subject: Money News Trends And Headlines - Why The Financial News Media Can Cost You Money! [print this page] The communication new developments we have all over us today such as the internet, financial newspapers, and special interest television channels centered on investing just like CNBC are a high speed pipeline of nonsensical chatter. Each one of these sources of information mean that there's no shortage of media people attempting to answer our questions about the stock market and specific stocks. You need to remember that the news media are continuously competing to make it through against other stuff you can watch. If they do not constantly seem like they know precisely what's happening then you will not watch their presentations. If you don't tune into their show then their ratings go down. If their ratings drop they get fired and their show gets cancelled.
Therefore financial journalists are in the business of discovering great stories and sounding like authorities no matter what. The stock market is a great area for them to dig up news 'scoops' to feed to the public. They don't truly verify their facts very well and sometimes never. This means that in the event that some insider desires to feed you a chain of bull manure then all they need to do is maintain good connections with financial journalists, sponsor an investment show, or outright purchase an investing TV channel like Jack Welch the CEO of GE did when he set up CNBC. What an excellent way for inside executives to control the flow of news information to the public then to really own one of the only financial news channels...but not so great for you!
These journalists likewise kick up the fire by getting so-called 'experts' to talk about each side of a certain topic that true specialists wouldn't think about as important. This simply makes it even more confusing for the public to comprehend what is important when purchasing or selling a stock. Shows on CNBC like 'Closing Bell', 'Kudlow & Company', and 'Mad Money' do nothing but confuse and misdirect the focus of most individual investors in the public. A whole lot worse, this means that the financial news media enables overpriced stocks to be suggested by analysts in the inside web that inside executives are throwing on the public simply because they're trying to get out. This actually happened at the top of the bull market in 1999. For an excellent historical description of what happened, read Maggie Mahar's book entitled "Bull."
Here is the useful tip I would like you to think about: when you are a beginner investor, it's essential that you DO NOT Watch THE Financial News OR READ THE Financial NEWSPAPERS! Do not let the stock market industry lead you all over by the nose-like livestock to the slaughter house. Don't pay attention to what they want you to listen to. You should concentrate on learning what's essential in the stock market and the mass media will just confuse you until you have educated yourself. Recommended reading: 1. Mahar, M. Bull! A History of the Boom, 1929-1999 (New York, HarperBusiness , 2003) 2. Shiller, R., Irrational Exhuberance, (New York, Broadway Books, 2000)
