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The New Paradigm of Financial Media

globalintelhub's picture




 

What would we do without Zero Hedge?  Does anyone else notice the rapid deterioration of financial news media, especially in the US?  OK, we are not naive, there are biases in the media, traders from big ibanks talking up their positions, and trading is all about information arbitrage.  But financial news used to be really serious.  Traders could turn on a TV to see what the markets were doing.  Bloomberg being the last financial channel broadcast on TV to avoid the "CNBC Phenomenon" or more specifically the "Cramer Phenomenon."  But now, even Bloomberg TV has become a financial version of The View, with the occasional serious guest, and the occasional well researched article.

This is not meant to be a praise-all for ZH, but seriously, what other site has a continual flow of objective analysis, and breaking news that's not visible elsewhere on the net?  Ok, traders don't really need news they just need data, so in today's electronic market financial journalism may be less valuable for traders.  But that doesn't mean the quality of financial journalism should be allowed to deteriorate to an entertainment level.  Trading is often compared to gambling, Wall St. being the 'big casino' - but most involved take it very seriously, and the markets can make or break families, companies, and countries.  In most Vegas casinos, you will find all sorts of cheap tricks to overwhelm your visual cortex such as scantily clad ladies, loud bells and whistles, lots of flashing lights, free drinks and food spiked with salt and sugar, and well dressed managers waiting to be so polite and charming should they see you drop a load.  See any similarities?  

There is another interesting parallel with ZH, it was founded in 2009, before Wikileaks became popular, and before the NSA scandal.  Starting with Wikileaks exposing Swiss banking activities, and other significant financial infos, traders and investors have started changing the way they obtain and process information on the internets.  This was more solidified with the NSA scandal, although much infos released by Snowden are not of a financial nature.  Many of the policies now being implemented by a global community of concerned internet users were running on ZH before all of this happened.  Again, not an all-praise for ZH, but what value do many mainstream financial networks have, with all their biases, agreements with partners, and guests from large houses talking up their positions.  It was a shocking for many to learn that all it takes to get on CNBC is $2,500 (probably policy changed now, but it used to be like this).  Stock traders from the late 90's remember the 'Power Lunch Bump' where it was almost guaranteed that the guest, whoever he was or whatever he said, was good for at least a few points of their stock to jump while talking.  A new group of retail traders flush with cash from the 90's boom were anxious to get in on the action but didn't know anything other than to turn on the TV and watch CNBC.  Professional traders took it with a grain of salt, but it sure was a great way to pay for lunch.  What a different world we live in.

So what's the new financial media all about?  It's outlined well in the ZH Manifesto:

our mission:

  • to widen the scope of financial, economic and political information available to the professional investing public.
  • to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become.
  • to liberate oppressed knowledge.
  • to provide analysis uninhibited by political constraint.
  • to facilitate information's unending quest for freedom.

our method: pseudonymous speech...

anonymity is a shield from the tyranny of the majority. it thus exemplifies the purpose behind the bill of rights, and of the first amendment in particular: to protect unpopular individuals from retaliation-- and their ideas from suppression-- at the hand of an intolerant society.

   ...responsibly used.

the right to remain anonymous may be abused when it shields fraudulent conduct. but political speech by its nature will sometimes have unpalatable consequences, and, in general, our society accords greater weight to the value of free speech than to the dangers of its misuse.

 

- mcintyre v. ohio elections commission 514 u.s. 334 (1995) justice stevens writing for the majority

What ZH represents most importantly, an anonymous network of financial professionals which is extremely diverse, some are from the mainstream, some from the fringes.  It's a bastion of internet freedom, representing free speech as it was intended.  Of course that's just the platform, it doesn't guarantee high quality of information, but somehow, it is the only source where information is almost all quality.  

Aside from retail investors, what's to keep traditional financial media alive at all?  In the case of something like Bloomberg, their public media is almost irrelevant.  The BB team is supporting their clients for the terminal, and so having their own network of analysts, journalists, and other types of agents makes sense to support data provided through the terminal.  But what about others?

