- iSDaily Thursday – March 22nd, 2018 – Episode 047
On this episode of iSDaily Thursday with Lou Sander and Paul Gordon, On Shorter Leash, Taxing Robot Labor On Longer Leash, Wyoming Asset Waiver Blocker On Off The Leash, A Soda Tax Creates Liberty On iPonder, Reading the Signs and Preparing Your Kids [...]The post iSDaily Thursday – March 22nd, 2018 – Episode 047 appeared first on iState. […]
Bloomberg makes the case that “fake news” has been around for a long time, as a matter of fact, fake news has driven entire industry, one it calls the “fake market.” Here’s the take from Bloomberg:
Buy the news and sell the soft data. That’s the conclusion drawn from a paper by the Federal Reserve Bank of San Francisco, which suggests that financial news holds predictive power when it comes to a slew of economic data. Stories about the U.S. economy can even outperform more traditional measures such as surveys of consumer sentiment when it comes to gauging ‘‘animal spirits’’ and forecasting future activity, it found. While trust in news sources among the general American population has fallen to historic lows amid accusations of fake news lobbed during the U.S. presidential elections, the Fed research throws cold water on the notion that the mainstream media is far removed from Main Street, if headline economic indicators are anything to go by.
“Specifically, we have shown that sentiment extracted from newspaper articles correlates with both contemporaneous and future key business cycle indicators,” economists Adam Hale Shapiro and Daniel Wilson of the San Francisco Fed concluded in a report co-written last month with Moritz Sudhof, of data analytics firm Kanjoya. “In a head-to-head comparison, these news sentiment measures perform better than both the University of Michigan and Conference board measures of consumer sentiment.”
To put this in layman terms, the media and the market are one. The players drift between the halls that ostensibly separate the two, putting on different hats according to the room they entered (whether it’s on the media side of the hall or the market side of the hall).
When the two parties, the media and the markets, which are really one party, need a more booming economy, to drive the sale price up, then the media proclaims that ‘reality.’ When the two parties, the media and the markets, which are really one party, need a more contracting economy, to drive the sale price down, then the media proclaims that ‘reality.’
It’s not a conspiracy, but rather the natural result of so few people controlling so much, be it information or market access. Families tend to form and coalesce around one another, allowing for the occasion Nuevo to enter into the club.
As is natural, tribes, which is what they become, tend to seek to protect their own interests, and so it is that media and markets, since they have gatekeepers from the same tribe, work in collusion with one another to assure the preservation of their tribe.
The beauty of the whole system is no one has to be told to do this or do that. No central planning meetings are needed. The system perpetuates itself. The parties, familiar as they are with other members of the tribe, will naturally protect one another. And MOSTLY they will do this not by intentionally manipulating data to say what it wants to say, but by NATURALLY seeing the data the ay they want to see it, while still fancying themselves objective disseminators of truth.
Very rarely (though it does happen) do they intentionally manipulate data they know to be manipulated, and very rarely do they plan, with different members of the tribe how to paint the market in the light they want it to be painted in, the light that the tribe they run with WANTS it to be painted in.
At the end of the day, Fake News is hardly ever intentionally fake. It is a product of the natural biases human beings have. This by-product of bias is simply all the more enhanced when they disseminators of information with the most powerful platforms are controlled by increasingly fewer and fewer members of an increasingly more selective, more gated tribe.