—Talking Points Memo had a nice catch of Reuters pulling a story headlined “Backdoor taxes to hit middle class” after the White House pointed out “errors of fact.” Reuters straightforwardly explains why here.
— The Las Vegas Sun, via Calculated Risk, provides interesting local reporting from the heart of the housing bust:
In the last four months of 2009, the number of foreclosure sales has dropped and lenders have consented in greater numbers to short sales — in which they allow homes to be sold for less than the owner owes on the mortgage. That trend should continue in 2010, according to Realtors and housing analysts.
Compared to foreclosures, CR explains, this is a good thing.
—Regulators and deregulators alike should read this New Republic piece on Obama quietly beefing up the nation’s regulatory agencies. We’re big on regulatory coverage around here and don’t think there’s been enough of it. We also have noted that active regulation, including Congressional oversight, leads to a lot more information and generally better business journalism.
The TNR piece is smart to note the SEC is so far the exception that proves the new rule about heightened regulatory activism. (h/t TPM)
—Breaking Views offers a sobering perspective on McClatchy’s prospects, even as earnings start to recover. Bottom line: Even if revenue declines slow to a rate of 10 percent a year (wow), the newspaper company could seen interest cost eating up 40 percent of operating income.
—The business press’s attempts to gauge the economic climate is probably itself an economic indicator, and this WSJ story seems to echo the current press consensus on the economy:
“Data Hit Hopeful Notes for Economy”
Here’s hoping.
—And Allan Sloan names the next bailout candidate: Social Security.
It's good to see a rare moment of accountability in journalism, and a price being paid for writing dishonest rightwing hackery. Actually, I think it's a first; I can't recall any other reporter who was ever fired for pushing Republican lies, can you? Kudos to Reuters for showing some integrity. You NEVER see an American news organization do that, ever.
The journalist who wrote an article on Monday that turned into an embarrassment for Reuters and a cause for some conservatives has left the wire service, the company said Friday. A Reuters spokeswoman declined to say whether the journalist, Terri Cullen, left voluntarily, or why. “I can’t really go into any detail,” said the spokeswoman, Courtney Dolan.
Journalist Whose Article Was Retracted Leaves Reuters - Media Decoder Blog - NYTimes.com
#1 Posted by James, CJR on Sat 6 Feb 2010 at 04:03 PM
James wrote: It's good to see a rare moment of accountability in journalism, and a price being paid for writing dishonest rightwing hackery
padikiller notes: Of course, dishonest leftwing hackery abides unfazed....
As for the short sales... I believe that Calulated Risk's analysis is simplistic and short-sighted.
Banks carry loans as assets and collateral as liabilities on their books. An increase in short sales is an indication of a lousy real estate market and desperation among lenders.
Lenders who sell short are playing a shell game with their books. They take what cash they can get from a ready buyer from the short sale and immediately churn it into new loans to inflate the asset side of the books, while they keep the deficiency balance on the books as an asset too. Thus the "asset" side of the books is inflated (and the "liability" side deflated) when compared to a lender who forecloses and markets property.
The reality is, however, that the deficiency balance remaining after a short sale will almost never be paid - it will be discharged in bankruptcy or remain uncollected until the bank writes it off as a bad debt - reducing the taxes paid by the lenders. Thus the investors and the taxpayers are screwed over.
To me, the sudden willingness of banks to accept short sales is clear indication of the weakness in the market and in the looming insolvency of the banks.
#2 Posted by padikiller, CJR on Sat 6 Feb 2010 at 04:34 PM