"Meet the Press" host Tim Russert asked Bartiromo and CNBC's Erin Burnett if Bernanke was "up to the task" to take on problems with the U.S. economy. Bartiromo didn't blame the Fed chief for the current economic environment, but defended Bernanke and said the foundation of the housing problems was in place prior to his tenure.
"I really don't think you can blame Ben Bernanke for this, Tim," Bartiromo said. "You know, I think that he is, as Erin said, throwing the kitchen sink, doing a lot at this point. And remember, he's a new chairman. You know, so what was put in place before he was actually in this role has set us up for this."
"The American public don't know jack," Cramer said in response to a question from CNBC correspondent Michelle Caruso Cabrera about justifying the move to the American public. "They're just glad they're just not going to lose their job. I mean, this thing was so out of control. Everybody on Wall Street thought they were going to lose their jobs 10 days ago. We're thrilled."
As media continue to report current economic conditions as being almost Depression-like, they conveniently forget which political party has controlled both chambers of Congress since January 2007 as well as who was in the White House when key financial services deregulation was enacted.
Such a well-timed amnesia hit ABC's Claire Shipman Sunday when during the panel discussion segment of "This Week," she blamed the current financial crisis on Republicans.
Color me unsurprised.
After host George Stephanopoulos asked Shipman's husband, Time magazine's Jay Carney, "How does John McCain fix his problem on the economy," the following ensued:
With Eliot Spitzer gone, Chuck Schumer moves to the head of the list of smugly self-righteous New York pols. So it was particularly satisfying to see Sen. Jon Kyl [R-AZ] put Schumer is his place on This Week with George Stephanopoulos today.
A guest with Kyl for purposes of discussing the economy, Schumer clearly came in with a game plan: to analogize President Bush to the man who presided over the beginning of the Great Depression: Herbert Hoover. After Schumer tried it twice, Kyl had had enough and unleashed a riposte as devastating as it was reasoned.
ABC's "World News Tonight" had a hard time on Friday without normal anchor Charles Gibson, as in its segment about the employment numbers released by the Labor Department, guest host George Stephanopoulos said the figures were from January 2008.
This was stated as a graphic came on the screen reading "JOBS LOST, January 2008, 63,000." Of course, Labor's report was for the month of February.
Sadly, that wasn't the only mistake "World News" made concerning this crucial piece of economic data, for just as the Associated Press had done earlier in the day, ABC's Business Correspondent Betsy Stark claimed (video available here, h/t NBer Gary Hall):
During a story suggesting that Angelo Mozilo, the former CEO of the mortgage company Countrywide, is unworthy of his millions of dollars and perhaps enjoys too much time lying in the sun, ABC's Dan Harris, possibly not picking up on the former CEO's Italian ethnicity which could be the source of his skin's dark complexion, remarked that Mozilo's "deeply tanned face" could become the "face of the mortgage mess." The story ran on Friday's World News with Charles Gibson, substitute hosted by George Stephanopoulos, with Harris beginning his report: "This may well become the deeply tanned face of the mortgage mess. The face belongs to Angelo Mozilo, the once-celebrated CEO of Countrywide, now facing allegations of predatory lending and rapacious greed." Harris also ended the report seeming to lament that Mozilo is not facing foreclosure on any of his homes: "If the sale [of Countrywide] goes through, Mozilo will walk away with about $40 million. And with not one of his homes in foreclosure." (Transcript follows)
It certainly is no surprise the stock market's big decline on Friday would be the lead story for evening news programs.
But, citing an economic study from an organization with direct and verifiable ties to Democrat presidential candidate Hillary Clinton as simply a "consumer group" while not even mentioning the liberal leaning of the think-tank seemed pretty absurd even for NBC.
Yet, that's what occurred Friday evening as the NBC "Nightly News" began its broadcast:
Steven Pearlstein, a one-time reporter for the Post who now pens a column for the newspaper, wrote February 20 that “the best thing that could happen to our economy is for a dozen high-profile hedge funds to collapse; for investment banking to enter a long, deep freeze; for a major bank to fail; and for the price of a typical Park Avenue duplex to fall by 30 percent.”
“For only then,” Pearlstein wrote, “might we finally stop genuflecting before the altar of unregulated financial markets and insist that Wall Street serve the interest of Main Street, rather than the other way around.”
