Interesting piece from this weekend’s On The Media that covered the breathless media coverage of last week’s stock market volatility. Well-known financial journalist Felix Salmon gives a rather curious take on what he believes is the media’s fascination with (and, according to him, their overemphasis/misread of) the Dow Jones as a barometer of economic health. In fact – and more than a few financial analysts and business journalists undoubtedly agree with him – he believes stock indexes on the whole are inaccurate indicators, although he does give slight credit to the S&P 500 as a more representative measure of American economic punch.

Arguably the most fascinating comment in the piece comes around the 3:40 mark, where he describes stock indexes as being “mostly a measure of how rich rich people are.” At least I found it amusing, although I had to also wonder how many TIAA-CREF and municipal pension holders – as well as others with substantial 401(k) and IRA assets – could muster a giggle from the quip. And I’m not sure if civic retirees in Chicago – those already dealing with the specter of underfunded pensions – can manage a chuckle. Nonetheless, Salmon’s observations might give pause to just how the media is covering the story – if not pause to pondering the actual ramifications of the volatility on the nation’s overall financial health. And there is still room to contemplate the latter along with former, particularly with regards to China’s recent economic woes and the accompanying market downturns worldwide. (Have to give a shout to my peeps at The Atlantic, who also recommended the story on its Notes section).

On the Media: Breaking a News Consumer’s Handbook: a Stock Market Volatility Edition