Paul Detrick's blog

Full disclosure, you can take the day off.

CBS's "The Early Show" included a statement in its Dec. 18 report on the Big 3 bailout from "auto industry analyst," Dan McGinn. Letting the massive car companies fail "would be like 10 Katrinas hitting America at the same time," McGinn asserted. "The American public understands that."

What the report didn't say is that McGinn is also an adviser to General Motors. Furthermore, TMG Strategies the public relations firm McGinn heads, lists GM as a client. McGinn has been making the case for an auto bailout in many news stories and issuing some compelling statements on behalf of his client.

On MSNBC's "Hardball with Chris Matthews," McGinn was labeled as an "auto industry consultant," Dec. 4. There was no mention of his link to GM.

President-elect Barack Obama named Carol Browner the "czar" of climate and energy policy for the White House, but CNBC's Joe Kernen was wary of her appointment.

"You can see that even in Europe, some of the climate concerns, given this, this once in a lifetime recession, John - to put someone that, an advocate of such strong measures," Kernen said on "Squawk Box" Dec. 11. "Really I've seen her called Brownies or Brownistas. Um. That's a little scary with what's happening right now."

Earlier Kernen was discussing cabinet appoints with CNBC Washington correspondent John Harwood and pointed to new regulations Browner could institute:

"Talk about too big to fail," said managing editor of Time Richard Stengel on MSNBC's "Morning Joe" Dec. 4, who was on the program promoting the latest cover story for the magazine entitled, "The Case for Saving Detroit." Stengel:

"I find the fact that so many Americans are unsympathetic to Detroit to be kind of amazing," Stengel said:

We make the case that in fact the, you know, the Big Three have adapted in a lot of ways ... They haven't managed things well, they have too much capacity, but I mean, talk about being too big to fail in a way, right?

The fact is Americans don't understand what collateralized debt obligations are, yet they sort of said, ‘Okay, let's bailout all of these banks and AIG' and yet people feel like, ‘Hmm what about the big car manufacturers?

Fox Business Network anchor Alexis Glick is frustrated by the way the government's $700 billion financial bailout is being used, and suggested on "Money for Breakfast" Nov. 21 that it was contributing to market declines.

"I mean, look, we are now at levels at least on the S&P that we haven't been since 1997. You know, people are pretty unhappy with how the TARP fund is going," Glick said in an interview with NYSE Euronex CEO Duncan Niederauer. "I mean, it's got to be - I'm frustrated, I mean I don't know about you."

It's not the first time that Glick has taken issue with the misuse of TARP, the Troubled Asset Relief Program (TARP).

Pulitzer-Prize winning author and professor of history at Stanford University David M. Kennedy told Bloomberg radio Nov. 18 that the current financial crisis bears no comparison to the Great Depression.

"Well, we're not yet in anything remotely resembling the crisis, the scale of crisis of the Great Depression." When Franklin Roosevelt took office in 1933, 13 million Americans were unemployed. "That was 25 percent of the work force," Kennedy told Bloomberg host Tom Keene.

The professor laid out exactly what has changed since the troubled 1930s:

So what exactly is the government doing with your money? Fox Business Network's Alexis Glick would like to know.

Treasury Secretary Henry Paulson announced Nov. 12 he would be redirecting the $700 billion bailout to focus on propping up financial institutions instead of buying troubled mortgage assets, which was the original intent of the rescue plan.

Glick, the host of FBN's "Money for Breakfast," told the CBS's "The Early Show" Nov 13 that the Treasury Department's move away from the original plan to buy up troubled mortgages "does not make sense" and was "actually pretty outrageous":

[T]he markets responded to that yesterday ... Look, the original intent of this Troubled Asset Relief Program was to purchase troubled assets. And I think the marketplace started to adjust several weeks ago when we started to see the size and magnitude of the capital injections.

"The government is doing what it can. They've learned the lessons of the 30s. And the lesson of the 30s was to put ideology aside and do whatever you can to bail it out," New York Times Chief Financial Correspondent Floyd Norris said in an Oct. 8 video on the publication's Web site entitled "Echoes from a Dismal Past."

