NBC & The NBC & The Economic CrisisEconomic Crisis

By Allison Stein, Ariana By Allison Stein, Ariana Katzman, Danielle Haskin, Elliott Katzman, Danielle Haskin, Elliott Polakoff, and Lindsay HurdPolakoff, and Lindsay Hurd

What is NBC?What is NBC?

NBC is one of the four major broadcast NBC is one of the four major broadcast networks in the U.S.networks in the U.S.

Besides the news NBC includes both Besides the news NBC includes both daytime programming and prime-time TV daytime programming and prime-time TV showsshows

Because of this NBC attracts a broad Because of this NBC attracts a broad audience audience

Not for your typical finance junkieNot for your typical finance junkie

NBC.COMNBC.COM

News is not the main focus on NBC.COMNews is not the main focus on NBC.COM The website diverts you to other NBC The website diverts you to other NBC

affiliated website such as example MSNBC affiliated website such as example MSNBC and Meet the Press.and Meet the Press.

More about promoting NBC as a BRAND and More about promoting NBC as a BRAND and a NETWORKa NETWORK

As a result of this news is put on the As a result of this news is put on the backburnerbackburner

Entertainment sells, news doesn’tEntertainment sells, news doesn’t

The Early StagesThe Early Stages

February 3, 2001: Nightly News Tom BrokawFebruary 3, 2001: Nightly News Tom Brokaw First signs of falling economyFirst signs of falling economy “ “The economy is churning out new jobs in different areas but basically they just The economy is churning out new jobs in different areas but basically they just

aren't paying enough” aren't paying enough” The unemployment rate was starting to reach its highest in 15 monthsThe unemployment rate was starting to reach its highest in 15 months Never tell viewers why the economy is falling….Never tell viewers why the economy is falling….September 8, 2001: Nightly News John Seigenthaler September 8, 2001: Nightly News John Seigenthaler Decline in economy still, only the housing marketing is good, warningDecline in economy still, only the housing marketing is good, warning ““Signs of slow down”Signs of slow down” “ “Housing is one of the strongest markets but signs of weakness closing in all Housing is one of the strongest markets but signs of weakness closing in all

around” around” People are “Getting out while the getting's good”People are “Getting out while the getting's good”

Early StagesEarly StagesThe Housing BubbleThe Housing Bubble

September 29, 2002: Nightly News, John Seigenthaler September 29, 2002: Nightly News, John Seigenthaler Increase in housing prices still but…Increase in housing prices still but… ““Experts warn that in some areas it has grown too much too fast, that the Experts warn that in some areas it has grown too much too fast, that the

housing bubble could burst, forcing values down”housing bubble could burst, forcing values down” BUT a “Solid investment in your future”BUT a “Solid investment in your future” Contradiction: Hot Market vs. will it burst?Contradiction: Hot Market vs. will it burst?

May 31, 2005: Nightly News Brian Williams “Through the Roof”May 31, 2005: Nightly News Brian Williams “Through the Roof” Prices of homes jumped 15%, prices outweighing incomePrices of homes jumped 15%, prices outweighing income ““Economists don’t believe it’s a national bubble they believe it is only a local”Economists don’t believe it’s a national bubble they believe it is only a local”

Early StagesEarly StagesThe Housing BubbleThe Housing Bubble

May 24, 2006: Nightly News Brian WilliamsMay 24, 2006: Nightly News Brian Williams Loans are the culprit, “housing on the bubble”, Loans are the culprit, “housing on the bubble”,

increasing mortgage rates and pricesincreasing mortgage rates and pricesAugust 2, 2006: Nightly News Brian August 2, 2006: Nightly News Brian

WilliamsWilliams Targets the average consumer from all sides (credit Targets the average consumer from all sides (credit

cards and electricity)cards and electricity) Financial Expert Rick Sharga explained “In a worst Financial Expert Rick Sharga explained “In a worst

case scenario you could have so many properties case scenario you could have so many properties entering foreclosure that it depresses the value of entering foreclosure that it depresses the value of homes on the market”homes on the market”

His firm saw a 25% increase this spring and he said His firm saw a 25% increase this spring and he said “This wave of resets is the wildcard in housing”“This wave of resets is the wildcard in housing”

The Bursting of the BubbleJuly 29, 2007: Nightly News Lester Holt• Everyone likely effected in some way • NBC Pat Dawson: Moments Thursday and Friday when

everyone was looking to get out• Pat Dawson NBC News correspondent explains “There were

moments Thursday and Friday when it seemed everyone on Wall Street was looking to get out. The sell-off was triggered by more bad news in the U.S. housing market and concerns that both companies and consumers may have increasing problems borrowing money”

• Henry Paulson Treasury Secretary “I’m not making light of any of this but this is a readjustment, which is I think, a wake-up call”

• Maria Bartiromo “You talk to builders or lenders…slow down will likely go well into 2008 possibly into 2009….the next factor to look at is whether the consumer is going to have other types of loans. If that is the case that means we are seeing a real spillover into the broad economy and possibly looking at the loss of jobs”.

During the During the Crisis (2007-2009)Crisis (2007-2009)

October 16, 2009: Nightly News Brian October 16, 2009: Nightly News Brian WilliamsWilliams

““Bigger risk to the economy than the experts are saying”, Bigger risk to the economy than the experts are saying”, “most significant current risk to our economy”, “Domino “most significant current risk to our economy”, “Domino effect is brutal”effect is brutal”

Though they briefly touch on important issues they are Though they briefly touch on important issues they are trivialized because they jumped right to the next story with trivialized because they jumped right to the next story with no commentary from Brian Williams.no commentary from Brian Williams.

