Is the Media starting to get it?

[TheBreeze]

Although the author of this article has got the housing bubble right in my opinion, he’s not really ‘the media’. He is (or was) in fact, one of the main cheerleaders of the dot-com bubble:

Blodget received a Bachelor of Arts degree from Yale University and began his career as a freelance journalist and was a proofreader for Harper’s Magazine. In 1994, Blodget joined the corporate finance training program at Prudential Securities, and, two years later, moved to Oppenheimer & Co. in equity research. In October 1998 [1], he predicted that Amazon.com’s stock price would hit $400 (which it did a month later, gaining 128%). This call received significant media attention, and, two months later, he accepted a prized position at Merrill Lynch.[2][3] Blodget’s influence continued to increase, and, in 2000, he was voted the No. 1 Internet/eCommerce analyst on Wall Street by Institutional Investor, Greenwich Associates, and thestreet.com. In early 2000, days before the dot-com bubble burst, Blodget personally invested $700,000 in tech stocks, only to lose most of it in the years that followed.[4] In 2001, he accepted a buyout offer from Merrill Lynch and left the firm.

In 2002, then New York State Attorney General Eliot Spitzer, published Merrill Lynch e-mails in which Blodget gave assessments about stocks which conflicted with what was publicly published.[5] In 2003, he was charged with civil securities fraud by the U.S. Securities and Exchange Commission.[6] He settled without admitting or denying the allegations and was subsequently banned from the securities industry for life. He paid a $2 million fine and $2 million disgorgement.[7]

http://en.wikipedia.org/wiki/Henry_Blodget

I guess he’s more into popping bubbles now rather than helping them inflate.

[patientrenter]

[quote=danthedart]If Obama and the Bush administration and all these congressmen were so smart, why don’t they know that the programs are just delaying the inevitable? And if they aren’t smart don’t they have lots of smart people advising them? You’d think that PhDs in economics would know this.

They talk about a housing recovery as if recovering means getting back to bubble prices.

[/quote]

Oh, they know well enough. They hear conflicting advice, but 90% of it says: “Do things that push home prices higher, not lower, and that will solve all our problems”. 10% of advice sounds like what Henry Blodget says here. Since they don’t know enough economics to make their own assessment, they go with the majority of advisors. They recognize that the 10% may be right, but they also know that they will be very unpopular if they take that advice instead. It’s a combination of ignorance and pandering – politics and our populace distilled to their essence!

[patientrenter]

[quote=danthedart]If Obama and the Bush administration and all these congressmen were so smart, why don’t they know that the programs are just delaying the inevitable? And if they aren’t smart don’t they have lots of smart people advising them? You’d think that PhDs in economics would know this.

They talk about a housing recovery as if recovering means getting back to bubble prices.

[/quote]

Oh, they know well enough. They hear conflicting advice, but 90% of it says: “Do things that push home prices higher, not lower, and that will solve all our problems”. 10% of advice sounds like what Henry Blodget says here. Since they don’t know enough economics to make their own assessment, they go with the majority of advisors. They recognize that the 10% may be right, but they also know that they will be very unpopular if they take that advice instead. It’s a combination of ignorance and pandering – politics and our populace distilled to their essence!

[patientrenter]

[quote=danthedart]If Obama and the Bush administration and all these congressmen were so smart, why don’t they know that the programs are just delaying the inevitable? And if they aren’t smart don’t they have lots of smart people advising them? You’d think that PhDs in economics would know this.

They talk about a housing recovery as if recovering means getting back to bubble prices.

[/quote]

Oh, they know well enough. They hear conflicting advice, but 90% of it says: “Do things that push home prices higher, not lower, and that will solve all our problems”. 10% of advice sounds like what Henry Blodget says here. Since they don’t know enough economics to make their own assessment, they go with the majority of advisors. They recognize that the 10% may be right, but they also know that they will be very unpopular if they take that advice instead. It’s a combination of ignorance and pandering – politics and our populace distilled to their essence!

[patientrenter]

[quote=danthedart]If Obama and the Bush administration and all these congressmen were so smart, why don’t they know that the programs are just delaying the inevitable? And if they aren’t smart don’t they have lots of smart people advising them? You’d think that PhDs in economics would know this.

They talk about a housing recovery as if recovering means getting back to bubble prices.

[/quote]

Oh, they know well enough. They hear conflicting advice, but 90% of it says: “Do things that push home prices higher, not lower, and that will solve all our problems”. 10% of advice sounds like what Henry Blodget says here. Since they don’t know enough economics to make their own assessment, they go with the majority of advisors. They recognize that the 10% may be right, but they also know that they will be very unpopular if they take that advice instead. It’s a combination of ignorance and pandering – politics and our populace distilled to their essence!

[patientrenter]

[quote=danthedart]If Obama and the Bush administration and all these congressmen were so smart, why don’t they know that the programs are just delaying the inevitable? And if they aren’t smart don’t they have lots of smart people advising them? You’d think that PhDs in economics would know this.

They talk about a housing recovery as if recovering means getting back to bubble prices.

[/quote]

Oh, they know well enough. They hear conflicting advice, but 90% of it says: “Do things that push home prices higher, not lower, and that will solve all our problems”. 10% of advice sounds like what Henry Blodget says here. Since they don’t know enough economics to make their own assessment, they go with the majority of advisors. They recognize that the 10% may be right, but they also know that they will be very unpopular if they take that advice instead. It’s a combination of ignorance and pandering – politics and our populace distilled to their essence!

[cr]

Government is supposed to be about doing what’s right for the country and its future.

Unfortunately politics have become doing what’s popular regardless of the consequences.

[cr]

Government is supposed to be about doing what’s right for the country and its future.

Unfortunately politics have become doing what’s popular regardless of the consequences.

[cr]

Government is supposed to be about doing what’s right for the country and its future.

Unfortunately politics have become doing what’s popular regardless of the consequences.

[cr]

Government is supposed to be about doing what’s right for the country and its future.

Unfortunately politics have become doing what’s popular regardless of the consequences.

[cr]

Government is supposed to be about doing what’s right for the country and its future.

Unfortunately politics have become doing what’s popular regardless of the consequences.

[Author]

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