Is the media responsible for recessions ?

Discussion in 'General Chat' started by HMHB, Jan 25, 2008.

  1. HMHB

    HMHB
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    We are constantly fed doom, gloom. death. detruction, disaster, war, scandal, by all the media these days and I was thinking that they might be responsible for maybe bringing about recessions in the economy. People have nothing else to see on the news or read in the paper and so this must have an affect on them surely ?
    I've said this before, but the media never seem to give us any uplifting stories, is it time they were told to produce a more balanced output or what ? If you believed everything they said every single person under 25 in this country carries a knife and is going to stamp on you and spit on you as soon as they see you ;) Look at the BBC News on the internet, all death, destruction and murder.
    I need a drink ;) :laugh:
     
  2. overkill

    overkill
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    They do to an extent. But then they have a vested political interest in doing so. They aren't likely to be running (unlike the 80's where every bit of awesomely bad news was glossed over) 'good news' stories when they want us to be nice and gloomy now are they? ;)

    On the other side of the coin, they thrive on bad news in the modern era. It sells newspapers, it keeps people glued to the BBC/ITV/Sky news. Just think of all the peak interest levels by viewers on news stories and sadly they all correspond with disasters either natural or man made.

    If we all said, 'no more' and stopped buying their doom peddling, scaremongering, racist, inflammatory crap then maybe they'd do something about it.

    But do we? Do we heck............

    John, I'll join you in that drink m8!
     
  3. andykn

    andykn
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    "Media" and "responsible" in the same sentence?

    The thing is, even if people are stupid enough to believe what they read in papers how can that cause a recession? Unless they become less productive I don't see how it can.

    All that's likely to happen is that they will spend less; if they spend less they will save more, which we are nearly all supposed to be doing anyway. The banks then have more money to lend, industry borrow money to invest easier and Northern Rock can get bailed out more easily.
     
  4. njp

    njp
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    Um, why would industry be investing if nobody wanted to buy anything?

    Gotta keep that money circulating!
     
  5. Singh400

    Singh400
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  6. andykn

    andykn
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    Not at all. Every Euro he/SG has "lost" has been "won" by someone else. No real wealth has been created or consumed apart from the comminssion charges on the deals.
     
  7. johntheexpat

    johntheexpat
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    Funnily enough this quote was lifted from that link.

    Societe Generale's shares, which ended the previous trading session down 4.1%, were up 2.1% in afternoon trade on Friday.

    They have fallen by nearly 50% in the past six months.


    So how come the Stock Exchanges don't seem to care that €5bns have gone down the pan?
    How come the shares have fallen 50% in 6 months, but that isn't a story.
    How come no-one seems too bothered, in the light of The Fraud that SG lost €2.2bn in the Sub prime fiasco? (Which may account for a 50% fall in the share price)

    Surely this guy isn't being made into a scape-goat. Surely not?
     
  8. HMHB

    HMHB
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    That's partly the point I was trying to make, people are spending less because of what they hear/read about a possible recession this year, and so it causes more recession due to shops and businesses not selling so much. Then the press will go into overdrive telling us all how bad things are ...... etc etc
     
  9. andykn

    andykn
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    But that would mean that if we all saved a bit more that would cause a recession and that doesn't make sense.
     
  10. HMHB

    HMHB
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    :confused: The recession would be because people aren't buying things and so the people who make them won't have a job any more and the shops that sell them won't have enough customers and so they close down and they all have knock on effects.
     
  11. williemaykit

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    The economy needs people to spend money to survive. If people save more of their disposable income then companies don't make money. When companies don't make money people are made redundant. As people become redundant, they claim benefits when the savings run out. This places added pressure on those that are fortunate to continue working during a recession as the government raises to taxes to cover their social welfare bill whilst lowering interest rates to get people spending again. In turn, more people look at emigrating out of the country to find "a better life".

    Whilst a recession is an inevitable cyclical event, I do believe the media plays a part. To some people in the community, it is an influencer which should not be taken lightly. These days I feel the media enjoys the role of scare mongering, which is a real shame really.
     
  12. williemaykit

    williemaykit
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    Not really. As weird as this may sound, €7bn is really just a drop in the ocean for these guys. A lot of the investment management companies are heading towards trillions of dollars under managements (for which they earn fees to pay multi-million bonuses)
     
  13. Singh400

    Singh400
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    I was joking..... :p :D

    Looks like he is, they were talking about it on Sky News. I was like "pull the other one mate".
     
  14. Steven

    Steven
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    Depends how cynical you are?

    Do the media report the news or views?

    See sig regarding this post
     

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