Wall Street Journal

This morning, some 30 people were arrested in New Jersey, the fruit of a two-year federal investigation into a international money laundering scandal. Among those arrested were Democratic Mayors Peter Cammarano III (Hoboken) and Dennis Elwell (Secaucus), as well as Democratic deputy mayor of Jersey City Leona Beldini and Republican state Assemblyman Daniel Van Pelt.

But if you only got your news of this mass arrest from the Associated Press, you would not learn the party affiliation of these politicians. To their credit, other news outlets readily accessible to New Jerseyans such as the New York Times and the Wall Street Journal noted the party affiliations of these allegedly crooked pols.

It's one of the few times one can wish the reporting by NBC News was right and CNBC was wrong.

A segment on the July 21 "NBC Nightly News" pointed out some of the key points of a budget deal reached between California Gov. Arnold Schwarzenegger and leaders of the state legislature. The deal means some service cuts - but also includes the possibility of exploration and drilling for oil off the California coast.

"California is our biggest state in terms of population and it long ago ran out of money," "Nightly News" anchor Brian Williams said. "They got nothing to pay the vendors they owe and now they have struck a deal for more cuts, and these are going to hurt. They're going to allow offshore drilling for the money it will bring in. The LA Times reports tens of thousands of seniors and children would lose access to health care. Prisoners will spend less time in prison. And the governor is going to sell cars and furniture and office supplies and autograph some of it, he says, to raise more money. It's an unbelievable turn of events."

The House Ways and Means committee approved a half-trillion dollar tax increase overnight, but the ABC and NBC morning news shows offered only a single sentence to the development, while CBS’s Early Show skipped it entirely.

Neither NBC’s Today nor ABC’s Good Morning America mentioned the tax increases $544 billion price tag, as each newscast folded the development into larger pieces on President Obama’s push for health care “reform.”

ABC’s Deborah Roberts first gave a mere two sentences to the CBO report that contradicts White House claims that Obama’s plan would save money. She then mentioned the big tax increase: “Meantime, a House committee approved billions in new taxes on the wealthy to pay for the reforms.”

An editorial in yesterday's Wall Street Journal bemoaned the fact that the state-run health system in Massachusetts is failing, and that its implosion isn't common knowledge.

Formally known as CommonwealthCare, the Massachusetts scheme has the political name of "RomneyCare," in "honor" of the Bay State governor and former presidential candidate who championed its passage in 2006.

The Journal understands that the Bay State Blowup is one of the media's least-covered stories because exposure of CommonwealthCare's true results would make all too clear the awaiting disasters found in the various versions of ObamaCare Congress is considering for the entire country.

The Journal editorial yesterday primarily addressed what I'll call the "free rider" problem (link to outside blog post added by me; bolds are mine):

Many media outlets are glancing over "Senator-Select" Al Franken with a sentence or two emphasizing the word "finally." ABC news anchor Bianna Golodryga this morning reported "Comedian-turned politician Al Franken expects to be sworn in next week as senator from Minnesota. The state Supreme Court has finally certified last November's election results where Franken won by just 312 votes." What's left out is the Wall Street Journal editorial page story of a "legal street fight" that led to an overturned Republican election-night victory: 

Mr. Franken trailed Mr. Coleman by 725 votes after the initial count on election night, and 215 after the first canvass. The Democrat's strategy from the start was to manipulate the recount in a way that would discover votes that could add to his total. The Franken legal team swarmed the recount, aggressively demanding that votes that had been disqualified be added to his count, while others be denied for Mr. Coleman.

While many on the left are reveling in the downfall of South Carolina Gov. Mark Sanford after he disclosed his affair with a woman in Argentina, there's a sympathetic figure being overlooked that might have the necessary background to fill the void left by the governor should he resign.

On CNBC's June 30 "The Kudlow Report," Wall Street Journal senior economics writer Steve Moore explained his close relationship with the Sanfords and raised a new political possibility.

"This is such a tough thing for me Larry, because as you know Mark Sanford has been a long-time friend of mine," Moore said. "This story truly breaks my heart." Moore suggested that South Carolina First Lady Jenny Sanford run for her husband's seat - as he called her "the brains of the operation."

The government of Hungary voted to cut income taxes Monday to pull itself out of recession, and America's media for the most part ignored it.