There are other exceptions such as Reuters, not a unique financial media, but they are backed by the trading element of their business.  But unless you are a customer of Reuters, such as the new product giving their clients a nanosecond edge "Ultra Low Latency Data" their reporting on general news and especially financial events is suspect.  

Or maybe, the only thing keeping such mainstream institutions alive, are a secret group of corporate clients, that can use such outlets for their own information campaign purposes.  In any event, as the markets evolve, and the internet evolves, the new paradigm in financial media is the "Bitcoin" model, not the USD model:

“The advantage for Chinese users to use Bitcoin is freedom, people can do something without any official authority,” said Patrick Lin, system administrator of Erights.net and owner of about 1,500 Bitcoins. Lin said he’s sticking to the currency itself, rather than IPOs, in part because of weak regulation. “The Bitcoin world is just like the Wild West -- no law, but opportunity and risk,” he said.

ZH is a public site, but represents the gateway into the 'dark' internet, at least as it's concerning financial media.  Of course, there wasn't technology 50 years ago to support such a network, so it was easy for certain powerful media companies to dominate the sphere.  Now, anyone with a computer and internet access, can learn as much about the markets as you can at Wharton (if they learn anything there is questionable).  With that knowledge, that person can open a blog, and become their own independent financial media agent.  The standing argument that bloggers are unprofessional because they don't have journalistic credentials, has been disproved in the last years, since it was sites like ZH that broke the flash trading scandal, and Wikileaks, that broke the story about Julius Baer.   

The new paradigm of financial media is a decentralized, global network of well informed uber-agents, who proliferate their information privately through their own information portals, and through public networks, such as Zero Hedge (currently, ZH the only one).

 

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Wed, 12/25/2013 - 05:55 | 4274758 Fire Angel
Fire Angel's picture

ZH is the best fucking website on the PLANET. Period, end of story. 

Thanks for all the hard work, Tyler(s), and HAVE A VERY MERRY CHRISTMAS. 

Fire Angel 

Tue, 12/24/2013 - 11:30 | 4273293 farmboy
farmboy's picture

Totally agree, News manipulation is all over the place from so called stock research to so called macro analysis. The latest piece from Mckinsey on QE and Zirp is an excellent example. It is so ludicrious on all aspects I do not even care to comment on it and declassifies that instititution also as lower then whaleshit at the bottom of the ocean.

Tue, 12/24/2013 - 10:20 | 4273158 PR Guy
PR Guy's picture

 

 

While we are waiting for normality to return, here's a funny animation of a conversation that actually took place between two women (and inspired the animation):

http://www.youtube.com/watch?v=LT0_FzwKvD8

 

Tue, 12/24/2013 - 09:38 | 4273105 paint it red ca...
paint it red call it hell's picture

I spent most yesterday in my woodshop tuning in NPR in the afternoon. It has been so long since I listened or watched MSM news that had I believed what NPR were covering I would have thought myself not just out of touch but deluded.

Then after pitching a new war in the Sudan, they played the spot for their sponsors, the rockefeller foundation. I then snapped back to reality with the reminder that I was not listening to National Public Radio but National Propaganda Radio. Paid for by the foundations owned by the ones that think us chattle for exploitation.

I will be damn glad to see such disheartening control come to an end, one day.

Tue, 12/24/2013 - 09:20 | 4273077 Fred C Dobbs
Fred C Dobbs's picture

Shouldn't this article be about all media and not just financial media?  I see all of it as corporate owned state news media.  

 

 

Tue, 12/24/2013 - 09:05 | 4273064 rsnoble
rsnoble's picture

I'd say we probably better start working on alternate computer links I assume we're not the only ones surprised by what the net has taught us. 

Tue, 12/24/2013 - 07:45 | 4273019 skippy9
skippy9's picture

MERRY CHRISTMAS and HAPPY NEW YEAR to ZH and its founder and staff and to all the readers of this important news outlet.

Tue, 12/24/2013 - 05:59 | 4272952 OldPhart
OldPhart's picture

I discovered Zero Hedge late in 2009 and wished I had found it earlier.

