Thursday, October 21, 2010
The goal of every headline of every article written in every subject is to entice the reader to continue reading. In finance and economics, the goal is also to paint as rosy a picture as humanly possible. Even if negative statistics or gloomy news occurs, it is reported but minimized or pared down so the reader will continue reading, even if its a continuation of 'happy' propaganda.
I thought it would be fun to give some news headlines and briefly explain what it is really saying...
Freddie and Fannie may need another $215 billion-FHFA - Reuters
The word 'may' really means 'will' and if this headline was truly accurate, it would say 'Freddie and Fannie will need another $215 billion for now' because this is not the last infusion of taxpayer money to be dumped into the Freddie and Fannie Mae hole- not by a long shot. And this is Important- when the government took them over, it became a means to funnel money purposely to the banks as a backdoor bailout. In other words, they are purposely designed to lose money. It is no accident or bad accounting. It is a means to boost zombie banks secretly.
Freddie, Fannie Tab Could Hit $363 Billion- WSJ
Good example of playing with numbers. Is is $215b? $363b? $500b? Doesn't really matter- the key point isn't the dollar total which the government will give to the banks.. I mean Freddie & Fannie Mae- wink wink.. its that whatever is given, will not be the last infusion of money. But the goal of the headline is to get the reader to focus on the immediate, garnish a reaction of anger so you'll read then move on without reacting in any way to feel motivated to revolt, and when the next bailout of Freddie & Fannie occur 6months later, you will forget this and other cash dumps that took place previous.
Wall St. Discovers Airlines Make Money- TheStreet.com
Should that really be any surprise when they charge for everything from luggage to a can of soda, while packing passengers in like sardines in a tin. And the worst part is people tolerate it and continue to fly instead of boycotting flying until the airlines stop this pettiness.
Gold Drops After Geithner Says Currencies 'in alignment', Boosting Dollar- Bloomberg
As the dollar weakens, gold goes up. The US govt is purposely and intentionally weakening the dollar as part of a current currency devaluation war going on globally. When dollar is devalued, it causes inflation- means you pay more tomorrow for the things you pay for today. When gold rises, it means people are scared about the economic future. The drop in gold price is temporary and based on another government lie.
Jobless Claims fall to 452K, But Remain Elevated- AP
Here's an excellent example of what I call a distorted optimistic spin headline. you still have close to half a million American people applying for unemployment benefits yet AP focuses on a minimal decrease of 23,000 people and calls it a 'fall' in numbers. You see this nonsense often in sports headlines. The football score may read 'Bears 7, Lions 3' and the headline will say something asinine like "Bears CRUSH Lions" if its a Chicago paper or "Lions put up Herculean effort" if its a Detroit paper. Neither happened yet to their targeted readers, that's the respective headlines which will attract interest.
~ All news is subjective and biased.. The only truly honest reporting is opinion based journalism and blogs because they do not hide it. A&G does not like people constantly lied to, sold to, talked down to and manipulated into the left/right political game by the mainstream media. A&G resents that the news media intentionally refuses to give people the unvarnished truth or provide concrete ideas and/or solutions as to how to combat these ills or to take control of one's life. That is A&G's bias.
Posted by Susquehanna at Thursday, October 21, 2010