The other day I was bored so I decided to google search “Econoception”. The first result that appeared was from Urbandictionary.com. The word Econoception actually exists and is
a term that symbolises how the markets (and society in general) ignore the reality and rather trust perception gathered through media and others. It is also supported by the theory that ‘as long as the numbers stay in line with previously acceptable economic data, the world won’t fret too much about what is happening on the ground’
Fascinating isn’t it? There are many instances where speculators and traders jump at the slightest rumour and news published in the media. News release days are typically high volatility days; even when the world economy was plagued with fundamental problems the S&P500 still rose more than 200 points over first four months of 2012.
The following are some important questions that we should examine:
- What do you think are some of the economic problems the world faces today?
- Is the media playing an effective role in informing and educating the public on current affairs and the present economic situation?