When you increase demand for something, its price should go up.
In the case of bonds, if the demand for them increases, their price should go up, and their effective interest-rate yield should go down.
That didn't happen on Friday when the Federal Reserve began executing its second round of "money from nothing" quantitative easing. Even though the Fed increased demand, bond prices went down and yields went up.
Why? If you read a late Friday afternoon report by the Associated Press's Matthew Craft you essentially get a bunch of blubbering "I don't know" statements (bolds after headline are mine):
Thursday evening, NB's Ken Shepherd accurately pointed out how little establishment press interest there has been in prominently carrying an Associated Press report about how the Obama administration has been, in the words of the wire service's Dina Cappiello, "downplaying scientific findings, misrepresenting data and most recently misconstruing the opinions of experts it solicited."
This is not to excuse those who have given her report short shrift, but the AP and Cappiello herself did their level best to try to minimize the significance of what was to come in their headline and first paragraph, respectively:
Before critiquing, I should recognize that USA Today, while most of the establishment press has snoozed, has done a very creditable job of exposing the wide differential between federal employee and private-sector pay (Aug. 10, 2010; "Federal workers earning double their private counterparts"), and of identifying the outrageous degree by which salaries in the upper levels of Uncle Sam's empire are expanding (Dec. 11, 2009; "For feds, more get 6-figure salaries").
Yesterday, in a mostly well-done report, USAT's Dennis Cauchon, who also authored the two linked items in the previous paragraph, delved into many of the details concerning the growing number of federal employees who get paid $150,000 or more per year. Among his more important points is the fact that a great deal of the expansion into this high level of pay has occurred since President Obama took office, during a period when overall inflation has been very low:
They're back, they have their media water-carriers in place, and the Obama administration is smack dab in the middle of it.
The United Nations is pushing for countries in the developed world to keep their "promise" to, in the worlds of Charles J. Hanley at the Associated Press, "raise up to $100 billion a year in new money for poorer countries to cope with climate change and reduce their greenhouse gas emissions."
It's as if ClimateGate never happened (link is to NB's 120-plus posts on the topic). It's as if the IPCC and others associated with the scandal and the evidence-impaired claims of global warming -- er, climate change -- uh, make that climate disruption -- still have their reputations totally intact.
So what should be made of the historic midterm election of 2010?
While all the pundits try to analyze polling data and read between the lines, syndicated columnist and Fox News contributor Charles Krauthammer has a clearer view. In his view, President Barack Obama’s so-called hope and change agenda is dead and it’s up to Obama to determine his direction.
When a Democrat or leftist makes an ill-advised remark, it seems that there's a three-stage process at the Associated Press, and perhaps in most other establishment press outlets, for handling it. It goes roughly like this:
Stage 1 - Ignore it as long as you can. If there isn't much outcry, keep ignoring it.
Stage 2 - If there ends up being enough of an outcry from conservatives or Republicans to warrant coverage, make sure that the story is about the criticism at least as much as the remark.
Stage 3 - In the ensuing coverage, leave out what was originally said.
The Associated Press is currently and grudgingly at Stage 2 with Harry Reid's remark that "but for me, we'd be in a worldwide depression," as seen below (reproduced in full for fair use and discussion purposes):
It appears Juan Williams’ firing is just what the public needed to realize their tax dollars are being poorly handled through subsidies from the federal government given to the Corporation for Public Broadcasting to prop up National Public Radio.
However, “Red Eye” host Greg Gutfeld makes the most reasonable case not to deprive NPR of its taxpayer subsidies. On the Oct. 23 broadcast of his program, Gutfeld explains to his viewers his case for not defunding the radio organization, but not without taking some jabs their decision to fire his Fox News colleague.
Michelle Malkin picked up on this vibe yesterday, and it has become more obvious in the intervening day: The establishment press, or at least parts of it, are downplaying the American exceptionalism -- and the exceptional Americans -- involved in the Chilean mine rescue.
Reports early this morning at the Associated Press and New York Times exemplify the point. Times reporters Alexei Barrionuevo and Simon Romero even chose to deliberately cast the rescue in brazenly cynical political terms.
