The Financial Meltdown & the Media

Discussion in 'Media' started by sealybobo, Mar 27, 2009.

  1. sealybobo
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    sealybobo Diamond Member

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    More proof the media is not liberal.

    The Financial Meltdown & Media Deregulation Connection

    Much of journalism has a `deer-caught-in-the-headlights’ quality as it reports on the current fiscal crisis. Why was this issue off the radar screen for so many reporters and producers? Part of it is that the very system that underlies professional reporting is connected (and funded) by the very forces that have helped wreck the economy.

    Just as the Congress failed to engage in meaningful oversight of the financial markets–and spurred the crisis along through deregulation– so too have they largely failed to address the impact of what’s called media deregulation (which meant eliminating rules designed to benefit both the public and press with policies that favored their largely giant corporate owners).

    Former FCC Chairman Michael Powell’s key congressional patron was Sen. John McCain. Powell’s enthusiastic and uncritical embrace of a deregulatory philosophy during his recent tenure at the helm of that oversight agency helped spur media mergers, journalism lay-offs and other editorial cutbacks. Powell is currently a “technology adviser” for the McCain campaign. For those of you who are interested in learning more about Mr. Powell and Senator McCain, it’s covered in Digital Destiny (New Press, 2007).
     
  2. ScreamingEagle
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    ScreamingEagle Gold Member

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    How about investigating Barney Frank and bad housing loans?
     
  3. AssHatZombie
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    AssHatZombie Member

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    Government backing anything is always a bad idea. It's always an opportunity for abuse. There are no promises in life. Believe otherwise is a setup for all parties involved.
     
  4. Dante
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    Dante On leave Supporting Member

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    Okay...

    Frank was criticized by conservative organizations for campaign contributions totaling $42,350 between 1989 and 2008. Bill Sammon, the Washington managing editor for Fox News Channel, claimed the donations from Fannie and Freddie influenced his support of their lending programs, and said that Frank did not play a strong enough role in reforming the institutions in the years leading up to the Economic crisis of 2008.[47]

    In 2006, a Fannie Mae representative stated in SEC filings that they "did not participate in large amounts of these non-traditional mortgages in 2004 and 2005."[48] In response to criticism, Frank said, "In 2004, it was Bush who started to push Fannie and Freddie into subprime mortgages, because they were boasting about how they were expanding homeownership for low-income people. And I said at the time, 'Hey—(a) this is going to jeopardize their profitability, but (b) it's going to put people in homes they can't afford, and they're gonna lose them.'"[7]

    In 2009 Frank responded to what he called "wholly inaccurate efforts by Republicans to blame Democrats, and [me] in particular" for the subprime mortgage crisis, which is linked to the financial crisis of 2007–2009.[49]

    He outlined his efforts to reform these institutions and add regulations, but met resistance from Republicans, with the main exception being a bill with Republican Mike Oxley that died because of opposition from President Bush.[49] The 2005 bill included Frank objectives, which were to impose tighter regulation of Fannie and Freddie and new funds for rental housing.

    Frank and Mike Oxley achieved broad bipartisan support for the bill in the Financial Services Committee, and it passed the House. But the Senate never voted on the measure, in part because President Bush was likely to veto it. "If it had passed, that would have been one of the ways we could have reined in the bowling ball going downhill called housing," Oxley told Frank.

    In an op-ed piece in the Wall Street Journal, Lawrence B. Lindsey, a former economic adviser to President George W. Bush, wrote that Frank "is the only politician I know who has argued that we needed tighter rules that intentionally produce fewer homeowners and more renters."[7]

    Once control shifted to the Democrats, Frank was able to help guide both the Federal Housing Reform Act (H.R. 1427) and the Mortgage Reform and Anti-Predatory Lending Act (H.R. 3915) to passage in 2007.[49] Frank also said that the Republican-led Gramm–Leach–Bliley Act of 1999, which repealed part of the Glass–Steagall Act of 1933 and removed the wall between commercial and investment banks, contributed to the financial meltdown.[49]

    Frank stated further that "during twelve years of Republican rule no reform was adopted regarding Fannie Mae and Freddie Mac.

    In 2007, a few months after I became the Chairman, the House passed a strong reform bill; we sought to get the [Bush] administration's approval to include it in the economic stimulus legislation in January 2008; and finally got it passed and onto President Bush's desk in July 2008. Moreover, "we were able to adopt it in nineteen months, and we could have done it much quicker if the [Bush] administration had cooperated."[citation needed]

    Barney Frank - Wikipedia the free encyclopedia
     
  5. Dante
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    Dante On leave Supporting Member

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    sealybobo
    The major (not the only) problem here is the article does not address or claim the media being liberal or conservative.

    We don’t want to suggest our column is intended to be partisan. Many people know we have been equally critical for the failure of William Kennard, Mr. Powell’s predecessor during the Clinton era, to respond to the call by consumer groups to implement open access for broadband (now known as network neutrality). Mr. Kennard is one of Senator Obama’s major donors. We were also critical of Reed Hundt, Mr. Kennard’s predecessor. Both Pres. Clinton and Al Gore hailed the passage of the 1996 Telecom Act. Frankly, we have concerns about the fate of public interest media and telecommunications policies regardless of who wins the election. But it’s important, in our view, to recall history–including the recent events involving former FCC chairman Michael Powell. How both candidates would fix the mess with our communications system–including ensuring meaningful content and ownership diversity for digital media–should be part of the national debate.

    We should realize by now that deregulation of the financial markets contributed to a culture of greed that bought down—at taxpayers expense–an economic house of cards. Fixing our system of journalism for the digital era must be on the policy agenda [we need legions of investigative reporters asap].
    the main issue here should be are posters like silly-boo-boo really liberals or even representative of the current liberalism?
     

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