Investment Firm CEO: If We Have a Recession, Media Will Cause It

Photo of Noel Sheppard.
By Noel Sheppard | December 21, 2007 - 11:21 ET

Since the stock and credit market turbulence began in July, NewsBusters has been informing readers that media continually predict recessions that never happen.

On the sad flipside, bearishness in the press can become so pervasive that an economic downturn ends up being an unfortunate self-fulfilling prophecy.

NewsBusters affiliate the Business and Media Institute made this very point in a late-November article by Amy Menefee entitled "Talking Ourselves Into Recession."

This concern is shared by business leaders like Craig Hester, CEO of Hester Capital Management, who during an interview with CNBC's Erin Burnett and James Cramer Friday spoke an inconvenient truth about media's impact on the economy that folks in the press sadly don't recognize as they disseminate pessimistic after pessimistic predictions often leading to people unnecessarily losing their jobs - or worse:

That's one thing about the economy, Jim. There's a lot of pessimism, and I think we're going to, through the media, if we're going to have a recession, it's going to be media generated as opposed from the economy. Things look very strong from what I can tell.

Thanks, Craig. We couldn't have said it any better.

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History Lesson

We have nothing to fear but fear itself...

and the media will do its best to make sure that people are scared to death about the economy until a Democrat is elected president.

....and.....

.....if that (God forbid) happens, within the time it takes for Algore to down a double-chocolate from Dunkin Donuts, the MSM will declare that the economy has made a miraculous turnaround, and all due to the policies of the new POTUS-Elect, Shillary Rodham Clinton. 

Never mind that she will have been elected just five minutes earlier, and won't take office for over two months! 

neighb

Another history lesson

neighb...that's exactly what the MSM did in November 1992.

That's true too.  The media

That's true too.  The media does not "cause" recessions per se, but they add to a swelling chours of fear to drive their political agenda a certain way.  I mean, the media has been screaming recession for the past year to try to get Hillary into office and yet the numbers look darn good.

History Lesson

I agree with WoodyM, but watch if they do get

in how quick the MSM will suddenly say there is

a miraculous recovery and we have a boom

economy.   God help us if they do get in!!!

...and this is reason #1

...and this is reason #1 why I've stopped watching most news and news programs. 90-99% of the stories are negative, bad news, or good news...but stories. Report the news objectively. If things are going good...say it, if things are bad (truthfully) say it. Don't assume that you need doomsday stories to bring in viewers. More often than not you'll drive them away.

 

Do you realize how much it costs to run for office? More than any honest man could afford. -Montgomery Burns

Ditto

Amen, brother. I never watch MSM and if I happen to catch a headline or two, I am always leary.

This is a little off topic,

This is a little off topic, but the picture! That is hilarious. A little photoshopping and that could be man-bear-pig chasing after a "dissenting" scientist. Sorry, the picture hit my funny bone just right; you'd think it is a Friday before a holiday or something....

 

 "Controlling carbon is a bureaucrat's dream. If you control carbon, you control life," Richard Lindzen - March 2007.

Well, it's not because the media hasn't been trying

Well, it's not because the media hasn't been trying. At least once a week
there is a report if recession just around the corner. The last time there was a
week without this reporting was mid November when the Democrats took over
congress. That week the outlook was pretty good all of a sudden.

If the media reports it enough then eventually it will become true. Next time
a Democrat is in the White House look for the economy to be booming two weeks
after the swearing in.

Prediction

The "recession" talk will pick up steam in '08 as we approach the election. It will indeed cause what it portends to report, but...If a Republican wins in November, the recession will be short and minor as the various economic policy implementations take effect quickly and serve to stimulate the economy and reduce the deficit spending. If a Democrat wins, the recession will be LONG, deep and pronounced as all the economic policies implemented server to exacerbate the situation and the extra spending sends the deficit out of control as the wealthy 5% flee the country to avoid paying 50% net-worth tax while being villified for being wealthy in the first place.

 

The day that "politician" became a career choice is the day we started losing the Republic. Let's get it back! Alan Keyes '08.

just read the other blogs

The hysteria about the 'terrible' economy is rampant in moonbat land. I visit a number of other blogs and the ones that have both lefties and righties are in constant tension over the state of the economy. The moonbats read the crappola in the Lame Stream Media and on the tin foil hat web sites and refuse to be influenced by actual economic facts: unemployment below 5% for several years, over 73 quarters of over 3.5% GDP growth, Industrial Average over 13,000, etc., etc., etc. All indicating a vibrant full employment economy. I guess, in the end, they just want to be one of the 'cool kids' so they listen to Robert Redford and company and rant their BDS so they can be liked by the cool kids (who, as usual, don't even know the dorks exist).

