So, I get it that a newscaster, or anyone who puts out “news” would take offense to their information being portrayed as “fake”.
This is the problem that social media, and real people, have when it comes to news.
If you only get your news in one place, you are probably ill-informed.
If you only get your news from a comedian…you’re a fool.
But today I saw a new twist…which is why it is so important to not have knee-jerk reactions to things you hear (or read – considered these clumped together).
When you hear something, you should first wonder vs. react.
Remember the bumper sticker “Question Everything?”
I’m watching CNBC this morning and Larry Summers was a guest.
Larry Summers was the Treasury Secretary for President Clinton.
The discussion occurring is on NAFTA. Mr. Summers (not a reporter) made the statement that the Peso has dropped 15% since President Trump announced his plan to renegotiate NAFTA, making is an even easier business decision to move work to Mexico since it is now 15% cheaper to do business there.
On the surface you might think, well that makes sense…on the surface.
Then CNBC showed this graph.
What happened in November?
First the same thing that happened world-wide, a quick, short drop in value.
A yuge increase.
Why the increase?
Didn’t candidate Trump talk about NAFTA renegotiation?
If Mexico, and currency traders were concerned about this, would the Peso have begun to tank at that point?
So in rough number, since Trump was elected, it appears the value of the Peso has gone up from about 19 to about 22. That’s change of 13.5%.
Worth noting the 52 week low is about 17 and the high is that approximately 22, a change of 22.7%.
That high point occurred mid-January. At the time of the show, the Peso was at 20.6. That difference is about 6%.
Exact number not withstanding, Mr Summers’ argument is a false argument.
Yet, all the hosts on CNBC went along with his logic vs. having him clarify this seemingly faulty logic.
My math above is likely incorrect, but visually you can see that, for the last 52 weeks, while the campaign was ongoing and candidate Trump was touting his disdain for NAFTA, the Peso only go stronger (11% 1 year growth).
It has dropped since mid-early January, but is still up (11%) for the last 52 weeks.
If you take the news at face value, you are making a mistake.
I decided to add another story. A few years back, when subsidies for electric vehicles were big, I read an editorial piece in the Wall Street Journal that basically lambasted the ability to claim an electric golf cart as an electric vehicle. Essentially, their claim was you could get a new street legal electric golf cart for free with the tax credit.
They gave an extensive example of some guy in Florida who bought a whole bunch in some crazy tax dodging scheme.
Well, I was in the market for an electric golf cart, so I dove in to grab “my” electric vehicle tax credit.
Much to my chagrin, it wasn’t that simple.
Now, the number that follow aren’t exact, but they are ball park figures as my memory serves me.
Tax credit $7000.
New electric golf cart $5000-$7000.
New street legal golf cart $8000+
Ok, in my state, to make a golf cart street legal, you needed:
> Head lights
> Tail lights
> Turn signals
> An orange triangle in the back
> Set Belts
> a few other things I don’t recall.
Next, you have to find the state and federal tax forms.
Fill them out.
Certify your vehicle is street legal.
Then…hope…hope you got the tax credit.
Everyone I spoke with said “good luck”.
In the end I didn’t do it.
The lesson, from a news perspective, was: no matter the source, do your own research.