Uncategorized

N&O Reports Nonsense

Today’s issue of The News & Observer contains a story summarizing a discussion between the paper’s staff and Mark Vittner, an economist at Wachovia. While the story is right to note that the economy is mired in one of the most serious recessions in decades, it provides no explanation of what happened.

The article implies that the economy is struggling due to a credit contraction. That is patently not true. The economy’s woes stem from the bursting of a speculative housing bubble that has eliminated some $6 trillion in housing wealth and another $8 trillion in stock wealth. Most of the problems facing the economy — including credit problems — are the logical consequences of that fact.

It is hardly surprising that economists affiliated with Wachovia don’t want to call attention to the housing bubble. After all, the firm profited handsomely from it and then either ignored or missed the bubble completely. As a result, the bank made silly choices that caused it to essentially fail. As a result, the federal government was forced to basically seize and sell the bank.

While Wachovia officials can think whatever they want about the economy, the N&O shouldn’t uncritically report their views, especially when those views have no bearing to reality.

In April, Ted Vaden, The N&O’s public editor, wrote a column lamenting the paper’s poor coverage of structural economic issues. By reporting economic nonsense in today’s paper, the N&O not only proves, sadly, that little has changed but also does a disservice to the public.

Check Also

Exceptional, Just Not In a Good Way

Conservative commentators frequently claim that the structure of ...

Top Stories from NCPW

  • News
  • Commentary

Congress has just a few days left this month to enact legislation that would address the immigration [...]

12.2 million - the number of people nationally who signed up for health care coverage using HealthCa [...]

Frenches Creek Finishing lies in the watery lowlands of Bladen County, near Lion Swamp, Conkill and [...]

Historical commission member weighs in on monuments, free speech Valerie Johnson is the Mott Disting [...]

“All speech is free, but some speech is more free than others.” This seems to be the motto of the cu [...]

Trumpists prepare to raze another vital common good law It’s hard to keep up these days with the flo [...]

The post That’s how ‘Humbug’ is done appeared first on NC Policy Watch. [...]

The solid citizens of Johnston County, N.C. – in a fateful quirk of geography – for several years ha [...]

Featured | Special Projects

NC Budget 2017
The maze of the NC Budget is complex. Follow the stories to follow the money.
Read more


NC Redistricting 2017
New map, new districts, new lawmakers. Here’s what you need to know about gerrymandering in NC.
Read more