How Does He Know?

Matthew Craft, AP Business Writer, writes Tuesday:

NEW YORK (AP) — Strong profits and a bipartisan plan to lift the U.S. debt limit drove a stock market rebound Tuesday. Stock indexes rose after Coca-Cola, IBM and other companies reported better second-quarter earnings. The indexes added to their gains in the afternoon after President Barack Obama backed a proposal by six senators that would cut debt by $3.7 trillion over the next decade and raise the country’s $14.3 trillion debt ceiling.

I wonder how he knows that is the reason for stocks going up Tuesday? His Linkedin profile doesn’t shed any light on how he knows those are the reasons. Maybe it is just a mystery? There is no way he could have just made it up is there? Or perhaps merda taurorum animas conturbit?

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5 thoughts on “How Does He Know?

  1. How did we get to this place in society that some guy just says whatever, gets an AP protective force field, and somehow is immune from the vast majority of people saying WTF?

  2. Hi Michaell,

    it must drive you nuts to read these headlines ‘why’ markets moved up/down every day However, the fact is that the market closed higher/lower… reasons ‘unknown’… but traders trade on this ‘news’ (yes not all of them… the TF guys of course not, but all the others).

    And one question for you: suppose you are a trader at bank XYZ… your BIG boss calls you to ask what’s happening in the market… what would you tell you? Hi boss… indeed, markets are up… but I don’t really know why… the media writes piece after piece… but that’s all BS… all I can say is that the market up… it might be because of any reasons people pass around… but I truly don’t know…

    … well, not sure if you’d keep your job. Thus there are two possibilities:
    – please your boss and tell him just a story
    – quit the job

    What would your answer be to? And: why do you read the daily news at all? I’m looking forward to your answer.

  3. Hi Michael,

    it must drive you nuts to read these headlines ‘why’ markets moved up/down every day However, the fact is that the market closed higher/lower… reasons ‘unknown’… but traders trade on this ‘news’ (yes not all of them… the TF guys of course not, but all the others).

    And one question for you: suppose you are a trader at bank XYZ… your BIG boss calls you to ask what’s happening in the market… what would you tell you? Hi boss… indeed, markets are up… but I don’t really know why… the media writes piece after piece… but that’s all BS… all I can say is that the market up… it might be because of any reasons people pass around… but I truly don’t know…

    … well, not sure if you’d keep your job. Thus there are two possibilities:
    – please your boss and tell him just a story
    – quit the job

    What would your answer be to? And: why do you read the daily news at all? I’m looking forward to your answer.

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