Reporters are idiots

Sorry folks. I just have to say this because every once in a while, reporters have to get a slap in the face for accepting conventional "wisdom" and reciting it constantly like it is their own personal creed.

Today's example: The U.S. House of Representatives passed the revised bailout package, which, as conventional wisdom runs, would provide a likely jump in the stockmarket. Nice try. What bugs me so much though, is that every time a reporter gives a stock reading, they tie it to some piece of good or bad news. "Stocks rose dramatically on the heels of news that..." or "the Dow plunged 200 points at the opening on fears of another bank collapse."

Ok, granted there can be pretty definite links sometimes. But today, they finally got called on one of their stupid moments: the Dow dropped anyway.

Here's a piece in the Financial Times that is revealing in this regard:

(Bush) told Americans they should expect the legislation to take some time to make its full impact on the economy. “Exercising the authorities in this bill in a responsible way will require careful analysis and deliberation. This will be done as expeditiously as possible, but it cannot be accomplished overnight.”

Reaction on Wall Street turned increasingly negative after the vote. The S&P 500 – which rose as much as 3.6 per cent ahead of the decision – fell 1.4 per cent, closing below its level on Monday after the House voted against the bill. It was the worst week for US stocks since markets re-opened after the September 11 2001 terrorists attacks.