Economic Crisis


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  • limiting coverage to general overview of the situation CNBC ends up confusing the viewer with overly complicated term Much of news time is devoted to this. In many cases Bear Stearns crisis is related to political agendas of candidates
  • --Overall a very negative and accusatory tone -- Even money markets, typically the safest place to keep money are being affected -- Emphasis on the use of taxpayer money to bail them out -- “Can anyone stop this thing?” “What are we going to do when the next one fails, bail them out too?” -- Talks to experts, but it’s sensationalized – they do a financial calculator thing to say that if we keep doing this, it will end up putting more than $300 billion of taxpayer money at risk. Also saying that the federal reserve might have to print more money, which means that the value of your paycheck will go down, and prices will go up -- Overall, the tone gives the sense that this is just bad, and there isn’t anything we can do but sit back and wait.
  • =919972 Before the federal Bailout is passed, a lot of that week’s coverage was about the risks of the bailout, and debates/arguments for and against the government’s steps to avoid a depression with “experts” which are typically CNBC people. They cover a lot of the bases of what happened, they talk to financial people who "debate" the two sides [supporting vs. not supporting] the bailout, and they have a segment titled "What Happened?" where the reporter goes into details about the housing market, and how this in turn affected us as taxpayers.
  • Global stock markets plummeted
  • No mention of Greece despite the fact that by the end of 2009 second highest budget deficit and second highest debt to GDP ration in the EU Financial institutions around the world were impacted Sept.- Oct. 2008: all three of Iceland's major banks failed
  • Economic Crisis

    1. 1. Team NBC does the Economic Crisis Team U S A Dan Ingram Penelope Filyo Austyn Foster Jamie Keith Shannon Lozon
    2. 2. NBC Nightly News Overview <ul><li>Ranked #1 last 12 years </li></ul><ul><li>2008 - averaged 8.609 million viewers, 10% more than ABC's &quot;World News&quot; (7.818 ,mill) & 42% more &quot;CBS Evening News&quot; (6.053 mill). </li></ul><ul><li>Avg. age of viewer ~ 60 </li></ul><ul><li>In the 25- to 54-year-old demographic prized by advertisers - “Nightly” 2.59 million viewers </li></ul>
    3. 3. Financial Coverage September 2008 <ul><li>Sept 1-14th </li></ul><ul><ul><li>9.3 minutes/343.1 total program minutes </li></ul></ul><ul><ul><li>2.6% economic/financial reporting </li></ul></ul><ul><li>Sept 15-30th </li></ul><ul><ul><li>122.3 minutes/372.3 total program minutes </li></ul></ul><ul><ul><li>32.8% economic/financial reporting </li></ul></ul><ul><li>Sept 15-30th </li></ul><ul><ul><li>12 lead stories on economy/financial crisis </li></ul></ul><ul><li>Timeline of Events </li></ul>
    4. 4. Coverage of Bear Stearns <ul><li>NBC Nightly News February 2008 -April 2008 </li></ul><ul><li>March 2008 </li></ul><ul><ul><li>6 stories focused on Bear Stearns </li></ul></ul><ul><ul><li>8 others mentioning falling economy </li></ul></ul><ul><li>Combined February and April </li></ul><ul><ul><li>Only 3 stories focusing on Bear Stearns </li></ul></ul><ul><ul><li>5 others mentioning economy in general </li></ul></ul>
    5. 5. Noticeable Trends in Coverage <ul><li>Similar to all NBC coverage </li></ul><ul><ul><li>Only a certain amount of time allotted to each story </li></ul></ul><ul><li>Gave focus only at the time of Bear Stearns fall (March) </li></ul><ul><ul><li>Very little pre and post in depth-analysis and coverage in general </li></ul></ul><ul><li>Over-reliance on CNBC financial &quot;experts&quot; to explain the crisis </li></ul><ul><li>Presidential Primaries and Oil are head of News Headlines </li></ul>
    6. 6. Signs of Trouble <ul><li>NBC Nightly News 7/10/08 </li></ul><ul><li>First discussion of Fannie and Freddie facing trouble </li></ul><ul><li>15 billion lost in bad mortgages </li></ul><ul><li>“ Don’t let us down” </li></ul><ul><li>“ Due to high oil prices” </li></ul><ul><li>Real explanation missing </li></ul>
    7. 7. Bailout Version 2.0 <ul><li>NBC Nightly News 9/6/08 </li></ul><ul><li>Bailout of Fannie and Freddie officially announced </li></ul><ul><li>“ Lenders caught napping” </li></ul><ul><li>Information from authority figures </li></ul><ul><li>4 million Americans behind in payment or in foreclosure on their mortgages. </li></ul>
    8. 8. “Saving” American Mortgages <ul><li>NBC Nightly News 9/7/08 </li></ul><ul><li>“ History in the making” </li></ul><ul><li>Meets objective of: </li></ul><ul><ul><li>Market stability </li></ul></ul><ul><ul><li>Mortgage availability </li></ul></ul><ul><ul><li>Tax payer protection </li></ul></ul><ul><li>Seriously?!? </li></ul><ul><li>Making mortgages cheaper and more readily available </li></ul>
