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Monday, February 7, 2011






The communication innovations we have around us today like the internet, financial newspapers, and special interest television channels focused on investing like CNBC are a high speed pipeline of nonsensical chatter. All these sources of information mean that there is no shortage of media people trying to answer our questions about the stock market and specific stocks. You have to remember that the news media are constantly competing to survive against other stuff you can watch. If they do not always sound like they know exactly what is going on then you will not watch their presentations. If you do not tune into their show then their ratings go down. If their ratings go down they get fired and their show gets canceled.

This means that financial journalists are in the business of finding great stories and sounding like Authorities no matter what. The stock market is a great place for them to dig up news 'scoops' to feed to the public. They do not really check their facts very well and sometimes not at all This means that if some insider wants to feed you a line of bull manure then all they have to do is maintain good connections with financial journalists, sponsor of investment show, or outright buy an investing TV channel like Jack Welch the CEO of GE did when he set up CNBC. What a great way for inside executives to control the flow of news information to the public then to actually own one of the only financial news channels ... but not so great for you!

These journalists then kick up the fire by bringing in so-called 'experts' to talk about each side of some topic that real experts would not consider important. This just makes it all the more confusing for the public to understand what is important when buying or selling a stock. Shows on CNBC like 'Closing Bell', 'Kudlow & Company', and 'Mad Money' do nothing but confuse and misdirect the attention of most individual investors in the public. Even worse this means that the financial news media Allows overpriced stocks to be recommended through analysts in the inside web that inside executives are dumping on the public because they are trying to get out. This actually happened at the top of the bull market in 1999. For a great historical description of what happened read Maggie Mahar's book entitled "Bull"


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