Big Media Fearmongering Drives Stock Market Lower

With all of the fear and uncertainty already in the markets, CNBC yesterday decided that it would be a good time to speculate about "whether the new President will be overregulating" in 2009 (see video here).

In this segment, CNBC's Steve Liesman & Charlie Gasparino, with absolutely no factual data or documented policy to speak of, spent five and a half minutes yelling over each other about what the Obama Administration might do in 2009 and how that might be very bad for financial institutions and/or investors. Obama hasn't even picked his Treasury secretary yet. WTF?

I understand that fear and uncertainty drive ratings for a "news organization" like CNBC, but fear and uncertainty also drive the stock market down. Is this kind of non-factual speculation responsible reporting in this economic climate, or is it simply fear mongering for a cheap ratings boost?

The XLF closed down $1.13 (10.74%) yesterday in a broad market selloff.

Disclosure: no positions

Comments

[Steven Hansen:]

i will bet Liesman & Gasparino are laughing their a$$ off about this post. how about bad market fundamentals and a really bad recession drove the market down along with programmed selling and redemptions were the cause of the market drop.

2008 Nov 21 04:21 AM

[jpeak:]

What a waste of digital space. Why did you even write this?

Pundits engage in punditry.

Clearly that is lost on you, but many of us are tired of people whining about the market being driven lower by an omnipotent group of media puppeteers. Show me your post where you complain about the market being unfairly driven higher by the same people and I'll retract my comment about the whining (presumably over your personal stock losses).

2008 Nov 21 07:47 AM

[bored2tears:]

CNBC is as valuable to serious traders and investors as Cartoon Network. Hour after hour of shouting heads (they certainly are not talking heads), lots of sound but no substance.

2008 Nov 21 08:44 AM

[Smarty_Pants:]

If the author is under the impression that blather on CNBC is driving the market then I have to wonder at the worth of his stockpicking advice.

Jarrod. It's a bear market. Now is not the time to be buying. Read Stan Weinstein's 'Secrets For Profiting in Bull and Bear Markets' to see what that really means.

Thee book costs less than $14 at amazon.com, about $10 used.

2008 Nov 21 10:56 AM

[patio:]

Hate to pile on, but man you asked for it- as if anything the TV talking heads could have any affect on what the managers of billions, hedge funds, mutual funds, etc., do or do not do.
Vanna, I'd like to buy a clue for $200, please.

2008 Nov 21 12:37 PM

[Did U Think...:]

Who even watches tout TV anymore? They are a bunch of clowns and that channel will be off the air within 2 years.

It is not fear mongering that is selling off stocks it is deleveraging. Bad debt has caused overleveraged instis and hedge funds to receive a margin call. Get used to the new reality.

2008 Nov 21 12:40 PM

[grumpster:]

Gasparino must have deep emotional problems. He constantly interupts people, doesn't listen and looks like a dog ready to be beaten when he's on the air.

2008 Nov 22 09:05 AM