Subscribe Feed (RSS)The media and the panic of 2008
October 28th, 2008 by eyal | Filed under Culture, Investing, economics. |
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BusinessWeek’s Ben Steverman makes some good points here. Alan was making a similar point a few days ago in our conversations. I think there should be quite a few intelligent investors out there who aware of this well. But of course acting on it and getting the timing right are a completely different ballgame and way way tougher, for anyone.
Stocks: The Meltdown and the Media - BusinessWeek
Wall Street has been through crises before—1907, 1929, the 1970s, and 1987 all tested investors as much as the financial crisis of 2008. But this time, something is different: Three cable business channels and countless web sites offer 24-hour coverage of financial markets seven days a week.The sheer quantity of information available raises the question: Could the media actually be contributing to the very crisis it is covering?
During past crises, average investors needed to wait until the evening news or the next day’s newspaper to learn how their investments had done.
A Recipe for PanicThis year, the financial panic has unfolded minute by minute in front of investors’ eyes. Meanwhile, online tools allow investors to make rash decisions, buying or selling stocks with the click of a mouse.
