Expect nothing, live frugally on surprise.

Thursday, November 20, 2008

Financial meltdown and media's role

When media gives more space to stock market crash, they give wrong message to the readers. As a result of such news, investors will sell their stocks at a loss and will also cancel their trading account. In the end, the markets would sink further..SENSATIONALISM IS the keyword of Indian media nowadays. Whether it is of celebrities or of aam admi, media will try their best to sensationalise the news to increase their readership or viewership.
But what is news after all? Today news is something, which provokes readership or viewership. In another word, we can say that in India news is like a Bollywood masala. When you add more and more recipe to it, the visibility becomes higher. In my opinion, these types of news only create panic among people. Panicked people take decisions out of their heart and not out of their mind.Recent financial crisis and the role of media Presently, the world is hit hard by recession. Stock markets across the world have plunged to all time low. Investors and traders are selling their stocks on loss. However, I believe that the situation has been created by the media to some extent. If we take the case of newspapers, they need huge headlines on a daily basis. Be it a brutal murder or an explosion or a stock market crash, they treat every story with the same sensationalism. And in the process, the actual truth gets lost.

When the media gives more space to stock market crash and less space to curative measures, they give wrong message to the readers. Readers are investors too and as a result of such news they will sell their stocks at a loss and will also cancel their trading account. As a result, stock markets would sink further. A balanced approach is needed when media deals with such highly sensitive news. Panic creation is not the duty of the media. Market sentiment is highly sensitive and it will react to every fraction of news event. As markets are the mirrors of the financial situation of the country, the media should be more careful while dealing with financial news. (There is a direct relation between the markets and the media, when the market is up, media will get more ad revenue and when the market is down their ad revenue would also go down).
Regional media The role of regional media in the current situation is also very crucial. As we have seen in the recent past, when anything related to market happens they give bold headlines saying that it is over and they would write baseless editorials about the situation. Actually, they are not trying to understand the real situation. They have only superficial knowledge about the financial situation so they write out of rumours.
Actually, such news would not effect experienced investors but it would hit the new investors hard. So the regional newspapers should also give a balanced approach to such news.


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