On Monday’s CBS "Early Show," co-host Harry Smith talked to economic analyst Mark Zandi about the state of the economy and asked: "Oil's up, gasoline's up, food prices up, stocks, way, way, way, way down. Home owner -- home values are down. Is there an end in sight to all of this bad news?" Zandi replied: "You just made me depressed. No. It's just bad news. It really is...It's just a really tough time for many Americans."
Later, Smith commented on how all the bad economic news seems to contribute to bad economic events: "It just seems like we're in this cumulative cycle that, you know, once one threshold of bad news gets reached, we reach to yet another one." That comment sparked this exchange with Zandi:
ZANDI: Yeah, it's a self re-enforcing negative cycle. You know, that's what happens during recessions, and that's what we're in the middle of right now.
SMITH: Whoa, is this a recession?
ZANDI: You know that -- that's a debate among economists and policy makers. But in the minds of the average American household I think there's no debate, this is a recession. I mean they're worth less today than they were a year ago, they're purchasing power is lower. I mean, for most people that's the definition of recession. So, economists can debate it but I think most people think this is a recession.
Last week, "Early Show" co-host Julie Chen declared a: "perfect storm of economic woes." Meanwhile, ABC’s Good Morning America used the term "recession" eight times in three days last week.
Here is the full transcript of Monday’s "Early Show":
7:10AM SEGMENT:
HARRY SMITH: Oil prices reached a new high this morning. Crude surged above $143 for the first time. It's triggering worries about a weaker dollar. What does it mean for consumers headed to stores this holiday weekend and a whole list of other stuff? Joining us now is Mark Zandi of moody'seconomy.com. Good morning sir.
MARK ZANDI: Good morning.
SMITH: Oil's up, gasoline's up, food prices up, stocks, way, way, way, way down. Home owner -- home values are down. Is there an end in sight to all of this bad news?
ZANDI: You just made me depressed. No. It's just bad news. It really is. I mean, stock prices, as you pointed out, are 20% down from where they were last October. House prices are down 15% from where they were two years ago. Unemployment is up a percent, we're losing jobs. It's just a really tough time for many Americans.
SMITH: What do we do -- especially looking at what the stock market did in the last couple of weeks. People with 401Ks, with retirement accounts, I.R.A.S. They're sitting there looking at this saying, 'geese, what -- you know, should we be moving? Should we be getting out?' Is there a worse bottom than the one we're in right now?
ZANDI: Well, you know, I think the most important thing is don't panic. I mean, this would be the worst time to make a big change in what you're doing. I mean, if history's any guide, the economy will come back, the stock market will come back, and it will. And you don't want to be out of the market when that happens. Because when it does, it happens very, very quickly and you'll probably miss it if you sell now.
SMITH: The other question that comes to mind is that Congress has been working on this bailout for the subprime mess. Originally designed to cover about 3 million people. I read a piece in the paper over the weekend that says, 'oh, by the way, in the next couple months it's going to reach to six.' It just seems like we're in this cumulative cycle that, you know, once one threshold of bad news gets reached, we reach to yet another one.
ZANDI: Yeah, it's a self re-enforcing negative cycle. You know, that's what happens during recessions, and that's what we're in the middle of right now.
SMITH: Whoa, is this a recession?
ZANDI: You know that -- that's a debate among economists and policy makers. But in the minds of the average American household I think there's no debate, this is a recession. I mean they're worth less today than they were a year ago, they're purchasing power is lower. I mean, for most people that's the definition of recession. So, economists can debate it but I think most people think this is a recession.
SMITH: What else do you need to know? Alright, Mark Zandi, thanks very much, do appreciate it sir.
ZANDI: Thank you.
—Kyle Drennen is a news analyst at the Media Research Center.
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Comments Policy
Here we go again.
June 30, 2008 - 14:58 ET by JWFChanging the definition of words.
The youth culture has nothing on slang. The msm gives new definition to old words faster than anything the youth culture can make up.
