Comments on: Why I Increasingly Distrust Financial Reporting http://amoderngal.com/2009/05/16/why-i-increasingly-distrust-financial-reporting/ Healthy Living, without Breaking the Bank Wed, 08 Feb 2012 07:36:10 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Elizabeth http://amoderngal.com/2009/05/16/why-i-increasingly-distrust-financial-reporting/comment-page-1/#comment-1390 Elizabeth Mon, 18 May 2009 20:55:43 +0000 http://amoderngal.com/?p=1034#comment-1390 IH, for reporters generally, yes, I would agree that it is a lack of basic understanding of the math. For Andrews specifically, I'm not sure, I get the sense it was more, that the industry is in peril, but that he thought he was a lesser fool and could get out before the last chair was taken, so to speak. As for reporting, it used to be a profession where people went into it because they were passionate about the topic and could write really well. These days, unfortunately, only select sports reporters seem to fit into that category. Makes you wonder about the watchdog role of the fourth estate. Rob, I think another problem is that "investment professionals" or "experts" all seem to tout the party line, kind of like the nutritionists that for years recommended margarine because that's what their books told them to do. I think part of the problem is that many people were not exposed to personal financial management either in their home, or at school; and thought that heavily leveraging; piling into real estate; taking out huge amounts of credit card and home equity loans were just the norm. I am interested in your proposal to offer better advice through blogs, although I think bloggers should be subject to high ethical and disclosure standards as well. Thank you for commenting. IH, for reporters generally, yes, I would agree that it is a lack of basic understanding of the math. For Andrews specifically, I’m not sure, I get the sense it was more, that the industry is in peril, but that he thought he was a lesser fool and could get out before the last chair was taken, so to speak.

As for reporting, it used to be a profession where people went into it because they were passionate about the topic and could write really well. These days, unfortunately, only select sports reporters seem to fit into that category. Makes you wonder about the watchdog role of the fourth estate.

Rob, I think another problem is that “investment professionals” or “experts” all seem to tout the party line, kind of like the nutritionists that for years recommended margarine because that’s what their books told them to do.

I think part of the problem is that many people were not exposed to personal financial management either in their home, or at school; and thought that heavily leveraging; piling into real estate; taking out huge amounts of credit card and home equity loans were just the norm.

I am interested in your proposal to offer better advice through blogs, although I think bloggers should be subject to high ethical and disclosure standards as well.

Thank you for commenting.

]]> By: Rob Bennett http://amoderngal.com/2009/05/16/why-i-increasingly-distrust-financial-reporting/comment-page-1/#comment-1389 Rob Bennett Mon, 18 May 2009 20:41:14 +0000 http://amoderngal.com/?p=1034#comment-1389 It's not just reporters who lack an understanding of the investing basics. Many of those we think of as "experts" lack this. My view is that our understanding of how investing works today is primitive and the "experts" are causing big trouble by suggesting that they have far more of a handle on things than they really possess. When you don't know, you should say "I don't know." When you are not sure, you should say "I'm not sure." When someone who disagrees with you makes a good point, you should say "that's a good point." What I am proposing is viewed as "Controversial" by leaders in this field. My belief is that it is simple common sense. Rob It’s not just reporters who lack an understanding of the investing basics. Many of those we think of as “experts” lack this. My view is that our understanding of how investing works today is primitive and the “experts” are causing big trouble by suggesting that they have far more of a handle on things than they really possess.

When you don’t know, you should say “I don’t know.”

When you are not sure, you should say “I’m not sure.”

When someone who disagrees with you makes a good point, you should say “that’s a good point.”

What I am proposing is viewed as “Controversial” by leaders in this field. My belief is that it is simple common sense.

Rob

]]> By: I H http://amoderngal.com/2009/05/16/why-i-increasingly-distrust-financial-reporting/comment-page-1/#comment-1387 I H Mon, 18 May 2009 20:34:44 +0000 http://amoderngal.com/?p=1034#comment-1387 I was looking through the web for someone who made your point. However, I think it's more than just hubris - it shows a serious inummeracy and/or lack of intelligence among these reporters. What kind of background do some of these financial reporters have? We have to remember that if they were good at finance, they would be working in the field rather than reporting on it. I was looking through the web for someone who made your point.
However, I think it’s more than just hubris – it shows a serious inummeracy and/or lack of intelligence among these reporters. What kind of background do some of these financial reporters have? We have to remember that if they were good at finance, they would be working in the field rather than reporting on it.

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