Economic pessimism abounds in network news reports even as the Dow continues to break records.
By Julia A. Seymour
Business & Media Institute
5/2/2007
As a major stock index rose to “uncharted territory,” the media collectively frowned instead of celebrating. After 9/11 the stock markets plunged, but they began to recover after the passage of the 2003 Bush tax cuts. The Dow climbed back up to the 10,000 mark by the end of 2003 and 11,000 in early 2006. But it also rose to unprecedented heights, setting new records at 12,000 last October and 13,000 in April 2007.
Despite this tremendous recovery, which had investors cheering, network journalists on ABC, NBC and CBS frequently spun the news negatively: worrying about other economic factors like gas prices and housing, and making predictions that the Dow wouldn’t be able to keep climbing. “Even as investors are making money in the market, Anthony Mason reports there are concerns tonight about the rest of the U.S. economy,” complained “CBS Evening News” anchor Katie Couric on the day the Dow closed above 13,000 for the very first time.
Mason also declared “Wall Street and Main Street appear to be headed in different directions,” on April 25, ignoring all the shareholders – many of whom are average Americans – benefiting from the stock rise. Economist Lawrence Kudlow, on the other hand, found reason to celebrate. “This is the longest, uninterrupted, correctionless, bull-market run in memory,” Kudlow said on his CNBC program April 25. Kudlow explained that stocks lead the economy, so more growth could be on its way. He has also remarked that being overly focused on the housing market is misleading, but that’s what ABC did. “World News” anchor Charles Gibson asked on April 25: “But is the economy as hot as the market?” Then reporter Betsy Stark brought up “trouble” in the housing market, and rising oil prices.
Overall, CBS reporting has been the worst. When the Dow broke 10,000 on Dec. 11, 2003 – for the first time after the terrorist attacks, financial scandals and the dot-com bust – Anthony Mason declared there were “no party hats for Dow 10,000 this time.” At 11,000, CBS reporter Susan McGinnis said “experts are cautiously optimistic,” and by 12,000, CBS journalists were busily declaring that higher oil prices could stop the bulls from running – a point Anthony Mason made again at 13,000.
REST OF STORY:
http://www.businessandmedia.org/articles/2007/20070502114031.aspx
No comments:
Post a Comment