At the same time, German chancellor Angela Merkel is pushing for lower taxes to help her nation's economy, and our press have similarly been less than enthusiastic about sharing the news.

One of the exceptions in both cases is the Wall Street Journal which reported the following Tuesday:  

(Photo is of the martyred "Neda")

In a passionate Wall Street Journal op-ed this morning ("Silence Has Consequences for Iran"), former Spanish Prime Minister José Aznar who, in case anyone cares, serves on the board of WSJ parent News Corp., says that "It would be a shame .... if our passivity gave carte blanche to a tyrannical regime to finish off the dissidents and persist with its revolutionary plans."

Shaking off passivity requires visibility. America's media establishment almost across the board is providing very little. The Associated Press and the New York Times reports exist, but their distribution is dwarfed by the death of a pop star and a governor's infidelity.

Here are useful comparisons (all searches were done at Google News at about 8:45 a.m. for June 23-27, limited to USA sources):

If the recession was the only reason why the welfare rolls are what they are in the various states, you would expect the percentage of the population utilizing the entitlement program, now known as TANF (Temporary Assistance for Need Families), in the various states to have some sort of relationship to their respective unemployment rates.

That is self-evidently not the case. The failure by Sara Murray of the Wall Street Journal to note that sad fact in her Monday article about the program makes her attempt to communicate what has happened with it during the twelve months that ended in May a major disappointment. As you'll see, she got right to the edge, but didn't look into it. In the process, Ms. Murray also gave all of the credit for welfare reform to then-President Bill Clinton -- a laughably incorrect rendition of what really happened.

Here are Murray's opening four paragraphs (bolds are mine):

Surprise, surprise.  Despite the overwhelming negative reaction to the President’s statements regarding the Iranian election demonstrations, Washington Post writer Glenn Kessler could not find more than one foreign policy expert that was vaguely critical.  In fact, the sole expert they did find to criticize the President added a caveat – a caveat of praise.

In the section titled ‘Approach generally praised’, Kessler writes:

The president's approach has generally been praised by foreign-policy experts, with one exception.

He then cites the lone dissenting voice (emphasis mine):

First the federal government's auto bailout bullies came for Chrysler's secured, first-lien creditors, and defeated them.

Then they came for General Motors' unsecured bondholders. The feds appear to be in the drivers' seat in shafting them disproportionately to force a better deal for the United Auto Workers' healthcare trust.

Now, in a matter that at first only seemed to interest the Wall Street Journal, they've also come after Delphi's debtor-in-possession (DIP) financing providers as GM attempts to scoop up what it wants from the bankrupt auto-parts supplier. But this time, at least for now, a bankruptcy judge with a richly appropriate name has stopped them:

Sometimes the numbers in a wire service report are so ridiculous, you just know that they're bogus.

On Wednesday, June 11, a duo of Associated Press reporters, Chris Kahn and Sandy Shore, with an assist from Tali Arbel, reported on a study "green jobs" study released by the Pew Charitable Trusts. In "The Clean Energy Economy: Repowering Jobs, Businesses, and Investments Across America," Pew made the growth in "clean energy" appear more impressive than it is by vastly understating job growth in the rest of the economy during the past decade -- by a factor of three.

None of the three AP "journalists" involved, and none of the alleged layers of fact-checkers and editors at the wire service, had the intuitive sense to detect an error by Pew so pathetically obvious that anyone following the economy at all -- and that includes the folks at Pew -- should have known the figure involved was false.

Here are the first few paragraphs of the AP story (bold is mine):

You can't make this stuff up. The titled quote comes from a Bloomberg story today about new GM Chairman Ed Whitacre. You also can't make up most of the media's calm acceptance of yet another person heavily involved with running General Motors, aka Government Motors, who knows next to nothing about cars except as a consumer who drives them.

At least it's refreshing that this guy has experience running a business, which is more than you can say about the other two architects of the company as it currently subsists.

On May 31, the New York Times put out a fawning portrayal of the a Mr. Brian Deese, the guy who was the only full-timer on President-elect and then President Obama's car team from Election Night until mid-February.

Fasten your seat belts, this guy's lack of any kind of pedigree will have you death-gripping the steering wheel, as will the smug dismissiveness of a business system that has been the most successful in human history:

(I know; it almost doesn't count, because it's in the lefty-despised Wall Street Journal Opinion section.)

