It’s not your fault.

Your incessant demands for easy credit had nothing to do with it. The recent stock market crash and credit crisis was caused by those despicable Wall Street tycoons. Pressure your elected representatives to get the greedy crooks. Tell them to investigate the crooks until the cows come home because they all conspired to steal your life savings by destroying the market value of your home and financial investments. We often hear this tirade repeated on the TV business channels by so-called journalists claiming to be reporting unbiased financial news. I agree that the stock market is indeed primarily controlled by financial institutions’ executives who should be investigated for possible fraud and abuse whenever there are any huge swings in the direction of the markets. Government oversight and the lack thereof should also be probed for possible criminal activity and negligence.

In my opinion, something else contributes to wild market swings. Market volatility is influenced by a growing and unhealthy symbiotic, if not incestuous, relationship between stock traders, unknown industry “players,” and certain TV business channel employees. Who are these unknown “players” and what are their motivations for divulging inside confidential information to the media? Is it for financial reward? Is it a narcissistic desire for celebrity status? Unlike animals, the evolved psychological needs of humans can only be satisfied by interacting with other humans. (Read my book, Settled Science, to learn how.)

Self esteem and recognition by others is a basic need shared by all of us. Some individuals are more fascinated with celebrity than others and actively seek it for themselves. Market volatility is most certainly affected when stock traders, happily being interviewed on the floor of the stock exchange, shamelessly exhibiting promotional logos on their caps or shirts, confidently predict huge market shifts based on rumors or their own hunches. Viewers rush to buy or sell their securities based on this inside information, causing the stock market to go up or go down. The TV “journalists,” of course, already know who to interview for whatever view they want to showcase for that day.

Why are TV cameras and microphones allowed on the floor of the New York Stock Exchange  in the first place? The public’s right to know? Know what? High volatility in the stock market contributes to public angst and interest which increases these TV ratings and advertising fees. Get it?

Yes, business executives and government employees and their staffs should be investigated and held accountable for inappropriate behavior. However, the media’s relationships with employees of the industry they claim to be covering should as be questioned, too.

I don’t expect our elected representatives to initiate any investigations of these suspicious relationships—the media is so important to their careers and can destroy the reputation of anyone it deems to be a threat. Anyway, even if a highly respected independent commission uncovered a criminal conspiracy, how would we find out? The media decide what they want us to know; I seriously doubt they would report the commission’s findings. What do you think?

Average user rating

   (0 vote)

Display 1 of 1 comments