“Nobel Prize-winning liberal economist Joseph Stiglitz points out that the Treasury Secretary Tim Geithner’s plan to have the government subsidize investments in ‘toxic assets’ creates a serious moral hazard: Private investors will pocket any gains, while the federal government promises to cover virtually all potential losses: ‘Quite frankly, this amounts to robbery of the American people.'”
It’s the London Telegraph that’s reporting this, though. U.S. newspapers are too busy running puff pieces about Barack and Michelle Obama — and describing critics of Obama’s $800 billion stimulus package, which the Congressional Budget Office admits will shrink the economy in the long run, as being opposed to what the papers dishonestly refer to as the “economic recovery plan.” (With a few exceptions, the press did not report the CBO’s finding that the stimulus will actually shrink the economy, which contradicts Obama’s false claim that failing to pass the bloated stimulus package would lead to “irreversible decline.”)
Although many economists oppose the Administration’s policies, the newspapers make it sound like only right-wingers object to the Obama Administration’s bailouts. They do that even though the liberal Nobel Laureate and economist Paul Krugman, a big Obama supporter, admitted that Obama’s trillion toxic-asset buy-up program is a rip-off best described as “heads I win, tails the taxpayers lose.”
The result is that although Obama has proposed record budget deficits (expanding deficits by $4.8 trillion to an eye-popping $9.3 trillion, despite tax increases of $1.9 trillion), public opinion polls show 52% of the public approves Obama’s handling of the deficit.
In 2008, Obama explained to the San Francisco Chronicle that electricity bills would “skyrocket” under his Administration due to its global-warming regulations. But the press by and large wasn’t interested in reporting it, since it would have hurt Obama’s chances of getting elected.
Now, the Obama Administration is backing a two trillion-dollar cap-and-trade carbon tax. But that, too, is getting little press coverage — as are Obama’s broken campaign promises, like his pledge of a “net spending cut” if elected.
The U.S. press has barely mentioned Treasury Secretary Geithner’s role in the destruction of the economy of Indonesia, a major oil-producing nation of 200 million people, in the 1990s (even though Australia’s long-time Prime Minister Paul Keating has been scathing in his criticism of Geithner).
Given their unwillingness to print interesting — but ideologically inconvenient — news, it’s no wonder that lots of newspapers, like the Seattle Post-Intelligencer, have folded in the past year. Biased coverage is boring coverage not worth paying for.