As yours truly noted a month after the presidential election (at NewsBusters; at BizzyBlog), Barack Obama's handlers and his teleprompter began telling the president-elect to begin using variations on the term "create and/or save" in speeches about jobs and the economy within days of his electoral victory. During the campaign, I found no example of where Obama used any variation on that phrase; it was always "we will create X number of jobs."

Until now, no one in the press of note has paid any attention to this "clever" abandonment of logic and accountability. After all, by the new "create and/or save" non-logic, Dear Leader has "saved" over 130 million jobs since his inauguration -- even though, on a seasonally adjusted basis, almost 2.2 million Americans lost theirs from February through May:

Finally, someone in the establishment media has done a serious call-out of Team Obama's risible ruse. Here are excerpts from William McGurn's hard-hitting column in today's Wall Street Journal:

Wall Street Journal reporter Mei Fong wrote a report Fridayabout how some families in China, perhaps with the help of criminals, are marrying off their daughters with no intent of having them honor their vows in order to keep the "bride price," an amount a groom's family typically pays the bride's family.

This development is just one of many perverse side-effects of resulting from the Chinese Communist government's one-child policy (image at top right was found at this web address), which has now been in place for three decades. Because of that policy and the country's male-preferring culture, far more pre-born girls than boys have been aborted, leading to a serious male-female imbalance.

Despite the history, Fong somehow managed to get through her 26-paragraph report without mentioning the terms "abortion" or "one-child."

Here are the relevant paragraphs, with euphemistic words in bold after the title:

Even if they ultimately lose their last-minute court battle, the Indiana pension funds defending their rights as secured first-lien creditors of Chrysler have done a valuable deed.

We have learned, among many other things, how at least one government lawyer characterized the funds' lawyer, Thomas Lauria.

A $10,000 Democratic Party donor, Lauria, despite clear evidence of intimidation of his originally larger pool of clients by Barack Obama himself (in his April 30 speech announcing the company's bankruptcy filing) and his car guys, has nonetheless bravely pursued the important contract law and fiduciary duty issues involved in the shortchanging of his clients for several weeks.

Wait until you see the word the government lawyer used to describe Lauria.

In his Best of the Web Today column at the Wall Street Journal editorial page site on Wednesday, James Taranto noticed how Reuters had two very different takes on how Osama bin Laden attacks American presidents. He attacks Obama to protest his persuasive skills, while Bush is easily cartooned as a belligerent cowboy: 

"A double blast from al Qaeda against Barack Obama shows the group is as worried as ever by the persuasive skills of the U.S. president, who makes a speech to Muslims on Thursday," Reuters "reports" from London:

Remember back in March when Congress had the brilliant idea to retroactively tax bonuses paid out by bailed out insurer American International Group (AIG)? The House voted 328 to 93 for the 90-percent tax on the $165 million in bonuses, but it later died in the Senate.

Steve Moore, a member of The Wall Street Journal's editorial board, explained on CNBC's May 13 "Street Signs" that the punitive retroactive tax was just a distraction to divert attention away from the culpability of Sen. Chris Dodd, D-Conn., and Rep. Barney Frank, D-Mass., for the current financial crisis.

"Remember, Barney Frank was one of the guys right at the center of the financial crisis," Moore said. "I think he had a lot of the blame of this lays at his foot. He said roll the dice on Fanny and Freddie. So the point is I think that these Democrats are trying to redirect the populist storm against members of Congress like Chris Dodd and Barney Frank towards executives. So, I'm not so sure he didn't want that to pass as a way of deflecting criticism."

It's a whole new wrinkle on the old joke about accountants (when asked what 2 + 2 is, he or she replies, "What do you want it to be?").

The Wall Street Journal reported yesterday that the reported results of the financial institution stress tests were negotiated:

Banks Won Concessions on Tests
Fed Cut Billions Off Some Initial Capital-Shortfall Estimates; Tempers Flare at Wells

The Federal Reserve significantly scaled back the size of the capital hole facing some of the nation's biggest banks shortly before concluding its stress tests, following two weeks of intense bargaining.

The overall reaction to the stress tests, announced Thursday, has been generally positive. But the haggling between the government and the banks shows the sometimes-tense nature of the negotiations that occurred before the final results were made public.

It's also clear that the negotiations were over clearly non-trivial amounts:

Here's a teachable moment: Bad things can happen when the government intervenes in the economy, which Fox Business Network host Cody Willard pointed out on his "Shot Clock" segment on "Happy Hour."

