With power comes responsibility

We have had some positive responses to our comments last week that perhaps Mr Carney would have been well served into the Brexit vote to keep better council on his thoughts should a vote to leave happen. The Financial Times has also been pretty vocal in its articles voicing its view of the impending disaster should a leave vote occur. The Daily Mail on Tuesday picks up on this point after the paper’s editor accidentally revealed he is in line for one of France’s leading honours in recognition of his newspapers pro-EU coverage. The list of headlines that the mail refers to “Britain starting to imitate Greece”, has to be a complete exaggeration on any scale.  “Therapists kept busy with emergence of Brexit anxiety” is more worthy of one of red top tabloids. “Has Brexit soured the market for fine wine”, very French. And on the exit vote” This verdict is grievous blow to world order”. This is a paper that has a reputation the world over for being one of the leading Financial commentators, apparently reducing its self to scaremongering.

The article points out that the Financial has a track record of backing the wrong horse over the years. It backed the prices and incomes policy in the 1970’s, Britain joining the ERM in the 1980’s, and the euro in the 1990’s. 

We also reported last week how much money was withdrawn from UK equity funds around the Brexit vote, for the unsophisticated who look for leads from papers such as the Financial Times, they can hardly be blamed for reacting in this way. As they watched the FTSE 100 recently hit a 52 week high, they must now question who they turn to for financial leadership.

In August 2014 we pointed out an article in the business sections of the Evening Standard quoting a journalist suggesting that panic was in the streets of the square mile as markets fell. End of bull run as fears has sellers on the rampage, was one line.  They even found a trader to quote that the end of the most unloved bull run may be coming to an end. We commented on the time that we were prepared to wager that a week later the market would be higher than the day the story was written, and we were right.

People in responsible positions have to act responsibly and this scaremongering journalism does no-one any credit. One has to wonder when journalists write these articles how much consideration do they give to the person who might be reading this and the influence they could be having. 

Posted on August 9, 2016 .