FINANCIAL REPORTING FOLLIES….The New York Times reports today that the stock market is up. Here’s the story they invented to explain it: (a) there’s a widespread belief that the global economy is tanking, thus (b) reducing the demand for oil and (c) driving down oil prices. Wall Street, (d) seeing plummeting oil prices, (e) is elated and (f) drives stock prices up.
There are two basic possibilities here: (a) this explanation has been created out of whole cloth or (b) Wall Street investors are idiots. Or both. For now, I’m going with (a).