Kosmopolito

A very simplistic theory*:

1. Most people do not understand economics, monetary politics or EU politics – including journalists.

2. A lot of investors and market participants  don’t understand politics – let alone EU decision-making. (hint: it is a long process…)

3. The media system has a tendency to simplify and sensationalize – both: economics and EU politics. Plus there is a 24h news cycle which increases the need for new and exclusive stories. And social media does also not contribute to a more thoughtful debate. In fact the more sensationalist a story is the more relevant it becomes for twitter etc. And nobody seems to care whether it is an outdated story or not!

4. Journalists read English-speaking newspapers because it is the language of the ‘markets’.

5. Many UK journalists have a problem understanding the EU. Some of them do not want to understand it. But most of them work in  ‘market -relevant’ media outlets.

6. Markets operate in English: Investors tend to read English papers and analysis. They don’t understand EU politics and read stuff from people who don’t understand it either.

7. The evil cycle begins: Something happens – uninformed journalist report about it, be it EU or Euro or both  – the media system sensationalizes  it – analysts and ‘markets’ read it and act upon it – crisis deepens – politicians have no chance to influence the cycle because whatever they say – they tend to meet uninformed and ignorant journalists who willfully sensationalize the story in order to please the 24h news cycle…

* Please note: Text includes sarcasm, exaggerations, untrue statements and general insults.  However, over consumption can cause severe depression and the desire to emigrate. Just to clarify: there are many good journalists out there.

A very simplistic theory*: 1. Most people do not understand economics, monetary politics or EU politics – including journalists. 2. A lot of investors and market participants  don’t understand politics...