He didn’t explain how hedge funds collapsing or banks failing would help Americans. Instead, he opted to cheer for a situation that would see millions of people suffer, admitting his was a “harsh and vengeful solution, and there will be lots of collateral damage.”
Putting all those things together, it does seem to suggest that your industry is looking to make more money off its credit card holders. Do you deny that? -- Chris Cuomo to banking industry representative, GMA, Feb. 12, 2008.
This year's Media Research Center DisHonor Awards haven't been distributed yet, but we might already have a candidate for next year's competition . . .
Give banking industry representative Nessa Feddis, um, credit for not bursting out in laughter in response to Chris Cuomo's question. Yes, Chris, businesses are, well, in business. And the people from whom they make their money do tend to be their customers.
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.
Billionaire investor George Soros called for more government monitoring and involvement in markets in an interview on CNBC January 23.
"Now we really have to reconsider the whole policy, which has been in my opinion misplaced, of relying on the markets to police themselves," Soros told Maria Bartiromo in Davos, Switzerland, "to recognize the risks. And there are risks which it is the job of the authorities to control, and the authorities have abdicated their responsibilities. So did the rating agencies."
Soros slammed the government for "not taking the right steps in dealing with" what he called upset financial markets. "[T]he authorities ought to move into the market makers, look at the books and make sure that the bad risks are recognized and reassure the markets that the main actors, the banks that are too big to fail, will not fail, that they will in fact be bailed out the same way as Northern Rock was bailed out even if that means wiping out the shareholders or greatly reducing their benefits."
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.
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."
CNBC's ticking time bomb Jim "Mad Money" Cramer lashed out at the Federal Reserve again on January 2 for not cutting interest rates. This time he suggesting the Fed was intentionally doling out punishment to reckless investors.
"I have to tell you that I look at this situation and I say to myself, ‘They [the Federal Reserve] want it. They want a recession.'" Cramer said on CNBC's January 2 "Squawk on the Street." "They're Puritans. They want to punish the people who were reckless in their eyes and the punishment has still not finished being metedout."
Cramer was called into a discussion about the Fed with CNBC's David Faber and "Squawk Box" co-host Joe Kernan.
NewsBusters and affiliate The Business & Media Institute have been reporting for many months the continuous, bearish assessments of economic gloom and doom by America's press.
Of course, this all comes despite 24 straight quarters of Gross Domestic Product growth, 50 consecutive months of job gains, higher wages for virtually all Americans, and last month's consumer spending explosion.
Ignoring all this Sunday morning were panelists on "The Chris Matthews Show" who demonstrated such a deplorable lack of economic acumen that maybe they shouldn't be allowed to comment on such matters when cameras and microphones are on.
Since the stock and credit market turbulence began in July, NewsBusters has been informing readers that media continually predict recessions that never happen.
On the sad flipside, bearishness in the press can become so pervasive that an economic downturn ends up being an unfortunate self-fulfilling prophecy.
NewsBusters affiliate the Business and Media Institute made this very point in a late-November article by Amy Menefee entitled "Talking Ourselves Into Recession."
This concern is shared by business leaders like Craig Hester, CEO of Hester Capital Management, who during an interview with CNBC's Erin Burnett and James Cramer Friday spoke an inconvenient truth about media's impact on the economy that folks in the press sadly don't recognize as they disseminate pessimistic after pessimistic predictions often leading to people unnecessarily losing their jobs - or worse:
"He is a guy that doesn't get regular coal - I'm giving him high-sulfur stinky coal," Cramer said. "He is in the end an academic who is over his head frankly. I hate to say that. He's a volunteer official who is trying to do his best. But he had his chance and he's lost it."
You'd hardly expect the chief Washington correspondent of business channel CNBC to negatively stereotype economic conservatives. But appearing on today's Morning Joe, the urbane John Harwood did just that.
JOE SCARBOROUGH: [Huckabee is] a different type of evangelical. It's not the evangelical in American politics that's traditionally been very conservative economically. Obviously a lot of people at the Wall Street Journal don't like this guy.
Steve Fraser might look mild-mannered, but when it comes to economic doomsaying, he is the Rocky Marciano of recession, the Tiger Woods of turndown, the David Beckham of depression.
