April 22, 2009

Smart Money E-mails Soften News of Monday’s, Wednesday’s Market Declines

Filed under: Economy,MSM Biz/Other Bias,MSM Biz/Other Ignorance — Tom @ 11:15 pm

I get a daily e-mail from SmartMoney.com, usually within an hour or two after the stock markets’ closing bell.

While its descriptions of daily trading have usually been in sync with reality, in two of the past three days days they have whitewashed pretty dour news.

Here’s how Monday’s capsule of the markets’ results read:


You might be surprised to learn how big Smart Money thought a mere “dip” was:


I’d say falling within a whisker of 2% below 8000 is more than just a mere “dip.” It was more accurately described in this e-mail I received from CNN, of all places, just after the close:


Any thoughts that Smart Money’s poor reporting might have been a one-off situation were dispelled when Wednesday’s e-mail arrived:


The problem is, the “fizzle” did far more than “erase all gains.” It turned the gains into an over 1% loss on the Dow:


What gives here?

This bears watching. While the financial press has exhibited its fair share of anti-capitalist bias over the years, it has more often than not played the daily reports from the floors of the exchanges pretty straight. If that changes significantly and consistently, New Media audits of what really happened each day in the markets may be in order.

Cross-posted at NewsBusters.org.


1 Comment

  1. Even more importantly, what are they saying about bonds???


    “We could break through 3% over the course of the next two weeks given upcoming supply, though the Fed is still out there buying Treasurys to prevent that from happening,” said Tom Tucci, head of U.S. government bond trading in New York at RBC Capital Markets.

    Investors also braced for a new round of U.S. Treasury note sales next week. The Treasury Department on Thursday is to disclose the size of the two-year, five-year and seven-year note sales, with some estimating they will total $99 billion.

    Since launching its bond buying on March 25, the Fed has purchased $59.7 billion of government securities. The Fed will conduct another round Thursday, targeting maturities between May 2012 and August 2013.

    I have been warning about this for months now and it is coming to pass. Shifting gears on the printing presses, to 2nd gear as interest rates pressure upward, the Fed will be forced to gear up the printing presses even more. Everyone who holds bonds at this point is going to loose their butts big time. Sorry China and Japan you just lost 10% of your investment in bonds and counting, now you either will be forced to hold them to maturity but loose the interest you could have been making or take the bath now to reinvest your money elsewhere for a higher more stable return. Decisions, decisions…

    Comment by dscott — April 23, 2009 @ 9:43 am

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