Let them call it what they
June 30, 2008 - 15:00 ET by mattmLet them call it what they want - but it all started after the 2006 election when the dems invaded and took over congress. (Now now, trolls, don't get your panties in a bunch, I'm just using the wording the libs used when the GOP won it in 1994)
Timeline - 1999 - 2001 (Clinton) internet bubble bursts, accounting scandals emerge - economy tanks, Bush gets blamed. 2002 - 2006 tax cuts go into effect, economy grows - 2007 to present, Dems win back Congress, gas prices go up 100%, economy slows way down - Bush gets the blame.
1.47
July 1, 2008 - 08:06 ET byGas was $1.47 January 2001.
Saylman, What was the
July 1, 2008 - 10:41 ET by DarkCurrentSaylman,
What was the cost of a barrel of crude oil at that time? What specific policies did Bush enact or fail to enact that resulted in the rise of both? What other factors may be involved?
"There is no room for
June 30, 2008 - 15:01 ET by Foolican"There is no room for debate."
Isn't that just double-speak for "the people in my little group say it's so, therefore it must be true"?
Anyone remember 1994, when
June 30, 2008 - 15:04 ET by Hunter12Anyone remember 1994, when the economy started to turn around and things got right in America? What was it that happened then that caused the turn-around? I think it was the Republicans took control of congress. Remember 2007, when the slide started in the housing market, the lack of affordable oil wasn't being addressed, and the economy started to tank? Wasn't that somewhere around the start of the Democrats first stab at running things in 12 years? Anyone see any connections?
"An appeaser is one who feeds a crocodile, hoping it will eat him last." - Sir Winston Churchill
Some of these "reporters" should take a look at the crowds....
June 30, 2008 - 15:08 ET by Prester John...at major league baseball games (regularly over 30,000 around the country) where people pay hundreds of dollars for tickets (Fenway and Yankee stadiums among others) not to mention $8 (or whatever it is) for a beer,
...at NASCAR races,
...on the highways to the beaches this weekend,
...at the crowds at the shopping malls,
...at the crowds at movies and concert
and then say with a straight face that the economy is tanking.
That would mean...
June 30, 2008 - 16:05 ET by ontheright...that the MSM types would have to venture out of their "elitist coccoons" and rub elbows with the commoners....or at the very least, pay attention to the reality that is "fly-over" America.
Sorry, but I can't see that happening...
if you listen to the MSMorons you can plainly hear..."my circle of friends says the economy is bad, so it has to be bad...debate over!...and if you believe anything other than what I'm telling you, you're a racist."
When talking to people I
June 30, 2008 - 15:21 ET by rbosqueWhen talking to people I get the same doom and gloom BS. Thus, the desired effect the MSM wanted is achieved, more brainwashing of the sheeple.
A great anti-dote is just to stop watching those idiots on TV.
If they are not the show of
June 30, 2008 - 15:23 ET by FairlightIf they are not the show of the average American household, how can they speak for the average American household. Extremely poor ratings mean you have no idea what the average American thinks. If you had a clue, you would have applied it to fixing your ratings.
"CBS ‘Early Show’ Declares Recession"
June 30, 2008 - 15:49 ET by Crash... and I declare pigs aerodynamically fit to fly!
And...
June 30, 2008 - 15:53 ET by ontheright...hell is ramping up its mini-ice age.
Of course it's a
June 30, 2008 - 15:55 ET by dscottOf course it's a recession! Has anyone seen the MSM financials lately??? They are experiencing negative quarters and that meets the definition of recession. http://www.bizzyblog.com/2008/06/29/how-will-print-medias-financial-problems-affect-its-coverage/
Look at the net profit margin on these guys, it's a blood bath: http://biz.yahoo.com/p/727conameu.html
Nancy Pelosi and Harry Reid, starving the poor one gallon of ethanol at a time. Fill your tank with E85 and cull a village.
