The Market and the Mind

Tuesday, August 09, 2011

WNYC's Ilya Marritz from the Stock Exchange floor and Heidi Moore, Wall Street correspondent at Marketplace, talk about the sliding market and the growing worry about the American economy. MarketPsych managing partner Frank Murtha discusses the psychology behind our reactions to the hesitant economy.


Ilya Marritz, Heidi Moore and Frank Murtha

Comments [19]

The Truth from Becky

Absolute sensationalism to panic people and the people always do the wrong thing concerning market changes. Some people should not be in the market, leave it in a checking account...period!

Aug. 09 2011 10:53 AM
Susan from New York

Re: what the media should be reporting. The media created the credibility of the Tea Party as their childish slogans fit nicely into sound bytes - the reporting of choice for most media outlets. The vast majority of Americans has now seen these know-nothings for what they are, only because their damage has now occurred on a visible, daily, and dramatic basis. Similarly, has there been a sustained look by the popular media (not just Paul Krugman) at S&P's role in the 2008 mess, of emphasizing the story of how we went from surpluses to tax cuts for the wealthy to unfunded wars and precription programs? And why isn't there a sustained look at the lack of manufacturing and jobs here, and the lack of environmental controls and labor laws in China? Why don't we see pictures of industrial areas in China, if there's a feeling that people can't read anymore.
As long as the media just goes for the dramatic events of the day in 10-second spots, things will not change. Of course, this is related to who owns the media.

Aug. 09 2011 10:48 AM

Market downturns can be managed quite well in the long run. However, sometimes, those who have just a little in the market can be caught in one of those downturns when they need their money.

Then it goes very badly for them.

Thank FDR for SocSec. Thank the strong Dems of his day -- or, at least, they were strong under his leadership and did not grovel before the wealthy and powerful.

And may any politicians planning of messing with SocSec face defeat at the polls. Lookin' at you, Obama!

--You and your little Politiburo set up in the debt ceiing legislation.

--Your Committee of the Twelve Caesars, looking to seize the security of seniors, and those needing health care, and those needing food, shelter, perhaps protection from the extremes of our climate.

Aug. 09 2011 10:43 AM
Robert from NYC

What crap! This segment really stinks. You try to paint a rosy picture as is the usual way for Americans to move on but move on to what. The free open market has failed and we try to tape it together over and over again. And you the media go along with it with blinders on your eyes you mislead us into oblivion. Eventually it will fall because tape can not withstand much pressure. Instead of trying to work ourselves out of these situations intelligently we do the easy thing and just ignore it.

Aug. 09 2011 10:41 AM
Ken from Little Neck

It must be nice to have enough of a life savings to loose it all in the market. What I hate most about this story is that it continues to distract us from the real problems in this country - poverty and unemployment. Ask someone who hasn't worked in two years - they won't be talking about this a great opportunity, because the circumstances of the last few years leave them without the means to take advantage of it.

Aug. 09 2011 10:41 AM
Sophie from Poughkeepsie, NY

@Susan from nyc

Thank you! Totally correct!

Aug. 09 2011 10:40 AM
Patricia Spears Jones from New York City

this discussion is silly. This is like listening to a boring bar stool conversation without the alcohol. And I do not agree with Heidi Moore. The wall to wall coverage of the S&P downgrade --the only agency to do that, no one mentions the other 2--with declarations that this is what the market is thinking about with no actual quotes from actual traders is poor journalism. Who owns S&P? What did Moody's or Fitch say? Are there different criteria for governments and corporations? Why? I wish you would treat this complicated topic with greater sophistication. This is not WNYC's finest hour.

Aug. 09 2011 10:40 AM

Forget neurosis and PTSD, the one obviously prevalent psychological condition on Wall Street that is not being discussed is sociopathy.

Aug. 09 2011 10:39 AM
Joyce from Manhattan

Add up how many hours WNYC has devoted to this vs other news in the last few days and compare it to any other news item in the same time period. Then you might rethink the argument that the media hasn't over played it. I think Heidi is pretending it's black and white, cover it or don't. She is not dealing with how much it is emphasized. That mind set is distressing, to say the least.

