The media.....
- Thread starter RoryM
- Start date
i think most people would agree the economy would be much better off if people kept buying things.
because of our present situation, people are not investing in the pound, and therefore it has lost value: my point in relation to the media is that they are sensationalising how bad things are, making people less likely to spend money; the general idea being that if people are worried they are going to lose their jobs they arent going to fork out for a new kitchen or a new car for example. (hence this new government initiative to encourage people to buy new cars)
so i suppose you could say that the media are party responsible- although they definitely aren't the cause, they aren't helping things either if that's the way you look at it.
because of our present situation, people are not investing in the pound, and therefore it has lost value: my point in relation to the media is that they are sensationalising how bad things are, making people less likely to spend money; the general idea being that if people are worried they are going to lose their jobs they arent going to fork out for a new kitchen or a new car for example. (hence this new government initiative to encourage people to buy new cars)
so i suppose you could say that the media are party responsible- although they definitely aren't the cause, they aren't helping things either if that's the way you look at it.
Hmm, it was the massive overspend on Credit that got us here in the first place!
OK - Me, like Glen(stongle), I am a trader for a large German bank, so we have a pretty clear view on what happened so I'll give you all a synopsis!
The US lowered the requirement that the lenders (fannie Mae freddie Mac) could offer credit to for house purchases in the US.
Lenders in the US found a whole new sector of borrowers, the sub-prime borrowers, and therefore fully utilise their lending capital.
The US had a housing boom, but this meant that the lending capital was drying up, so the lenders offered to sell the debt in buckets with other better rated product to paper over the cracks, These were the CDO's you hear about.
AIG and other major US insurers provided financial insurance policies alongside these products, and deliverd the package to to the agencies for rating. This got them A ratings as the agencies are funded by the banks effectively.
The regulators were then presented with these A rated CDo products, did not do their homework and approved them, and the market bought them with gusto. This created the merry go round of cash generation by the debt market.
The lenders had more money again now to lend money, thus fueling the market rises.
This market spread across the world as cheap cash became available and the UK started offering the NINJA (No Income No Job) loans for houses.
The housing market was injected with capital and then started to rise rapidly.
The Estate agents pushed people to spend more, the media told us all our houses were worth more, the Government were happy, as everyone was 'richer' and it was all because of Gordon. The market marched on with headlines and Agents and banks all happily believing that the cash would keep coming.
The public, not being the economic experts that some may think they are never realised that at some point, if you keep raising the price, it will become too expensive, believed that the spin from the Govt and the media was gospel, and how could you lose money on a house? They only go up right? People took out credit against their houses and spent it on cars/holiidays/clothes etc etc. This was now the warning light that should have been flashing to any Chancellor. We were all spending cash like water, everyone was bettrer of as we could all have new cars, and Gordon told us it would never end. The media being so savvy with Labour back then lauded our wonderful Chancellor. Labour won the elections again.
Well no. This is the guy who spent the Budget surplus he inherited from the last Government. He took our Public Sector borrowing requirement to unheard of levels after he inhetrited a big fat ZERO from the last Govt. This is the guy who sold the nations gold (thats yours and mine) at a 25 year low, against the advice of the bank of England and the bullion Banks own experts. This is the guy who took the jobless numbers down by empolying nearly 500 000 more public sector workers.
Gordon papered over the cracks of what was really going on with the simple lie that your house made you richer.
Then we get to today, where the mortgae resets ion the US have forced forclosures and thos lovely A rated debt products are worthless as more people than predicted defaulted and cost the banks that bought them.
The panic that this caused the world meant that no banks wanted to lend to ANYONE. Cash dried up, mortgages stopped. This was the abyss.
So the trail of blame is:
The government for lifting regulations in the US (clintons administration)
The rating agencies for not knowing WTF they were looking at with the CDO's.
The regulators for not knowing WTF was going on.
Global economic ministers for not realising that spiraling levels of personal debt do tend to do this!
Governments for not stepping n and saying stop, as that would lose votes.
