Misinformation Superhighway
by digby
The problem isn't just Fox, I'm afraid. MSNBC just featured a conversation between Chuck Todd, Ron Insana and Melissa Francis on the housing slump and the economy. If you weren't confused before it started, you certainly were at the end.
Chuck said we are just now focusing on housing. Ron pointed out that it's been a problem since the bubble burst. Chuck then wondered if the new slump is the government's fault for propping up the housing market over the last 18 months when we should have "taken our medicine" earlier and allowed nature to take its natural course. (Presumably, Todd is not one who would be swallowing that medicine himself, being a well compensated television celebrity and all.) Melissa said that it depends on your political persuasion if you believe that, although she didn't explain why. Then she said it was terrifying that Nouriel Roubini tweeted that we are going into a double dip recession --- because of the tweeting not the prediction. Chuck said he likes to tweet.
Then Ron Insana said that we need to get more consumer spending going and one of the best ways to do that is by extending ALL the Bush tax cuts so people have more disposable income. I guess the billionaires will start coupon clipping once the tax cuts expire and we need to make sure they keep that extra few million to spend on baubles and employing dead artists. He did also mention a payroll tax holiday in passing. No discussion of more stimulus spending from anyone. (Well played deficit hawks, well played ...)
Chuck then noted that the problem is all those people who took their housing equity and bought big screen TVs which caused a big inventory of houses. He wondered if we are just going to have to live with abandoned subdivisions that will get mowed over eventually. Ron told him that this will work itself out if only lending standards are loosened up. Chuck said he heard that small business owners can't get loans to pay their payrolls and Melissa Francis pointed out that he was completely wrong.
Chuck then thanked both of them for the kind of eye-opening conversation that everyone's having around their kitchen tables.
It was eye opening all right. In the same way that watching a car wreck is eye-opening.
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