Recession stories have a lot in common with global warming stories - there are a lot of them and you hear only one side. And like global warming, recession is the subject of a Newsweek cover story, appearing on the front of the magazine's February 4 issue.
"The Great Global Market Freak-Out of 2008 has everyone asking whether the United States - already on the road to recession - is entering into a protracted period of economic trouble where jobs will be slashed, prices will continue to rise and the dollar will keep falling; and if so, whether the declining U.S. economy will pull the rest of the world down with it," Gross wrote. "A recession is defined as a widespread contraction in economic activity lasting more than a few months, and because of the lag in financial data, recessions typically aren't officially declared until long after they start. In short, the United States could already be in one."
It was supposed to be a bad day in the American stock markets according to CBS's "The Early Show." Guess what - they were wrong.
"Hong Kong's Hang Seng market was down more than 4 percent," Julie Chen said on the January 28 "The Early Show." "Tokyo's Nikkei index off about 4 percent. Wall Street may have a rough morning in advance of President Bush's final State of the Union address tonight. We'll be watching the markets throughout the morning."
Assuming American markets will follow the lead of any other international markets is an iffy proposition, as indicated by the performance on Wall Street today. After the gloomy forecast from "The Early Show" for the day, the Dow Jones Industrial Average (DJIA) finished in positive territory on January 28 - at the highs of the day, up more than 176 points. The NASDAQ and S&P 500 also finished in positive territory, both up more than 23 points.
In a class-warfare driven media, where the "haves" are often pitted against "have-nots," you would think an outgoing CEO giving up $37.5 million in pay would be celebrated.
Not quite. CNN's "American Morning" didn't think it was quite good enough when Countrywide Financial's Angelo Mozilo forfeited $37.5 million in severance pay because he said he felt it was the "right thing to do."
However, the glowing reception the $150-billion taxpayer-funded stimulus plan got from each of the network newscasts gave that impression last night.
"Cash is on the way," ABC's "World News" anchor Charles Gibson said. "The check is in the mail, or it will be to 117 million Americans. The president and congressional leaders reached agreement on a $150-billion economic stimulus package today. When passed by Congress, the package will result in the distribution of $100 billion to individuals and families. And it will mean businesses will get $50 billion in tax breaks."
It's really frightening to imagine that people who get the bulk of their news from Comedy Central's "The Daily Show with Jon Stewart" will be making what they probably think are educated decisions at the ballot box come Election Day.
Stewart, who is now a self-proclaimed economist, said on his January 23 show, "Our economy is tanking." And now you can add financial media critic to Stewart's list of titles.
"For insight, I turned to the two major financial networks to find out what is going on, or as they're known around here, ‘hot ladies talk economy with bald dudes,'" Stewart said.
Worried about finding employment after losing your job because of this gosh-awful recession we're having? Oh, you haven't lost your job yet? Yeah, we aren't actually having a recession yet, but that's just details.
"It's a bumpy ride for the American worker as well. As the economy slows the unemployment rate is rising," anchor Katie Couric said. "About 7.6 million Americans are now unemployed. That's a million more than a year ago. So what should you do if you lose your job? [CBS correspondent] Kelly Cobiella looks at some strategies for job seekers for whom this economic downturn is really hitting home."
It's quite a sight to behold when media "has-beens" start drinking the doom and gloom Kool-Aid offered up in the media.
Sam Donaldson, who covered the Reagan White House for ABC and who now is a contributor to the network's "This Week with George Stephanopoulos," last night told a gathering in Georgetown that the U.S. economy is going "in the dumper" and criticized the Democratic presidential candidates for not capitalizing on it.
Meacham appeared on Comedy Central's January 21 "The Daily Show with Jon Stewart" and told viewers the media gear reporting toward conflict.
"I absolutely believe that the media is not ideologically driven, but conflict driven," Meacham said. "If we have a bias it's not that people are socially liberal, fiscally conservative or vice versa. It is that we are engaged in the storytelling business. And if you tell the same story again and again and again - it's kind of boring."
After the Fed made an "emergency" 75-basis-point rate cut this morning, CNBC's "Mad Money" host Jim Cramer, who has gone from bull market cheerleader to bear market doom and gloomer in the last six months, said it was too little too late.
