The press were talking of a housing slump 2 years prior to anything happening . Now it seems they are talking down the whole economy. Times are hard ona number of fronts but we could do with some good news reporting also.
Although press likes to bring shocking news to sell papers, it usually doesn't make news up (at least in civilised countries; in Russia or in China things are unfortunately different). They just write what economist have been saying for a while. Recession is in no one's favour so I don't believe that anyone had interest in spreading bad news. Coming to the trends in economy - yes they are much dependent on peoples moods. But over borrowing sooner or later brings collapse - usually sooner is better as the baloon isn't inflated too much. And saying and pretending that everything will be all right wouldn't make things better!
Dale,there is a site, www.gimundo.com,that reports only good news and positive stories every day. They will send a daily bulletin if youwish to your inbox.I think that the media does hype things up. I am not saying there are no probs, I am not saying that the economy isnt slumping, i am just saying that the press exaggerate stuff. I was listening to a radio programme where they were saying there is no recesison,it just suits the few people with all the power to let the population think there is at this time,as they always wish to create a climate of fear.I dont know which is the worst scenario - a genuine recession,or the powerful few pretending there is one?
They are only reporting what 'those in the know' are saying (Bankers; Businessmen; Economic Forecasters; Some Politicians). By 'talking of a housing slump 2 years prior to anything happening' seems an unusually accurate (especially for the media) prediction - it is happening now! Food prices are up 19.8% this year, fuel prices are still rising rapidly, house prices have dropped almot 8% where I live, Unions are starting to flex their muscles, wages are not moving up much (if at all), taxes are increasing (along with NI), and businesses are starting to hand out redundancies (especially in the building trade) - sorry, but that, to me, sounds very much like a recession! And although it is disheartening to read or hear about it, I would rather it was reported so that I can prepare myself for it!
I think that the media have a huge role to play in suggesting a recession. They hype things up a lot to sell their papers and magazines and raise the fear in people and then people go crazy and suddenly there is a recession. This is only because the media make it seem like there is already a recession going on and people think that it must be true! But then I guess people should not take everything that has been written in papers as right and honest!
Sadly no I don't think so. People don't have the cash that they had available, costs are starting to exceed incomes in the lower brackets and basically people are struggling to meet their basic costs and luxuries are starting to get cut out. The media only reports what is already happening and companies do not lay staff off because of what the media says unless the companies are idiots. Economists having been saying for ages that a recession was looming due to over borrowing, over capitalisation and the general movement of the economy. Companies lay staff off because bills aren't being paid so their cash flow is suffering, sales are dropping and staff are wanting pay rises that they cannot afford. The media loves to jump on a story that will sell their papers but those who watch the economy have seen problems looming for ages.
It feels as if just a few months ago the media were banging on about credit crunch and now all of a sudden companies are laying off staff (eg Persimmon Homes). The media have to be partly to blame for whipping up panic and creating a self-fulfilling prophesy.
Don't EVER believe what the gutter press say about anything. Other papers can be half believed, after all, their main aim is to sell papers, so they have to sensationalise some things on occasion.
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