We are what we believe

The reason for birthing this blog is my contention the main stream media has been overtly negative about our economic situation the last few years and that there needed to be a counterbalance, even if it's a grass roots effort of one person and one blog at a time(read the mission statement above). I understand glorifying news to sell papers and advertising, but the last few years the negative slant has been ridiculous. If find alas, the artful prose of Brian Westury in a recent WSJ Op Ed piece describing the business that is economic news.............

Fair but Unbalanced
How the media promote false pessimism about the economy.
BY BRIAN S. WESBURY

Not that it needed any help, but the already energized debate about journalistic bias was electrified when Rupert Murdoch, owner of the "fair and balanced" Fox News Channel, struck a deal to buy The Wall Street Journal.

I have no desire to take sides in this debate, or question anyone's integrity, but my role as a business economist gives me a unique view of this subject.......

.......For example, the most recent Wall Street Journal economic forecasting survey, from July, shows that 49 out of 60 forecasters expect real GDP to grow at an average annual rate of 2%, or faster, in 2007. Of the remaining 11 forecasters, only two expect growth of less than 1%, and only one expects a recession. For 2008, the forecasters are even more optimistic, with none expecting recession......

.......Despite this, an NBC News/Wall Street Journal poll taken in late July found that 68% of Americans thought that the economy either was in recession already, or would experience a recession sometime during the next 12 months. Interestingly, this is not much of a change from the past. This same survey question has been polled at least five times since September 2002. Each time a robust majority of between 65% and 85% of respondents thought a recession either was under way or would occur within the year. Americans have been bearish on the economy for quite some time.

In short, over the past five years, forecasting economists from academia, consulting shops, financial services and industry have a perfect 5-0 record against a random sample of American citizens. It's important to understand that economists are not always right. Some even say that economists were put on earth to make weathermen look good......

For Rest of Story and Link to WSJ click here