"[T]his is obviously the kind of action I was most fearful of - which is that they would have to go panic and that they would get way behind the curve," Cramer said on CNBC's January 22 "Squawk Box." "But, you know but once they do it, I'm less ... I can't hammer them as much. This is the kind of action if they had done it three months ago, we would have been safe."
On MSNBC's January 18 "Hardball," Cramer predicted the Dow Jones Industrial Average would decline 2,000 points over the next couple of weeks. However, he was a little less pessimistic after this rate cut.
It's no longer enough to say the economy is heading into or already is in a recession. Invoking the memory of the Great Depression has become the latest way to dramatize the economic turmoil caused by the credit markets.
Zuckerman told viewers we're heading into uncharted territory with this current credit freeze-up.
"You have the entire banking system now that is virtually frozen. And there are, not just this subprime mortgage thing, there are other things called credit default swaps where they will lose as much money, $250 billion on. The banks are frozen. They are not making loans because they have such huge debts that they have to take on to their balance sheets and nobody knows how to deal with that," he continued.
The January 20 CBS special attacked the Bush White House for not being willing to sign the Kyoto Protocol after he was elected - furthering the common misconception that Bush has been alone in his opposition to it, as the Senate actually voted 95 to 0 to reject Kyoto earlier.
Of course, Cramer is a regular on NBC's "Today" and "Nightly News" as an expert on the economy. On December 19, Cramer appeared on "Today" and was very critical of Fed Chairman Ben Bernanke for not cutting interest rates more than a quarter point. In another "Today" appearance on January 17, he declared the economy was in a recession, a 180-degree change from his comments earlier in the month when he declared "sunny skies" were ahead for the economy.
American capitalism - it's so great even the Chinese Communist government loves it!
That's sounds like it ought to be a bumper sticker, but the January 16 "NBC Nightly News" advised it is something we should be cautious of.
Foreign investors have been on a buying spree in the U.S. stock markets - as stock prices have fallen with all the skittishness in the wake of the credit crunch.
"So far foreigners buying chunks of Wall Street has not triggered the same political uproar as a Dubai company's ill-fated effort to take over operations of U.S. ports, perhaps because politicians know the alternative could be painful," NBC correspondent Lisa Myers said.
Goldberg appeared on January 15 at a Borders Bookstore in downtown Washington, D.C. to promote his new book, Liberal Fascism. According to Goldberg, tactics like comparing climate change skeptics to people "who believe that the Earth is flat," is comparable to those used by the power brokers within the rise of fascism during the early 20th century.
The headline "The Economy Sucks" might be something you'd expect to see in Rolling Stone or on Slate.com, but certainly not in a reputable news magazine, right?
Yet, the January 21 issue of Newsweek defied expectations by using that for part of a headline for a one-sided, pro-Bill Clinton view of the economy. The article recalled the 1992 "It's the economy, stupid!" campaign as it tore down the current economy.
So, why does the economy "suck" according to Newsweek? It isn't that there's a depression looming or that we're in recessionary times, we're just "perilously close to sliding into a recession."
"Today, the nation is perilously close to sliding into a recession; in '92, the economy had already started growing, though a jobless recovery doomed George H.W. Bush's re-election bid anyway," Gross wrote. "The lesson? Voters' perceptions matter more than whether the economy is technically expanding or contracting."
You might disagree with how he slashed the Fed funds rate during times of economic turmoil as Federal Reserve chairman.
You might have even disavowed him after showing his coziness with the Clinton administration throughout the 1990s. But after 18 years of public service, you can't deny that Alan Greenspan should have a shot in the private sector.
“In 2006, the Antarctic peninsula near South America lost 60 billion metric tons of ice; 132 billion tons disappeared in West Antarctica,” said Anne Thompson, NBC News chief environmental affairs correspondent. “Big numbers that could have a big impact.”
Thompson blamed mankind as the “prime suspect” for the changes – ignoring all other possibilities, despite some scientists that are skeptical of that theory.
"No, I don't think we're going to hit recession, but it's going to feel like it," Welch said. "Things are slowing down dramatically, as everyone knows. But I think we'll weather this thing and the global economy will keep us alive. So, we will not have a technical recession, but it will sure as hell feel like one."
CNBC “Mad Money” host, resident ranter and stock-picker extraordinaire Jim Cramer can now add “media critic” to his list of duties.
