ABC Reports: Good News from Wall Street!
ABC’s “Good Morning America” actually reported upbeat signs in the economy.
Following a graphic that read, “Good news on Wall Street? Will better earnings lift economy?” reporter Bianna Golodryga started the morning off July 17 with a stock preview.
“Now, right now we are looking at a higher open on the heels of that better-than-expected earnings report out of JPMorgan Chase,” she said. “Now while they did announce a $1-billion write down, their earnings came in better than expected.”
She had even more optimistic news to report about businesses. “And all eyes today will be on IBM, Microsoft, and Google. The three tech giants are expected to report strong earnings two days after Intel announced that business is booming. Good news on the tech front today is usually a good indication of where businesses stand six months or even a year from now.”
ABC spoke with Doug Kass, president of Seabreeze Partners Management, Inc., who said, “One of the best ways to gauge the strength of American business is to see whether they’re spending money on technology and computers. And thus far, they are.”
Golodryga did add some pessimistic news to the segment. “But while big business may continue shopping, average Americans are not. And for the first time in a long time, they’re cutting back on brand name essentials like cereals, diapers, and toothpaste.”
ABC also addressed banking fears and personal finance with Dave Ramsey, host of “The Dave Ramsey Show” and author of “The Total Money Makeover.”
Ramsey put forth an interesting consideration about the source of banking problems: “Well to start with, let’s remember IndyMac now is, well they’re accusing them of fraud, right?”
That could change people’s thinking about the bank’s failure, Ramsey said: “So maybe not the economy, maybe some crooks. So, let’s kind of think this through a little bit.”
Earlier in the show, Pierre Thomas, ABC’s senior justice correspondent, reported that IndyMac Bank is now under investigation for fraud. “IndyMac is one of a growing number of major banks and financial institutions now under FBI investigation,” Thomas said.
“Sources tell ABC News the FBI will investigate whether the bank misled investors and gave mortgage loans to customers it knew were at risk of default,” Thomas reported.
Ramsey commented on the hysteria caused by the banking situation and said Americans are not as bad off as the media portray them to be.
“There’s a lot of things like that out there that we need to take apart before we just take massive panic and just freak out,” Ramsey said. “Most folks in America are doing pretty well until they go to fill up their car, and then they freak out. Most folks are doing ok.”