Home prices are down 15% in
June 30, 2008 - 16:01 ET by sam.i.amHome prices are down 15% in the past year. So what? It's a bubble! And these are averages, including the bubble markets of the coasts.
Home prices went up 100% for the average home in the past ten years. This is 7.2% per year. Normal appreciation for a home is usually 4% or so. In most markets it was closer to that figure, and the drop was much less steep also.
Not to mention, for first time buyers and people trading up, this is a great opportunity.
They also picked the peak of the DJIA by selecting October. I wish libs and the MSM would quit spreading fear and misinformation, but then there wouldn't be a need for Newsbusters. If you are in the market for the long haul you shouldn't worry. If you are retiring soon, you shouldn't be in risky stocks, you should be in bonds and cash.
You said it all Harry
June 30, 2008 - 17:05 ET by the struggler"...once one threshold of bad news gets reached, we reach to yet another one."
And their threshold for bad news is boundless
Whatever it takes to help the Dems.....
June 30, 2008 - 17:18 ET by krendlerReminds me of the MSM's concerted effort to cram the words "civil war" (in relation to Iraq) down our throats not so long ago. But Iraq is going too well to help Obama at this point so the terms they need to get in place before November are "recession" and "McCain is the same as Bush".
"But in the minds of the
June 30, 2008 - 18:40 ET by Chris Norman"But in the minds of the average American household I think there's no debate, this is a recession."
Like so many things with liberals and the liberal media, it's not the reality, it's the perception that counts and if the media can change the perception, well, then...
Thank you Chris Norman
June 30, 2008 - 20:21 ET by jpatchThis is why NewsBusters MUST exist, and MUST continue to place the spotlight of accountability squarely on the guilty faces of all those that BLATANTLY LIE, those that PURPORT OPINION TO BE FACT, and those that OMIT RELEVANT INFORMATION in order to create PERCEPTIONS that are not only incongruent with reality, they are also put forth with such overwhelming volume and repetition that the combined effort of the MSM creates a completely new fabricated reality.
It doesn't matter what's really happening; it's the perception that matters...as long as that perception is in accord with the media's drumbeat.
So do we finally have proof that the media is actively trying to create recessions, trying to create panic with global warming, trying to create distrust and erode pride in our military, trying to create bitterness and resentment toward President Bush and Republicans??
This is just so pathetic and sad.
THIS IS TREASON!!!
"Yes, of course, the fact of the matter is that we're not in a recession, but all of our viewers think we're in a recession, so..."
Oh, so you mean that your lies have been so convincing that you've actually created and instilled beliefs in the minds of your audience that are contrary to presently verifiable facts??
God bless and help us all.
People are angry atout
June 30, 2008 - 20:27 ET by jefflebowski$4 gasoline. I know that it eats into my disposable income. I don't know how low wage hourly people do it! It may or may not be a recession, but there are a lot of people who are broke!
I'm just mad that the price of gasoline is where it is...for no good reason.
Jeff Lebowski
www.angrywhitedude.c...
People are angry atout $4 gasoline.
June 30, 2008 - 20:32 ET by Free StinkerPeople are angry atout $4 gasoline.
With the Democrats controlling congress, there's lots to be angry atout.
Free Stinker, I completely agree
June 30, 2008 - 20:37 ET by jefflebowskiI believe that every major problem that the US faces today is directly attibutable to liberals. If they seat more than 60 demonrats in the Senate this election, we are in big trouble for a while.
Jeff Lebowski
www.angrywhitedude.c...
I boggles my mind that the
June 30, 2008 - 20:44 ET by Free StinkerI boggles my mind that the GOP doesn;t run ads pointing out the things we've had since a Dem led congress took over:
I just wish somebody would sugically implant a spine in the GOP and get them campaigning against the Marxists!