"I agree with you," economics reporter Louis Uchitelle said, also pointing out that it took two years before the government really "stepped in and acted" during the Depression - referring to Franklin Roosevelt's action.

Norris said one of the first lessons of the 1930s was that bailing banks out would "limit the damage of the financial crisis."

"If you go back just two or three years ago, you had this powerful argument that government was the problem. So there is emerging from this an understanding that markets and government are married whether they like it or not," Uchitelle said.

Who's going to be the leader of the financial world in the role of Treasury Secretary under President Obama? It may be Democratic New Jersey Gov. Jon Corzine, who has pushed for an additional economic stimulus package to the tune of $300 billion to support infrastructure projects.

CNBC's Carl Quintanilla asked Corzine outright on "Squawk Box" if he would accept a job in the Obama administration as Treasury Secretary. "If it's offered, governor, will you say no?" Quintanilla asked.

"You know, I'm not going to say never to anything," Corzine said Nov. 5.

"Squawk Box" co-host Joe Kernan encouraged Corzine to consider accepting the job if offered, even as the former U.S. senator expressed his contentment as governor. "You could save the world" as Treasury Secretary, Kernan said.

An Obama victory could boost conservative talk show hosts according to CNBC's "Squawk Box" this election day. The show was more skeptical over the future of left-wing talk. Always with the rhetorical questions, Joe Kernen got things started:

Who is going to win in terms of the cable wars? ... Are we going to become totally nonpartisan now? Do you think that we will be able to bury all of our divisions and there won't be any incendiary cable shows anymore? Who wins if Obama wins? What happens to Olbermann? What's Olbermann going to do, or Maddow?

Co-host Carl Quintanilla suggested "television feeds on conflict" and co-host Rebecca Quick followed up by adding that syndicated radio host Rush Limbaugh "has done better" when there are Democrats in power.

Kernen said that Limbaugh and Fox News Channel and syndicated radio host Sean Hannity both signed new deals and an Obama win would be "great for them."

According to one UCLA economist, the U.S. is economically sound, but people have panicked because of "scary" warnings surrounding the $700 billion bailout.

"Periods of crisis often beget bad policies," Lee E. Ohanian, an economist at the University of California, Los Angeles (UCLA) said in an interview with Reason.tv. The professor stressed that six weeks ago the fundamentals of the economy looked "pretty good," before bailout "rumors" caused "panic":

What I mean by fundamentals are the amount of factories and office buildings and capital equipment we have in place, there's no change in that. There is no change really in individuals' interest in working. We've got the same work force right now we had six weeks ago. Productivity is about the same as it was perhaps even higher. All those fundamentals of the economy are the same.

Ohanian said Gross Domestic Product growth over the last five to six quarters was "on average," and productivity growth was "very high"

Video after the jump.

Wall Street is definitely watching all those polls the networks keep touting.

CNBC's Erin Burnett told MSNBC's "Morning Joe" that Wall Street was predicting that Sen. Barack Obama will win the presidency, but an upset from Sen. John McCain might boost it:

This market has priced in Obama, has not priced in McCain. Some people say that if McCain were to have an upset and win the market might get a big pop, who knows, but down here the conventional wisdom is, is that Obama has been priced into stocks.

When asked to explain the term "priced in" Burnett said, "It just means the market expects it. So, if Obama wins the market probably isn't going to do anything one way or the other."

Wait, wait, wait. I know I am forgetting something. The merger that's it.

"World News Now," which airs on the cable news arm of ABC News, had a treat for viewers on Oct. 31, but the "good news" didn't mention the recently announced merger between Northwest and Delta.

"World News Now" called fare declines "good news for air travel for once," in its news brief. Co-host Jeremy Hubbard said on the broadcast:

Speaking of money, major U.S. airlines are cutting fares for the Thanksgiving and winter holiday seasons. The airlines see price cutting as necessary in the face of a slumping economy. Northwest Airlines started the rush with what basically amounts to a holiday fare sale and most other major airlines are matching Northwest's prices. So if you are planning to fly for the holidays then you could see a savings of up to 25 percent.

