« First « Previous Comments 43 - 82 of 169 Next » Last » Search these comments
I worked in TV and Newspaper for a while when I was just out of college. The main thing that biases the media is ratings.
SQT,
Ratings drive advertising right? They have ratings for newspapers? Don't hear too much about them...since each local region is pretty much dominated by a single newspaper...so probably newspapers more directly driven by addy $$$.
Ratings drive advertising right? They have ratings for newspapers? Don’t hear too much about them…since each local region is pretty much dominated by a single newspaper…so probably newspapers more directly driven by addy $$$.
Exactly right. I worked for a small local paper, and at one time they had printed a story about a local car dealer and the dealer pulled all his advertising as a result. After that, they treated their advertisers with kid gloves.
With newspapers they don't look at ratings, but circulation. But ultimately it amounts to the same thing.
They have ratings for newspapers?
Newspapers are the best-of-breed, moreso because their audience is literate and relatively comprised of critical-thinkers (emphasis on relatively).
Unfortunately, news print is a minority source of information for most Americans. Anyone know the actual numbers on this? I'd be curious about the percentage of adult Americans who derive their news from newspapers, and what percentage of that read financial print (WSJ, FT, Economist, etc.) I guess the numbers are low compared to the overall voting, tax-paying public.
People reading this blog need to keep in mind that, by the very fact you're reading this for information and entertainment, you are in a tiny minority compared to the overall masses. Hell, there aren't even any cute pictures and graphics to break up these threads (ala USA Today).
When I was in school (Journalism degree) my teacher's told me the average newspaper was written at a 6th grade level to ensure that the majority of readers could understand the articles.
What reading level is USA Today written to? I personally know 3rd and 4th graders who can mostly read and comprehend their articles. Of course, these are children of parents who probably read papers too, which I still maintain is a minority.
Exactly right. I worked for a small local paper, and at one time they had printed a story about a local car dealer and the dealer pulled all his advertising as a result. After that, they treated their advertisers with kid gloves.
I think the same goes for one of my local papers which is peppered with realtor ads. Not surprisingly, their articles on local housing are decidedly bullish. I'm sure Jack or Randy can guess the rag...
Local papers are funny because the sources for the articles are local in nature. If you have a story on RE, you'll interview local RE agents and homeowners, so the story is going to have the local bias. It would actually be very difficult to find a local "expert" on housing that would have a less biased pov.
It would actually be very difficult to find a local “expert†on housing that would have a less biased pov.
They could interview me. I is a "expert".
I don't know Randy. You might be too articulate for the average reader. ;)
Local papers are funny because the sources for the articles are local in nature. If you have a story on RE, you’ll interview local RE agents and homeowners, so the story is going to have the local bias. It would actually be very difficult to find a local “expert†on housing that would have a less biased pov.
Yes, they typically assume their micro-perspective carries more weight than the macro. Hence the quotes from realtors stating "this market is special, unique, etc.--it never goes down; buy before it's too late" Yada yada yada...I hear the same from Vancouver to San Diego. Meanwhile, homebuyers freak out and get up to their eyeballs in debt.
Personally, I can't wait to write a scathing note to our local paper when all their foolish drivel is proven wrong. Angry and trivial perhaps, but I'm thinking of friends who bought into the distortion-fueled buying frenzy.
Personally, I can’t wait to write a scathing note to our local paper when all their foolish drivel is proven wrong. Angry and trivial perhaps, but I’m thinking of friends who bought into the distortion-fueled buying frenzy.
I can understand, but remember the local paper is merely repeating what the local realtors (tm), mortgage brokers and homeowners are saying. It's true the paper should, and it could be argued has a responsibilty, to put a more macro perspective into the stories. But most local papers aren't run all that well to tell the truth. The one I worked for (briefly) had writers who had never gone to college and had really no journalistic experience. Anyone with any talent or drive usually left to go to bigger and better jobs as soon as possible.
he one I worked for (briefly) had writers who had never gone to college and had really no journalistic experience. Anyone with any talent or drive usually left to go to bigger and better jobs as soon as possible.
So...that leaves us with undereducated "reporters" with few marketable skills, quoting others with the same? (realtors). I guess the outcome is no real surprise, although I expected better.
So true that media in general is merely an advert. vehicle, while people ironically turn to them for objective info (or at least what they want to hear). Isn't it a good thing how the Web provides the public with alternate sources of information? :)
The steady drip drip drip and chip chip chip of endless intellegent contrarian thinking is enough to make any bull become downright– well, “moderateâ€!
Jack, I am a moderate bear.
Peter P, did your Puts get filled?
Yep. :)
How goes the 10 sigma event?
Do you mean the October event?
Just to clarify: I did expect a small bounce today. However, I significantly underestimated the size of the rally. Byt hey, the market is quite random, right? ;)
Byt hey, the market is quite random, right? ;)
In fact, it is a random walk.
Head of FNM is a hybrid believer: High end will burst, mid and low will appreciate but at slower pace.
Hybrids are hot nowadays, in light of high gas prices.
More price compression? One day, a low end home will cost twice as much as a high end home.
In fact, it is a random walk.
You did not expect me to believe this, did you?
Random walk theory is as good as natural order and financial astrology.
The truth is somewhere in between.
October started yesterday?
Did I explicitly say the FNM drop yesterday was the 10 sigma event?
That’s the inverted curve you guys warn about?
Right. 2M shitboxes in East San Jose and 1M houses in the Marina.
