The 2006 Real (after Inflation) Increase in Household Net Worth Was Greater Than 2005's -- But You Wouldn't Know That from Reading the Associated Press's Accounts. And this is not the first time AP has ignored what's "real."
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Here is how the Federal Reserve's report on household net worth was covered by AP reporter Jeannine Aversa (bold is mine):
Net Worth of U.S. Households Skyrockets in Final Quarter of 2006
The net worth of U.S. households climbed to a record high in the final quarter of last year, boosted mostly by gains on stocks, the Federal Reserve reported Thursday.
Net worth — the difference between households' total assets, such as houses and bank accounts, and their total liabilities, such as mortgages and credit card debt, totaled $55.6 trillion in the October-to-December quarter.
That marked a 2.5 percent growth rate from the third quarter, the previous quarterly record high. Stocks gains helped fuel the increase in net worth, although real-estate gains played a role, too.
For all of last year, households' net worth rose by 7.4 percent, a slower pace than the 7.9 percent increase registered in 2005.
AP made 2006 look worse than 2005, when 2006 was better. "Really."
The real growth in net worth after inflation for 2006 was 4.9% (7.4% above minus 2.5% inflation [Dec. 2006's reading of 201.8 is greater than Dec. 2005's reading of 196.8 by 2.54%; go to this link for the data, and select the very first report]), compared to 4.5% in 2005 (7.9% above minus 3.4% inflation [Dec. 2005's reading of 196.8 is greater than Dec. 2004's reading of 190.3 by 3.41%]). This means that 2006 was better for growth in REAL household net worth, NOT "a slower pace."
This is not the first time an AP report has made it appear that a 2006 economic performance indicator was worse than 2005, and "really" wasn't. This previous post shows that an AP reporter took a lower nominal gain in retail sales in 2006 compared to 2005 and concluded that 2006 was a slower year for retail sales. As with the above household net worth situation, the truth was that after considering inflation, the real increase in 2006 retail sales was better than 2005.
Somebody needs to tell AP's business reporters that what is real is all that "really" counts.
Cross-posted at BizzyBlog.com.
—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters
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Come on Tom, you really reall
March 9, 2007 - 20:42 ET by bigtimerCome on Tom, you really really do not expect anything one bit different coming from the leftist defeatist media now so you...
Tell a lie often enough...and poof...every single person is going to blame the bush administration on the way they portray the economy, they do it every single day that I can think of on CNN msnbc...some on CNBC...it do get old, especially since we all know it would be a ticker tape parade if this were a democrat in office....I remember well how the stock reports were for Clintoon.
Hypocrisy to the fullest for all to see.
What is sad is the blatant lies and spin....
I am glad Fox is going to be having their own business station to report on the economy after January I think I heard last...
Bye bye CNBC...and Bloomberg...CNN already is gone but Ali isn't going to stand a chance with his lying skewing reports.
LOL!
FNC Biz
March 9, 2007 - 20:53 ET by Tom BlumerYou know, I've been telling myself for a long time that the Fox Biz Channel was going to have a rough go of it, but the bias in biz reporting has gotten so bad that I think Fox Biz has every bit the chance of succeeding that the original Fox News Channel did in 1996. I hope they start a capsule radio report like MarketWatch does too.
If they do it right, people are going to say "where have you been all these years?" They'll be on top in 3 years, if not sooner, esp if Cavuto goes over to Fox Biz when it starts up.
Tom,I agree with every single
March 9, 2007 - 21:21 ET by bigtimerTom,
I agree with every single word.
I heard Cavuto is going to be leading the way on the show...
You watch and wait...it is going to trounce these leftist losers...I mean that.
I am tired of it. I do not care who is in power, I just want the facts when it comes to the stock market reports/business shows...thats it, then they can have different views and guests ect. that are fair and balanced like all of FNC...that is how they got where they are today.
FNC
March 9, 2007 - 21:55 ET by Tom BlumerYou raise a point that many on the right forget. We should never characterize FNC as the "conservative" channel, because it isn't. It's fair and balanced, which is why it works. All sides are heard. It only "appears" conservative because when all sides are heard, the conservative point of view tends to come out looking more sensible and correct. But that's what happens when you have fair and balanced -- the better ideas and explanations rise to the top. Ailes understands that, as does Hume.
Tom,Did you happen to catch t
March 9, 2007 - 22:11 ET by bigtimerTom,
Did you happen to catch that Radio/News Award Show last night?
Aisles spoke volumes...I loved the clips they had coming from Fox anchors and reporters...just curious, I feel like I was the only watching it...Aisles is a proven genius and great kind man but firm man.
Maybe I was...
LOL!
Ailes
March 9, 2007 - 23:34 ET by Tom BlumerI saw about 5 mins. I think at Hot Air. He wasn't really on his A game, but he still made huge and important points.
(I'm not sure I'd really tr
March 10, 2007 - 05:08 ET by sarcasmo(I'm not sure I'd really trust a very-big government that's very-busy printing the money in question to emit honest inflation-numbers these days, but...) even if you trust their numbers, this is far-from the only inflation-related story financial "journalists" won't-report.
JMR