March 16, 2011 4 Comments
The stock market is responding to Japan’s nuclear crisis, and the picture isn’t pretty. The Dow Jones Industrial Average finished down 242 points today. The Nasdaq dropped by 51 points.
This is because the stock market doesn’t like uncertainty. And uncertainty is the hallmark of the current situation. Japan is in crisis. The American media are trying get to the bottom of things. But they have resorted to sheer speculation on the basis of doubtful evidence. I hold the irresponsible media partly responsible for our stock market malaise.
Japanese officials are holding their cards close to the vest. Is this because the news about their damaged nuclear reactors is far worse than they want the world to know? Or is it because the Japanese culture favors patient and cautious reporting rather than minute-by-minute, blow-by-blow updating? Who knows?
Here’s something we do know. When the American media bring the experts in to speculate about events unfolding in Japan, they are compelled to reflect “two sides” to the “issue.” (Maxim: “There http://douggeivett.wordpress.com/wp-admin/post-new.phpare two sides to every issue.”) What’s the issue? “Just how bad is the situation and how much risk of spreading radiation is there right now?” So one expert is selected precisely for his relative optimism and another is selected for her more negative outlook. This does not ensure that the media retain individuals on each side who are equally competent to evaluate what little is known.
Case in point: Bill O-Reilly (Fox News) interviewed Professor Richard Muller, a physicist at UC Berkeley, and Rita King who, bless her heart, is a “former nuclear industry journalist.” Speculation without benefit of good data is bad enough. But speculation from a former journalist is painfully specious.
Cameras with direct feed into some American broadcast studio are an invitation to loose lips. Have you heard what Gunther Oettinger said today? Who’s Gunther Oettinger, you ask. He’s the European Union Energy Chief. Gunther said that Japan’s nuclear plant crisis is “out of control.” This was during a European Parliament committee meeting in Brussels. The stock market went nuclear; the sell-off in equities plunged deeper. Read about this here, where we’re told:
The EU energy commissioner’s spokeswoman, however, later clarified that Oettinger did not have any special or extra information on the situation in Japan.
There you have it. An escalation in alarmist talk with no correlative change in data.
Let’s face it. We don’t know what’s happening on the ground in Japan. Our typically American demand for immediate information and quick fixes isn’t getting us anywhere. Poor Shepard Smith, of Fox News, flew out to Japan to get first-hand information, and he’s learning more about what’s happening in Japan during his conversations with Fox anchors at home than he is from officials in Japan.
In American news reporting, there’s no such thing as keeping your powder dry and your mouth shut. But if there isn’t any more specific real news from Japan soon, the media may have to start covering other important issues and events happening in the world, like our national debt and the Congressional failure to produce a budget, the war in Afghanistan, and Muammar Gaddafi’s goofy and perilous antics in Libya.