Following up on yesterday's post ("Government/General Motors, UAW Hose Long-Time Members Twice in Two Weeks"; at NewsBusters; at BizzyBlog) -- What a "revolting" development this is, as reported in the Detroit News:
GM Orion assembly workers to picket UAW over two-tier wage structure
In an unprecedented move, Government/General Motors and the UAW are imposing a two-tiered wage structure involving pay cuts approaching 50% on union members with as many as 10-12 years of seniority. That's right; the Democratic Obama administration and the alleged champions of workers' interests are acting in concert to gut the earnings of hundreds of the union's longtime, dues-paying members.
Does anyone expect any press coverage of this outside of Detroit?
Here's more from the story by Louis Aguilar and Christina Rogers:
Do the science writers and political reporters at the Associated Press ever compare notes? Based on their divergent coverage of stem cell research, it seems doubtful.
On Sunday, AP science writer Milan Rising reported that a Japanese scientist was under probable consideration to win this year's Nobel Prize in medicine:
A Japanese researcher who discovered how to make stem cells from ordinary skin cells and avoid the ethical quandaries of making them from human eggs could be a candidate for the medicine award when the 2010 Nobel Prize announcements kick off Monday, experts said.
Several prominent Nobel guessers have pointed to Kyoto University Professor Shinya Yamanaka as a potential winner of the coveted award.
Though the prize, announced this morning, went to another gentleman, the question remains: How could this be? As a court case over President Obama's executive order permitting federal funding of embryonic stem cell research has been progressing through its various appeals during the past several weeks, AP's political writers have been giving readers the clear impression that it is the research involving the destruction of human embryos that holds the real promise of scientific progress. Uh, not exactly. In fact, not at all.
The arrangement described here is so journalistically incestuous I was considering hanging an NC-17 (or worse) rating on this post.
You see, the husband of a former longtime ABC reporter held a Democratic National Committee fundraiser at the couple's home Thursday night at which President Barack Obama appeared for 15 minutes. The reporter's husband was on the Obama campaign's national finance committee and now is the chairman of a White House commission. As if it really matters, the former ABC reporter, Linda Douglass, who left to work for Obama's presidential campaign and who then joined his administration for 18 months until landing a media management gig at the Atlantic, says she was "not involved" in the event.
Keach Hagey at the Politico took a bit longer to describe things, accompanied by what I think was supposed to be a flattering picture of Ms. Douglass (seen above, but cropped for this post):
Government/General Motors saw its total vehicle sales fall in September to 173,031 from 185,105 in August. At the same time, Ford's sales increased from to 157,327 to 160,375.
Thus, what was an almost 28,000-vehicle lead for GM in August shrank by more than half to less than 13,000 in September. No one has a crystal ball, of course, but if GM falls and Ford surges by similar amounts in October, Ford will become the top-selling brand in the USA.
Associated Press reporters Tom Krisher and Dee-Ann Durbin apparently believe that Ford's move to within clear striking distance of taking over GM is not news that anyone can use. They had their opportunities to mention the situation in their coverage today, and blew right by them.
Oh, and wait until you see what GM is doing to try to keep from losing its Number 1 status.
In New Mexico yesterday and probably in several other appearances, President Barack Obama criticized the House Republicans' Pledge to America on several fronts. To me, only because I tend to look at the real numbers during most months, his most obviously off-base critique had to do with federal education spending (as carried at Jake Tapper's Political Punch blog at ABC):
Obama said the Republicans would to cut education spending by 20 percent in order to pay for some of the tax breaks, a charge House Republicans say is inaccurate.
Tapper is one of the few establishment media reporters left who isn't afraid to question liberal authority, but he missed a golden opportunity to dig into facts that might have left him wondering why the Republicans are being so timid.
It is truly remarkable to observe how press outlets continue to misreport and misinform the public in the area of stem cell research.
One of the latest examples came yesterday at the Associated Press. In a report covering a court ruling on government funding of embryonic stem cell research (ESCR), the AP's Nedra Pickler completely failed to acknowledge that there are any other kinds of stem cells. Every single use by Pickler of the terms "stem cell" or "stem cells" has no modifying adjective, except the very first, whose modifier is "embryonic."
It's as if there are no other avenues besides ESCR for "scientific progress toward potentially lifesaving medical treatment." In fact, Pickler's less-informed readers would have no reason to believe that there is any form of stem cell research besides ESCR. The reality, which will be shown later for the umpteenth time, is that non-embryonic stem cells, often referred to as adult stem cells, have already shown that they can do virtually everything embryonic cells can with far less potential for side effects and, of course, no loss of human life. The word "adult" does not appear in the AP report.
