April 2, 2011- The Financial Media’s Undisclosed Conflict of Interest (Henry Blodget)

Highlights from the articlehttp://www.slate.com/id/2109465

Without the media, Wall Street would surely be even more dangerous to the uninitiated than it already is, and many practices deserving of reform would never be noticed.

Of course, there’s no free lunch, and as we feast on gripping stories of price moves, dueling predictions, and conflicts-of-interest, we should keep in mind that financial journalists face conflicts of their own. First and foremost? To stay in business, they must persuade us to read, watch, or listen. Why is this a conflict? Because responsible investing is about as entertaining as watching bread rise.

They must tell you what the markets have done and what they might do (this is entertaining, but irrelevant). They must tell you which stocks are hot and which stocks are not (entertaining, irrelevant). They must stage bull-bear debates (entertaining, irrelevant). They must worship those who have been right lately and trash those who have been wrong (entertaining but misleading: Those who have been right lately are actually more likely to be wrong in the future). They must trot out an endless parade of tools and statistics that you might use to whup the market (entertaining, usually irrelevant). They must pounce on the latest scandal, swindle, or fraud as shocking evidence that the world is going to hell in a handbasket and that, if you don’t pay attention, you will go with it (fraud, sadly, has been with us since the dawn of time, as have bankruptcies and market crashes). They must blame your losses on everyone but you (we yearn to hear that it was someone else’s fault). They must promise to divulge the secrets of “insiders” (in truth, there really aren’t any “insiders,” at least not any who know what the market is going to do). They must pander, forever, to the part of you that wants to believe that, by watching this show or reading this research or listening to this analyst or avoiding this mistake or following this strategy, etc., you, too, can strike it rich (unlikely).

 

@DimsumTrader will not make you rich (financially).  You have to do the grunt work yourself.  I can merely give you resources, links which frankly can be Googled today.  Yes, you honestly don’t need me.

As for any scoundrel who thinks I’m still talking about certain people, I am not.  I’m merely emphasizing that everyone (ME included) has each of their own conflicts of interests.

Again, Just OPENING your mind.

 

Indeed, our media is a disgrace: bias, lies, distortions, laziness, conflicts of interest, you name it, they’re doing it wrong. But don’t take my word for it.

“Journalists should be free of obligation to any interest other than the public’s right to know. They should avoid conflicts of interest, real or perceived, and remain free of associations and activities that may compromise integrity or damage credibility.”

Please Read More Here: http://commentarama.blogspot.com/2011/03/journalistic-ethics-breakin-all-rules.html

This is not about you.  This is about ethics.  And I hope I never fall in this trap myself.

 

 

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