Posts filed under “Financial Press”
Today’s WTF headline comes to us via the WSJ: Investors Succumb to Fears of Recession.
Other than really dumb mofos, does anybody really think the fear of recession is just now impacting the markets?
"Despite the historic proportions of a credit crisis that is reshaping the foundations of Wall Street, many stock investors until recently continued to hope that any recession, if it even came to that, might be shallow or brief. Now, investors are starting to worry that the stock market has simply been slow to react to problems that have been screaming at investors in the credit markets for months.
"I thought we might actually be able to skirt by without a recession," said Ernest Ankrim of Russell Investments in Tacoma, Wash. "Now I think we are in a recession right now and probably will be in a recession for two quarters and maybe three, maybe even four."
The spreading trouble in Europe undermines the hope that resilient foreign economies could help buoy the U.S.
Investors were startled at the financial crisis’s sudden expansion within Europe, as governments there staged emergency interventions to help rescue banks in Germany and the Netherlands. Major stock indexes fell 7.9% in London and 9% in Paris, the largest percentage declines since 1987. Germany was down 7.1%.
Some small investors who had been hoping to ride out the storm have begun selling. That could mark the beginning of a process known as "capitulation," market lingo for the moment when a critical mass of investors give up on hopes of recouping losses, and instead sell. It is during capitulation that a selloff starts to run its course, and prices begin to feel for the bottom."
What? A recession is possible/probable?
What world do these people live in?
UPDATE: October 7, 2008 9:21am
NYTimes has the same front page silliness:
Investors Succumb to Fears of Recession
E.S. BROWNING and IANTHE JEANNE DUGAN
WSJ, OCTOBER 7, 2008
Global Fears of a Recession Grow Stronger
NYT, October 6, 2008
click for iTunes
Excellent series of podcasts by Tom Keene of Bloomberg on the Economy. Highlights include conversations with Nobel Laureates, professors and top economists.
If you don’t use iTunes, there is a listing of podcasts at Bloomberg.com after the jump . . .
Is the media coddling Banks and Brokers in their coverage? Gawker observes:
In July, when Richard Fuld was blaming rumormongers and short-sellers for troubles as Lehman Brothers, the Times ran a column by finance writer Andrew Ross Sorkin echoing his complaints and calling one of the rumors, that Barclays would acquire Lehman, "absurd." Today, with Barclays buying Lehman’s U.S. operations, the Times is still siding with investment banks over investors, depositors and others who benefit from the free flow of information. Here’s some data the paper won’t be providing about the mess on Wall Street, according to an article it published today:
"…said Lawrence Ingrassia, business editor of The Times. “We aren’t going to say, ‘Here are three or five institutions that might fail next week.’ It’s one thing to say an industrial company is having trouble paying its debts, and another thing to say it about a financial institution.”
The Wall Street Journal is also censoring itself on behalf of large banks. Its spokesman said the newspaper would "stay away from" the words "crash," "panic," "pandemonium" and "apocalypse."
Both interesting and amazing . . .
Hat tip Scott
Press Coddles Banks With Pulled Punches
Gawker, 8:41 AM on Mon Sep 22 2008
Gasparino vs Einhorn, Kohn & Ritholtz
TBP, June 05, 2008 | 01:52 PM
Amid Market Turmoil, Some Journalists Try to Tone Down Emotion
NYT, September 21, 2008
Category: Financial Press
WSJ: NYT: > Sources: Markets Soar, but New Rules Upset Traders VIKAS BAJAJ, ANDREW ROSS SORKIN and MICHAEL J. de la MERCED NYT, September 18, 2008 http://www.nytimes.com/2008/09/20/business/worldbusiness/20markets.html U.S. Bailout Plan Calms Markets, But Struggle Looms Over Details DEBORAH SOLOMON and DAMIAN PALETTA WSJ, SEPTEMBER 20, 2008 http://online.wsj.com/article/SB122186549098258645.html
I have yet to really play with the new WSJ.com, but it looks slicker than the old version. The most significant change — besides the colors and layout — is the community side of it. You can now post comments on every single WSJ published story. I am not sure how that will ramp up….Read More