One of our themes at "A Dash" is the array of challenges to the individual investor. Interpreting market commentary is one of the most important. While our readers understand the blogosphere, the influential print media remain far more important.
The MSM articles do not have any comments, so readers are on their own to spot any problems. To illustrate this, we will contrast today's article by New York Times columnist Gretchen Morgenson with a recent piece by Bloomberg's John M. Berry.
Morgenson on "Trash for Treasuries"
Regional printing has made it possible for people all over the country to enjoy a hard copy of the New York Times with morning coffee. Our Thursday and Friday editions (during our West coast trip) were printed in Seattle, and today's, delivered at our door, was printed in Chicago. Many individual investors look to their business coverage.
One of our favorite sources is Pulitzer Prize-winning columnist Gretchen Morgenson. Her perspective is clear from her background -- history, English, journalism, and a record with publications that make difficult topics clear for average investors. On most occasions, she does this very well.
Her column today includes all of the hallmarks of good journalism. She has plenty of sources -- a mortgage guy saying that the Fed is accepting questionable collateral, quotes from Fed officials on the dubious nature of securities ratings, and a pithy quote from the sassy and colorful Joan McCullough calling the Fed a "monetary bordello." There is a source for every statement. Every technical point of journalism is covered.
Her conclusion? The Fed is risking taxpayer money on dubious securities and we might all be left holding the tab.
Her opinion? "To be sure, crisis times call for creative measures.
