The power of a blog.

The BBC’s Robert Peston popularity has increased this week with his almost real-time blog updates running alongside market events in the city and the effect of government decisions.

Whilst watching RBS almost flat line yesterday on the excellent Google finance pages, I notice a few blogs slamming Mr Peston and his comments for market conditions.

Now, that has prompted me to post this response.

The fact that the BBC has chosen to seamlessly integrate Robert Pestons blog into their award winning global website has cause confusion I think.

Robert Peston’s blog is being taken as professional news broadcasts when clearly they are simply the opinion of an individual who is blogging and receiving comments which make his post living ‘unfinished’ articles.

He blogged recently that Sir Fred the shred approached Flash Gordon before the allocation of the bail out was announced and immediate wipe tens of millions off the value of RBS. I don’t believe he is accountable for that. The traders who digest information with little accuracy are clearly at fault.

Similarly, when CNN picked up the blog that started the rumour of a Steve Jobs heart attack immediately affected Apple’s share price.

It is important that we continue to understand the uses of web 2.0 components and ensure that the usage is somehow guided. Its easy to understand how email became so popular that it became abusive, offensive and dangerous in the wrong hands.

Blogs too are following this trend, because of the simplicity and speed.

So how can we rely on the accuracy of the information when so much of it is available and increasingly consumed?

The wisdom of crowds?  Comments please.


2 Responses to “The power of a blog.”

  1. Dominic Sayers Says:

    I think you are saying that the market, unused to the conversational status of a blog, interpreted a blog post in the same way it would interpret an authoritative article of record.

    You may well be right, but the market has mechanisms that will allow it to adjust to new media and new communication paradigms very rapidly. Simply put, people (and algorithms) who know who much weight to put on a piece of information will make more money than people (and algorithms) who don’t.

    No crowds required.

  2. Dominic Sayers Says:

    Doh! I meant to say “how much weight”.

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