Henry Blodget was a Wall Street stock market analyst who had the mis/fortune one day to write a report that said, essentially, that Amazon.com was the greatest thing since sliced bread. For reasons neither he nor just about anyone can fathom, millions believed him and his prophecy about Amazon.com's stock price became reality. Blodget became, along with Mary Meeker, the two analysts who many believe did most to encourge the dot-com bubble.
Blodget (left) — who I found likeable, intelligent if a bit bookish the one time I met him at a conference — has since had a skirmish of sorts with U.S. stock market regulators, the end result of which is Blodget is no longer an analyst but a part-time journalist. I think he's not bad at his new job but he's got some strong reservations about the value TV business and finance shows have:
The Trouble With CNBC and Smart Money and … – The financial media's undisclosed conflict of interest. By Henry Blodget:
“The sad truth is that sound investment policy is boring. Diversify, reduce costs, aim to earn the market rate of return—even Stephen King would have trouble telling stories about that. But for the financial media to survive—at least the financial media devoted to helping you “profit” from reading/watching/listening—they have to suggest, over and over again, that there are exciting new places to put your money or dangerous places to remove it from. They have to tantalize you with the latest, greatest mutual funds or the “Ten Hot Stocks for 2005.” They have to make you drool by observing, again and again, that every dollar invested in Microsoft's IPO in 1986 would be worth about $300 today. (Next time, it will be you!) They have to enumerate new ways to refinance your house, consolidate your debt, track your investments, pick better stocks, beat the pros, buy treasuries, retire rich, or make millions. They have to keep you watching, listening, and reading, or else they—not you, they—will go bankrupt.”