Should We Listen to Mainstream Media or Financial Institutions?

After Barron’s on the weekend opined the bottom had been seen, and CNBC “Personalities” and Talking Heads added to the hype this week, Deutsche Bank (DB) says that the present banking environment is very challenging and that it is ready to announce further write-downs against the value of its holdings of syndicated debt. Moreover, Goldman Sachs analyst Andrew Tilton says that financial institutions have written off just $120 billion of approximately $460 billion in credit losses associated with the bursting of the credit bubble.

Now who do we listen to, the mainstream media or Deutsche Bank and Goldman Sachs?

Financial media need to be more responsible. People’s savings are at stake. This is not a matter of entertainment or sport. More analysis and less synthesis (ie, story-telling) is required. Where is Walter Cronkite when you need him?

For the past two days I have forced myself to sit in for about five minutes every hour to get a sample of CNBC presentations. It was tough to get through. In fact, as I see it, the General Electric (GE) management has to review the situation. CNBC has been reduced to little more than an infomercial.

What concerns me as well is that Bloomberg and BNN seem too eager to be copy-cats, and as for the Fox business network, I won’t even comment.

I think there is an opportunity for a new media operator to come onto the scene and bring legitimacy to financial reporting.

By the way, you know that I often refer to the gnomes who control our lives (as in how came McCain from down and out to being the Republican Party nominee over the course of a weekend). Well, read this quote from Cronkite:

I'm afraid there is [a ruling class in America]. I don't think it serves democracy well... The ruling class is the rich who really command our industry, our commerce, our finance. And those people are able to so manipulate our democracy that they really control our democracy, I feel.

– Walter Cronkite, from The American Ruling Class (2005)

There is a truth you know – if you want to hear it.

Comments

[Jack K]

I would check on Bill's blog frequently for a couple of years, but after watching most of his diatribes turn out wrong, stopped. He does quickly respond to any criticism with lots of fluff. When you make lots of calls, some will be right.
To quote Cronkite is funny. Besides, I don't know much about Canadian history, where Bill lives, but the US is not a democracy, it is a republic.

[robert99]

Bill - You said "legitimacy" and "media" in the same sentence. You're funny.

[Chuck]

And for the above reasons, In My Very Humble Opinion, is why I don't listen to the Fox Business Network.
If I want spin, I'll listen to their News network, but when it's MY MONEY, then I'll go where I can find the TRUTH.

Again, Just my humble opinion.

[gordon]

The only one telling the truth (radio) is Phil Grande, who is threatened by his affiliates on a regular basis because their commercial sponsers call the producers and threaten to drop advertising.EVERYONE should listen to Phil, here's the links, for some reason, it's easier to access by going thru the businesstalkradio site>
businesstalkradio.net/...

philsgang.com/GetPage....

CNBC should be challenged by court action for not providing differing opinions, we need a FAIRESS DOCTRINE before any democracy is gone in this country.
Like today, the investment bank brokerages, in the face of 2 days of the worst economic releases in YEARS, is "PAINTING THE TAPE" to windowdress end of quarter portfolios. They were allowed to "borrow" $28 BILLION one week before the end of the quarter @ 2.5% ! CAN WE BORROW AT THAT RATE? They are buying stocks with the money to PAINT THE TAPE, not loaning it out, and can roll over this "loan" every 28 days ad infinitum.

[drmalaka]

Watching CNBC is like watching your local team's cheerleaders, except the chicks are fatter and older. In the last week I have never seen a bigger group of people come on and call a bottom. It's easy to find something when you are looking so hard for it.

As for Cronkite, I don't really consider him very trustworthy either. He always had a left wing agenda and his news fit it. This is a man who called the Tet Offensive a victory for North Vietnam when all proof shows that it could not have been a more humiliating defeat.

The only good thing is that the CNBC guys can not change the economy no matter how hard they try, the numbers will speak for themselves.

[sunrises_4all]

nice article

[User 169145]

This guy is a moron. Why won't he comment on Fox Biz? They have Bulls and Bears on their show all the time. Peter Schiff the ultimate bear is on the show frequently too. So what is so bad about Fox that he won't even comment?

[aamerican]

Well said. Maybe someday CNBC can take 15 seconds out of their busy day to recognize one of the 4000 brave americans that have given their lives in Iraqi. Post this number next to the Dow, lets see which one means more to the american people when it changes?

[Patchie]

Bill, you have said it all. Business media has been reduced to a grouping of mouthpieces financed by their sources. Few within this profession actually investigate anything anymore instead taking the phone call and reporting on what a source has to say.

Money has brought laziness and business media has become the laziest of all. Journalists speak for the wealthy and in the process have aided in the destruction of the US capital market system and our economy.