Here are several paragraphs from Pickler's pathetic piece, which also includes a deeply deceptive quote (is there any other kind?) from Obama White House Press Secretary Robert Gibbs (bold is mine):
You would think someone in the U.S. establishment press would be following Uncle Sam's progress or lack thereof in getting out from under its investment in Citigroup, especially since the government promised that it would be fully divested from the bank holding company by the end of this year. From all appearances, you would be wrong.
It looks like the government may not be able to keep that year-end divestiture promise. For a fair number of news followers to learn that, the UK's Financial Times had to take an interest (link may require registration), and Drudge had to link to it:
US Treasury stumbles selling Citi shares
The US government is in danger of missing its deadline of divesting all of its Citigroup shares by the year-end after a fall in stock market trading volumes prompted authorities to slow down sales in July and August.
The lull could prompt the US Treasury, which has a stake of about 17 per cent in Citi, to consider a share offering instead of selling the stock in small quantities in the market, according to bankers and analysts.
In the earlier paragraphs of a Friday report on the recently passed small business lending bill at the Associated Press, reporter Pallavi Gogoi gave readers the impression that Congress's allegedly noble intentions might be thwarted because banks and businesses who should apparently be grateful for the "help" don't want it.
Gogoi gives no direct indication that the bill involves government "investment" in (i.e., partial state ownership of) participating financial institutions.
The AP reporter didn't have to look very far to see what's really involved. The defined purpose of the bill, which weighs in at over 40,000 words (full text here), is right there at its beginning (bold is mine):
An Act -- To create the Small Business Lending Fund Program to direct the Secretary of the Treasury to make capital investments in eligible institutions in order to increase the availability of credit for small businesses, to amend the Internal Revenue Code of 1986 to provide tax incentives for small business job creation, and for other purposes.
This is not very different from what ended up happening with the Troubled Asset Relief Program (TARP) enacted two years ago. In fact, two lawyers writing on the law's potential impact describe it as a "mini-TARP." You'd never know that from Gogoi's report (one cryptic reference to the underlying state control involved is in bold):
I tried to find a nicer way to put it in the headline. But I can't.
At the Associated Press, Economics Writer Martin Crutsinger's apparent plug-and-play report less than an hour after the issuance of Uncle Sam's August Monthly Treasury Statement on Monday (his item is time-stamped at 2:56 p.m., which follows the Treasury Department's 2:00 p.m. release by less than an hour) contains three obviously false statements that a news organization which really subscribes to its own "Statement of News Values and Principles" would retract and/or correct.
The specific AP standard in question is whether it has violated its promise not to "knowingly introduce false information into material intended for publication or broadcast." The only conceivable excuse at this point is that Crutsinger and his employer don't realize what they have done. The three falsehoods involved are not arcane or open to interpretation. Rather, they are significant, obvious, irrefutable, and in need of correction.
What follows are the three statements, the first of which contradicts itself in the report's own subsequent sentence:
New York Times reporter Robert Pear ought to consider moonlighting as a stand-up comic in the tradition of Steven Wright.
Wright's deadpan delivery is legendary. Pear's deadpan lines in his article about the immense paperwork burden heading the economy's way in the form of requiring IRS 1099 forms to be issued to each and every person paid $600 or more during the course of a calendar year for any and all goods provided or services rendered are remarkable.
Of course, if Pear chooses to get on stage with his act he'll have to come up with a more humorous topic. The nightmare that could be visited upon American business and really the American economy is pretty stunning -- and don't for a minute think that individuals with hobbies that break even or possibly lose money every year and don't ordinarily bother to file tax returns for their activities (because they aren't required to) aren't going to be affected.
What follows are a few of the choice one-liners found in Pear's September 11 article ("Many Push for Repeal of Tax Provision in Health Law") that appeared in the paper's Sunday print edition on Page A25:
It seems reasonable from their coverage in anticipation of the Census Bureua's release of income and poverty statistics this week that Hope Yen and Liz Sidoti of the Associated Press have a roof over their heads and aren't particularly worried about where their next meal is coming from. If so, good for them; may those circumstances continue.
What's remarkable, though, is how a government report that the media, especially the AP, has traditionally treated as an indicator of society's alleged failure to take care of its neediest --with the blame often directly aimed at Republicans and conservatives -- is now primarily a political problem for the party in power. Yen and Sidoti engage in a presidential pity party, and in the process come off as indifferent about what the numbers, for all their imperfections (and they are substantial), might mean in human terms -- again, something the press normally obsesses over, especially when a Republican or conservative is president. This time, it seems that if Ms. Yen and Ms. Sidoti had their way, this unfortunate information would be held until at least November 3.