A Liberal's response
July 1, 2008 - 12:16 ET by Conservative BluesI was flipping through radio stations yesterday and stopped on a talk show (not sure the name, it angered me too much to listen for too long). A caller from San Francisco (surprise, surprise) called in to rail on Bush, Big Bad Business and the Evil Oil Companies. He said the lib answer in San Fran to high gas prices is "to make everyone ride public transportation." When asked how, he said "we're going to let them ride the bus for free."
There was no question from the hosts about how to pay for the "free" bus rides, or for the "free" fuel for the buses, or even the "free" buses that they will need to buy to take care of all the extra routes and riders. The biggest concern was that somewhere, someone was going to have to buy fuel and buses, and Big Bad Business and the Evil Oil Companies were still going to benefit from the "free" bus rides.
Liberals just do not live in reality.
Ecclesiastes 10:2 - "The heart of the wise inclines to the right, but the heart of the fool to the left."
jeff... You can be sure
June 30, 2008 - 20:41 ET by bigtimerjeff...
You can be sure the elite leftists love this price per gallon, have been aiming at it for years and they want it to soar... it has taken them thirty years to get here now, they want to Nationalize the Oil companies let alone control of them here..plus they think it helps get them votes with the msm leading the way and the repubs not fighting back LOUDLY about all of this...counting on them not laying out the facts in unison or in each congressional district.
They may be right....I hope they are wrong.
Gosh knows it is hurting us.
"Never murder your opponent when he is committing suicide." ~ W. Wilson
BT, libs are always wrong
June 30, 2008 - 20:47 ET by jefflebowskiThey just happen to be supported by a lot of stupid and/or lazy people. Like the saying goes, "As long as you take from Peter to pay Paul, you can always count on Paul's support."
Just as in the mid-seventies when Carter was elected, we are getting ready for some bad times. I just hope there is a Reagan waiting in the wings. I know one thing....it ain't John McCain!
Jeff Lebowski
www.angrywhitedude.c...
Yes, of course, however...
June 30, 2008 - 22:57 ET by jpatchI agree, the cost of energy is creating a terrible situation for low and middle income people and families. Like most of us already know, the democrats, who have been blocking petroleum exploration for decades, are just as guilty as anyone for this current crisis, however they will share none of the blame. Something MUST be done. However...
This is what struck me as being the snake to our mongoose:
"But in the minds of the average American household I think there's no debate..."
Misinforming the electorate about what is and what is not a recession is only but one small infection of the much larger pathogenic bacteria that is the MSM.
See, real life is like DNA. We all come from the genes that are imprinted on our DNA. One little change to one gene, and we have blue eyes instead of brown. Change two genes, and we now have blue eyes and blond hair, instead of brown eyes and brown hair. Change three genes, and we are now a full-blown porn star with blue eyes, blond hair, and 34 D breasts, instead of brown eyes, brown hair, and 34 A breasts. (I'm male, by the way, so I prefer to imagine a woman instead of a man...sue me). My point is...
How far can you go in changing little bits of something before you've changed the entire organism? As the saying goes, the devil is in the DETAILS.
The unimaginable complexities of the earth's climate have been dumbed down to this: do you believe in manmade global warming, or are you a denier?
The news media should be ARTICULATING THE COMPLEXITIES OF OUR WORLD, AND LET US MAKE THE DECISIONS ABOUT HOW WE FEEL AND THINK.
This article is about recession; the next article will be about AGW; the article after that will be about the war and how our army is "broken" and how they're fighting an "unjust" and "unwinnable" war.
That is treason when its plodded out day after day in both op/ed pieces and on the morning and nightly NEWS broadcasts. Their goal is to weaken our resolve and to erode the belief that the American people have in our military's efficacy and honor.
Giving aid and comfort to our enemy in a time of war is treason. It is long past due that we hold the perpetrators of these crimes to the flames of accountability.
Good night everyone...God bless.
→ Market Predictions?
July 1, 2008 - 08:38 ET by Cool ArrowWhat happens today when Toyota surpasses GM in total sales?
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