OpEdNews Op Eds

Investors are a Wacky Bunch, and the Financial Press is Largely a Shill Game

By       Message Dave Lindorff     Permalink
      (Page 1 of 1 pages)
Related Topic(s): ; ; ; ; , Add Tags Add to My Group(s)

View Ratings | Rate It

opednews.com Headlined to H3 9/1/10

Author 63
Become a Fan
  (75 fans)
- Advertisement -

By Dave Lindorff

One of the great mantras of the modern economics profession is that markets know best, and that the collective "wisdom" of investors is generally correct.

I've never really believed that, having spent years writing about business and finance. In fact, my interviews with market strategists, Wall Street economists and portfolio managers have convinced me that it's the rare investor or analyst who has done much serious reading of history, political science or even economics and finance for that matter. Sure, some people can be very good at analyzing the worth and the potential of a specific company, but when it comes to macroeconomic trends, most of the explanations you get are very narrowly focussed and ignorant, showing little concern for or understanding of the great drivers of history, economics or politics.

That said, I'm still left scratching my head at today's roughly 3% jump in the US equities market, which the investment analyst community is attributing to a report by the relatively obscure Institute for Supply Management, which announced that its index of manufacturing activity in the US had risen a bit to 56.3, instead of dipping slightly, as had been predicted by analysts.

Word that manufacturing was improving led to a stampede into equities by investors, especially into the stocks of manufacturing companies like Caterpillar, United Technologies and Boeing, which all jumped by 1-3% for the day.

But here's the thing. It might nice to see manufacturing orders picking up, but manufacturing in the US only represents a puny 12% of the US economy, a share that has been falling steadily for decades as US companies shift production month after month, year after year overseas. It would take one hell of a boom in manufacturing to kick start a US economy in which one in five workers is either out of work, working part-time while wanting full-time work, or has given up looking for work because there are no jobs...

- Advertisement -

For the rest of this article by DAVE LINDORFF in This CantBeHappening!, the new independent online newspaper, please go to: ThisCantBeHappening!

- Advertisement -

 

- Advertisement -

View Ratings | Rate It

Dave Lindorff is a founding member of the collectively-owned, journalist-run online newspaper www.thiscantbehappening.net. He is a columnist for Counterpunch, is author of several recent books ("This Can't Be Happening! Resisting the (more...)
 

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon


Go To Commenting

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Israel's Gaza Atrocities Recall America's Atrocities in Vietnam

Supreme Court Junket King Scalia Dies While Vacationing with Wealthy Patrons at Private West Texas Getaway

Something's happening here: Clinton's Crumbling, Bernie's Surging and a 'Political Revolution' May Be in the Offing

The Case for Impeachment of President Barack Obama

Barack Obama: Manchurian Candidate Version 2.0