Willard, on FBN's May 4 "Happy Hour" used part of his segment to call for the jailing of the New York Fed's chairman, Stephen Friedman.

"New York Fed [Chairman] Stephen Friedman - this guy belongs in jail," Willard said. "This is the head of the New York Fed - Stephen Friedman guys."

Willard was referring to a report in the May 4 Wall Street Journal that questioned Friedman's current ties to Goldman Sachs (NYSE:GS) while playing an instrumental role in shaping Washington's response to the financial crisis late last year. Willard explained that Friedman was able to profit after Goldman was approved to be a bank holding company in late 2008, making it eligible for a $10-billion capital injection.

From Editor & Publisher yesterday (bold is mine):

The Audit Bureau of Circulations released this morning the spring figures for the six months ending March 31, 2009, showing that the largest metros continue to shed daily and Sunday circulation -- now at a record rate.

According to ABC, for 395 newspapers reporting this spring, daily circulation fell 7% to 34,439,713 copies, compared with the same March period in 2008. On Sunday, for 557 newspapers, circulation was down 5.3% to 42,082,707. These averages do not include 84 newspapers with circulations below 50,000 due to a change in publishing frequency.

Below is a chart showing the specifics for the top 25, including percentage losses for the past four years and during the past year (current year source: Editor & Publisher):

In a report this morning  on the situation off the coast on Somalia, Associated Press reporters Elizabeth A. Kennedy and Paul Jelinek seemed oddly sympathetic to the cause of the terrorists in training the world insists on calling "pirates," almost to the point of grudging admiration.

Check out some of the words the AP pair used in their 9:15 a.m. dispatch (saved at host for fair use and discussion purposes, and for future reference if or when the text changes) following the "breaking news alert" at the link:

Undeterred Somali pirates hijack 4 more ships

Undeterred by U.S. and French hostage rescues that killed five bandits, Somali pirates brazenly hijacked three more ships in the Gulf of Aden, the waterway at the center of the world's fight against piracy.

..... The latest trophy for the pirates was the M.V. Irene E.M., a Greek-managed bulk carrier sailing from the Middle East to South Asia, said Noel Choong, who heads the International Maritime Bureau's piracy reporting center in Kuala Lumpur.

The Irene was attacked and seized in the middle of the night Tuesday - a rare tactic for the pirates.

From that quiet and lonely place where comedians consider the rare possibility and danger of making fun of Barack Obama, Amy Chozick of The Wall Street Journal reported on Friday that Wanda Sykes is trying out some Obama jokes on the road in anticipation of her May comedy gig at the White House Correspondents Dinner in Washington:

"It's so crazy how everyone is just in love with this man," Ms. Sykes said. She imitated a love-struck teenager calling into a radio show. "I would like to dedicate 'Always and Forever' to my president."

The audience laughed.

Mr. Obama should have chosen New York Gov. David Patterson as his vice president, she continued. "Who's going to hurt the half-black guy if you're going to be left with the whole black, blind guy?"

The audience groaned.

Will There Be a Corresponding Media Call to Pitchforks?Please don't halt respiratory activity in the waiting.

Freddie Mac and Fannie Mae are two public-private partnerships known as Government Sponsored Entities (GSEs).  Wherein the executive staff, populated with woefully unqualified, egregiously overpaid political crony appointees, get to play housing market roulette with the House's (read: OUR) money. 

Freddie and Fannie have spent the last two decades plus buying up nearly every horrendous home loan the federal government forced banks to make to unqualified borrowers.  While the going was good, so too were the profits and attending bonuses for these political hacks posing as home lending experts. 

But when the market collapsed, Freddie and Fannie were left holding the toxic asset bag.  And by Freddie and Fannie I mean us.  You and me.  We tax payers.  

Disgraced former New York Governor Eliot Spitzer clearly sees the current AIG bonus controversy as an opportunity to redeem his reputation.

The Associated Press's Michael Hill provided rehabilitation assistance in his Friday report.

Spitzer is best remembered for resigning as the Empire State's chief executive after being caught patronizing high-priced prostitutes over a period of several years, and for having a reputation as an attorney general on a self-aggrandizing crusade against against corporate corruption prior to that.

Spitzer is attempting to capitalize on the public's incomplete knowledge of his sorry saga to get back in its good graces.