Aug. 09 2011 10:39 AM
Anne F. from South Orange, NJ

What distresses and disgusts me about this market coverage is that it's all tuned to how upper middle class people can profit from the downturn. We're being told not to panic. Fine. But I want jobs, peace, and work to make the underclass and lower middle class of this country secure.

The conversation about how capable "we" are of taking advantage about this "market opportunity" is out of proportion and out of sync with the real pain, the massive financial mismanagement, and the greed that have created the problems from which we now suffer.

Aug. 09 2011 10:38 AM

The caller who says "buy buy buy" is just as irrational as the panic sellers. The perma-bulls bought all the down before the Great Depression too.

Aug. 09 2011 10:38 AM

Don Imus's brother died over the weekend, so that show being a kind of bummer - so I'm turning into NPR-WNYC this morning.
You guys are still crazy.
Don't want to take the "market" meltdowns seriously - why worry? put out the meme that it's "all irrational" all the playthings of speculators who, tired of greedily forcing up the price of oil, now are finding sadistic amusement in making the whole market go down.
Proven irrational because it is behaving badly in the face of efforts by an administration headed by a man who believes in American "Exceptional-ism", sincerely intoning the "no need to worry this is America" mantra to drive away the bad news (isn't that what he read that Reagan did?)

Aug. 09 2011 10:38 AM
J Pierpont Morgan from Greenpoint

We haven't paid for our last economic crisis yet: the one that happened in 1929. That's when America first went into deficit to shore up the economy, and we're still making payments on that ancestral debt today. Can we really pass the buck one more time?

Aug. 09 2011 10:37 AM

to your guest arguing that "this is something that is happening and we must report on IT" --

the blind men describing the elephant comes to mind.

depending on one's perspective, the "IT" that is being covered is a disaster, an opportunity, a legal scandal, a political crisis, a political victory, a short term opportunity, a long term opportunity....or, in the case of most media including WNYC, a simple repetition of the tabloid headline "PANIC" with not much insight (other than what the president says).

I would think the responsibility and fun of reporting on this period would be finding the fresh and useful angles, and respecting the listeners enough to assume that they can get past the panic. The alternative would be to simply not cover business at all, and stick with the traditional culture and politics, and I for one would be fine with that.

Aug. 09 2011 10:37 AM

I'm so tired of this sensational media coverage of the stock market. It is part of the problem that feeds the panic. This crisis is being orchestrated so that those with the foresight and resources can buy stocks at rock bottom and make a huge profit after the average investor buys into the mass hysteria and sells. How about covering the real life and death crisis that is currently threatening 12 million people in the Horn of Africa?

Aug. 09 2011 10:34 AM
Susan from nyc

For god's sake, people, WAKE UP! Between computerized trading algorithms that work on a time scale of nano-seconds and the rife insider trading, I am now convinced that the market is completely rigged, and that ordinary investors are just cannon fodder for these predators (after all, someone has to be the loser for all these "winners"), so I have pulled all money out of the market--it's a mug's game. Remember the old poker adage: if you look around the table and can't tell who the mark is, it's you.

Aug. 09 2011 10:33 AM
tony from bayside

Hasn't every economist said we need short-term stimulus and long term deficit cuts...I think I heard Mort Zuckerman say that! WE NEED TO RAISE TAXES ON THE RICH! They have benefited since voodoo economics came into flavor...I know it's not the only approach, but c'mon!

Aug. 09 2011 10:30 AM

how to profit from the downgrade.

who is already.

how much is the yield on treasuries going up/expected to go up.

at what point do treasuries go from being just a safe investment (for pension/sovereign funds etc) to one that is profitable too?

Aug. 09 2011 10:21 AM
John from NYC

If an athlete become injured, you might give steroids briefly to help the healing, but you do not keep pumping STIMULUS into them, you identify the cause of the injury and help them REBUILD.

Our education is a shambles, we cannot keep ranking 20th in the world in subject after subject. We must end the control of the teachers unions and medeocre schools of education

Where is the infrastructure rebuilding -- the last stimulus could have built TWO INTERSTATE HIGHWAY SYSTEMS. Where is our new Tapenzee Bridge, etc. etc.

Etc, etc.

We have totally forgotten the basics.

Aug. 09 2011 10:16 AM

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