Submitted by Edward Harrison of Credit Writedowns.
I just read a CNBC story which fails to mention CNBC’s involvement in the apparently erroneous report that Nouriel Roubini has suddenly become more bullish. Is this omission justified?
The controversy centers on statements Roubini made regarding the timing of a technical recovery in the United States. Yesterday, it was reported on CNBC and elsewhere that Roubini had made a ‘change’ to his market view and was essentially more bullish on the U.S. economy. Many market participants believe this was a major factor in the rise in shares yesterday.
However, Roubini issued a statement after markets closed repudiating the view that he had changed his view on the U.S. economy at all (see statement here). And since that time, many in the financial blogosphere have taken CNBC in particular to task for its role in spreading the belief that Roubini’s economic outlook was more favorable.
- CNBC Report on Roubini; Denninger Response – Barry Ritholtz
- CNBC: You Owe America An Apology – Karl Denninger
- Roubini: "My Views Were Taken Out Of Context." – Zero Hedge
- Denninger accuses CNBC of falsely goosing market on Roubini’s back – Credit Writedowns
- Roubini Denies He Said "Recession Will Be Over This Year," Despite Bullish Media Reports Otherwise – Yves Smith
Clearly, this story struck a nerve in the blogosphere. Now, CNBC has acknowledged the original thesis that Roubini is a bull was false. But, the media outlet apparently does not see itself as culpable for their part in this. Below is part of a story they ran on their website. Notice the parts I have highlighted in bold.
Several business news outlets, picking up on a report initially from Reuters, earlier Thursday cited Roubini as saying that the worst of the economic financial crisis may be over.
The New York University professor was quoted by Reuters as saying that the economy would emerge from the recession toward the end of 2009.
Reports of his comments helped trigger a late rally in the stock market.
Roubini added late Thursday that he sees no economic growth before the end of 2009.
So, I guess Reuters is to blame? I see this exchange on CNBC in the video below as part and parcel of this story.
You tell me: Is it Reuters or CNBC here?
Note: Reuters has now amended its story to reflect the new non-bullish story line. The original story is nowhere on the web.