall?

 

When they fell after the Congress voted no on the bailout, it was because we were nervous that it wouldn't pass.

 

When they rose the next day it was because of a renewed hope that the bailout would pass.

 

When they fell after the bailout passed, it was because we were still nervous about the economy.

 

When they rose this morning it was because the fed lowered interest rates.

 

When they fell later this morning, it was because of fears that the coordinated international effort wasn't enough.

 

Now they're back up and it's because of bargain hunters.

 

How do they know all this? :001_rolleyes:

 

I love the bit about bargain hunters. You mean people who buy stocks at one price hoping to one day sell them at a higher price? What a strange concept.

[lovemyboys]

I love the bit about bargain hunters. You mean people who buy stocks at one price hoping to one day sell them at a higher price? What a strange concept.

 

Interesting observation, OP. Just like we hear that the market fell 700 pts, but ended the day 300 down. They don't add that because the 700 sounds so much worse. Sensationalizing everything. Why do they have the constant crawl and the "breaking news" flashing all. the. time?

 

The media know as much or as little as the last sound bite. While the onscreen personalities try to be as educated as possible, for the most part, they're onscreen for their personalities and looks more than their "journalistic" abilities. CNN used to be unusual in that they seemed to care more about skills than looks, now they're like all the rest.

:tongue_smilie: