Bad News — Why We Love It

An article in the March 16, 2009, issue of a popular newsweekly (I’d say “Newsweek” but don’t want to send some of my friends into a frenzy of righteous indignation! Ha) bemoans the recent passing of financial experts, due to the economic mess our country — and the entire world — is experiencing.

“One of the not inconsiderable side effects of the current economic meltdown is the demise of the economic expert, if experts they truly ever were.” — Joseph Epstein

I remember hearing a fellow say a couple of years back, “America is the only country in the world where a fellow drives downtown in a Cadillac to take financial advice from a guy who rode the bus to work that morning.”

No more. After one loses his shirt — or, in the case of Warren Buffett and Bill Gates, a few billions — he learns not to trust the experts and authorities, no matter how firm their promises, reliable their sources, and sweeping their confidence.

After reading two or three books recently on Franklin D. Roosevelt’s early days in the White House, I don’t recall who said this, but one feature of FDR’s presidency was his complete distrust of experts. He would listen to them, put little stock in what they advised, then would go with his gut, as they say. Often that meant doing the opposite of what the experts counseled.

One writer said Roosevelt acquired that skepticism as a result of his polio. When he did everything the medical experts ordered, he grew weaker and weaker. Finally, taking matters into his own hands and trusting his instincts in matters of his mobility and conditioning, he ended up having a productive political career, against all expectations of his medical experts.

This is the place where we should drop in some humorous definitions for experts. Since all I know are ancient and stale, excuse me for passing. (If you know a good, recent one, leave it as a “comment” at the conclusion.)

Louis Rukeyser was the original “expert” on television’s Wall Street Week, from a generation ago. For some reason, back then he pretty much had the field to himself. These days, the channels giving financial news and advice are as numerous as the sports stations.

Speaking before a chamber of commerce meeting in Jackson, Mississippi, Rukeyser made a point I’ve never forgotten. If you write a book predicting that the economy is going to keep growing and the Dow Jones Average climbing, no one will buy it. People figure, if everything is going to be fine, my investments will come out all right and I don’t need the book.

However, he said, write a book on the coming disaster, telling how the bottom is going to drop out, and your book will sell like snow-cones on a sultry summer day in New Orleans. The reason for this, Rukeyser explained, is if the economy is going to tank, the investor will want to plan for it and find ways to protect himself.

That’s why bad-news prognosticators in financial matters proliferate, and good news prophets are dismissed as na

4 thoughts on “Bad News — Why We Love It

  1. This is probably one of the “old” ones…but…an expert is anybody more than 50 miles from home with a briefcase and dark glasses. came from a book I read years ago…that’s the only thing I remember from the book!

  2. Joe: You probably have this one in your archives.

    However, here it is anyway.

    What is an EXPERT? A “spert is a drip under pressure. An “Ex” is a has been! Enough said.

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