Beware the "better-than-expected" SCAM
Today's headlines on the Yahoo Finance website were
Stocks Surge on Inflation Data- AP
This is the way the scam works and be aware that various government agencies use it all the time. A government agency, in this case the Labor Department, will publish a report, for example, a report on inflation. Then, the news media will spin the report into reporting that things are "better than expected." In other words, it could have been worse! But, things are not getting better as the two links I've included show. The proof is in the detail and the details look awful. But, that's not what we are supposed to focus on. We're all expected to be good little sheep and focus on what the news pundits want you to focus on, namely, in this case, that "inflation isn't as bad as we expected. Afterall, it was better than expected." Which is true if you're in to eating steel and other relatively low inflationary items. But, around my house, we eat a lot of food and use a lot of gasoline to drive to work. And those items are skyrocketing in price. But, all is well, because inflation was up only .2% last month. Isn't that wonderful???
The news pundits want you to think everything is great. But, food prices are skyrocketing and the forecloseure situation is getting worse. Which affects you more? Do you sincerly want to go out and buy expensive stocks when the REAL economy is falling further into a recession (or is it a depression?). Be very careful here. All is not well and the news pundits know it. But, their friends on Wall Street still have a lot of overpriced stock to sell and they need you to buy it.
Stocks Surge on Inflation Data- AP
Stocks steamed higher Wednesday after a better-than-expected report on consumer prices tempered some of Wall Street's concerns about inflation. The Dow Jones industrial average rose more than 150 points.
- Inflation Pressures Ease in April But Food Prices Jump- AP
- Home Foreclosures: Crisis Is Only Getting Deeper- CNBC
This is the way the scam works and be aware that various government agencies use it all the time. A government agency, in this case the Labor Department, will publish a report, for example, a report on inflation. Then, the news media will spin the report into reporting that things are "better than expected." In other words, it could have been worse! But, things are not getting better as the two links I've included show. The proof is in the detail and the details look awful. But, that's not what we are supposed to focus on. We're all expected to be good little sheep and focus on what the news pundits want you to focus on, namely, in this case, that "inflation isn't as bad as we expected. Afterall, it was better than expected." Which is true if you're in to eating steel and other relatively low inflationary items. But, around my house, we eat a lot of food and use a lot of gasoline to drive to work. And those items are skyrocketing in price. But, all is well, because inflation was up only .2% last month. Isn't that wonderful???
The news pundits want you to think everything is great. But, food prices are skyrocketing and the forecloseure situation is getting worse. Which affects you more? Do you sincerly want to go out and buy expensive stocks when the REAL economy is falling further into a recession (or is it a depression?). Be very careful here. All is not well and the news pundits know it. But, their friends on Wall Street still have a lot of overpriced stock to sell and they need you to buy it.
posted by James Maggio @ 12:06 PM
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