I was the typical sheeple up until 2008, TARP sent me an ice water bath down my back and it inevitably woke me up.  But I was confused, pissed, groggy, and confused.  Most of 2009 was spent in doing my own research (with all the misdirections) trying to find out how this shit came to be.

Then I found Zero Hedge...it taught me that my murderous rage was justified and warranted, and it also allowed me a means of venting from time to time...so far my kills have been zero...and I'm trying to maintain.  (But, Holy Shit, do I have a LIST!)

While I'm a mere thousandairre, my son is a millionairre...and he thinks I'm a right wing psycho (he even came over to put some special blocking shit on my computer so my location isn't known and I don't get droned (and not on his mom's)) and he also believes that we are now in an official recovery so he's going to buy a shitload of Twitter.  Oh, he's home now from his eleventh year in Afghanistan...fixing to go back.

I've given up on TV unless it's some sort of movie, but my wife insists on having it...sleeps with a fucking TV on...I've had to go to a different room (I'm redneck, but there's a fucking line in the sand on TV).  I have flipped through news channels and seen the "word" given on every channel in the exact same way to the point that I get nauseated from any of it.  Though I still watch local news just to see what's happening around the area (or LA has a police chase).

Oh, a little bonus fuck you to me over the last couple of weeks...wife had an injury and it was between paychecks.  Had to sell some of my silver stash to get her stuff...bottom of the market...the most fucked up deals I've ever had to do.  Thirteen of my silver proof eagles hawked...I could cry, but that was the anticipated situation that I bought them for.  Still have the other fifty, and sets that go back to 1831.  Now I'm into buying 1/10 ounce gold...again due to Zero Hedge.

Tue, 12/24/2013 - 07:05 | 4272978 JerseyJoe
JerseyJoe's picture

I hear you and Good luck!  I could go on about my mining shares and the criminality of the banksters on that whole sector of the global economy that has been monkey hammered by these freakin' crooks.   It will turn.  The presses keep running.  

Merry Christmas and Here's to a great 2014 and breaking the cartel!  

JerseyJoe

Tue, 12/24/2013 - 07:07 | 4272977 bozzy
bozzy's picture

I know that murderous rage. It is my fervent hope that some of America's veterans, freshly impoverished by Bernanke and cronies, will hone up their skills and put a round into the evil little fucker's head from distance. Unelected, he chose to impoverish the grey savers of the western world, his own generation and for that he should pay the price.

ZH is biased, for sure, against the propagandists, but that is no bad thing in my book. It is also why ZH is all that remains of financial reporting: the rest has become propaganda, pure and simple.

Tue, 12/24/2013 - 05:02 | 4272926 Dr. Sandi
Dr. Sandi's picture

Every so often, when I'm somewhere that has a TV, it's fun to watch Fox News or CNN. It's important to catch up on what I'm supposed to be thinking. And I keep discovering how far from the truth my poor mind has wandered without the television to straighten me out every few months.

Tue, 12/24/2013 - 02:53 | 4272843 compound interest
compound interest's picture

Bloomberg is OK for me. It is "network", it is "Big Media", and in prime time you can see many clowns spitting status quo-preserving bullshit and policy makers repeating their lies and propaganda ("unemployment is ~ 7%", "inflation is too low", "real growth starting to pick up", etc.). But somehow it still manages to deliver enough quality information and views, and they have guests like Stanley Druckenmiller, Kyle Bass and Nassim Taleb. Bloomberg TV, Radio, Bloomberg.com, Businessweek.com are my main sources, + of course Zerohedge.

Mon, 12/23/2013 - 23:15 | 4272487 kchrisc
kchrisc's picture

Goebbels says, buy JC Penny's, short gold and unemployment is 7%.

Mon, 12/23/2013 - 22:36 | 4272406 bg6666
bg6666's picture

I'm a total moron, but went into a big bank today to change my pin on my debit card after the Target fiasco. Was told that my new debit card would be delivered in 7-10 days. Since it was Christmas, I wrote a check for cash to get me through. I was told they had no $100 bills, only $50s and $20s as so a many had withdrawn cash since Friday. WTF, I asked, a bank with no $100 bills at the holidays? Let's see, one bank limiting ATM withdrawals to $100 and charges to $300 per day for debit cards. Somehow though, still allowing (how funny since it's our own money) charging to their high interest bank charge cards remained unchanged. Now a big Canadian bank, without $100 bills. What up?

