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View Full Version : Zombie Financial Media: Reporting on sub-prime fiasco (iTulip.com)



FRED
07-14-07, 03:49 PM
One year after we ran this video, Bear Stearns is back in the news. We run it again to remind our readers that it took Bear Stearns from March 15, 2007 to now to get to the current stage:
Bear Stearns Gets Emergency Funds From JPMorgan, Fed (http://www.bloomberg.com/apps/news?pid=20601087&sid=airzR3q_KtOI&refer=home)

March 14, 2008 (Bloomberg) -- Bear Stearns Cos. shares plummeted a record 53 percent after the New York Federal Reserve and JPMorgan Chase & Co. stepped in to rescue the 85-year-old U.S. securities firm with emergency funding.

After denying earlier this week that access to capital was at risk, Bear Stearns said today its cash position had ``significantly deteriorated'' in the past 24 hours. The New York Fed agreed to provide financing through JPMorgan for up to 28 days, the bank said in a statement today.

JPMorgan to Buy Bear Stearns for $2 a Share; Fed Cuts Discount Rate (http://us.lrd.yahoo.com/_ylt=AmPiVgKzH4.gpplfkEmFoEK7YWsA/SIG=11uddjmdj/**http%3A//biz.yahoo.com/ap/080316/jpmorgan_bear_stearns.html)<cite>

</cite>March 16, 2008 (AP) Just four days after Bear Stearns Chief Executive Alan Schwartz assured Wall Street that his company was not in trouble, he was forced on Sunday to sell the investment bank to competitor JPMorgan Chase for a bargain-basement price of $2 a share, or $236.2 million.
So we also remind our readers to re-read A Financial Market Crash is a Process, Not an Event (http://itulip.com/forums/showthread.php?p=13997#post13997).


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<embed src="http://www.youtube.com/v/rlQ--3juteM" type="application/x-shockwave-flash" height="350" width="425"></object>

Zombie Financial Media
• No memory: Contradictions between reports are not recalled or noted, previous reports are forgotten shortly after release
• No comprehension: Each event occurs in isolation, no two events are related to a root cause, such as Risk Pollution
• No risk avoidance: Since no patterns are noted, every event is a "surprise"

The video above shows two contradictory reports on Bear Stearns, the first appearing March 15, 2007 and the second June 22, 2007. Even though the reporter is the same, he does not mention that just three months earlier Bear Stearns reported that problems with sub-prime lending "were largely contained" and the stock went up. Then Bear Sterns reported that two hedge funds blew up, and the stock went down. The reporter does not mentions the reversal in position, and they even use the same stock footage of Bear Sterns' offices in both reports.

Can you find examples of Zombie Financial Media for Zombie Financial Media? Coming September 2, 2007. Start preparing your videos today!

metalman
07-14-07, 04:40 PM
zombie fin media: choose which topics that will and won't be discussed (eg, no discussion of whether the fed is even legit); all the regulators and anti-systemic risk types are made to look like dorks and tin foil hat worry-warts; interviewers interrupt, scowl at, and generally show disrespect for anyone on the "anti-prosperity" side.

synthesis66
07-18-07, 12:43 PM
The amazing thing isn't the fact that this stuff goes on (as it has since humans came into being); what's truly amazing is that people always seemed to be surprised by it.

Greed-based systems implode just a bit sooner than others, that's all.

FRED
03-14-08, 04:24 PM
The amazing thing isn't the fact that this stuff goes on (as it has since humans came into being); what's truly amazing is that people always seemed to be surprised by it.

Greed-based systems implode just a bit sooner than others, that's all.

You can say that again. Look at Bear Stearns today.