So, how did the news media effect the crash of 2008?
An article by Pajamasmedia.com by Andrew Klavin explains it all:
In the book Reckless Endangerment: How Outsized Ambition, Greed, and
Corruption Led to Economic Armageddon, authors Gretchen Morgenson and
Joshua Rosner tell how, in the early nineties, faulty or skewed studies by ACORN
and other groups fed the idea that there was pervasive racial bias by mortgage
lenders, with blacks and Hispanics being unfairly rejected for loans.
“The findings lit up the media, confirming many people’s suspicions
about banks’ lending practices,” the authors write of one such study. In fact,
properly interpreted, the data suggested that banks were making their loans not
on the basis of race but on the basis of credit-worthiness. But as the
misinformation confirmed left-wing ideas, the media pressure was on for a
To put it in simplified but not inaccurate terms, what
happened as a result was this: The Clinton administration essentially gave
orders to lenders to give unwise loans to people based on their race. Those
orders required banks to adopt bad lending practices. The dangerously easy
credit made house prices rise. And unscrupulous sharks on Wall Street and
elsewhere rushed in to make a profit off the housing bubble by luring investors
into funding the crummy mortgages. Thus the poison of the government-mandated
bad loans flooded the system. When housing prices inevitably fell, the system
At the center of all this were Fannie Mae and Freddie Mac, dishonestly run lenders with government backing and a mandate to make housing somehow affordable to those who couldn’t afford it. Republicans George W. Bush and John McCain, warned about the coming disaster and calling for regulatory legislation to bring the madness at Fannie Mae under control. Democrats, most especially and most perfidiously Congressman Barney Frank of Massachusetts, repeatedly claiming nothing is wrong.
If our mainstream news media had not been so politically one-sided, all of this might have been prevented. The reports that falsely claimed racial discrimination in lending could easily have been debunked. The entire premise of giving loans to people who couldn’t afford them might have been questioned.
And the warnings of Bush and McCain would have been given at least equal weight. It was the left-wing assumptions of the news media that prevented proper reporting and created at least some of the pressure on politicians to act irresponsibly — and then provided them with the cover of silence when they did.
The chief political correspondent of ABC News is George Stephanopoulos, a former Democrat operative who says Barack Obama’s Mr. Bean presidency is going “remarkably well.” NBC anchorman Brian Williams once implied Jimmy Carter was the greatest American president of all time and suggested the founding fathers were essentially terrorists.
And CBS has just replaced the leftist Katie Couric with Ted Baxter lookalike Scott Pelley, who once called Mahmoud Ahmadinejad “incorruptible” and compared global warming skeptics to holocaust deniers.
They work in an echo chamber of agreement where opinions are more likely to become radicalized and important stories that challenge leftist assumptions simply become invisible. For the reasons given above, this echo chamber is partially to blame for our current economic troubles, and is currently contributing to future woes by skewing the story of the debt ceiling negotiations against Republicans rather than telling it from both sides.