The Good, the Bad & the Ugly
CNBC’s Bartiromo upbeat about American economic model; ‘Nightly News’ spreads fear over reverse mortgages; Antarctic ice melting man’s fault, no other possibilities acknowledged.

January 16, 2008

The Good
      With all the doom and gloom in the news about how dire the American economy is, it’s a wonder Americans still have faith in capitalism.

     But CNBC “Closing Bell” anchor Maria Bartiromo showed there are reasons to be confident in the American economic system, this time in a setting that was more pop culture and less hard news.

     Bartiromo appeared on the January 9 “Tonight Show with Jay Leno,” explaining that a recession isn’t as certain as portrayed in other media. She explained that trade abroad will offset things plaguing the economy, including the price of oil and housing woes.

     “But, you know, right now we are looking at a real weak situation in the U.S,” Bartiromo said. “It may not be recessionary, it may – we could be on the cusp. But, it’s very important that the economies around the world grow and that there are open markets so that our companies can actually get a piece of that action – 1.3 billon people in China, we need that market.”

     Bartiromo also said that a government bailout of the housing market wasn’t in the country’s best interest.

     “All of a sudden, here we are in this euphoric situation where the price of a home went up for no reason. Take any market – look at Phoenix, right? Phoenix, at one point over the last two years saw the biggest price rise on the average home – up 40 percent. Was there anything that happened in Phoenix that was fundamentally changed or different that caused the price of a home to go up so much? No, it was just this idea that we have to get it now – we got to buy, buy, buy, which bid up prices.”

The Bad
     Never underestimate the power of the media when it comes to taking something completely legitimate and distorting its image as if it is some shady racket.

     The January 10 "NBC Nightly News" gave that impression about reverse mortgages – a special type of home loan that allows a homeowner to convert some of the equity in his or her home into cash. These loans are geared toward senior citizens, one of the key demographics of the evening network news shows.

     "Nightly News," however, based its report completely on a 78-year-old woman who felt she was deceived.

     "Reverse mortgages allow seniors 62 and older to borrow against the equity they've built up in their home," NBC correspondent Tom Costello said. "But upfront costs can be steep, $12,000 for Ms. Munoz. Then, her attorney claims, the sales agent who suggested the reverse mortgage sold the 78-year-old woman long-term investment annuities that don't mature until 2033. When she tried to withdraw some of that money, she faced a 20-percent penalty."

     Costello ignored the possibility Munoz neglected her obligation to be responsible borrowing against her home – an asset in which she had built up $300,000 in equity. The report also did not provide comment from Munoz's lender for another side of the story, only mentioning they contended she was counseled.

     "The lenders insist Ms. Munoz received federally required financial counseling," Costello said.

The Ugly
     Ice on Antarctica is melting. The water from the ice will cause sea levels to rise, and humans are to blame – no other possible explanation.

     At least you might get that impression after watching the January 14 “Our Planet” segment on “NBC Nightly News” about the ice shift in Antarctica.

     “In 2006, the Antarctic peninsula near South America lost 60 billion metric tons of ice; 132 billion tons disappeared in West Antarctica,” said Anne Thompson, NBC News chief environmental affairs correspondent. “Big numbers that could have a big impact.”

     Thompson blamed mankind as the “prime suspect” for the changes – ignoring all other possibilities, despite some scientists that are skeptical of that theory.

     “Like the warming scientists are seeing in Greenland and the North Pole, the prime suspect behind the melting at the South Pole is global warming,” Thompson said. “Manmade carbon dioxide and other gases trapping heat that may well be warming the waters in the coldest police on earth.”

     But it isn’t a unanimous “consensus” the ice in Antarctica is melting or that man is contributing to any of the changes on the continent. Thompson ignored other credible scientists who have contrary views.

     A recent report posted by Marc Morano, communications director for the U.S. Senate Committee on Environment and Public Works, outlined the objections of 400 prominent scientists from more than two dozen countries to major aspects of the so-called “consensus” on manmade global warming. One of those scientists had doubts about man’s ability to have a profound sudden impact on Antarctica.

The Good, the Bad & the Ugly tracks the best and worst media coverage of business and economics. Readers are invited to submit suggestions or news tips to Staff Writer Jeff Poor at jpoor@mediaresearch.org.