NYT Non-News Story Says It’s Time to Tighten Belts

The New York Times (11/23/09) has an editorial on its front page today disguised as a news story. Appearing under the headline “Federal Government Faces Balloon in Debt Payments,” Times business reporter Edmund Andrews makes an impassioned plea for the neo-Hooverist economics popular in corporate media: Claiming that “the government faces a payment shock similar to those that sent legions of overstretched homeowners in default on their mortgages,” Andrews maintains that “there is little doubt that the United States’ long-term budget crisis is becoming too big to postpone.” There’s not a lot of news in this ostensible news article; it […]


Stock Traders Are Not Pundits; They Pay What They Think Stocks Are Worth

Today’s lead New York Times story (2/1/09)–subheaded in the print edition “Scant Details, and Wall Street Reacts With a 4.6 Percent Plunge”–is a classic example of the fallacy of treating stock market prices as a kind of opinion poll. Reporters Stephen Labaton and Edmund L. Andrews wrote: “The initial assessment of the plan from the markets, lawmakers and economists was brutally negative, in large part because they expected more details.” Presumably the reporters talked to lawmakers and economists and got their responses directly. But when one is talking about the reaction of the market, one can only look at the […]