Mon, 12/23/2013 - 23:19 | 4272499 TheReplacement
TheReplacement's picture

At least you didn't "invest" in BTC at $1200 right?

There is always someone tougher than you.  Strangely, there is also always a bigger moron too.

 

 

Mon, 12/23/2013 - 21:52 | 4272334 JPMorgan
JPMorgan's picture

Can't stand Foxnews and CNBC, they really are cringe worthy.

It's no wonder so many American's haven't got a fucking clue on what's really going on if that's the crap they watch on a daily bases.

Those same people probably have BusinessInsider set as their homepage when they do jump on the net.    

Tue, 12/24/2013 - 11:29 | 4273292 divide_by_zero
divide_by_zero's picture

NPR/PBS is the most cringe worthy, steady parade of CFR ass clowns reading their propaganda at about a 4th grade level to the progressive sheep. Then again, MSNBC is so far gone off the reservation it can't be watched even for wacko progressive entertainment value, when they have a race-baiting, welfare-pimping perpetrator of media hoaxes like Sharpton with a supposedly serious show.

Mon, 12/23/2013 - 23:46 | 4272558 kchrisc
kchrisc's picture

The propaganda media is important in that it can help one see what their agenda is or may be. What they promote, ignore, hide or cover-up IS the message. That message is important to know.

Knowing HOW they lie is also very important.

 

"They are ALWAYS telling you something. Pay attention.

Tue, 12/24/2013 - 09:33 | 4273099 optimator
optimator's picture

When they lead off the news on the hour with a dog that can play the piano you just know something important has happened somewhere they don't want you to know about.

Tue, 12/24/2013 - 00:55 | 4272692 Bucket Boy
Bucket Boy's picture

Agreed. I spend all my information gathering time on ZH and other non MSM sites. For kicks, I turn on CNN or CNBS occasionally while fiddling around the house to get some situational awareness of what the herd is grazing on. It's painful to listen to.

Tue, 12/24/2013 - 07:24 | 4272998 JerseyJoe
JerseyJoe's picture

I have tried but can't do it.  Such a waste of time.   I really liked the clip ZH had of LIESman talking over Jim Grant last week.  As LIESman is talking over Grant, Grants says (to the effect)  "I thought you brought me on to hear my opinion not yours. If I wanted to listen to you, I could have stay home in pajamas."  I think it blew by LIESman because he babbled right over Grant the whole time.    Priceless smack down!  It bad enough to have all the progancda but that also have the real assholes dishing out their crap. 

BTW One thing missed in this great commentary, the ad revs issue - not to mention the GE ownership issue.  CNBS doesn't want to upset their rev streams by having any utter something negative about an advertiser - or heaven forbid they hear the latest drone strike was facilited by GE's technologies - or that GE CEO was leading up the Jobs Task force for his holiness while laying off thousands while shipping their jobs to China.  (So who was really behind killing the incandescent blub? GE?) 

Mon, 12/23/2013 - 21:31 | 4272292 orangegeek
orangegeek's picture

check out tastytrade.com and go into the archives

 

check out the "what else ya got" archives - an endless stream of calling out bullshit market analysts and joker networks like CNBC and that turd Cramer

Tue, 12/24/2013 - 03:41 | 4272881 pupdog1
pupdog1's picture

That's an insult to hard-working turds everywhere.

Mon, 12/23/2013 - 21:06 | 4272236 Wish Doctor
Wish Doctor's picture

Sock Puppet 101

Mon, 12/23/2013 - 21:09 | 4272235 Wish Doctor
Wish Doctor's picture

A circle jerk by definition requires more than one participant. 

Tue, 12/24/2013 - 04:59 | 4272925 Dr. Sandi
Dr. Sandi's picture

That's what they mean by 'hands on' news management.

