Did Matt Drudge’s Siren Cause the Stock Market Crash?

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By: E&P Staff

Sure, most analysts blamed the U.S. stock market’s crash this week on a similar fall in China, but at least one critic has speculated that the selloff could have been caused in part by a headline and link at the top of Matt Drudge’s popular news aggregation Web site, accompanied by his signature lo-fi police siren graphic.

The theory, originally put forward by U.S. News & World Report senior writer James Pethokoukis, contends that a link on the top of the widely-read Drudge Report to a two-day old story about Federal Reserve chief Alan Greenspan’s recent speech in Hong Kong about the possibility of a recession — framed by Drudge with the headline “Greenspan warns of likely U.S. recession.” — set off a chain of events that led to the market’s dip.

As a follow-up, ABC News writer Michael Malone notes the theory and uses it as a jumping-off point to look at Drudge’s large and growing influence.

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