Economic Pollyanaas: How Can They Be So Wrong?

I've often railed against some in the media for lending credence to wishful thinking and propaganda disguised as thoughtful analysis.

During the heydays of the housing bubble, for example, few outlets challenged assertions being made by such "experts" as the National Association of Realtors that gains in house prices could outstrip rises in personal income for the foreseeable future.

In addition, while no one is infallible - especially me - the press has been all too willing to validate the views of those who have been off the mark virtually every step of the way about the unfolding crisis.

Instead of questioning the track records of these "'Wrong Way' Corrigans" and analyzing why they might have an interest in presenting a distorted view of reality, reporters and editors have been mesmerized by affiliations and credentials, not to mention overconfidence and smooth-talking charm.

In my view, editorial misjudgments like these probably played a role in exacerbating this mess, because those who did not know any better were unaware that they needed to steel themselves for a dramatic reversal of fortunes.

Regardless, while I don't entirely agree with everything that's written in Newsweek's Daniel Gross's article, "Why It’s Worse Than You Think," I think its subtitle [in italics]: For months, economic Pollyannas have looked beyond the dismal headlines and promised a quick recovery in the second half. They're dead wrong, really does hit the nail on the head.

Comments

[Joyful Alte...:]

That's the same press that gullibly led us into a pointless war in the Middle East. Keep in mind that the retired generals who tell us on TV what's going on were specially selected by the administration and receive special briefings because they follow the administration line, and most of them have financial conflicts of interest because they also are paid by defense contractors.

So of course this press tells us Allan Greenspan is a genius whose economic policies brought everybody prosperity. Of course a sustained bull market is just around the corner. Of course a few oil rigs at the North Pole will enable everybody to drive their travel homes across the country for pocket change.

Cui bono? Well, if news readers and viewers understood that the economy is in the tank, their grandchildren will have no oil and will still be paying back what this administration borrowed from China to simultaneously launch pointless warfare and huge tax cuts, and hundreds of thousands of people are dead and many more maimed so that a cabal of Vietnam era draft dodgers could feel many, if they got depressed by all that really bad news, they wouldn't be inclined to buy, buy, buy the advertisers' products, would they?

2008 Jun 10 08:31 AM