Mon, 12/23/2013 - 21:03 | 4272222 The Wisp
The Wisp's picture

Bias is a little bit like a sloping roof.. you can make quite a bit of time running on it, if you know which way it is leaning...

Mon, 12/23/2013 - 17:50 | 4271796 Conax
Conax's picture

Network 'News' is nothing of the kind.  The news broadcast is merely the propaganda stream that the PTB want to have discussed today. The big networks all put up (or omit) the same stories. 

ZeroHedge rocks because the stories are timely and pertinent, written to get some info out, and then you have all the additional input from the comments.   The mass media will never beat ZH.  They only feed the sheep.

Tue, 12/24/2013 - 12:27 | 4273389 Sedaeng
Sedaeng's picture

I come here for the 'timely & pertinent' as well, but I especially enjoy the commentary at the bottom of each article.

So thanks to all that contribute and care to push forward the truth that our overseers seek to quiet.

Tue, 12/24/2013 - 10:14 | 4273151 geewhiz
geewhiz's picture

Sheeple have to eat too. Like most people here we are a minority, even in our own families. I watch my dear old dad gobble up the shit and burp, then wander around in a confused daze afterwards. I read a scientific opinion that critical thinkers have to be born, they cannot be taught. I sure hope they are wrong. Anyway I no longer expend more than perfunctory effort tugging on people who don't want to look behind the veil, too busy saving myself as much as possible. A critical thinker can look at all the thousands of little action signals of what people do versus what the say. It paints a picture for those unprivileged amongst us who must infer reality from the victims side of the veil. Thats fine with me cause I don't want to sell my soul to be "in the know". Any rational and spiritual person understands "what profit a man if he should gain the whole world and lose his immortal soul". Anyway thanks to the internet, zh and sites like it a lot of the little apparently disjointed pieces come togther without doing the hard research work, you learn more with less effort. I really respect those authors who researched material before the internet days and told the story against the tide. It must have been a very lonely vigil, it probably still is.

Mon, 12/23/2013 - 22:17 | 4272377 Yes_Questions
Yes_Questions's picture

 

 

The News has been cancelled since September 2001.

 

 

Tue, 12/24/2013 - 11:33 | 4273297 divide_by_zero
divide_by_zero's picture

Always thought it was well before that when Brinkley got muzzled after he called Clinton "a lout" during DNC convention chastised fellow journalists for sucking up. Gone!

Tue, 12/24/2013 - 07:23 | 4272999 JerseyJoe
JerseyJoe's picture

It really ended for me when the re-elected the commie.  The media elected him the first time, morons did the second.  

Tue, 12/24/2013 - 10:15 | 4273149 Tall Tom
Tall Tom's picture

Which commie are you writing about? George W. Bush or Oblamer?

Tue, 12/24/2013 - 10:41 | 4273210 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Which commie are you writing about? George W. Bush or Oblamer?

Yeah, that's the guy.

Mon, 12/23/2013 - 23:29 | 4272523 kchrisc
kchrisc's picture

I would say since 22 November, 1963.

Tue, 12/24/2013 - 00:02 | 4272587 Yes_Questions
Yes_Questions's picture

 

 

and you'd probably be right seeing how USA USA USA the country became on 9/12.

 

the "news" was suspiciously at the ready to mis-direct suggesting years of preparation.

Mon, 12/23/2013 - 17:35 | 4271774 Norma Lacy
Norma Lacy's picture

Back in scary 2009 there were very few real voices:   Mish; Calculated risk; Crazy Denninger : Jesse - and Zero Hedge.    Thanks to you all.    May your tribe increase.

Mon, 12/23/2013 - 17:37 | 4271773 rustymason
rustymason's picture

Hitler ran the commies out of Germany and many came here to the U.S. to set up shop in Hollywood, in the media, and in banking. They've been subverting the truth and plundering our country ever since.

Tue, 12/24/2013 - 02:41 | 4272828 scraping_by
scraping_by's picture

Not correct. The first thing Hitler did in office was offer Nazi party cards to every member of the Communist Party.

It was the social democrats and labor leaders who went to the concentration camps.