The AP's Hill gave Spitzer the print equivalent of a soapbox to do just that:

With AIG, Spitzer is Sheriff of Wall Street redux

The Seattle Times compiles what it calls "The Favor Factory," which it calls "A database of lawmakers, earmarks, and campaign giving."

One noteworthy congressman in the Favor Factory is Rep. Jim Moran (D-VA; picture at right is currently at his home page).

Moran's Favors Factory page for 2008 lists 29 earmarks totaling $40.6 million, and over $890,000 in capaign contributions from earmark recipients.

Recall that Nancy Pelosi promised "Fiscal Restraint If Democrats Win" in a July 2006 Wall street Journal interview about the congressional elections that would be taking place four months later (link is to cato.org, which excerpted the now unavailable WSJ report). She also told the Journal:

“Personally, myself, I’d get rid of all of them,” she said. “None of them is worth the skepticism, the cynicism the public has… and the fiscal irresponsibility of it.”

Rep. Moran begged to differ just one month earlier, using language he would hopefully avoid around the second-graders with whom he is pictured above (actual offensive four-letter word is at link), as reported by a local metro DC community newspaper, the Sun Gazette:

Talk-radio star Mark Levin was so impressed with Daniel Henninger’s Thursday column in The Wall Street Journal – "The Obama Rosetta Stone" – that he read the whole thing to his listeners on Thursday night. Henninger suggested Barack Obama watchers should not only read Obama’s two autobiographies, but the new Obama budget document, 141 pages, printed by the Government Printing Office. Henninger instructed:

Turn immediately to page 11. There sits a chart called Figure 9. This is the Rosetta Stone to the presidential mind of Barack Obama. Memorize Figure 9, and you will never be confused. Not happy, perhaps, but not confused.

Henninger pointed to the source of the chart's data: Piketty and Saez, from 2003. He suggests these names should be better known:

Thomas Piketty and Emmanuel Saez, French economists, are rock stars of the intellectual left. Their specialty is "earnings inequality" and "wealth concentration."

There seems to be a wall of silence surrounding the sudden withdrawal of H. Rodgin Cohen (pictured at right) from consideration for the Number 2 job at the Treasury Department.

The party line, according to ABC's This Week host and former Clinton administration adviser George Stephanopoulos, is that "an issue arose in the final stages of the vetting process." David Cho at the Washington Post reports that "two sources familiar with the matter" confirmed this, but that they "declined to identify the reason."

Perhaps the press is not really interested in finding out that reason, or reasons. Or worse, they've got a pretty good idea, and they'd rather not dig; because if they don't dig, they won't have to tell us. Stephanopoulos appears to be giving away that he knows more than he's willing to reveal when he writes that "Cohen has been a counsel to just about every major player on Wall Street, which perhaps complicated his nomination."

"Perhaps"? A review of some of Cohen's known history makes it clear that he carries quite a bit of potentially heavy baggage.

All I had to do is a Googe Web search on "Rodgin Cohen" (in quotes) to find these two items at the sixth and seventh listings:

A consistent media meme since Election Day has been that Barack Obama was inheriting a recession that some believe began as far back as December 2007.

Since then, despite various rescue plans from his Administration, and the passage of a $787 billion stimulus package, the stock market has continued to plummet while employers shed payrolls in a fashion rarely seen in history.

This all raises an important question: will media ever blame current economic conditions on Obama, or will they continue to point fingers at George W. Bush despite his residence being in Texas?

Consider that as was reported by Bloomberg Friday, Obama now does indeed have his own bear market (image by Martin Kozlowski courtesy Wall Street Journal):

A month ago, I noted a comment by Chicago Sun-Times writer Carol Marin who was mildly complaining that President Obama never goes before the press without having a list of pre-approved journalists upon whom he'll call during a press conference. She offhandedly quipped that in the press corps, "most of us don't even bother raising our hands any more to ask questions because Obama always has before him a list of correspondents who've been advised they will be called upon that day."

I wondered last month how long it would take for anyone else in the press corps to notice Obama's tendency to hand pick from among the free press who he will deign to allow to ask a question? I also wondered if this same "free press" would have meekly allowed president Bush get away with treating the press in such a way? Or would they have raised a hue and cry that would have deafened the world? Drudge. at least, noticed then because within a day my post had wracked up over 200,000 views. But, until February 11, no one in the press has seemed too interested in discussing this issue.