Please correct me if I am wrong, but my understanding of the stock market is that it relies on consumer confidence. My extremely simplified understanding is that people buy stocks and assets when they are confident that a good return and profit is possible. When this confidence is lost or do not supply a good enough return the stocks are sold off. Thus a stock market crash is when everyone looses confidence at once. I feel that it is important to understand the media can influence consumer confidence.
If you want to take an alarmist point of view, it could be said that the media directly influences consumer confidence and has the power to insight stock market crashes. By reporting in a hysterical sensationalist way people will become court up in a whirlwind of panic and quickly sell their shares. I have found that people act on an emotional impulse when there is money and high stakes involved. This point is highlighted when people committed suicide after the stock market crash of 1929. Money is highly weighted with emotions.Mass media seems to have a very short memory. I am also doing history subjects and there is a saying that “the only thing that we learn from history is that nobody learns from history.” This seems to be the case with the recent stock market trouble. One day it is the end of the world and there is a huge crash, and the next consumer confidence is up and the stock market has evened only to crash the very next day.
Please let me know if I am on the wrong track here.


