Beware Biased Coverage of Dow Jones Deal

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One of the ancient foundations of Business Press Maven thought is that the media has a liberal bias, but investors take heed: This does not play out as you might expect, that is, in clear preference of Democrats over Republicans. Rather, there tends to be a larger, ongoing and overriding thread of confidence in the competence of government, one that can cut across party lines.

The bias takes many forms, including the notion that America can go to war in Iraq, remake its complicated society and be home by dinner. From the investor's perspective, of course, this media bias is part of the underlying reason that each round of government statistics on, say, GDP is reported as if handed down from the mount on a tablet, even though the government is the gang that can't shoot straight on these numbers, which are revised repeatedly. And, it bears mentioning today, there is often the awed thought that if the government cracks down on an industry, that industry is instant and permanent toast.

Reality, of course, plays out differently. A government crackdown is often done for show or political expediency, and bureaucratic concentration (or competency) on any particular issue does not last long.

In fact, when President Bush rammed through surprise legislation banning online gambling, the business media gave the industry up as being permanently dead, causing The Business Press Maven to implore investors to keep their eyes on a revival.