Media Feeds Markets' Frenzy

Networks see viewer interest in formerly esoteric financial instruments

(NEWSER) - TV news programs are grappling with explaining the financial crisis to an audience suddenly much more interested in business news, the New York Times reports. With CNBC seeing its highest ratings ever and CNN, Fox and MSNBC seeing bumps in recent weeks, news shows have put teams of business pundits onscreen to explain nebulous concepts like credit-default swaps to the average viewer. More»

It'll take a while to 'wring out excesses'

(NEWSER) - The US economy is still in “shambles” even though the crisis in the financial system has abated, Warren Buffett told CNBC today. “It takes a while,” the investor said. “There were a lot of excesses to be wrung out and that process is still underway.” Inflation may become a problem, he predicts, but Wall Street will remain an attractive investment over the next decade. More»

(NEWSER) - With Wall Street in shambles, Jim Cramer’s ratings are higher than ever—which is fine as long as you ignore his stock picks, Bill Alpert writes in Barron’s. Cramer doles out thousands of buy/sell recommendations a year that consistently underperform the market. Alpert examined Cramer’s record from May to December last year, and found that while Cramer’s sells beat the market by 5%, his more numerous buys lost up to 10% more. More»

Sky isn't falling for many, but barrage 'crackling with panic' makes us feel that way

(NEWSER) - There’s no doubt the economy is bad. The of flood sky-is-falling news stories make that abundantly clear. But the avalanche of bad news—delivered faster than ever before through myriad, ever-present media outlets—has fed upon itself, sinking all of us into a deeper state of collective panic than in previous downturns, David Carr writes in the New York Times. More»

Sage of Omaha backs Paulson

(NEWSER) - Stocks rose slightly at the open, reports the Wall Street Journal, buoyed by Warren Buffett’s $5 billion vote of confidence in Goldman Sachs. The Dow Jones rose 21 points, while the S&P rose 0.3%, and the Nasdaq 0.9%. Capitol Hill will again command Wall Street's attention today, and while Congress may be skeptical, Buffett is behind the bailout plan. “I think it was the last thing Hank Paulson wanted to do, but there's no Plan B for this,” he said. More»