Patrick Commins at Domainfax has gone stiff and proper today:
I have to say that the purpose of this week’s house value statistic was to get your attention, and little else. To add some drama to something we all know: that house prices in these cities are on the decline.
…But at this particular point in the cycle it is increasingly important that financial journalists are more considered in what we write and how we present statistics – especially when presented with analyses clearly designed to maximise an emotional response.
This week Reserve Bank deputy governor Guy Debelle gave a great speech on these issues. He was addressing a room full of reporters gathered to celebrate the finalists in the business category for journalism’s highest award, the Walkleys.
Probabilistic statements dominate a lot of talk in financial markets, Debelle said, but be careful with those that masquerade as certainties.
“Beware the lure of incredible certitude,” the RBA official said, quoting a line from American economist Charles Manski.
The problem with going all high moral ground is, of course, that it exposes one to the charges of hypocrisy. To assume a position of values certitude one needs to have at least a toehold on the objective. Can we say that of any Domainfax reporter, commentator or the entire operation qualifies? Does systemically denuding itself of right-thinking and experienced journos with a corporate memory longer than a gold fish stack up? Is its relentless displacement of substantive news and analysis for dross, trivia and celebrity banality a strong platform fit for high moral purpose? Is its sole growing revenue stream in real estate listings really to be ignored when it delivers a bitter message of collective sacrifice from the property pulpit?
Likewise, is Deputy Chairsatan Debelle above reproach? With the searing RBA corruption scandal still festering in the courts (when it is not being disguised by executive fiat). With a demonstrable record of creating this housing bubble after it told the nation that no new highs in household debt was wise in 2010? After mis-forecasting the thirty year mining boom that ended in three? After failing to foresee any of the current challenges to income generation across the entire economy for year after year? After openly lying about the downsides of mass immigration on said income to protect its own housing bubble? After moving behind the scenes of the banking royal commission to prevent legislation that will end criminal banking?
Sure, there is legacy credibility in marble fascias and atriums filled with foreboding. But there needs to be some blood in the veins of that credibility or it just becomes the biggest lie of all.
So, Mssrs Commins and Debelle, I see your high moral ground balderdash and I raise you a Cory Worthington. Only he can give you the dose of juvenile smackdown that you so richly deserve:
