Dow Crash is Big News - Dow Rebound Ignored

[red states rule]

What a difference a day makes. On Friday it was doom and gloom - Monday all quiet of the liberal front




Dow Down 281 Points Big News Friday, Dow Up 287 Points Not So Newsworthy Monday
By Brent Baker | August 6, 2007 - 20:52 ET
A pronounced example of how bad news is news and good news is much less newsworthy: On Friday night, ABC and NBC teased full stories on the 281 point plunge that day in the Dow Jones average, but on Monday, after the Dow rebounded by five points greater than Friday's loss in the biggest one-day gain in five years, the networks limited coverage to a few seconds. “The stock market stumbles again today exposing fault lines in the nation's housing market,” ABC's Charles Gibson teased a full story Friday night on the stock market and troubles in the mortgage industry which he introduced by emphasizing how “the gains of the past couple of days were more than wiped out by a dramatic late-day sell-off.” But on Monday night, Gibson didn't tease the rebound news and held coverage to barely 20 seconds.

Brian Williams teased Friday's NBC Nightly News: “Stocks slide again on Wall Street. What is spooking the market tonight as we head into the weekend?” Williams spent a minute-and-half with CNBC's Jim Cramer discussing reasons for the plunge, but on Monday fill-in anchor Ann Curry gave the good news just 20 seconds, not counting time for more bad news: The bankruptcy filing by American Home Mortgage. CBS's Katie Couric on Friday only devoted 25 seconds to how “investors headed for the exits, and the Dow plunged 281 points. So, since hitting a record high 14,000 two weeks ago, the Dow has now given up more than 800 points.” On Monday, however, she squeezed in a piddling eight seconds on the rebound, not counting unemployment news and a note about American Home Mortgage.

Friday versus Monday comparisons for the ABC, CBS and NBC evening newscasts, collected with the assistance of the MRC's Brad Wilmouth:

ABC's World News, Friday August 3:


CHARLES GIBSON, OPENING TEASER: Troubled homes: The stock market stumbles again today exposing fault lines in the nation's housing market...

GIBSON SETTING UP STORY: Now, to Wall Street, where the gains of the past couple of days were more than wiped out by a dramatic late-day sell-off. Just before the final bell, the Dow Jones average seemed in free fall, ending the day down more than 280 points, while the NASDAQ lost almost 65. Investors are worried that lenders are making it much tougher to get credit, impacting millions of people hoping to get a mortgage. Betsy Stark joins us tonight. Betsy?

ABC's World News, Monday August 6.


GIBSON: “More volatility today on Wall Street today with prices moving higher. There were sharp losses on Friday, a robust recovery today as the Dow gained 286 points and the NASDAQ finishing up 36. It was the biggest single-session gain in five years. Stocks were up partly as a result of falling oil and gas prices.”

CBS Evening News, Friday August 3:


KATIE COURIC: On Wall Street today, it took just a few words from one man to spark a big sell-off. Bear Stearns CFO Sam Molinaro said the turmoil in the credit markets is the worst he's seen in 22 years. With that, investors headed for the exits, and the Dow plunged 281 points. So, since hitting a record high 14,000 two weeks ago, the Dow has now given up more than 800 points.

Wall Street didn't much like today's jobs report either. It shows the unemployment rate edging up in July to a six-month high of 4.6 percent. The Labor Department says the economy was able to create only 92,000 new jobs.

CBS Evening News, Monday August 6:


COURIC: “On Wall Street, after Friday's big sell-off, a big rally. The Dow today got back all the points it lost on Friday and then some.”

NBC Nightly News, Friday August 3:


BRIAN WILLIAMS, OPENING TEASER: Stocks slide again on Wall Street. What is spooking the market tonight as we head into the weekend?

WILLIAMS, SETTING UP CRAMER: Wall Street was in the news again today, another sell-off. At the closing bell, the Dow had plunged more than 281 points. NASDAQ was down more than 64 at the end of the day. And the reason for all this may sound familiar. For more on this, we are joined by Wall Street veteran Jim Cramer. He's with us from the global headquarters of CNBC. Jim, what's doing this?

NBC Nightly News, Monday August 6:


ANN CURRY: “On Wall Street today, a big rebound from Friday's late night sell-off, late session sell-off rather, the Dow finished the day up almost 287 points, gaining back everything it lost on Friday. The NASDAQ was up 36 points on the day and the S&P also recouped its big Friday loss, up almost 37 points.”

http://newsbusters.org/blogs/brent-baker/2007/08/06/dow-down-281-points-big-news-friday-dow-287-points-not-so-newsworthy-mo

[red states rule]

ABC Hypes 'Market Meltdown' with Misleading Data
By Julia A. Seymour | August 6, 2007 - 17:48 ET
Diane Sawyer kicked "Good Morning America" off this morning with economic worries about Wall Street, the "credit crunch" and "record" foreclosures.

“We do begin with the week on Wall Street, where the Dow took another huge hit, plunging 280 points in just two hours. The cause of the worst credit crunch in almost quarter a century and you’ve seen it in the neighborhoods – a record number of foreclosures,” said Sawyer.

But according to the Mortgage Bankers Association (MBAA), foreclosures are not at a record when viewed by percentage. GMA’s one-sided talk of a “record number of foreclosures” misled viewers. Foreclosures are up compared to 2006, but so are the number of home loans.