CBS's "The Early Show" got an early start on the grumbling Oct. 30.

CBSNews.com and "Early Show" co-host Julie Chen warned viewers about flying the "pricey skies" this "hardly festive" holiday season because airfares have gone "way up." Chen said fares were "absolutely going through the roof."

Chen served up the numbers:

I want to put up two graphics that show how much prices have increased in the last year. To fly from New York to Miami the current average fare is $363 round-trip ... Now last year the same trip cost on average $321, that's 13 percent higher than last year. And to fly from Los Angeles to Dallas, Fort Worth airport, the current average is $391 round-trip. Last year that same trip cost on average $341, that's 15 percent higher than last year. Do you see any signs of airfare prices changing direction?

Amy Ziff, the editor-at-large of Travelocity, qualified Chen's numbers by saying those figure only tracked Thanksgiving specific airfare and opposed Chen's assumption that airfares were unusually high:

Sometimes former CEOs have a reason to be downbeat when they make predictions.

Former Chairman and CEO of Citigroup Sanford Weill told CBS's "The Early Show" Oct. 28 that unemployment would hit 9 percent and that Wall Street CEOs "didn't deserve bonuses this year." It went something like this:

Well, I think we've set in motion a whole series of events that is going to make the economy really, really bad over the short term. I think we are going to see the biggest drop that we've seen in GDP. I think we are going to see unemployment go up to about 9 percent.

Weill said that a year from now things would be a lot better, but still was critical of the Federal Reserve for not acting sooner:

Sometimes government tries to fix the problem; then it makes the problem worse.

In 2004, economists at the University of California, Los Angeles (UCLA), studied the policies of President Franklin Roosevelt's New Deal and determined it actually prolonged the Depression by seven years.

Harold L. Cole and Lee E. Ohanian blamed anti-free market measures for the slow recovery in an article published in the August 2004 issue of the Journal of Political Economy.

Cole and Ohanian asserted that Roosevelt thought excessive business competition led to low prices and wages, adding to the severity of the Depression.

"[Roosevelt] came up with a recovery package that would be unimaginable today, allowing businesses in every industry to collude without the threat of antitrust prosecution and workers to demand salaries about 25 percent above where they ought to have been, given market forces. The economy was poised for a beautiful recovery, but that recovery was stalled by these misguided policies," Cole said in a press release dated Aug. 10, 2004.

You know the news media is doing a poor job of covering Sen. Barack Obama and his running mate when a supporter of the Democratic ticket criticizes the media for giving them a "pass."

Megan McArdle, a blogger for TheAtlantic.com who has said she's voting for Obama, slammed the media in an appearance on Reason.tv's "The Talkshow" for not bringing up Sen. Joseph Biden's past as a "corporate sellout." McArdle said that was quite relevant when the Democratic candidates try to oppose financial deregulation in campaign appearances.

"And here is where I am willing to say the media is giving Obama a pass on a bunch of stuff that they shouldn't be ... It's ridiculous that no one is bringing up every time - every time Obama says anything about financial deregulation, Joe Biden's history should be trotted out and it's not and I'm not sure why," McArdle said to host Nick Gillespie.

Video after the jump.

When Tony the Tiger gets fired, we'll know biofuel mandates have taken their toll.

Correspondent Susan Koeppen said on "The Early Show" Oct. 23 consumers would be "paying more and getting less" for some food products they buy because companies are downsizing their products.

"It's called downsizing," Koeppen on the CBS broadcast. "More and more companies are going to start shrinking their products."

Ice cream consumer Yalanda Medina said she felt companies didn't think she was "smart enough to notice" she was getting less. In short, Medina felt "duped."

Koeppen went to "consumer advocate" Edgar Dworsky, who told her that downsizing is "a sneaky way to pass on a price increase."

This health care plan seems like it has more flaws than the bailout bill.

A news brief on "CNN Newsroom" Oct. 17 said that Hawaii's universal health care program for children would be hit with the "budget ax."

The screen said "Hawaii's Budget Ax" and anchor Heidi Collins reported that, "For the past seven months it's been the only state in the nation to offer universal healthcare for children. Now that program is being dropped."

But the brief didn't go into detail about one of the main reasons why the program was being axed: abuse of the "free" system.

A Hawaii state official said that families were "dropping private coverage so their children would be eligible for the subsidized plan," according to the Associated Press.

It may not have been "huge" when CNBC's Joe Kernen said it but the dude has been on practically every news station by now.

Kernen told chief Washington correspondent John Harwood that the "Joe the plumber" story "would be huge" and even a "bombshell," in any other election year. Kernen said voters "don't care" because they are buying into Sen. Obama's assertion that the Bush tax policies have led to the financial crisis.

"Obviously not everyone out there knows how to connect the dots between the [financial crisis] and tax policy. For some reason the Bush tax policies are being cited by Obama as the reason that we're in this position right now, again and again and again," said "Squawk Box" co-host Kernen Oct. 16.

But Kernen didn't stop there:

Who you gonna call to fix the economy? Kids.

The Dow dropped 5,585 points since its high a year ago, banks have been afraid to lend and the government bought billions in toxic mortgage-backed securities. So CBS's "The Early Show" went to some top finance experts to explain what was happening to viewers, right? Nope, they went to kids, Oct. 10.

Weatherman Dave Price talked to fifth graders in Arlington, Va., about the credit crisis, exclaiming, "You wouldn't believe how much they know, sometimes we ought to listen to them and their solutions."

"What one thing does your mom waste money on?" Price asked one student.

"Mmm, smokes, I guess," a fifth grade girl from Glebe Elementary School replied.

The Securities and Exchange Commission ended the 16-day ban on short selling Oct. 9, which has left many journalists asking if the ban actually worked to keep more banks from failing.

The staff at the Business & Media Institute's video blog, "The Biz Flog," could have told you the ban wasn't a good idea when they put together "Who's Afraid of a Big Bad Short Seller?" But, it's nice to see some members of the media questioning if the ban worked:

"While the ban was in place, other market forces pushed key indices into a rapid decline. We are going to see if that ban actually slowed the freefall or perhaps made it worse," Fox Business Network host Alexis Glick said on "Money for Breakfast," Oct. 9.

Glick went on to point out that the ban also affected companies that weren't banks:

So what "dangerous" product should you not give your children now? Cough syrup, if you were watching the October 3 "Early Show."

"They're safe if they're used properly, but so often they're not and so I consider them to be dangerous," said Dr. Alanna Levine, a pediatrician based in Englewood Hospital in New York.

The CBS segment focused on new regulations of over-the-counter cough and cold medicines for children by the Food and Drug Administration (FDA), but left out any representation by pharmaceutical companies or trade organizations.

Levine stressed problems with use of the product telling viewers that emergency rooms see up to 7,000 children a year, but she focused on the medicines, not on the caregivers improperly administering them to children.

If you don't give me money, I won't bail you out!

Conservative opposition to a federal bailout of financial institutions is over campaign donations, not a desire to uphold sound market principles, according to CNBC.

CNBC's chief Washington correspondent John Harwood said Sept. 25 on "Squawk Box" that he had a conversation with "a top Republican member of congress last night" who told him the resistance among conservatives to the $700 billion bailout plan is in part due to Wall Street donations to Democrats.

"‘A lot of our guys have decided that we hate Wall Street ... because they're giving a lot of money to Democrats right now,'" Harwood said he was told by an unnamed source.

"We've talked about how nice the bi-partisan coming together of the far left and the far right to oppose this plan. It was heartwarming, right? That finally brought the fringe elements of both sides together on this," co-host Joe Kernen joked.

Private CEOs? Yes. Government-sponsored CEOs? No.

In a September 19 "Good Morning America" preview of a report scheduled to appear on the same day's edition of ABC's "20/20," chief investigative reporter Brian Ross took a few jabs at the rich who had fallen.

Ross called it "the end of a shameful chapter of American history," and although top executives on Wall Street had been hit hard in a way "they never thought was possible ... it's hardly the soup kitchen."

There was also much indignation in the report over the assets of Richard S. Fuld Jr., chairman and chief executive officer of now fallen Lehman Brothers Inc., and Alan Schwartz, the CEO of now "busted" Bear Stearns.