Craig Hester

A definite entry to my list of minor heroes.

I sometimes think the media won't be happy until they completely destroy the USA. Of course then they will point fingers as to who should be tarred and feathered for the destruction, never once looking inward.

Rush Limbaugh stated that of the top 5 Republicans running for the presidency, only one was a true conservative. http://www.fred08.com/ 

Does anyone know what

Does anyone know what response his comment brought out of Burnett and Cramer?

Connorin

C,

Cramer was laughing. Burnett said something snide if I recall like, "We report, you decide." Something like that.  ns

Remember the Spanish-American War!

Back in 1898, the media created the Spanish-American War by blasting erstwhile peace dove McKinley at every corner until he finally declared war. And look what it bought us - insurrection in the Phillipines, the eventual takeover of Cuba by Castro, charges of American imperialism that we never had before, and Peurto Rico which takes from our gov't without giving back. So, really the media has been ushering us national crisis over the centuries. Why not hurt our economy too?

I still say that level

I still say that level headed political and business leaders, of whatever political bent, ought to challenge the media this way much more often and more vociferously.

The media have much more influence on society, not just the economy, than people realize.  The problem is that an agenda-driven few have too much control over too large a portion of it - to the point where their influence becomes damaging.  This is what needs to be challenged by the "movers and shakers"...

I would agree with you to a

I would agree with you to a point with your first sentence mattm. The problem is you get a "bite the hand that feeds" issue in that you challenge the media, they will find any way to come back at you or make sure nobody knows who you are anymore. I think most politicians and business leaders are scared to challenge the media because of this.

 

Do you realize how much it costs to run for office? More than any honest man could afford. -Montgomery Burns

Mr. Sheppard sell short

Since I commented yesterday again in Mr. B's posting on the American economy is recessive, I would like to address the criminal aspect which no one here has even mentioned and that being there are ways to leverage market shares to make money when stocks fall to commodities fall.

This came out after 9 11 when miracle of miracles some groups were making billions selling short on airline and various stocks.......and wonder of wonders the investigations shut down immediately and these criminal economic rapists never were prosecuted for being a part of the 9 11 agenda.

So while Mr. Sheppard people argue about recession or the press causing a recession the fact is as I pointed out that Cargill and the huge grain shippers conned farmers into selling wheat at $4 a bushel this past summer on futures and now are sitting on $10 a bushel wheat which they manipulated the shortage monopoly to make billions.........the same agenda has happened in gold and prices there only spiked when the cartels hedged the market. They will sell off and stick small investors with a debt once they raise the dollar level in a dollar stablizing in a few years.
In the meantime, they are now taking shares to leverage the market for when it will go down as is their dual plan to both install Al Gore as president and make a fortune when they plunge the market on various fronts.

The fact is the Rockefellers, Rothschilds, British and Dutch Royals etc... all make money whether the market goes up or whether the market goes down. As I pointed out, there is no economy as it ceased in the 1970's and has only become a vehicle to move money around to bankrupt one nation against another while shearing the citizens of that nation. There are no longer cycles. There are only scams followed by worthless currency dumped into banks creating an illusion of stability.

This is a criminal mafia worldwide in the few trillions controlled by the Rockefellers to the hundreds of trillions in the European cartels. Sure Putin with his nuclear tantrums uses it to bully his way into oil, gold,diamonds and screwing Iran out of billions which he knows America will blow up and he will then get more billions of American money (China buys Iranian oil with American debt.), but it is all as Eli Wallach said in a fine film, "If God didn't want them sheared, He would not have made them sheep".

This is not the media, but the propaganda steering tool of the cartels herding people to invest where they want the funds gathered, so when the market goes down like in the dotcom maneuvering the small investors loose all and the cartels glean the profits in selling short.

Where are the calls for Congress investigating the Europeans conning American farmers out of billions of dollars and the manipulation of the grain markets. Won't happen as Congress is too bought out and too moronic of economic criminality..........Democrats love Soros and he is the worst of this criminal ilk.

Merry Christ mass though:)

 

 

*HIC IACET ARTORIVS REX QVONDAM REXQVE FVTVRVS

"Since I commented yesterday

"Since I commented yesterday again in Mr. B's posting on the American economy is recessive, I would like to address the criminal aspect which no one here has even mentioned and that being there are ways to leverage market shares to make money when stocks fall to commodities fall.

This came out after 9 11 when miracle of miracles some groups were making billions selling short on airline and various stocks.......and wonder of wonders the investigations shut down immediately and these criminal economic rapists never were prosecuted for being a part of the 9 11 agenda."

