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Tuesday, September 30, 2008

Or Not

On Tuesday the stock market had a big rally after the plunge on Monday.  The headlines everywhere were more or less, "Markets Rally Because of Renewed Optimism That Bailout Plan Will Eventually Pass".

So, how does the Main Stream Media know that for the hundreds of millions of shares that traded, the price was driven up because of buyers' renewed hope that some bailout plan would pass?  Why didn't they have at least some of that optimism on Monday?

If I was left to make up the headline, I would have guessed something more like, "Markets Rally Because Everyone Came to Their Senses and Realized That the Bailout Plan Wasn't Really Particularly Great After All" or, "Markets Rally Because Dollar Surges Against Foreign Currencies".  Or, how about, "Markets Rally Because Fed Continues to Inject Huge Amounts of Liquidity Into System Along with Planning to Reduce Reserve and Capitalization Requirements"?

It could be renewed excitement about the Bailout.  Or not.


Harry Eagar said...

For once, a critique of reporting I agree with completely.

Although if I had written it, the lede would have been:

Panicked capitalists rush for different exit

Howard said...

While some of us maintain a zen like calm and continue along our way...