What follows are graphic capture's of the pair's first four paragraphs, followed by paragraphs 12-16:
Reports from the twelve Federal Reserve Districts suggested continued growth in national economic activity during the reporting period of mid-July through the end of August, but with widespread signs of a deceleration compared with preceding periods.
... However, the remaining Districts of New York, Philadelphia, Richmond, Atlanta, and Chicago all highlighted mixed conditions or deceleration in overall economic activity.
It may be fair to describe the detail in Atlanta's section of the report as "mixed" (it's a borderline call; the opening paragraph from that District's report will appear later). But Richmond's section is clearly one of deceleration, which brings us to today's clearly needed geography lesson for Jeannine Aversa and/or a headline writer at the Associated Press.
What follows is a graphic containing the headline at Aversa's 2:45 p.m. story (since updated here), and her first few paragraphs:
Obama administration Labor Secretary Hilda Solis (pictured at right with what I would guess is her ideal car of the future) shamelessly used Labor Day weekend as an opportunity to score political points.
In a presentation that was more a political stump speech than an informative presentation, Solis recited a litany of alleged accomplishments. Many of them have no relationship to what her department does, while some are also objectively wrong. Second, she set up a host of straw men in the form of "those who would" and "to those who want to" to make her department and the administration where she works appear as if they and they alone are the bulwark against rapacious employers and their political allies.
The YouTube video is present at this DOL page (direct YouTube link here). What follows are selected transcribed excerpts, with specific critiques:
The news out of Government/General Motors during the past couple of days hasn't been particularly good.
First, August sales results were disappointing. Second, it become known today that GM will attempt to go public on November 18, a later than originally hoped post-election date chosen to hopefully allow for another reported quarterly profit to boost investors' appetite for its shares.
As so often has been the case during Democratic administrations when unfavorable developments arise, the UK press has seen potential problems with the IPO, while the Associated Press has been acting as if all is well.
In two separate items, AP reporters couldn't even bring themselves to tell readers what the company's real August sales decline was.
In a report yesterday on the industry's awful August, reporters Dee-Ann Durbin and Tom Krisher were appropriately gloomy overall, but they massaged GM's reported result (bolds are mine throughout this post):
In late July, a Government Accountability Office report circulated which analyzed stimulus funding being spent by the Department of Energy. The main gist of that report involved the cost of each job being generated by the stimulus bill - a staggering $194,000. Tucked away in that report was a phrase that was new to most of us, a way to calculate jobs through a term called ‘lives touched'.
Last week it was confirmed that some departments being funded by the stimulus are indeed using the metric ‘lives touched' - a regression from the absurd ‘jobs saved or created', which was already a step down from the incalculable ‘jobs created'.
A spokesperson from the CH2M Hill Plateau Remediation Company explains:
"Lives Touched" is a figure that the U.S. Department of Energy (DOE) uses to track the amount of people who have been positively affected by the Recovery Act funds. This total would include people who have been provided full time employment (i.e. saved and created jobs) through the Recovery Act and people who at some point have supported a project funded by the Recovery Act.
Essentially, the Obama administration had figured out another way to inflate job numbers to better fit their claims of success. And yet, the media has remained largely silent on this matter. Even as Vice-President Biden released a report on the Recovery Act yesterday, with a specific focus on the Department of Energy and job creation.
Below is an outline of how the administration and the DOE are collaborating to inflate their numbers by measuring the number of ‘lives touched' by the stimulus bill.
Earlier today, Shirley Sherrod, who, according to the current version of ruling class wisdom, was prematurely evacuated from the USDA by Director Tom Vilsack, decided not to accept an offer to return to the agency.
Instead, according to Politico's Matt Negrin, "she hasn’t accepted the department’s offer to work there again, but that she wants 'some type of relationship' with it later." We wouldn't closure or anything, would we?
Five weeks or so have intervened since Andrew Breitbart posted a video excerpt of Sherrod's speech at an NAACP event. (It should be noted USAactionnews.com actually posted the video earlier; though their link has been taken down, their original July 15 tweet is here.)
In that time, the establishment press has either seriously downplayed or totally ignored the several important items relating to the background and outlook of Ms. Sherrod and her husband Charles.
