Banking/Finance

While President Obama's record-breaking pace to raising a total of $1 billion earlier this month received significant media attention, there was little if any curiosity among the traditional press about how he was on track to achieve such an unprecedented milestone in presidential fundraising. The broadcast networks in particular have not bothered to mention the growing scandal that is being scrupulously pieced together by alternative media outlets.

An independently-owned website Obama.com (redirects to official site here) has been suspected of accepting millions of dollars worth of illegal foreign donations for months now. Despite all the speculation and accusations coming from a nonprofit organization known as the Government Accountability Institute (GAI), no action had been taken until recently.

Reporting on the Massachusetts Senate race on Thursday, CNN's Brooke Baldwin played a Democratic card by noting the amount of Wall Street money Republican incumbent Scott Brown's campaign receives compared with his Democratic challenger Elizabeth Warren, who has campaigned as a populist opponent of Wall Street.  

"The Center for Responsive Politics was reporting nearly 9 out of every 10 Wall Street dollars spent in the Massachusetts campaign here going to Brown. How is that playing, how will that play with voters there?" Baldwin asked her guest, after noting the "huge sea change" causing Warren's lead in the polls. She didn't ask about any of Brown's attacks on Warren, however. [Video below the break. Audio here.]

Even though it was near the top of the raw news wire at the Associated Press, aka the Administration's Press, when I saw it, I had to check the date on Tom Raum's item entitled "Why It Matters: Debt." Sure enough, it really does have a September 24. 1:36 p.m. time stamp.

That is intensely ironic and somewhat delicious, because the final sentence of Raum's dispatch directly contradicts something President Barack Obama said in his appearance on David Letterman's show last week -- something I believe (but can't prove, due to frequent wire service revisions) the AP originally failed to report.

BizzyBlog and NewsBusters commenter dscott brought an item at a Washington Post business blog to my attention earlier today.

Entitled "Fed action a welcome move for small businesses" and appearing very early this morning, it claims that Federal Reserve Chairman Ben Bernanke's third round of quantitative easing, aka QE3, is "confidence-building move" and "a reassuring sign to the financial markets as it signals to investors that U.S. monetary policy will serve as a stabilizing partner as our economy continues to improve. Its author, Sharon Jenkins, described as "is principal and lead strategist at Alexandria-based My Brothers’ Business Enterprises," is not a regular at the blog; unlike all others I saw, her name isn't even hyperlinked at her post. So who is this "Sharon Jenkins"?

Whoever wrote the Associated Press's brief dispatch yesterday on the results of the government's auction of 10-year Treasury notes seemed to be stunned and on the defensive about its result.

The item, entitled "Weak Demand at Auction of 10-Year U.S. Treasury Debt," began as follows: "U.S. Treasury prices dived Wednesday after an auction of 10-year notes drew very weak demand, signaling a lack of appetite for ultra-safe investments." Gee, I wonder why there's a "lack of appetite"?

In his weekend syndicated column, Deroy Murdock unearthed and relayed information the establishment press hasn't told the nation about how certain public-sector pension funds and university endowments have chosen to invest money entrusted to them in Bain Capital. Yes, Bain Capital.

Until three weeks ago, it would have been somewhat understandable if the business press didn't expect to find a story here. After all, who would expect that the organizations complaining the loudest and longest about the conduct of Bain, the private-equity firm GOP presidential candidate Mitt Romney left over a decade ago, would actually have significant funds invested there? These people couldn't possibly be that hypocritical, could they? Oh yes they could.

In his Jackson Hole, Wyoming presentation today, Federal Reserve Chairman Ben Bernanke, as reported by Paul Wiseman at the Associated Press, made the following claim in connection with the Fed's programs of "quantitative easing" (QE): "Bernanke argued Friday that collectively, such measures have succeeded. He cited research showing that two rounds of QE (quantitative easing) had created 2 million jobs and accelerated U.S. economic growth." 

