Remember that load of bollocks I reported on yesterday about Apple being rumoured into buying large companies like Sony? The result of that speculation is a potential reason as to why we’re in a recession* right now: the markets reacted to it.
According to Rueters (via Destructoid), at one point today, Sony stock was up three percent on the mere rumour of an Apple buyout. Things calmed down once analysts pointed out that the rumour was bunk, but Sony still was up on the day.
Let this sink in for a minute. I reported on this yesterday evening. Overnight, people saw the rumours, didn’t think twice about it, and went and bought Sony stock. And we wonder why our economy is teetering on the brink of collapse?
Even the person that started the mess, Barron’s Eric Savitz, is wondering what the fuss is about.
“In the piece I noted that the company could do something aggressive, like bidding for Adobe, Sony or even Disney. But that was pure speculation. Yeesh.”
I’m sorry, Mr. Savitz, but that doesn’t hold water. This sounds like something I would say after I’ve had an entire bottle of sake, usually right before high-fiving a pink elephant. Furthermore, such wild speculation is given weight because it comes from Barron’s, a reputable magazine. It would be as if someone on the Economist said that the United States could become aggressive and bomb Iran, North Korea or “even” China. It’s irresponsible.
Regardless, I hope investors learned a lesson today. Judging by recent history, they didn’t.
* – My government says the recession is over. The U.S. Bureau of Labor Statistics says that 9.2% of all Americans are unemployed. Someone’s taking the piss.
EDIT: Changed the .gif out. It was a cute idea, but I’m never using a .gif in an article again. Jesus, that was distracting.