    9. 9. Failed Fortuneteller <ul><li>NBC Nightly News 7/13/08 </li></ul><ul><li>Reassurance without factual support </li></ul><ul><li>“ Continue to do so in their current form” </li></ul><ul><li>Bolster confidence </li></ul><ul><li>Feel good vs. actual solution </li></ul><ul><li>Actual explanation </li></ul><ul><li>“ It was good” </li></ul>
    10. 10. Fannie and Freddie Trends <ul><li>Reliance on CNBC </li></ul><ul><li>Failure to explain how things happened </li></ul><ul><li>Continued prophecies </li></ul><ul><li>Emphasis on reinforcing the status quo rather than addressing the problems in the system </li></ul>
    11. 11. Lehman Brothers Coverage <ul><li>THURSDAY - Sept 11th – 40 seconds </li></ul><ul><li>One of great names in investment banking on Wall Street is in trouble. </li></ul><ul><li>Gov’t trying to find a buyer </li></ul><ul><li>No word if tax payer money will be used to back the sale </li></ul><ul><li>Lehman Under Pressure </li></ul>
    12. 12. Sunday Sept.14th - 1.5 min. <ul><li>Future of Lehman? </li></ul><ul><ul><li>4th largest investment bank; merger talk </li></ul></ul><ul><li>Go to Steve Leisman CNBC </li></ul><ul><ul><li>Seems they have failed to find a buyer so government moving on to help the next tier – Merrill Lynch and Bank of America merger talk; AIG is trying to raise 50 billion before markets open tomorrow </li></ul></ul><ul><li>Big story - government has refused to be involved </li></ul><ul><li>Plug for special live coverage on CNBC </li></ul><ul><li>Lehman on the Brink </li></ul>
    13. 13. Sept 15th - Lead Story; 11min <ul><li>Worst financial crisis in modern times </li></ul><ul><li>Lehman is the largest bankruptcy ever; Merrill Lynch, AIG struggling </li></ul><ul><li>How did this all happen? - CNBC </li></ul><ul><ul><li>housing crisis; loose regulation and risk </li></ul></ul><ul><ul><li>Explanation of buyer fallout for Lehman </li></ul></ul><ul><ul><li>Negatives - layoffs; tight credit </li></ul></ul><ul><ul><li>Is my money safe? Do not dump stocks! </li></ul></ul><ul><li>Williams at CNBC Segment 1 </li></ul><ul><li>Williams at CNBC Segment 2 </li></ul><ul><li>Williams at CNBC Segment 3 </li></ul>
    14. 14. Lehman Bros. Coverage Trends <ul><li>Coverage very simple; basic introduction </li></ul><ul><ul><li>lacking details & historical context </li></ul></ul><ul><ul><li>Focus on ramifications and not cause </li></ul></ul><ul><li>The crisis stems from housing crisis, risk, and bad investment </li></ul><ul><ul><li>no details of sub-prime loans, money markets, derivatives </li></ul></ul><ul><li>Reliance on official sources and CNBC analysts </li></ul><ul><li>Wall Street vs. “Main Street </li></ul>
    15. 15. &quot;Congratulations! You're now the proud owner of AIG.&quot; <ul><li>NBC Nightly News 9/17/08 </li></ul><ul><li>Day of AIG Bailout </li></ul><ul><li>Money markets </li></ul><ul><ul><li>“ Safest” place to keep money </li></ul></ul><ul><li>“ Can anyone stop this thing?” </li></ul>
    16. 16. The Bailout is Passed <ul><li>Bailout debates </li></ul><ul><li>Taxpayer money </li></ul><ul><ul><li>“ What exactly are we paying for?” </li></ul></ul><ul><li>“ Us” versus “Them” </li></ul><ul><ul><li>Now we wait. </li></ul></ul>
    17. 17. Biggest threat: The economy <ul><li>NBC Nightly News 2/12/09 </li></ul><ul><li>Obama administration announced the economy and terrorism was the biggest national threat </li></ul><ul><li>Global recession </li></ul><ul><ul><li>Flooding country with refugees </li></ul></ul><ul><li>Developing countries hardest hit </li></ul>
    18. 18. Global mess <ul><li>NBC Nightly News 10/6/08 </li></ul><ul><li>“ Proof today that this is a global economic crisis” </li></ul><ul><li>Weak US economy means rest of the world will face crisis </li></ul><ul><li>Markets plunging around the world </li></ul>
    19. 19. “Why can’t we do that?” <ul><li>NBC Nightly News 10/13/08 </li></ul><ul><li>“ Hang on to something nailed down.” </li></ul><ul><li>Banks around the world flushed money into the banks </li></ul><ul><li>British acted most efficiently to save financial system </li></ul><ul><ul><li>65 million to partially nationalize banks </li></ul></ul><ul><li>NBC Nightly News 10/13/08 </li></ul><ul><li>“ Hang on to something nailed down.” </li></ul><ul><li>Banks around the world flushed money into the banks </li></ul><ul><li>British acted most efficiently to save financial system </li></ul><ul><ul><li>65 million to partially nationalize banks </li></ul></ul>
    20. 20. What about the rest of the world? <ul><li>NBC Nightly News 3/31/09 </li></ul><ul><li>Williams in London </li></ul><ul><ul><li>“ We haven’t heard as much about the problems over here.” </li></ul></ul><ul><li>Many economists thought Hungary would be the first in Europe to go bankrupt. </li></ul><ul><li>Spain’s high unemployment </li></ul>