Why are media stocks doing so horribly in the current economic times? If anything, the media drives the markets. Extremely over-simplified telling of events to prove my point…
Pelosi holds press conference, places/deflects blame, Republicans see press conference, Republicans pissed, bailout doesn’t pass, Republicans hold press conference, place blame.
Bailout doesn’t pass, reported in the media, 700+ point dip in stock market.
Bush makes statement at press conference this morning, markets go up sharply.
Perhaps the problem is the media is a bit too good. No, no, I don’t believe that. Good Lord, I most definitely do not believe that. The media isn’t too good, the infrastructure is too fast. It’s a people problem.
The people reporting sensationalize, the people receiving respond like Pavlov’s dogs.
I’ll refrain from passing judgement on “the media” and “their message” and “the receivers of that message”…for now. Or maybe I already did. Whatever.
(I will say this – does it really matter who’s to blame at this point? Please raise my taxes and squeeze me in a vice as it pertains to my credit and debt so this damn flat world doesn’t, um, fold. And make damn sure this doesn’t happen again. If you’ve been in Washington for this turn of events, welcome back to being part of this rabble known as the American public.)
The point is that if your business is all about making people watch you then making people do something based on watching you, and you do that so well you cause economic market fluctuations, why in the hell wouldn’t the same economic markets reward you for doing what you do?