NEW YORK ( TheStreet) -- As if you didn't know this already, there's a serious problem in the financial media.Pardon my French, but with a few solid exceptions (they know who they are), the people who staff newspapers and Web sites that cover the stock market are lazy bastards incapable of or afraid to offer an original thought. They follow a formula that contributes heavily to the very real notion of Wall Street as a rigged casino. Make no mistake: What happened with Apple ( AAPL) Sunday night is an absolute travesty. The people at the Wall Street Journal who perpetrated it must be taken to task, held accountable or whatever ends up necessary in this case.
It's not even a case of whether the WSJ report is accurate or not. That's not even the issue. It's the way the whole thing went down. I hate to give the reporter who "broke" the "story," Juro Osawa, airtime, but it's important to watch this video he taped from a Rupert Murdoch-boiler room in Asia for the WSJ Web site. Let's go over this. As Osawa (first I had ever heard of him) notes in the video, "we" heard from "our sources" that Apple reduced iPhone 5 component orders. Typically vague. That's the first problem. We've become so desensitized that we no longer question the validity of statements such as people familiar with the situation. The media abuses these broadstrokes. I could use that line practically everyday to break a story, but I don't because I'm not a hack.
In the video, Osawa cites the possibility that "weak" demand is to blame. But, then, he goes on to qualify this by presenting alternative scenarios. The type of stuff TheStreet's Chris Ciaccia outlined in my article from early this morning -- If the WSJ Is Wrong About Weak iPhone5 Demand, Will It Apologize to Apple? Will Osawa and the WSJ apologize for their irresponsibility? Will they be held accountable? Does anybody even give a damn? Do we even recognize what is wrong here? His people familiar with the situation bunk aside, Osawa presented a relatively level-headed assessment of the situation in this video, which looked like damage control to me. However, when the Journal originally released the story Sunday night, its headline clearly stated the supply cut was due to weak demand. I wish I had taken a screenshot at the time, but, believe me, "weak demand" or something to that effect was in the headline.