Diary of a Financier

LOL: Bloomberg Says Dollar, Treasuries Rose After Dovish Bernanke Interview

In Idiosyncrasy on Tue 7 Dec 2010 at 11:44
  • Bloomberg headline finds causation via mere correlation…?

I was on the road yesterday when I caught this gem of a headline on Bloomberg: Treasuries, Dollar Rise As Bernanke Says More Fed Easing Possible.

Sounds like silly Bloomberg slept through Econ 101.  Correlation doesn’t mean causation, clowns: just because Bernanke made dovish comments on 60 Minutes and Treasuries/USD rally at the same time doesn’t engender causation.  Unless Bloomberg’s just challenging convention [unlikely] and suggesting that the rally in Treasuries–if linked to Bernanke’s comments–is Mr. Market’s ruling that austerity=death (ahem, EU) and currency debasement=new normal.

To better fit Bloomberg’s main stream, cookie-cut convention, they should’ve dusted off the classic: Treasuries, Dollar Rise Amid Euro Concerns.

–Romeo

Advertisements

Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s