So then.. they've manufactured a rumor, announced it as news and the world is trading as if everyting is solved. well folks, that's a grand story but it's just not true.. nothing is solved. I suppose this is more about window dressing and trying to put some lipstick on this pig for the folks that do quarterly rebalancing.
I think you are mostly correct. In the mid and long term the markets will go the direction of the fundamentals, but in the short term they can get the markets to panic in one direction or the other with some sort of news/propoganda that they plant. I often see the markets make a move for some good fundamental reasons and the news folks come on and give the same old silly reason for the move. Propoganda is a funny thing and clever spinners can always find some reason why they are right or why they have produced some benefits. Bill Clinton was a genius at that I used to say he could turn a lynch mob into a parade in his honor. Now the banksters and politicos are trying to convince people to give them more money, power, and control to fix a problem that they created. And oddly, it seems to be working! GO FIGURE>>>>>>>>>>>>>>>
Wrong- News DRIVE the markets, whether truth, or made-up stories! If there are more "good" news tomorrow, markets will react to that, again. If media (manipulators) announce a "bad" news right now, the market will crash in a heart beat- objective news making.