The Robert F. Kennedy Community Schools in Los Angeles, apparently opening soon, will serve roughly 4,200 students in grades K-12. Its cost is coming in at $578 million, or almost $140,000 per student ($2.75 million per 20-student classroom).
This is the LA Unified District's most flagrant example of its Taj Mahal obsession, and it is far from the only one. Also, as the Associated Press's Christina Hoag reported early Sunday evening, LA is not the only place where the Taj Mahal complex is in vogue:
The K-12 complex to house 4,200 students has raised eyebrows across the country as the creme de la creme of "Taj Mahal" schools, $100 million-plus campuses boasting both architectural panache and deluxe amenities.
"There's no more of the old, windowless cinderblock schools of the '70s where kids felt, 'Oh, back to jail,'" said Joe Agron, editor-in-chief of American School & University, a school construction journal. "Districts want a showpiece for the community, a really impressive environment for learning."
Former USDA employee Shirley Sherrod says she will meet Tuesday with agriculture secretary
Shirley Sherrod, the former USDA rural development director for Georgia, said today she plans to meet Tuesday with U.S. Secretary of Agriculture Tom Vilsack to discuss a new job offer.
... Sherrod today spoke in the Sumter County town of Epes at an event hosted by the Southern Cooperatives/Land Assistance Fund. Ben Jealous, executive director of the NAACP, shared the stage with Sherrod during a panel discussion.
Sherrod said she had no ill feelings toward the NAACP or President Barack Obama.
It the meeting does indeed occur, it will be an interesting test of establishment media credibility, given the accusations leveled at Ms. Sherrod and her husband Charles by Ron Wilkins at the leftist publication Counterpunch several weeks ago. Here are some of the specifics:
Here's how the Associated Press's Martin Crutsinger and Daniel Wagner reported the housing portion of their Tuesday report on the day's economic news ("Factories aid bumpy recovery, housing still weak"):
Single-family home construction, which represented nearly 80 percent of the market, fell 4.2 percent. And requests for building permits, considered a good sign of future activity, slid 3.1 percent.
... The July increase in housing construction pushed total activity to a seasonally adjusted annual rate of 546,000 units. Building activity in June was weaker than first reported. It fell 8.7 percent to an annual rate of 537,000 units, the slowest pace since October of last year.
"The bad news is that activity is likely to remain depressed for several years," said Paul Ashworth, senior U.S. economist at Capital Economics. "The good news, however, is that housing is so depressed it is hard to see activity falling much further from such a severely depressed level."
Well, okay, but the situation is already closer to a zero-out than it is to the levels we were seeing just a few years ago--or any time in the 50-plus years such records have been kept. Looking at the raw data on a historical basis, one finds that July 2010 was the worst July on record for the both stats the AP pair cited:
While ABC and NBC ignored a Monday USA Today report that found a significant gap in compensation between public and private sector employees, on Tuesday's CBS Evening News, correspondent Sharyl Attkisson provided a full story: "While many Americans have suffered pay cuts or job losses, one group is bucking the trend – federal workers."
Attkisson described how the "analysis finds that federal employees have gotten bigger pay and benefit increases than private employees for nine years straight." She cited numbers from the report: "Federal salaries have grown 33% faster than inflation. Their pay and benefits average $123,000, up 37% since 2000. Private workers average $61,000, up just 8.8% over the same time."
In addition, Attkisson included a sound bite from Cato Institute budget analyst Tad Dehaven: "So you have Wall Street, you have big oil, and now you have federal civilians." She went to note: "And the bonuses are flowing. CBS News has learned your tax dollars funded $95.8 million in airport security TSA bonuses last year. A $35,000 bonus to the head of the agency."
Earlier today, NB's Lachlan Markey covered Bill O'Reilly's interview with the Fox Business Channel's Charles Gasparino.
In that interview, Gasparino confirmed what the New York Post reported in April of last year, namely that "GE Execs Encouraged CNBC Staff to Go Easy on Obama."
The suits at GE, including Chairman Jeff Inmelt, had a clear motivation for encouraging their reporters to lighten up, namely that "General Electric at the time was hoping to profit handsomely from policies that would benefit a few companies, including GE, at the expense of the majority of the economy"-- specifically cap and trade.
But speaking of motivation: What about former CNBCer Gasparino's?
The easy answer would be that sometime in the past two years he has seen the light and realizes his past reporting at CNBC was lacking in fairness and balance. Despite his move to Fox, there's reason to doubt that.