I cannot help but wonder whether or not the present recession is the result of sub-prime lending, as we are led to believe, or whether it is the result of irresponsible media coverage. Let’s face it, the falls on the Stock Exchange are the result of a lack of confidence.
We all thought something was going wrong when Northern Rock started to go under. Why did it go under? People panicking to withdraw their money. Why did they do this? Because the media hype said it was going under inspiring their panic. If the Government had slapped a D Notice (a censorship notice issued by the Department of Defence) on the subject in the name of ‘national security’ no-one would have been any the wiser, their money would still be there and probably Northern Rock would still be there in it’s original form rather than a nationalised concern reportedly seizing houses left right and billyo to pay back it’s debt to the government!
A recession is the result of a lack of confidence in market forces and if the media tell us things are turning pretty bad we will believe it and worry about it. That will damage confidence further which will indeed lead to a recession.
It’s time the media took responsibility for its actions before it does indeed become an oracle of self-propagating doom!