Interesting article today in WSJ about Banks tightening leanding standards…effects of flat yeild curve starting to show
Good observation. The reflexivity between tightening standards and cooling prices will soon turn the market and reinforce a new trend.
So true that media in general is merely an advert. vehicle, while people ironically turn to them for objective info (or at least what they want to hear). Isn’t it a good thing how the Web provides the public with alternate sources of information?
I really think the internet has been a great influence on the media. It's a lot harder to force-feed the public canned news items when there are other avenues of information availiable. I think the days of having news anchors like Cronkite set the agenda are over.
I also think it's a good thing the public is aware that a lot of news outlets have agenda's that might conflict with reporting the news accurately. Ratings play a part as does advertising. But a lot of the news outlets are owned by larger corporations that have financial interests in all kinds of business, and they will try their hardest to keep a story out of the news if it impacts them financially. Personally I think big business affects accuracy more often than politics.
I really think the internet has been a great influence on the media.
Yes, we are part of the media now, as a blog. SactoQt, you have returned to journalism without knowing it.
Yes, we are part of the media now, as a blog. SactoQt, you have returned to journalism without knowing it.
It wasn't my original intention, but it is similar in that we are exchanging news via articles on other sites and newspapers. Also, the exchange of opinions is a lot like an op-ed page. Personally I have become a fan of the internet just because it is hard to bury stories when there are so many avenues for information to be shared. Just keep in mind that info on the net has the same danger of being inaccurate as everything else.
t a lot of the news outlets are owned by larger corporations that have financial interests in all kinds of business, and they will try their hardest to keep a story out of the news if it impacts them financially.
I'm positive many media groups (and their parent companies) are heavily invested in RE presently. This sector has seen the most growth. So they parade out the RE pundits to keep it going as long as possible.
I’m positive many media groups (and their parent companies) are heavily invested in RE presently. This sector has seen the most growth. So they parade out the RE pundits to keep it going as long as possible.
Very possble. Who knows, they may be heavily invested in mortgage/RE and any number of related fields. Another thing, these media outlets can find any number of "experts" who'll say whatever they want them to. Kind of like the legal "experts" brought into a trial to testify that the ax muderer on trial for murder 1 is not a danger to society anymore.
I think big business affects accuracy more because the company that owns the media outlet will try to silence a story that will affect them financially. A political story may be affected if the news writer has a particular bias, but the news outlet won't be as inclined to stop the story in it's tracks.
Very possble. Who knows, they may be heavily invested in mortgage/RE and any number of related fields.
Sure...sorta going by "gut feelings" and articles detailing corporate growth based soley on RE interests. Personally, I think we'll be shocked (in retrospect) at how much money was thrown at residential RE.
Since this is an FNM thread, how might reporting favorably about FNM (in spite of its troubles) benefit the media outlet, for example?
It probably has to do with where the media outlet has their money tied up. I have seen news stories about large corporations where the anchor "discloses" that the corporation is owned by the parent company of the news outlet. I am sure that they only report on misdeeds by the company when it is no longer possible to keep it under wraps; and then you can be sure that the story is kept as non-descript as possible.
As far as cronyism goes, I'm thinking it's probably a case of "you scratch my back, I'll scratch yours." I'm positive that there are publicists that work with most politicians who try to "leak" stories of various spins. Political reporters probably learn early that staying on the good side of most politicians will allow them to get a juicy tidbit from time to time.
Duh, I forgot about the leak scenario. I guess if you have THE story, you get the ratings……Thanks for a jounalist’s perspective!
I think I am more of a cynic than a journalist these days. ;)
I did learn a lot from my brief time in the industry though. It's unfortunate but working in the media takes away a lot of a person's idealism. Funny don't you think? An industry that should be about honesty and objectivity is one of the most cynical, calculating businesses I have ever worked in.
An industry that should be about honesty and objectivity is one of the most cynical, calculating businesses I have ever worked in.
Which industry still has honesty and objectivity? Hmm...
How about the RE appraisal industry? ;)
Which industry still has honesty and objectivity? Hmm…
Ummmm.......That'll take some thought.
big business is the absence of regulation.
Or... big business is too much favorable regulation
Truth: when your house floats, chances of getting a HELOC are gone. Spin: he doesn’t make them aware that they won’t be able to sell that home to pay the loan off.
Truth: after we get your business in refinancing, we do not care if you can never pay back. Our mandatory credit counseling unit and bankruptcy legal service unit may be able to help.
Well, straying OT from the other OT topics, here's a nicely written article, with a smattering of data, regarding current mortgage situation & possible future ramifications:
http://www.inman.com/inmannews.aspx?ID=48166
Here's a tidbit:
"Three years ago, interest-only mortgages comprised about 2 percent of the market, Don Bisenius, senior vice president, credit risk management, Freddie Mac, has told Inman News.
Today, this once-fringe financing vehicle – originally meant for high-net-worth clients desiring investment liquidity – is up to 15 percent (in some high-priced areas, like California, that number is reported to be 50 percent)."
15% of the national mortgage market seems high...looks like everyone's following California's "progressive" lead.
Ramifications? I suggest we as a society to take a step back from blindly promoting homeownership. It is seriously overrated. (Jack, even great things can be overrated, so forgive me.)
Random walk theory is as good as natural order and financial astrology.
The trouble is the theory is well supported emperically. It only applies to day-to-day price changes. But, I assure you daily price changes abide by the properties of Brownian Motion.
« First « Previous Comments 43 - 82 of 169 Next » Last » Search these comments
How will it affect credit markets and MBS markets?
by News