In light of their reporting on the failure of investment firm Bear Stearns Companies Inc. (NYSE: BSC), it seems CNBC reporters aren't "tip-toeing around on eggshells" when reporting about problems at Lehman Brothers Holdings Inc. (NYSE: LEH).

On CNBC's "Squawk Box," reporter Charlie Gasparino told co-host Joe Kernen, "I will say this about the Bear Stearns thing when you compare that [Lehman] with this. I think our reporting was incredibly responsible. It was so responsible ... and you know we went out of our way with Bear Stearns ... We just report on how feckless management is and I can't help that Bear Stearns was feckless. [Lehman] was feckless too and that is the scary part."

"They're going to parse every ‘is' that a journalist said," said Kernen. "We don't hammer the stock. We watch the stock get hammered and then we talk about it."

Grandma may be calling but this government program isn't answering.

ABC's "Good Morning America" exposed many problems with Medicare's hotline number 1-800-MEDICARE September 11, including telephone operators "who couldn't answer the [questions]," "gave out the wrong information" or were completely unreachable.

The onscreen caption for the ABC report read "Investigation Exposes Health Care Mess." The morning broadcast didn't disappoint, pointing to a Senate committee investigation that had staffers call the Medicare hotline more than 500 times.

Co-host Chris Cuomo teased to introduce Yunji de Nies' report:

Many seniors looking for answers to their questions often turn to help lines that can be anything but helpful.

Even though "Good Morning America" seems to have taken a recent interest in the glaring problems at the government-backed program, experts have been making the point for years.

On MSNBC's "Morning Joe" September 8, Jim Cramer took a shot at owner of The Wall Street Journal, Rupert Murdoch, in the midst of talking about the Fannie Mae and Freddie Mac takeover:

I read The Wall Street Journal, sorry, The Fox Street Journal. When is Murdoch going to put his positive right wing implant on left wing journalists? ... When is Murdoch going to broom the Spartacus workers union?

As for Fannie and Freddie, Cramer told the hosts of the September 8 broadcast that "We had a laissez-faire attitude. Now we are going to have the greatest bureaucracy in history created by Republicans. I'm an agent of change," Cramer said sarcastically.

Later in the segment, Cramer joked that the Democratic Party were "Bolsheviks" quipping, "There. How's that for biased media?"

When an anti-business media personality makes a business magazine's "Most Powerful" list, there is definitely something wrong.

Forbes magazine released its list of the 100 most powerful women in its September 15 issue. Meredith Vieira, host of NBC's "Today," came in at number 61 as the top journalist. Vieira beat CBS "Evening News" anchor Katie Couric (ranked 62), ABC News veteran Barbara Walters (63), ABC "Good Morning America" co-host Diane Sawyer (65) and CNN chief international correspondent Christiane Amanpour (91).

Despite her $10-million annual salary, according to the April 13 Parade Magazine, Vieira has had difficulty reporting on business practices in a free market. The Forbes list didn't mention her anti-business bias.

Sex sells, even during a presidential election. But that doesn't mean journalists have to be happy about it.

CNBC's "Squawk Box" co-host Joe Kernen took a moment during a panel discussion September 2 to take a shot at the onslaught of coverage over presumptive vice presidential nominee Sarah Palin's daughter's pregnancy.

You know as a member of the media I'm just kind of embarrassed with the media. The media says, "Yeah it shouldn't matter, it's not going to matter, we're not going to cover it" and then they put it on the cover of every paper.

Earlier in the broadcast Kernen told chief Washington correspondent John Harwood he did not think the family incidence was as big a deal as the media was making it out to be:

Felt a little bit like the guy in Casablanca, shocked, you know: teen sex in Alaska, John. Probably not that much of a shocker I guess, right? Not a whole lot. I guess bowling, yeah, It's a little lonely probably up there, right, John? ... I don't understand everybody at the same time saying that this is not going to be a big deal ... the press is going to be responsible about this, Barack Obama please don't make anything of this, but then it's the cover of every paper like it, you know, like matters.