Over the past six months, Cramer has become a YouTube sensation for taking shots at Federal Reserve Chairman Ben Bernanke, including his infamous “They know nothing” rant on CNBC’s August 3 “Street Signs.”
Today Cramer used his “Stop Trading” segment on CNBC’s “Street Signs” to blast Bernanke some more and accused some in the media of kissing up to Bernanke for the “big interview.”
“I guess I should just kiss up and get the big interview with Ben like everybody else wants,” Cramer said to “Street Signs” fill-in host Melissa Lee. “Sorry, I could care less.”
Cramer obviously wasn't impressed with Bernanke's comments yesterday where he said the Federal Reserve stood ready "to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks."
"Nightly News," however, based its report completely on a 78-year-old story who felt she was deceived.
"Reverse mortgages allow seniors 62 and older to borrow against the equity they've built up in their home," NBC correspondent Tom Costello said. "But upfront costs can be steep, $12,000 for Ms. Munoz. Then, her attorney claims, the sales agent who suggested the reverse mortgage sold the 78-year-old woman long-term investment annuities that don't mature until 2033. When she tried to withdraw some of that money, she faced a 20-percent penalty."
Former Secretary of State Madeline Albright has been in the public eye as of late out promoting her latest book and attacking the Bush administration on everything from global warming to globalization. So much so, that the Republican National Committee has fired back in kind.
"This is a purely practical point here, and I think there's a lot of work to be done" Albright said. "And I think the judgment is that this is one of the worst presidencies we've had and people will wonder what it is that the role of the vice president is."
"[W]ell, as you said the economy certainly is front and center," Bolton said. "And in fact in the latest survey of Bloomberg economists, economists putting the odds of developing a recession at about 40 percent. Jay Bryson - he's a global economist at Wachovia - he says we are skating on the edge of recession, but it's all going to come down to the consumer. Another economist that we spoke with said that consumers right now are really hanging on by their fingernails. And of course it's not really a surprise."
It took a couple of tries, but CNN "American Morning" co-anchor John Roberts got Democratic presidential hopeful Barack Obama to admit what people probably already knew - Obama wants to raise taxes.
Obama appeared in an interview with Roberts on the January 9 "American Morning" fresh off his second place finish in the New Hampshire Democratic primary. He told Roberts high taxes were in the best interest of the American economy.
"Well, I think that there's no doubt that letting the Bush tax cuts on the top 1 percent lapse would not have, I think, a significant impact on the economy, but would bolster our fiscal situation," Obama said. "We continue to run big deficits - our national debt has increased drastically. That is not good for our long-term economic security."
It’s better late than never, might be what vaccine manufacturers are thinking right now.
The pharmaceutical industry had maintained all along that there’s no proven link between a vaccine preservative called thimerosal and autism. CBS had been unwilling to concede that notion until last night.
“In health news tonight, new research finds no link between mercury in vaccines and autism in children,” Katie Couric said on the January 7 “Evening News.” “Suspicion had focused on a vaccine preservative called thimerosal, which contains mercury. Thimerosal was eliminated from most vaccines in 2001, but since then a study in California showed that, instead of going down, autism cases there continued to climb.”
Never underestimate the power of the media with a "doom and gloom" agenda - especially when it comes to such a renowned contest like the 18th annual American Dialect Society "Word of the Year" contest.
"‘Subprime' has been around with bankers for awhile, but now everyone is talking about ‘subprime,'" said Wayne Glowka, a spokesman for the group and a dean at Reinhardt College in Waleska, Ga. "It's affecting all kinds of people in all kinds of places."
"Business spending, concerns about business spending overall. I think Anne Mulcahy [CEO] at Xerox (NYSE:XRX) may have said something about business spending," Faber said. "I'm hearing business spending slowing. That's the concern - what happens to the stock market in a recession because we're heading into one it looks like."
The so-called "dean of the White House press corps" is at it again - not abusing her front row position at White House press briefings and criticizing the Bush administration, but this time by taking shots at the new media.
A January 4 Associated Press story by Jeannine Aversa pointed to the job data as one of the "problems in the economy" that has "elevated fears about a recession." But even with all these "problems" - housing woes, the credit crunch, high oil prices, weak job numbers - the criteria of the economy being in a recession still haven't been close to being met.