The problem is that the overwhelming majority of the Financial Media have absolutely no understanding whatsoever of the economics of finance.
What they understand is how people will behave with respect to the basics, like "Stock goes up, Mr. Broker will sell." Or sometimes, "Stock goes up, Famous Mr. Broker says subprimes in crisis!"
The sad fact of the matter is that most of Wallstreet also does not understand anything about... anything. What they know is the financial equivalent of pop culture junkets: "Like, Britney could lose her kids! Omg!" relates directly to, "Like, I have a portfolio that isn't diversified beyond real estate, and the WSJ totally dissed these options! Omg!"
I've worked with these people, I've worked among them, and I've audited several. Wall Street is not about knowledge, it's only about turning a profit. The decisions you see there are not based on rational planning for longterm benefit; it's "how can we make money right now". The most glaring evidence I have is the recent subprime crisis. Does Wall Street care? Hell no. They bundled those options off to sell to European banks, they collected their fees. That's what they do. Theirs is not the business of buying and selling to build a foundation, as everyone in the world thinks financial investors do, but buying and selling just to buy and sell.
I think what irritates me most is this constant insistence that things are peachy keen. I literally argued until I was blue in the face with some idiot from Wall Street concerning gas prices. "Oh," he told me, "I've read the reports and the average American does not spend more than $1,000 on gas every year. This gas problem is really nothing." I have several friends who drive and they can attest to spending far more than $1,000 on gas per year, and I mean on fuel efficient vehicles. But because he had read the special report, written by the special economist in his special position on special Wall Street, it could not possibly be wrong.
And really, New Yorkers are famously in touch with the rest of the nation