I'm not inclined to automatically believe Big Ben's word. But if he's right, and if the allegedly positive effects of QE started being felt at about the time the recession ended, that would mean that the fiscal policies of the Obama administration are responsible for the remnant. Of course, Wiseman at the Associated Press, aka the Administration's Press, didn't ask the next logical question, so I will. Guess how big that remnant is?

About a month ago, I joked in a column published elsewhere that the reason a certain New York Times column didn't resonate with anyone is because no one pays attention to the Old Gray Lady any more.

Unfortunately, that's not true. But the fact that almost no other establishment press outlet has mentioned the paper's disclosure late Wednesday (appearing in Thursday's print edition) that former MF Global CEO Jon Corzine and others at the bankrupt firm likely won't face criminal prosecution in the firm's crack-up, which featured raiding individual customers' accounts to the tune of $1.6 billion, seems to indicate that the Times has become a favored holding cell for stories detrimental to Democrats which will otherwise be ignored. Oh, and contrary to the belief expressed in a very long Vanity Fair item in February, when Corzine was seen to be in "a scandal he can’t survive," and that "his career is likely finished," the man is seriously considering starting up a new hedge fund.

As the broadcast network evening newscasts on Tuesday gave attention to Vice-President Joseph Biden asserting that Mitt Romney, by "unchaining" Wall Street would effectively "put y'all back in chains," only CBS's Bob Schieffer informed viewers that about half the audience in Danville, Virginia, was African-American, thus suggesting the Vice-President was making an embarrassing pander to black audience members who likely have ancestors who used to be "in chains."

On the CBS Evening News, as he set up a soundbite of Biden, substitute host Schieffer related:

Matthew Yglesias has been posting at Slate.com, supposedly a paragon of online establishment press journalism, as a business and economics correspondent since November of last year. His background is unmistakably leftist: ThinkProgress, the Atlantic, TPM Media, and the American Prospect.

On Saturday, a Yglesias found a blog post which was apparently too good to check at The Richmonder, a lefty enterprise run by Jerel Wilmore. The Richmonder's post claimed that "Paul Ryan traded on insider information to avoid 2008 crash" (post has been retracted; excerpt was obtained at democraticunderground.com; some of what follows is also here):

In his column at the Los Angeles Times today (HT to a NewsBusters tipster), Michael Hiltzik engages in predictable whining about discussions on how to bring the federal deficit under control seem "increasingly to be driven by the wealthy." In the instance he cites, one could substitute "big bank and big company CEOs," who seem to have recently decided that President Obama's Simpson Bowles debt commission had a good roadmap in late 2010 after being as far as I can recall pretty much AWOL on the matter when it was first presented.

That's fine. Hiltzik entitled to his take. But he's not entitled to his facts, particularly his assertions on Social Security (bold is mine):

For the past two weeks Barack Obama's media minions have been working overtime trying to convince the American people the President was taken out of context during his now infamous "You Didn't Build That" speech in Roanoke, Virginia.

CNN's Donna Brazile and the Washington Post's Ruth Marcus tried making that pathetic claim on ABC's This Week Sunday only to receive a much-needed education from George Will and Breitbart.com's Dana Loesch (video follows with transcript and commentary):

New York Times economic columnist Paul Krugman made a statement Sunday about the looming end of the year tax hikes and spending cuts that is likely to raise some eyebrows on both sides of the aisle.

Appearing on CNN's Fareed Zakaria GPS, Krugman said, "If Obama’s reelected, I think that there’s a quite good chance that for a month or two we actually will go off the cliff" (video follows with transcript and commentary):

You know, President Obama is such a constructive guy. Why, he's a veritable Mr. Sunshine like Chicago Cubs baseball Hall of Famer Ernie Banks. He hardly ever goes after presidential opponent Mitt Romney with harsh criticism. When he does, it's a "rare swipe."

