Industry NewsMarkets & Economy

Economic cheerleading is misleading

Commentary: Read between the lines of recovery hype
Published on Apr 16, 2010

Mortgage and long-term Treasury rates are falling suddenly today, as the U.S. Securities and Exchange Commission's fraud charge against Goldman Sachs is tanking the stock market. It couldn't happen to a nicer bunch of people: The 10-year Treasury note has broken below recent 3.8 percent resistance to 3.77 percent, with mortgages headed toward 5 percent. Interpreting new economic data is trickier than ever, even for professionals, as an odd confluence has tipped public sources into uniform economic cheerleading. The whole country would like not to hear another word about recession, and is hungry for news of recovery. Media tend to supply whatever it takes to sell soap. CNBC years ago dispensed with "real" news. Bloomberg television was a reliable replacement, but this winter cloned CNBC's grinning kids in happy talk (its Web-based news is still as straight as anything available). The Wall Street Journal under Rupert Murdoch is dumbing-down to the USA Today of bu...

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