The media for whipping up the Market frenzy (they are doing the reverse now!)
Estate agents for the outright greed and lies, underhand market practice etc that alot (not all) showed throughout this.
The Banks for lending to idiots who would default as they had stretched themselves clearly.
The investment banks for not seeing the problems with lending too much cash into a system.
And last but not least - the public for being naive enough to believ that your house would only ever go up. If the average house price had hit 300k, with the average salary at 30k , there is clearly something wrong! If you were stupid enoughto go self cert and tell the bank you could afford a 200k flat on 25 grand a year, and they did, you are a tw4t. But everyone was blinded by the shiney lights of their new X5's to notice.
So there you go, blame the bankers soley, and you have learnt nothing. The blame was everywhere, and if people don't learn from this episode, we are not coming out of this downturn in a hurry. You have been warned.
Dont trust the media ( quick scan of Private Eye will help with this)
ok. the scenario: your a big newspaper boss man. you see this video (just for the time being imagine you saw the origonal) what are you going to do?
well the answers prety obvious. the media want money, to get money they have to get the most "interesting" story to beat the other newspapers. then it turns into a metaphorical arms race (but with words! hehe). so we end up with the most dire news because we all know that its very hard to get a dramatic happy story these days.
my two pence anyways, i know its a tiny bit off topic
EDIT: if you look at the containers and haddnt seen the title you probably would have not thought they were 'coffins'
well the answers prety obvious. the media want money, to get money they have to get the most "interesting" story to beat the other newspapers. then it turns into a metaphorical arms race (but with words! hehe). so we end up with the most dire news because we all know that its very hard to get a dramatic happy story these days.
my two pence anyways, i know its a tiny bit off topic
EDIT: if you look at the containers and haddnt seen the title you probably would have not thought they were 'coffins'
I get the feeling now that the story, or rather just the headline is used to sell the rags. The actual content of the story is irrelevant, and nor is its accuracy.
OK magazine have a habit of doing this kind of headline grab to sell itself. The Jade Goody memorial issue an absoloute shocker, and anoth example was a headline on the front telling the world about Nadine Coyne's (girls aloud) engagement.
When you read the stroy they were reporting on her holiday engagement (as in a scheduled event) with her boyfriend.
The mainstream press in the UK is morally bankrupt now, they are losing out to the internet now and 24hr News channels, and have sunk to new levels to sell itself, at the cost of the whole truth. Evolve, lie or die being the new maxim for the industry, and public lose out even more by never being presented the real story, without the spin or the sensationalism.
OK magazine have a habit of doing this kind of headline grab to sell itself. The Jade Goody memorial issue an absoloute shocker, and anoth example was a headline on the front telling the world about Nadine Coyne's (girls aloud) engagement.
When you read the stroy they were reporting on her holiday engagement (as in a scheduled event) with her boyfriend.
The mainstream press in the UK is morally bankrupt now, they are losing out to the internet now and 24hr News channels, and have sunk to new levels to sell itself, at the cost of the whole truth. Evolve, lie or die being the new maxim for the industry, and public lose out even more by never being presented the real story, without the spin or the sensationalism.
What I have noticed with TV news. When there is a storey it gets more media attention than thats required for example the breakout of swine flu. Yes report about that but the regional news decided to report on a couple that are on honeymoon in Vegas and where due to travel to Mexico and because of the outbreak cannot.
So whats the big deal i'll be pleased that i cannot go to a country that has an outbreak. However the upshot of it is that for an extra £300 Virgin will fly them to Barbados.
Does that warrent being in the news or are they just looking to fill space?
It does seem that now most stories that you read about have been sensationalised with so much spin that you don't know whether to belive it or not
So whats the big deal i'll be pleased that i cannot go to a country that has an outbreak. However the upshot of it is that for an extra £300 Virgin will fly them to Barbados.
Does that warrent being in the news or are they just looking to fill space?
It does seem that now most stories that you read about have been sensationalised with so much spin that you don't know whether to belive it or not