Parasites recognise each other.

Mon, 12/23/2013 - 23:26 | 4272517 kchrisc
kchrisc's picture

I was once mugged by a guy in a red coat and then a few hours later by a guy in a blue coat.

Both had knives, both took my money.

Mon, 12/23/2013 - 16:45 | 4271672 mrdenis
mrdenis's picture

I stopped watching CNBC when they kept having Corzine as a guest ,of course  he was running for relection as Gov and kept mentioning what a great job he was doing ,one morning he even said he was considered a tax cutter in the state !... before he became the honorable Corzine  

Tue, 12/24/2013 - 01:30 | 4272745 Clowns on Acid
Clowns on Acid's picture

Yeh gotta love the deep analysis and tough questions done on CNBC and FOX did on Corzine during his outright theft of client funds @ MF Global.

Well he was a DEM Gov, ex CEO of Goldman, and a DEM Senator....as well as Obama bundler... so I guess he did have get out of jail free card.

Mon, 12/23/2013 - 16:05 | 4271576 ebworthen
ebworthen's picture

CNBC has become worse with every passing year since 2008.

They got rid of anyone who questioned the bailouts and the Ponzi markets; Ratigan, Macke, and others. 

They have a non-stop stream of book talking market pimping "fund managers" (leeches, ticks, tapeworms).

Mon, 12/23/2013 - 16:19 | 4271617 optimator
optimator's picture

They are called, "Guests".  Hoy Vey!  If they have anything they want to sell, they go on and push the sheeple to buy.  Great entertainment, especially their guests names translated.  best guest I ever saw was named Keinhertz.  That translates to no heart!

Mon, 12/23/2013 - 15:31 | 4271488 learning2
learning2's picture

Found ZeroHedge through Max Keiser years ago.

I also like http://legitgov.com/, FreeSpeech TV, DemocracyNow and a few others.

Been reading Howard Zinn's 'A People's History of the United States' that I've put off way too long: http://www.historyisaweapon.com/zinnapeopleshistory.html

Been getting a great education...based on 'facts'!

Make a donation to your favorite sources of information and facts today! Maybe ZeroHedge? http://www.zerohedge.com/donate

Mon, 12/23/2013 - 14:49 | 4271375 NEOSERF
NEOSERF's picture

I get to work (not investing) and open up my tabs for the day.  ZH, IH, Seeking Alpha, Mish, Marketwatch and that is about it.  I have even given up on WSJ as yet another mouthpiece for the 1%.  Too many sites, tv stations etc are doing no "journalism" and not looking for the real story, the real motivation, the real corruption which granted takes time.  I worry for this country and I do appreciate those sites that expose what is really going on.  I would caution trying to trade off of the pessism here as what has been proven for 5 years is that while ZH is really good at putting the puzzles pieces on the table, no one knows when this dance will stop.  I open ZH first to see if the world has come to an end overnight...if not, I buy. 

Mon, 12/23/2013 - 19:28 | 4272006 Freddie
Freddie's picture

WSJ is total shit.  Does anyone think Seeking Alpha is any good anymore?  Seems like it if filled with young kids who have a degree and no job or old guys who wish they had a job.  They all write the same stories on How to Invest Like (Crony Capitalist) Buffett or Why Apple Is Going To $1,000.

Mon, 12/23/2013 - 14:43 | 4271350 Eahudimac
Eahudimac's picture

ZH is my primary source for news, period. I gave up on the networks and cable outlets years ago. Is ZH biased? Politicians and bankers would say yes. While the rest of the media is down on their knees with their mouths wide-open, groaning for what Obama and his cronies are rubbing out, ZH is holding their heads down in the dirt and slamming them like a musk ox with sand in the vaseline. 

Mon, 12/23/2013 - 18:31 | 4271887 Leveraged Algorithm
Leveraged Algorithm's picture

ZH is my primary source of information as well. I manage money for a living and work for a large firm. The firms had ZH and I love every minute of reading. It has helped me not only financially, but emotionally with the humor and truth of it all. Thanks to all that contribute around the globe.

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