Sky-Is-Falling Media Claim Black Monday 'Could' Happen Again
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.