That's what Jim Kuhnhenn at the Associated Press told his readers yesterday in his coverage ("New day, old bickering on taxes between Obama, GOP") of the President's weekly radio address and related matters. Kuhnhenn, who between shifts as a reporter must live in a hermetically sealed cave, wrote the following:

Here’s a really scary thought: New York Times columnist Paul Krugman wants to replace Ben Bernanke as the Chairman of the Federal Reserve.

The perilously liberal economist actually said this in a segment of CNN’s Fareed Zakaria GPS to be aired Sunday (video follows with transcribed highlights and commentary):

No matter how inane or damning his comments and answers to inquiries, it appears that Obama Treasury Secretary Tim Geithner can continue to count on favorable coverage from the Associated Press, aka the Administration's Press, aka the Administration's Protection.

The AP's Marcy Gordon, with the help of her story's headline writer, made Geither's appearance before the House Committee on Financial Services all about partisanship until near the very end. Incredibly, she also relayed a very important question committee members asked about Geithner's use of an interest rate he knew was being lowballed by British banks as the basis for determining the interest rate on Treasury bailout loans while he was still head of the New York branch of the Federal Reserve Bank -- but didn't tell readers what his answer was. Excerpts follow (bolds are mine):

The left, including the Obama administration and some in the media, are making anti-capitalist attacks on opponent Mitt Romney’s business career the latest tactic. And the gloves are off.

On July 12, Obama’s deputy campaign manager Stephanie Cutter went on the offensive charging Romney could be a criminal: “Either Mitt Romney, through his own words and his own signature, was misrepresenting his position at Bain to the SEC, which is a felony. Or, he was misrepresenting his position at Bain to the American people to avoid responsibility for some of the consequences of his investments,” she said according to Politico.

On Friday's Inside Washington on PBS, regular panel member Nina Totenberg - a correspondent for NPR - generalized that "bankers and business" are not only the "super-rich" but also the "super-crooked" as the panel discussed the issue of Mitt Romney's taxes and President Barack Obama's "you didn't build that" gaffe in which he dismissed the importance of individual effort in entrepreneurship while crediting government. Totenberg:

Left-wing comedian Stephen Colbert smeared Mitt Romney on his Comedy Central program on Monday, hinting that Bain Capital under his helm acted like a group of 19th century settlers that resorted to cannibalism. After noting how President Obama forwarded a claim by The Washington Post that Bain owned companies that were "pioneers" of outsourcing, Colbert snarked, "Who cares? Pioneers opened up the West. Bain was just like the Donner Party. They ate the weak."

The following day, Tuesday's CBS This Morning publicized the liberal celebrity's attack during their regular "Eye Opener" segment just after the top of the 7 am Eastern hour. The morning program played a clip of the President using the "pioneers" line immediately before the Colbert soundbite [audio available here; video below the jump]:

Here's how a "Business Highlights" item at the Associated Press summarized the situation between Timothy Geithner and London banks whose officials had admitted to rigging the London Interbank Offered Rate ("Libor") on Friday evening: "The Federal Reserve Bank of New York released documents Friday that show it learned five years ago of big banks understating their borrowing costs to manipulate a key interest rate. The documents also show Treasury Secretary Timothy Geithner, who was then president of the New York Fed, urged the Bank of England to make the rate-setting process more transparent."

Today, Charles Gasparino at the New York Post called total BS such pathetic media spin (bolds are mine):

My, it was awfully nice of Marcy Gordon at the Associated Press, aka the Administration's Press, to give Treasury Secretary Tim Geithner such excellent protection in her report on the New York Federal Reserve Bank's release of documents relating to its knowledge of the manipulation of the "Libor" (London interbank offered rate) used as the basis for the pricing of trillions of dollars of loans.

Her report's second paragraph only tells readers that Geithner, "who was then president of the New York Fed, urged the Bank of England to make the rate-setting process more transparent." What a helpful guy. Readers needed to go to Paragraph 12 to see more about Geithner, and even that information was given kid-glove treatment:

Not only is the Associated Press aptly currently described as the Administration's Press -- as least as long as the White House's current occupant remains there -- it also seems to be serving as the Administration's Protection.

