Klaavan: How Network News Helped Bring About the Crash

When we seek out the causes and culprits of our current economic crisis, there is one area in need of reform that should not be overlooked:  the mainstream news media.  It is not too much to say that the people in the NBC, ABC and CBS news operations were major contributing factors to the crash of 2008 and are helping to pave the way to future economic troubles now.

In the book Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon, authors Gretchen Morgenson and Joshua Rosner tell how, in the early nineties, faulty or skewed studies by ACORN and other groups fed the idea that there was pervasive racial bias by mortgage lenders, with blacks and Hispanics being unfairly rejected for loans.  “The findings lit up the media, confirming many people’s suspicions about banks’ lending practices,” the authors write of one such study.  In fact, properly interpreted, the data suggested that banks were making their loans not on the basis of race but on the basis of credit-worthiness.  But as the misinformation confirmed left-wing ideas, the media pressure was on for a government fix.

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