This week marks the unhappy milestone of Black Monday for Wall Street, which had some journalists warning “it could” happen again. Even if it doesn’t, the media hammered home the prospect of a possible recession.
"Can it happen again? It could," said CBS correspondent Alexis Christoforous on "Evening News" October 14.
The Dow Jones Industrial Average nosedived Oct. 19, 1987, when panicked selling cost investors 22.6 percent in one day of panicked selling. But do investors in 2007 need to be worried about another crash?
Barron’s financial weekly’s cover asked that question on October 15: “Black Monday … Why Wall Street doesn’t think it can recur. Why Wall Street could be wrong.”
ABC's Bianna Golodryga warned about the "Economy in Crisis" on October 17 mentioning a number of red flags to "watch out" for -- including a spike in sweater sales, which Paul Detrick wrote about earlier today:
"When you give or get practical gifts, stuff that you need instead of the stuff you want for your birthday or holiday. When sweater sales go up, watch out," said Golodryga on "Good Morning America."
"GMA" wasn't the only program warning of economic ruin. ABC "World News with Charles Gibson," "NBC Nightly News," and "CBS Evening News" each presented a doom and gloom report on October 16.
Today the Business & Media Institute looked at the media coverage surrounding Black Monday, comparisons by journalists to the current economy and the fearful reporting about other aspects of the economy. You can find our complete analysis here and sign up for our weekly newsletter The Balance Sheet to learn more.
—Julia A. Seymour is an assistant editor for the Business & Media Institute.
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Good Point
October 17, 2007 - 16:58 ET by Dr_LibertyThe 1987 crash sent US capitalism crashing into the stone age for the next 20 years. Soup lines increased to the point where people were lining up just to get into the soup line.
Our standard of living dropped so precipitously that I have to hunt elk for food (and wall mountings).
Good thing those economic reporters took their money out of the stock market and put it into something like New Orleans municipal bonds.
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Circle is complete
October 17, 2007 - 17:11 ET by Jerry MackNow that everything that the Democrat misled congress has tried and failed, it is back to how bad the economy is or could be in a heart beat. The loyalty to the liberals shown and practiced by the msm is sickening. Never let the truth get in the way of a good peice of propaganda. Next will be a revving up of how the Bush tax cuts could destroy the country.
And if
October 17, 2007 - 17:19 ET by the mad poleHillary becomes president, nary a word. Life will look like an old black and white disney cartoon.
but with no mention of
October 17, 2007 - 17:55 ET by Dr_Libertybut with no mention of "God."
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Hate These Subject Lines
October 17, 2007 - 17:30 ET by entIf the leftstream media is predicting doom and gloom for the stock market, then it must be a good time to invest! They are so completely wrong about the economy, so often, that they serve as a good contrary indicator of stock market trends.
Wheres my IS 350?
October 17, 2007 - 20:32 ET by third eyeThink there's a better chance you'll be getting a sweater for Christmas, rather than a Lexus with a bow? As we all know, there's only one reason for that.
Media's Sky Is Falling Routine
October 18, 2007 - 00:19 ET by pocomocoLike a broken clock is right twice a day, the media are right twice every 20 years when prognosticating Wall Street crashes.
When a crash does occur, they will smugly intone – “See, we predicted it 10 years ago”.
A crash will eventually occur not because they say it will, but because the history of Wall Street says it will. Mini and major ‘crashes’ have been occurring since the inception of the stock market. But the MSM treats each one as a world-ending catastrophic happening.
Pay no attention that the Dow is now at 14,000. When a 200 to 400 drop occurs, it’s time for their ‘sky is falling routine’. They, of course, pay no attention that within a short period of time the Dow comes back with a 600 point gain.
To those in the media, I must remind them of who they works for. They work for corporations who are members of the stock market and where they get their salaries from. To constantly pan Wall Street seems, to me, to be biting the hand that feeds them.
Wishful Thinking
October 18, 2007 - 07:42 ET by KillgraveObviously, the media would adore having another Depression.
This would prove once and for all, in their collective mind, that capitalism doesn't work, and that the government needs to have a much stronger roll in managing our economy.
Also, this would open the door to additional massive entitlement programs, which they could champion.
And the frosting on the cake is that all the poor people on the streets would be buying their newspapers to use as blankets.