How the market is "weighing" the bailouts?

  • styrgan

    Posts: 2017

    Apr 03, 2009 5:12 PM GMT
    So I've been watching Bloomberg this morning at work.

    And all I've been hearing commentators talk about is "The markets are weighing the bailouts" and trying to figure out if the current government policies are worthwhile. Really, I've heard this for months from CNBC, but now that I'm hearing it on Bloomberg, it's time to pose the question.

    Is a market that was overblown at 14000 a year ago a good indication of ANYTHING AT ALL?

    Why are people gauging the success of the government's policies on the current performance of the stock market? Doesn't the stock market only represent the confidence of a very small number of people?
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    Apr 04, 2009 1:45 AM GMT
    TV news is in the entertainment business. When you are in the entertainment business you have to take complex thing and distill to the simplest components possible, because otherwise you are going to lose your audience and lose advertising dollars. That works when you are talking about relatively simple issues with a clear cause and effect. But the economy is a complex thing that defies being simplified.

    It was a Republican talking point for a while to say that the stock market had gone down since Obama was inaugurated (now it has grown over 10%). Perhaps next right-leaning broadcasters will talk about the still increasing unemployment rate, or some other cherry picked metric. Either way, they are just looking at a single part of the machine when the whole thing needs repair.

    But of course, a frank conversation about economics will never happen on television. Even now they are still selling dreams of Dow 36,000.
  • CAtoFL

    Posts: 834

    Apr 04, 2009 1:58 AM GMT
    Even though I agree with most of what you wrote, MZ, the book Dow 36,000 was published in 1999 and is, I believe, out of print.

    Of course, I suspect that won't stop some other snake oil salesman from selling his own 'new and improved' updated version.
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    Apr 04, 2009 4:43 PM GMT
    My position is that Chocolate Underwear Kittens is a really bad name for an MMO guild.