This "news" article seen today at Yahoo is a great example of the need NOT to take at face value what one reads about the economy.
http://finance.yahoo.com/tech-ticker...bini-Predicted
This article repeats some very recent opinions of Fed Chairman Bernanke, billionaire investor Warren Buffett, and academic economist Roubini about the economy's prospects.
The reader would do well to consider the "interests" of each person who is quoted. For instance, you can be sure that Buffett has his own private opinion (as an individual and as a businessman) about the economy's prospects, and he has probably already taken steps to position his businesses to operate as best they can given his point of view. And assuming that he has done, and is doing, these things regarding his personal wealth and his businesses, one would expect that his public statements would align with the decisions he has already made.
A respected operator in the economy, such as the owner of very large businesses, can in fact sway the decisions of other players, not all but some, in the economy by the opinions they offer in public. That would be one of the reasons that the powerful person speaks to the press to begin with.
Everyone would do well to "consider the source" when reading all of these various public opinions about the economy's prospects. Always ask oneself, Is this person in a position to profit from the circumstances that he/she is describing or from the prediction he/she is making?
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
