CNN: The Real Reason for the Stock Markets Woes?

self | 1/25/03 | self

[ChinaGotTheGoodsOnClinton]

I teach a class in Network Security at a local college.

This class is full of local IT pros, and many have been hit by the IT slow down.

I am often asked what is causing it and when will it turn around.

I made up a list Powerpoint list for my next class.

It includes the usual stuff like:

1) The Trade Deficit and weakening U$ Making $$$ Less Desirable

2)End of 1999 Feds changed Foreign Investment Rules

3)CBO used false figures in the mid to late 90’s: Pay the Fiddler effect

4)Many retired 40 somethings back in the job market

5)Over riding Security Concerns: Rep Conyers Senator Clinton

It hit me today on my exercise bike what was missing

THE ECONOMY IS IN THE DUMPSTER BECAUSE MOST INVESTORS WATCH CNN!!

I mean, first of all we give investors too much credit for being smart.

If they were smart no one would have been burned by the tech crash.

But I ask you which is a more stable world.

One where Saddam has nukes or one where he is not in power?

So why do stocks go down when it looks like we are going in?

Three letters: CNN

It seems most investors haven't yet made the connection between business and politics.

To summarize this theroy:

Everyday there are hundreds of news items which could be reported.

Somebody, based on political outlook chooses the ones that are important enough to report.

The Stock market if it is down generates significant press.

Many people have woke up to the fact that CNN is DNC spin.

Investors who for some reason are assumed to be intelligent have not.

There are enough sitting at home on their computers watching TV to move enough money around to effect things.

A great example: Sadaam is every bit as bad as Hitler.

The markets should GO UP when it looks like the US will remove him, because it increases long term world stablilty.

The only way the market would go down is if the people moving it are subject to leftist crap

[ChinaGotTheGoodsOnClinton]

Thanks for your comments.

Sorry for the repost, I posted the orignal version last night, but it was quickly buried with the SOU address stuff.

My class is tonight and I am still wondering if I should include it...

[Steven W.]

most investors watch CNBC and Bloomberg, not CNN. and most TRADERS are totally in sync with the news of the day - that is why, in fact, the market gyrates with so much volatility in any period of short term and, why, over the long term, investing is usually very profitable because time tends to differentiate the fears from reality and the truth from all the spin & lies.

[AGreatPer]

I think your onto something. However, your missing the big picture just mentioning CNN. You have to include ABC, CBS and NBC both TV and radio. For example?

Today on ABC radio the lead in nationally at 1:00 PM was something like, "Mr. Bush did not convince the American people that there was justification for war". At 2:00 PM it was this, "Did President Bush convince people last night that there is justification for war? For the people for the war, they thought so. For the people against the war, they think not." (paraphrasing each comment) Always wondered who writes these crap news lead ins.

The networks do the same with the economy. When the market is down they yell from the sky. When the market is going up..they make it simple and just a oneliner says, the market is up 2 points.

[Number_Cruncher]

Reminds me of a radio announcer that I used to listen to. If the market was down, he would clearly say it was down. If it was up, it would sound like he was saying it was "off", and he would be emphatic about it. Every day it sounded like the market was falling.

[Wright is right!]

The market is down because of uncertainty. Once the President ends the uncertainty, the market will react. That's why all this stalling around, going to the UN, etc. is hurting the economy.

Michael

[Rain-maker]

Within the stock trading circles, we call those reactionary investors Forest Gumps.

There's always plenty of morons in stocks, or the brokerage houses and market makers
couldn't scalp their investments.

[NativeNewYorker]

I trade specualtive leveraged financial stuff for a living.

The press is doing a 24/7/365 poor-mouthing the economy, doing everything possible to dampen consumer and business sentiment, all, IMHO, to weaken Bush and pave the way for a Dem recapture of the govt.

If the markets/economy thwart the press, that fact will go unreported. Bank on it.

They'll instead find/create a "sleaze" GOP scandal, or keep throwing images of poor/sick/handicapped folks at us, people who obviously can only find happiness if we're taxed more, once we get the GOP out of DC.

[Rain-maker]

Looks like the Gumps and Chicken Littles are done selling their tech stocks. So much fore those b.s stories on how investors didn't like the President's speach...ROFL

Last Trade 2:25pm · 1,344.87	Change +2.69 (+0.20%)		Prev Cls 1,342.18	Open 1,335.90	Volume N/A
Day's Range 1,320.35 - 1,350.59	Bid N/A	Ask N/A	P/E N/A	Mkt Cap N/A	Avg Vol N/A
52-wk Range 1,108.49 - 1,959.05	Bid Size N/A	Ask Size N/A	P/S N/A	Div/Shr N/A	Div Date N/A
1y Target Est N/A	EPS (ttm) N/A	EPS Est N/A	PEG N/A	Yield N/A	Ex-Div N/A

[canuck_conservative]

Question:

Your graph says "2:40 pm", which is 11:40 am PST; but your post says 11:29.

How can that be? Do you know the market's results 11 minutes ahead of time?

[canuck_conservative]

OK, I see now that's a live graphic being updated....


Never mind...

[UB355]

You should at least consider the Y2K hysteria. A lot of companies upgraded IT eqwuipment and software prior to Y2K even though there was no reason to do it. Thus an unnatural bubble and following that an not unexpected drop.

[ChinaGotTheGoodsOnClinton]

Thanks for the input.

I was going to cover the consolidation of the big four, and how CNN really is an info provider for the others.

[ChinaGotTheGoodsOnClinton]

To all:

Thanks.

I'm going to GO WITH IT.

That is why I am teaching after all, taking the battle against the Typhoid Mary of Liberalism, our College system INTO THE BELLY OF THE BEAST...