 

So now I'm a rapist AND a criminal, because I'm one of those who shorted the airline stocks after 911.   Is it OK if I continue to short a stock when I perceive it will go done in price, as long as I don't do it after a terrorist attack?

 

I guess I'm also a rapist AND criminal because I've also been taking advantage of our local substantial dip in existing housing prices.  I admit to  being guilty of being a SOB capitalist.

How To Get Them To Understand?

I asked my mother yesterday if she thought America was experiencing a Recession and she said yes.  Then I informed her we have had nearly 24 quarters of GDP boon.

My mother believes that the sub-prime lending debacle is at the root of the Recession (along with the Iraq war and price of gasoline).  Then I informed her that sub-prime loans make up 4% or less of the lending market.  (We already had the talk on how the recent decrease in home values is misleading when taking into account that homes rocketed upwards in value by nearly 80% over the past decade or so, an inflated amount now being offset by corrective market decreases of 25% or so.  In other words, she's still up.)

My mother also believes that unemployment is at or near record high levels.  Then I informed her that unemployment is at record low levels.

My mother is (obviously) a Democrat, a lover of all things Clinton, and FDR coud do no wrong either.  She reads the local newspaper, watches local and occasionally network news, the moring shows like Today and sometimes The View and rarely ever pays attention to more that the headlines and first paragraph or two of political stories let alone discuss politics.

In other words, my mother is a typical American of the Democrat persuasion, eating up what MSM delivers.  Her sister is more studied on political events, particularly as they are related on The View, Bill Mahre and his fellow TV idiotbox shows and quite possibly from partisan websites like DKos or HuffPo.  I avoid discussing politics with her out of respect for her as my aunt.

There is some hope though.  My mother thinks Al Gore is an ass, AGW is another way to get more money out of her, Rosie O'Donnell is a mean, loud foul-mouthed pig, Today show's Ann Coury is a phony, Matt Lauer is a bit whiney, John Edwards is a momma's boy that hides behind his wife's skirt and Barrack Obama is bested only by Dennis Kucinich as the worst Democrat candidate.

Now if I could convince her that Hillary wants to pick her pocket too and President Hillary would tilt us towards Recession with her wealth redistribution schemes. 

Killing them with kindness isn't working.  Time to get scrappy with the Donkeys.

strat...

You inadvertantly (or not) explain why I do not beleive in polls. How can people answer honestly if they are being fed garbage by our media? 

Rush Limbaugh stated that of the top 5 Republicans running for the presidency, only one was a true conservative. http://www.fred08.com/ 

my Mom too

My mom isn't quite that left influenced but close. She's in Chicago and relies on the local and national Lame Stream Media. Not long ago I had to disabuse her of the notion that the military is taking felons from the courts for military service like in WW II. No such thing occurs of course but she heard it on the news so it must be true.

I've been trying to wean her off the Dead Tree and Lamoid news sources, but it's an uphill battle with an 84 year old lady of practiced ways.

A fine example of why polls

A fine example of why polls are untrustworthy for determing policy or even voting is the flipflopping with who won Florida in the 2000 presidential election. 

My mother is 80 years old and in quite good health, thank God.  Even with her Liberal leanings, it's hard to get or stay angry with her over politics.  I hope she and I will disagree for many more years!

BTW, I've got a couple of gems for an uncle and his wife.  They follow politics in detail, reading from and watching a variety of sources.  They are staunch Conservative Republicans and aren't afraid to say so.  I cherish the time I spend with them. 

Killing them with kindness isn't working.  Time to get scrappy with the Donkeys.

The media is itself in recession

They old-time media keeps harping about a recession because *they* are in recession. Just look at their P&L statements and their stock. It's all in the crapper. No wonder they're all grumpy and whining about how bad times are. That's how it is for them, they figure it must be like that everywhere. 

See what decades of unreliable, biased, pandering to liberal causes and alleged journalism have wrought? Nobody believes the papers anymore. It's like how Russians regarded Pravda in the cold war days. It's all BS, they know, we know it, everyone knows it, but no one speaks of it and it continues unchecked.

I think anyone in the news business that actually produced news with any kind of journalistic integrity along with fact checking and a careful approach with regard to their own personal bias would be immensely successful from a business perspective as well as a journalistic perspective. 

 

 

The media knows this

And they don't give a damn.

The media had one main interest: money. Fear, violence, and bad news sells. Few reporters care about how many lives their actions might ruin as long as they get their paycheck. If they have to come up with outright lies, so be it.

if we're going to have a

if we're going to have a recession, it's going to be media generated as opposed from the economy

Yep, and if we're going to have a Democrat president, it's also going to be media generated.