4 ms·

This is just an ad hominem attack as far as I can see. He links to two things to support his point but neither actually do 1. "Boskin's Obama Crash" But whe

by SamAtt 17y ago

This is just an ad hominem attack as far as I can see. He links to two things to support his point but neither actually do 1. "Boskin's Obama Crash" But when you follow that link you find the article he was pointing to was an opinion piece so it doesn't support his point (which was that he'd always thought the OpEd page was crazy but that he now feels that's bleeding into the reporting) 2. "New Bank Rules Sink Stocks". His problem with this article, in his own words, is "we know that day-to-day action is mostly nonsense". He goes on to say "Assigning a definitive causative factor is at best a guessing game, at worst an exercise in futility." That's just foolish. There are brokers on the trading floor, you can ask them why they're selling and every news outlet reported it was because of proposed banking regulation so the logical assumption was that there is an overall sentiment on the floor. This isn't the WSJ. ABCNews, BBC, et al. reported the same thing (http://blogs.abcnews.com/theworldnewser/2010/01/dow-drops-200-on-obama-plan-to-crack-down-on-banks.html http://blogs.abcnews.com/theworldnewser/2010/01/dow-drops-20..., http://news.bbc.co.uk/2/hi/business/8473720.stm http://news.bbc.co.uk/2/hi/business/8473720.stm)

jonstokes 17y ago
This is a really, really naive response. There isn't really anyone on the trading floor anymore. ECNs have taken over, and account for 97% to 100% of trading volume on any given day. No one trades from the floor anymore. So no, there's no group of people who are "the market" whom a reporter can poll for sentiment. You are completely and utterly wrong, and the only data you cite in support of your opinion is the fact that lesser outlets--outlets of the type that Ritholz has already said he files under "infotainment"--have glommed onto the same bogus explanation and run with it. Ritholtz knows more than you will ever forget about what moves markets. He is spot-on, here.
- SamAtt 17y ago
  Well first, and I mean this with minimal disrespect, but you clearly have a hero worship thing going here (see your last sentence). So you really have a bias of your own. On your point, there are still people on the floor if you don't believe me turn on CNBC and you can see them. But even in a virtual floor it isn't like people don't keep in contact. The market lives and dies by social interactions and it always has. That's why the guy on his computer using e*trade isn't as effective as the guy in the brokerage house. The point still remains that every news institution I can find reported this the same way (Dow drops because of Bank Regulation). So using it to attack the WSJ individually is ridiculous.
  - rayval 17y ago
    The point remains that the WSJ was unique in providing rock solid objective financial journalism, and now it is sliding down to the same level as "every other news institution".
    - SamAtt 17y ago
      But that's only true if the facts aren't true. If the Dow did really fall because people are worried by the new regulations than the title isn't sensationalist it's just factual reporting. So the question is this: Was it impossible to find out the motivation of investors? I don't think it is (especially when you have big time investors like Warren Buffett coming out against it)
steveplace 17y ago
Granting Boskin an editorial is a problem because he was a direct cause in the financial collapse, and it was a followup to a few other posts he'd made. There are brokers on the trading floor, you can ask them why they're selling Traders on the floor and in the pits trade in reaction to price, not the news. News can be bad and price still go up-- just watch the futures market when jobless claims are reported in the mornings...

by SamAtt 17y ago

jonstokes 17y ago

This is a really, really naive response. There isn't really anyone on the trading floor anymore. ECNs have taken over, and account for 97% to 100% of trading volume on any given day. No one trades from the floor anymore. So no, there's no group of people who are "the market" whom a reporter can poll for sentiment. You are completely and utterly wrong, and the only data you cite in support of your opinion is the fact that lesser outlets--outlets of the type that Ritholz has already said he files under "infotainment"--have glommed onto the same bogus explanation and run with it. Ritholtz knows more than you will ever forget about what moves markets. He is spot-on, here.

SamAtt 17y ago
Well first, and I mean this with minimal disrespect, but you clearly have a hero worship thing going here (see your last sentence). So you really have a bias of your own. On your point, there are still people on the floor if you don't believe me turn on CNBC and you can see them. But even in a virtual floor it isn't like people don't keep in contact. The market lives and dies by social interactions and it always has. That's why the guy on his computer using e*trade isn't as effective as the guy in the brokerage house. The point still remains that every news institution I can find reported this the same way (Dow drops because of Bank Regulation). So using it to attack the WSJ individually is ridiculous.
- rayval 17y ago
  The point remains that the WSJ was unique in providing rock solid objective financial journalism, and now it is sliding down to the same level as "every other news institution".
  - SamAtt 17y ago
    But that's only true if the facts aren't true. If the Dow did really fall because people are worried by the new regulations than the title isn't sensationalist it's just factual reporting. So the question is this: Was it impossible to find out the motivation of investors? I don't think it is (especially when you have big time investors like Warren Buffett coming out against it)

steveplace 17y ago

Granting Boskin an editorial is a problem because he was a direct cause in the financial collapse, and it was a followup to a few other posts he'd made. There are brokers on the trading floor, you can ask them why they're selling Traders on the floor and in the pits trade in reaction to price, not the news. News can be bad and price still go up-- just watch the futures market when jobless claims are reported in the mornings...