When Andrea Mitchell reports on the current financial crisis—or on anything that relates to the crisis, which is, these days, a lot—there is an excessively large elephant in the control room. Its name is Alan Greenspan.
That Greenspan is Mitchell’s husband doesn’t, under normal circumstances, warrant disclosure or special treatment. Mitchell is a career journalist who knows what conflict of interest is—and how to avoid not only its appearance, but also, one hopes, its effects. Under normal circumstances, it would be unfair to hold her husband against her.
Under normal circumstances. But the credit crisis—and the current meltdown we’re facing, whose effects, assuming we can find a way to stanch them in the short term, will likely be with us for generations to come—is not normal circumstances. Greenspan, by virtue of his nearly-nineteen-year chairmanship of the Federal Reserve Board, is, to some extent, culpable in the crisis we’re facing. Critics have accused the Greenspan-led Fed of inflating the housing bubble by keeping loan rates too low for too long, encouraging reckless lending and borrowing. Greenspan himself has admitted as much, telling CBS last year, “While I was aware a lot of these practices were going on, I had no notion of how significant they had become until very late. I really didn’t get it until very late in 2005 and 2006.” And as The New York Times put it in a December 2007 article headlined “Fed Shrugged as Subprime Crisis Spread” (emphasis mine),
Until the boom in subprime mortgages turned into a national nightmare this summer, the few people who tried to warn federal banking officials might as well have been talking to themselves.
Edward M. Gramlich, a Federal Reserve governor who died in September, warned nearly seven years ago that a fast-growing new breed of lenders was luring many people into risky mortgages they could not afford.
But when Mr. Gramlich privately urged Fed examiners to investigate mortgage lenders affiliated with national banks, he was rebuffed by Alan Greenspan, the Fed chairman.
The degree of Greenspan’s culpability in the current meltdown is certainly debatable. One could argue, as he does, that its root cause wasn’t the interest rates of the mortgages themselves, but their repackaging. What isn’t debatable, though, is the fact that, as chairman of the body that presided over the economy while it began its slow-before-sudden descent into Dante-conomic hell, the legacy of Greenspan’s Fed chairmanship is intimately entwined in the crisis. (If the awkward evasiveness he and Mitchell exhibited at the opening-night gala for the New York Philharmonic last week is any indication, the couple is acutely aware of that.) The oft-repeated comparison of the credit meltdown to September 11 is flawed in many respects, but it’s valid in the sense that we had warning signs of this crisis long before it exploded last week. There’s a reason that “asleep at the switch” has become a truism in the treatments of the crisis; and one of the people manning that switch was Alan Greenspan.

But wouldn't it be worse if Mitchell didn't report on this crisis? Then, wouldn't her silence be the elephant in the room?
Posted by Joy Sheraton on Wed 24 Sep 2008 at 05:31 PM
Actually Mr. Greenspan warned congress about Fannie and Freddie's debt long before 2006. Mr Greenspan testified to congress of this concern as early as 2004. From the NewYorkTimes.
Posted by John Q. Citizen on Wed 24 Sep 2008 at 07:54 PM
Short Answer: NO!
But it didn't stop her before and NO ONE (CJR included) seemed to mention it before.
Posted by lvdjgarcia on Wed 24 Sep 2008 at 08:24 PM
How easily we forget the old admonition about when you can't cover the circus.
Posted by Leigh Hanlon on Thu 25 Sep 2008 at 11:27 AM
It would take real leadership to reassign Ms. Mitchell. Don't expect that from NBC.
Posted by J.David Knepper on Thu 25 Sep 2008 at 02:08 PM
I have been surprised many times and wondered why her situation as Greenspan's wife was not an issue. I agree completely with all you wrote here.
Posted by JStewart on Thu 25 Sep 2008 at 04:17 PM
Objectivity went out the door a long time ago at MSNBC. I'm writing this as I watch Susan Rice and David Axelrod being asked by Mitchell to comment on McCain's chances in the debate tonight.
Posted by JFeil on Fri 26 Sep 2008 at 01:59 PM
Thank goodness for MSNBC. No, Andrea Mitchell should not cover the financial crisis.
Posted by Jim G. on Fri 26 Sep 2008 at 03:46 PM
I wonder that if she says or asks anything negative about Greenspan such as--"do you think that the Fed shouldn't have laid on its butt and did nothing?" will be she be sleeping in the master bedroom or on the couch?
Of course, there is a clear conflict of interest. When Greenspan was running the Fed, the mere mentioning of her saying that the chairmen wasn't feeling well or grumpy could've send shivers throughtout the market.
Posted by GregB on Sat 27 Sep 2008 at 02:34 AM
I have been concerned about the skilful interviewer Andrea Mitchell's obvious conflict of interest in reporting on the economic crisis. It is reassuring to know that NBC and MSNBC are aware of the problem. But they allow her too much opportunity to slant her reporting and interviewing.
Posted by Judith B. Reed on Thu 9 Oct 2008 at 02:47 PM
Absolutely not! She is MARRIED TO a prime character in this whole episode. (Plus, she really is a terrible on-air reporter--stumbling over words, no personality, etc.)
This is not a personal attack on her necessarily. But I truly think it is hugely conflicting, to have ALL these media figures... potentially ingrained (by marraige, most of the time) with high-powered figures in the various industries.
a) Most of these reporters are pretty. When they get to that level, they make a good living. They naturally get involved/married to men of power. I think it really serves against what the media is supposed to be...
The most important service of the media is to be the eyes/ears of the public... in effect, keeping those in power honest.
But how can they do that, when they are married in to the upper crust? It's so sad.
We (average, middle class) DON'T have any eyes into these areas, protecting our interests. Mainstream news is utterly useless (if you really want to be informed). Unfortunately, most people consider it for news/opinions. They are too lazy to try and educate themselves.
Posted by John Lee on Mon 22 Jun 2009 at 02:04 PM