Mainstream Economists Just Don't Get It - Or Do!

Steve_A · 11-06-2009, 10:28 AM

Hi Everybody,

It seems that in the mainstream media, every time there is a fluctuation on Wall Street, 'experts' give their take as to the reasons behind it. It seems they really don't have a clue if we look at the last two weeks.

A week or so ago there was a report that the jobs figures in the US had dropped, and that was the reason why the DOW Jones Industrial Index rose, these mainstream pop economists claiming that the companies were streamlining to keep profits up. One could argue that in this case, if the jobs figures would get better the inverse would be true.

This week the jobs figures were less crappy and the DOW rose again, being spurred on said by some economic 'experts' by the fact that people were being employed again proving that the recession is over.

This sort of rhetoric has been going on for some time, not just over the last few weeks. Even on Bloomberg some smart alex suggested that the DOW futures was pointing upwards because the price of oil came down, only for the same website later on to say that the days' trading ended in negativity (by quite a bit if I recall correctly) for exactly the same reason - the reduction in the price of oil.

I think the real insiders of Wall Street know the real reason behind the ups and downs of the stock exchange and are playing the rest, just giving them excuses for the moves. For those who saw the now famous interview ( http://www.thedailyshow.com/full-epi...009-jim-cramer ) between Jon Stewart and Jim Kramer would know what I'm trying to get at.

There is absolutelyno reason why the DOW should have risen nearly 300 points over the last few days, not even the fact that GM crapped on Opel from a great height recently.

Of course, I'm no expert, nor am I an 'expert', it's just a simple case of watching from the sidelines and using common sense.

Best regards,

Steve

11-06-2009, 10:28 AM	#1
Steve_A Project Avalon Moderator Join Date: Sep 2008 Location: Northeastern Brazil Posts: 1,259	Mainstream Economists Just Don't Get It - Or Do! Hi Everybody, It seems that in the mainstream media, every time there is a fluctuation on Wall Street, 'experts' give their take as to the reasons behind it. It seems they really don't have a clue if we look at the last two weeks. A week or so ago there was a report that the jobs figures in the US had dropped, and that was the reason why the DOW Jones Industrial Index rose, these mainstream pop economists claiming that the companies were streamlining to keep profits up. One could argue that in this case, if the jobs figures would get better the inverse would be true. This week the jobs figures were less crappy and the DOW rose again, being spurred on said by some economic 'experts' by the fact that people were being employed again proving that the recession is over. This sort of rhetoric has been going on for some time, not just over the last few weeks. Even on Bloomberg some smart alex suggested that the DOW futures was pointing upwards because the price of oil came down, only for the same website later on to say that the days' trading ended in negativity (by quite a bit if I recall correctly) for exactly the same reason - the reduction in the price of oil. I think the real insiders of Wall Street know the real reason behind the ups and downs of the stock exchange and are playing the rest, just giving them excuses for the moves. For those who saw the now famous interview ( http://www.thedailyshow.com/full-epi...009-jim-cramer ) between Jon Stewart and Jim Kramer would know what I'm trying to get at. There is absolutelyno reason why the DOW should have risen nearly 300 points over the last few days, not even the fact that GM crapped on Opel from a great height recently. Of course, I'm no expert, nor am I an 'expert', it's just a simple case of watching from the sidelines and using common sense. Best regards, Steve