Mixed signals

Two posts below, I wrote about the media’s inability to grasp simple market trends abd describe them accurately to the public that relies on their information to make investment decisions. Last week, apparently, investors were just pleased that Obama didn’t name Noam Chomsky as his Treasury Secretary. This week, we’re told that investors are pleased by ONE COMPANY’s CEO who says he probably doesn’t need a bail out after all.;

A stock market reassured by Ford Motor Co.’s assessment of its financial health bounced back Tuesday, regaining some of the ground lost in the previous session’s huge drop. The Dow Jones industrials rose 180 points, regaining more than a quarter of Monday’s nearly 680-point plunge.

Calming words came from Ford CEO Alan Mulally, who said his company has enough cash to make it through 2009 and may not need government help.

One company – one thirtieth of the Dow Jones Industrial Average – says it doesn’t need a bail out is not enough to send the market skyward. The wild swings is the market flailing around looking for the bottom. It every time before there’s a stock market recovery. It’s not tiny bits of news about one remark by one guy. The media is so accustomed to their movie reviews sinking or floating a film, they think they can apply the same principle to the economy. Just shut up and let investors do their jobs.

Category: Politics