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Stephen Bernard, AP Business Writer: Propaganda

Stephen Bernard, AP Business Writer, writes today:

“NEW YORK (AP) — Stocks tumbled Thursday after two disappointing economic reports renewed investors’ concerns about the pace of a recovery. The Dow Jones industrial average fell about 165 points in afternoon trading. Broader indexes also fell by more than 1.5 percent. Interest rates also fell sharply as investors flocked to the safety of Treasury bonds. The Labor Department said claims for unemployment benefits rose unexpectedly last week and the Federal Reserve of Philadelphia said manufacturing activity in the mid-Atlantic region has dropped during August.”

Sounds like a simple report from the AP, right? Nonsense. Think about the two words bolded.

Financial Literacy: Not on the Horizon

Just saw this headline and article from Associated Press:

New financial rules might not prevent next crisis. Sweeping financial overhaul will change many rules, but loopholes could allow another crisis.

When you read that you are left with one of two choices:

1. The author(s) have no idea what they are talking about.
2. The author(s) are purposefully not telling the truth.

Bubbles (read: “crisis”) are a part of human condition. They will never be eliminated. Government rules will NEVER keep human beings from building financial bubbles. Why is this such a simple concept to outline, but seemingly beyond the comprehension of all journalists?

Tim Paradis AP Business Writer Has Less Than No Clue

Tim Paradis, apparently an AP business writer, penned this ditty this morning:

Investors’ rising fears about consumer spending are turning stocks into a risky investment again. Stocks plunged and Treasury prices soared Monday as investors around the world feared that consumers are too anxious to lift the economy into recovery.

More from Paradis:

The mixed economic readings of the past several months aren’t surprising. A turnaround produces mixed messages because not all parts of the economy recover at the same speed and some indicators start to show life before others. Analysts say investors who had expected the economy would rocket higher got ahead of themselves by sending stocks up so quickly. Many economists have predicted a gradual recovery in the economy, in part because unemployment rates could remain high.

How does Paradis draw all of these so nicely wrapped up conclusions? His background gives tremendous insight into his keen economic and trading insight. Rhetorically, I ask Paradis:

1. Who are these investors? Long only Dow investors?
2. Is 1.73% down (drop at time of me reading his article) a “plunge”? And for those who are short isn’t that a good thing?

I could go on. Perhaps others have observations about Paradis’s observations?

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