Speaking of bending one, Fraser's LA Times column of today, "Symptoms of an Economic Depression," twists U.S. economic data into a harbinger of impending doom. Fraser begins by falsely claiming that "no one wants to utter the word 'depression.'" In fact, Fraser himself, a left-wing labor historian, wants not merely to utter it, but to bellow the word with a 10,000 megawatt bullhorn. Why? Because, as he gleefully predicts in that same column:
This perfect storm [of a bad economy] will be upon us just as the election season heats up, and it will inevitably hasten the already well-advanced implosion of the Republican Party.
Business & Media Institute Director Dan Gainor appeared on the Fox Business Network December 6 to discuss how the media is choosing sides in the subprime housing problem.
"All throughout this whole year and actually if you go back in the last year and before [the media] have been pointing out that the lenders are the bad guys...CBS News who actually did an okay report last night, then the example they use is someone who has a 6.6% adjustable rate adjusting up to 9.6%, they've got a house the size of a mansion and they've got horses."
Gainor said the important thing that journalists fail to do is to get both the lenders and the home buyer's viewpoints.
The Democrats are better at understanding the impact of globalization on working people in America. The wages that have been arrested and halted in their growth, while, you know the boys in investment banking are making 10 times the average income of an American. I think the Democrats understand the consequences of it more than the Republicans and, frankly, another disagreement I've got with Republicans is that they are compulsive interventionists. They seem to have learned nothing and forgotten nothing from what happened in Iraq when they are talking about doing the same thing in Iran. -- Pat Buchanan, November 29, 2007
The next time you hear the MSM defending itself against charges of a lack of balance by pointing to Pat Buchanan's presence on its panels, remember his statement above. On globalization, Pat echoes the Seattle street protesters, seasoned with some John Edwards "Two Americas" rhetoric about Wall Street fat cats. On foreign policy, Pat sounds like someone auditioning for Secretary of Peace in Pres. Kucinich's cabinet.
As the 2008 election approaches, the New York Times uses the image of a sinking red "RECE$$ION" to communicate a fear that is so far only a phantom menace. Peter Goodman's Sunday Week in Review cover story, "Trying to Guess What Happens Next," displayed plenty of pessimism about the U.S. economy after years of foreign-financed easy money.
But the accompanying graphic communicated even more starkly the feeling the Times no doubt wanted to convey -- a fearful, sinking feeling among U.S. consumers (and November voters). The top half of the page was dominated by white space, with the big red word "RECE$$ION" sinking below the horizon.
Is there a single economist who thinks the U.S. economy, with inflation tamed for now and a low unemployment rate, is currently in recession? Not even Goodman himself goes that far, though his pessimism seems pretty overblown.
Financial Times US Managing Editor Chrystia Freeland has become a "Hardball" regular of late.
CHRYSTIA FREELAND: The other thing that people worry about is if someone forecloses on their home, and that's the issue we haven't really seen raised too much in the Rudy-Romney debate. I think as we move into 2008 and the economy looks a lot grimmer, that's going to be another important battleground.
*****Update at end of post includes detailed response to unhappy e-mail messages concerning this subject.
As someone that has done a lot of economic writing and financial media analysis, I'm used to gloom and doom from journalists.
However, Saturday's Associated Press article concerning the credit crunch and how it's impacting the mortgage market could be the worst example of economic and financial misreporting and exaggeration I've seen since the press universally forecast an economic downturn after Hurricane Katrina hit New Orleans.
Entitled "Have We Seen the Worst of the Mortgage Crisis," Joe Bel Bruno's piece actually suggested that a depression could be looming, and that housing prices in some areas could decline by 40 percent (emphasis added):
Cramer, host of the CNBC’s “Mad Money” called liberal Democratic New York State Attorney General Andrew Cuomo as “communist” on CNBC’s November 7 “Street Signs.”
“[W]itness the fact that right now, the most important man in America for the stock market – the most important man and I mean it negatively is this guy Andrew Cuomo, the New York State Attorney General,” Cramer said. “I’m getting tired of the New York State Attorney General being the most important man in America.”
It has been regularly reported by NewsBusters that media are doing everything in their power to withhold from the public the financial ramifications of global warming alarmism.
Be it the marketing of totally useless carbon offsets, or proposals for additional taxes on consumers and corporations, press outlets have been seemingly coordinated in their silence regarding such matters.
Another fine example of such a boycott occurred last week when House Energy and Commerce Committee chair John Dingell (D-MI) discussed a rather elaborate tax plan with the Associated Press Wednesday that virtually no major media outlet outside of Detroit bothered to report (emphasis added throughout):