In a story about the "Lie-bor" scandal, wherein British banks have admitted to colluding to set the London Interbank Offered Rate (LIBOR) -- arguably the world’s most important benchmark for interest rates -- artificially low, AP reporter Martin Crutsinger "somehow" forgot that current Treasury Secretary Tim Geithner was President of the New York Branch of the Federal Reserve Bank during much of the time period in which Congressional investigators are interested. Clearly, they want to know what Geithner knew, and when he knew it. The first three paragraphs of Crutsinger's writeup, followed by his sole context-free mention of Geithner, follow the jump (bolds are mine throughout this post):

We at NewsBusters have been calling MSNBC's Chris Matthews a sycophant for Barack Obama since at least February 2008 when the so-called journalist bragged on the air about getting a thrill up his leg at the sound of the former junior senator from Illinois' voice.

It was therefore quite pleasing to hear former Republican National Committee chairman Michael Steele tell the Hardball host that to his face Thursday during a contentious exchange about the current White House resident's economics policies and who should be blamed for their failure (video follows with transcript and commentary):

A new economic report from the Federal Reserve doesn't offer much hope. On the front page of The Washington Post,  Ylan Q. Mui underlined "the Federal Reserve said the median net worth of families plunged by 39 percent in just three years, from $126,400 in 2007 to $77,300 in 2010. That puts Americans roughly on par with where they were in 1992."   

Furthermore, "the data represent[s] one of the most detailed looks at how the economic downturn altered the landscape of family finance. Over a span of three years, Americans watched progress that took almost a generation to accumulate evaporate. The promise of retirement built on the inevitable rise of the stock market proved illusory for most. Homeownership, once heralded as a pathway to wealth, became an albatross."  What's more interesting is that Mui's article doesn't mention Obama once  -- in a front page piece during an election year -- right after he told reporters the private sector is "doing fine."

With the president's signature "achievement" on life support, The New York Times decided to bury the story in the Friday front-page article "Approval Rating for Justice Hits Just 44% in New Poll." Times reporters Adam Liptak and Allison Kopicki attacked the most prestigious institution in the country, claiming "the public is skeptical about life tenure for the justices, with 60 percent agreeing with the statement that appointing Supreme Court justices for life is a bad thing because it gives them too much power. One-third agreed with a contrary statement, that life tenure for justices “is a good thing because it helps keep them independent from political pressures.”   

While the Times seems to insist the court is losing public prestige, it doesn't want to report on how ObamaCare is still a flop with the public. They save this for paragraph 16:  "41 percent of Americans want the Supreme Court to overturn the entire health care law passed in 2010, while another 27 percent want the court to throw out the part of the law that requires most people to buy coverage. The poll, conducted by the New York Times and CBS News, reveals that more respondents disapprove of the law than approve, 48 percent to 34 percent."  

JPMorgan Chase CEO and Chairman Jamie Dimon and President Obama were once friends, but the three major networks were quick to forget this once JPMorgan Chase lost more than $2 billion. Earlier this year, Dimon was one of only three CEOs who had special access to the White House and Treasury Secretary Geithner, according to Associated Press.

Now the Obama Administration and the media have made Dimon into a poster child for why a lack of government control in the banking sector is a bad thing, while at the same time they have distanced Obama from the controversy surrounding his former friend. Dimon used to be regarded, as Politico so aptly put it, as a “blunder-free Master of the Universe.” He was also referred to as the president’s “favorite banker” three separate times by The New York Times. Dimon will be testifying before the Senate Banking Committee regarding the JPMorgan Chase debacle on June 13.

Peter Goodman, the business editor for the perilously liberal Huffington Post, has come up with a new highly-derogatory term for people on the right that believe there isn't an unlimited amount of money at the government's disposal.

His Monday headline read, "Bleeding Cash Conservatives Wasting Money To Punish Vulnerable Americans":