MBAA explained the foreclosure inventory rate is at 1.28 percent and is nowhere near the record of 1.51 percent, reached in the first quarter of 2002.

Mentioning the percentage of foreclosures would have given ABC viewers perspective on the issue. Instead, like other media outlets, GMA blamed stock market struggles on the housing market without bothering to give a more upbeat opposing view.

“The financial fallout from a deteriorating housing and lending market, is spilling, no flooding over into the stock market,” said “financial specialist” and ABC correspondent Bianna Golodryga.

To find another take on the markets, viewers had to turn to another network entirely. CNBC host and economist Lawrence Kudlow has said that housing and lending troubles are just a small part of the big picture. Other economic indicators show nothing of an economic downturn as he pointed out on his blog on National Review Online.

“So, while the mainstream media peddles its flimsy ‘sky is falling’ narrative, the reality is a 13,400 or so Dow, along with rising wages and a 4.6 unemployment rate, point to a prosperous nation These are the key barometers. The Bush boom continues.”

http://newsbusters.org/blogs/julia-seymour/2007/08/06/abc-hypes-market-meltdown-misleading-data

[KarlMarx]

A 300 point drop in the DJIA when it is near 14,000 is a 2.1% decrease in the net value of the index.... that's a crash? That's like saying I have an incurable viral disease when I catch a cold (true, but a bit over dramatic, wouldn't you agree?)

[red states rule]

A 300 point drop in the DJIA when it is near 14,000 is a 2.1% decrease in the net value of the index.... that's a crash? That's like saying I have an incurable viral disease when I catch a cold (true, but a bit over dramatic, wouldn't you agree?)

Libs have to keep pushing the crap we have a lousy economy and we are days away fro a depression

[KarlMarx]

Libs have to keep pushing the crap we have a lousy economy and we are days away fro a depression

The only depression that exists is the one that libs are feeling because Bush is president and the economy is good.


But don't worry, we have a Democrat controlled House, and a RINO controlled Senate, give 'em a couple of years and they'll have the economy on its back in no time....


http://www.rock-abyebabies.com/images/dolls/cry-baby-girl-face-1.jpg


According to the expression on this liberal's face, I should be investing in the stock market right away!!!!!

[red states rule]

I remember how giddy the left was when the Dow dropped nearly 500 points in a day a few months ago

The liberal media was all over it saying how the bull market was over

Then the Dow went on to several all time highs

The liberal media whispered those records - as they did with Monday's comeback

[red states rule]

BTW - of course libs are upset over the good US economy

It was TAX CUTS that fueled the economic growth

[red states rule]

Day 1 after Jim Cramer’s Friday ‘Armageddon' Call: Markets Up, Bonds OK
By Tom Blumer | August 6, 2007 - 16:31 ET
The lesson from this post isn't bias as much as it is making sure not to get taken in by Old Media overreactions.

Jim Cramer of CNBC's "Mad Money" went mad on Friday, declaring Armageddon in this video rant on Friday (watch the whole thing to see just how out-of-control he was; his declaration is at 1:40 in the vid -- "in the fixed-income markets, we have Armageddon.").

The first trading day after Cramer's declaration of Aramageddon went thusly (from a CNN e-mail after the markets' 4PM close):

Dow sees biggest point gain of year in early tallies, closing 284 points higher on surging financial stocks, falling oil prices.

Of course, one day does not a market make, but you would have thought the equity markets would have at least gone down, at least a little, to justify Cramer's meltdown. But instead, the stock indices posted very decent gains.

Oh, and how about the fixed-income markets? From MarketWatch (after the 3PM close of the bond market; link requires free registration):

The benchmark 10-year Treasury note lately closed down 11/32 at 98- 7/32 with a yield ..... of 4.735%.
The 30-year bond fell 19/32 to 97-17/32 with a yield ..... of 4.909%.
The 2-year note ended off 4/32 at 100-8/32 with a yield of 4.500%.


These are hardly ginormous, let alone calamitous, changes.

While yours truly is in no way predicting the future direction of the markets, many of those who liquidated holdings earlier today as a result of Cramer's rant might have experienced a bit of seller's remorse at the close.

http://newsbusters.org/blogs/tom-blumer/2007/08/06/day-1-after-jim-cramer-s-friday-armageddon-call-markets-bonds-ok

[red states rule]

A 300 point drop in the DJIA when it is near 14,000 is a 2.1% decrease in the net value of the index.... that's a crash? That's like saying I have an incurable viral disease when I catch a cold (true, but a bit over dramatic, wouldn't you agree?)

Good Economic News is No News to the MSM
Rick Moran
Remember the screaming headlines from last Friday? "Big Drop in Dow!" What happened on Monday to those headlines when the market recovered and even exceeded what was lost on Friday?
A pronounced example of how bad news is news and good news is much less newsworthy: On Friday night, ABC and NBC teased full stories on the 281 point plunge that day in the Dow Jones average, but on Monday, after the Dow rebounded by five points greater than Friday's loss in the biggest one- day gain in five years, the networks limited coverage to a few seconds.
What is it about good economic news that causes the MSM to bend over backward to ignore?

1. Bush hatred? Check.

2. Better economy than Clinton's? Check.

3. Keep the voter uninformed? Check.

4. Hope things get worse? Double check.

If it wasn't so pathetically transparent, it would be amusing.
http://www.americanthinker.com/blog/2007/08/good_economic_news_is_no_news.html