Limited selection of reports in 2007. Limited selection of reports in 2007. Only 2:30 of a 30 minute news segment was dedicated to Only 2:30 of a 30 minute news segment was dedicated to

the economic crisisthe economic crisis

During the Crisis (2007-2009)During the Crisis (2007-2009)The Crisis and the ElectionThe Crisis and the Election

September 24, 2008: Nightly News Brian September 24, 2008: Nightly News Brian WilliamsWilliams

http://www.youtube.com/watch?v=dnlfyUKBaeo

The clip focuses on the presidential race and The clip focuses on the presidential race and its relationship to candidates position on the its relationship to candidates position on the economyeconomy

Again, this was the only segment dedicated to Again, this was the only segment dedicated to the economy and only focused on the election.the economy and only focused on the election.

During the During the Crisis (2007-2009)Crisis (2007-2009)

January 21, 2008: Nightly News Brian WilliamsJanuary 21, 2008: Nightly News Brian Williams Puts the evolution of the crisis into perspective for the average joePuts the evolution of the crisis into perspective for the average joe Started a series: “Hard Times, a Nightly News Survival Guide”: A look at how Started a series: “Hard Times, a Nightly News Survival Guide”: A look at how

our financial markets got where they are and a look at how you can protect our financial markets got where they are and a look at how you can protect yourselfyourself

Two things cause the recession: Two things cause the recession: 1) Price of Oil up 74% in a year-makes many other product prices soar1) Price of Oil up 74% in a year-makes many other product prices soar 2) Cheap Mortgages: “Convinced Americans anyone could own a home”, 2) Cheap Mortgages: “Convinced Americans anyone could own a home”,

“Kept low after 9/11 to boost the economy”, “sparked a borrowing binge”“Kept low after 9/11 to boost the economy”, “sparked a borrowing binge”As a result…As a result… Americans couldn’t keep up with payments and banks stopped lending as Americans couldn’t keep up with payments and banks stopped lending as

much which means businesses hire fewer workers and consumers buy less-much which means businesses hire fewer workers and consumers buy less- Consumer spending it what drives ¾ of economyConsumer spending it what drives ¾ of economy Explain that when consumers loose faith you can have a recession very Explain that when consumers loose faith you can have a recession very

quickly quickly Addressed what went wrong, made us understand that we were in fact, Addressed what went wrong, made us understand that we were in fact,

entering a recessionentering a recession

After the After the Crisis (2009-2010)Crisis (2009-2010)

January 10January 10thth, 2010: Nightly News Lester , 2010: Nightly News Lester HoltHolt

Experts from across political spectrum say that Obama’s housing Experts from across political spectrum say that Obama’s housing program is a disappointment. program is a disappointment.

““It’s being overwhelmed by the magnitude of the problem. More It’s being overwhelmed by the magnitude of the problem. More has to be done.” (Mark Zande, Moody’s Chief Economist)has to be done.” (Mark Zande, Moody’s Chief Economist)

Defenders say progress has been made, program is meeting it’s Defenders say progress has been made, program is meeting it’s targetstargets

Michael Barr, U.S. Treasury and creator of program: “I think we’re Michael Barr, U.S. Treasury and creator of program: “I think we’re going to have to do a better job of continually reaching borrowers”going to have to do a better job of continually reaching borrowers”

After the After the Crisis (2009-2010)Crisis (2009-2010)

July 9, 2010: Nightly News Lester HoltJuly 9, 2010: Nightly News Lester Holt Unlike previous NBC news report, there are explanations for Unlike previous NBC news report, there are explanations for

why Obama’s homeowner program isn’t working:why Obama’s homeowner program isn’t working: Elizabeth Warren: “Banks aren’t doing enough to help…Elizabeth Warren: “Banks aren’t doing enough to help…

Often mortgage services make more money for themselves Often mortgage services make more money for themselves if a family goes on to foreclosure…Because program is if a family goes on to foreclosure…Because program is voluntary, mortgage servicers have final say. There is no voluntary, mortgage servicers have final say. There is no real muscle to the program and no real requirement that you real muscle to the program and no real requirement that you have to follow guidelines of the program”.have to follow guidelines of the program”.

On the other hand, NBC uses Warren as a source of On the other hand, NBC uses Warren as a source of criticism when she chairs the panel that oversees money criticism when she chairs the panel that oversees money used to find program.used to find program.

After the After the Crisis (2009-2010)Crisis (2009-2010)

http://www.youtube.com/watch?v=HUMXKNQL0QA

Ann Curry asks what the solution is for Ann Curry asks what the solution is for people to avoid the mortgage crisis. This people to avoid the mortgage crisis. This is an appeal directly to the citizen to is an appeal directly to the citizen to understand the issue.understand the issue.

General TrendsGeneral Trends

Did a good job with being up-to date on the latest breaking Did a good job with being up-to date on the latest breaking newsnews

Their reporting style is one that tries to do too many things Their reporting style is one that tries to do too many things at once in an attempt to appeal to all of the masses.at once in an attempt to appeal to all of the masses.

They lay out the information but they fail to give the back-They lay out the information but they fail to give the back-story and tell you what to do with it. story and tell you what to do with it.

Although they brand themselves as being the news channel Although they brand themselves as being the news channel for the mass-audience they fail to adequately educate their for the mass-audience they fail to adequately educate their audienceaudience

They skim the surface of every important issue but fail to go They skim the surface of every important issue but fail to go deeper. This was a particular problem in their reporting of deeper. This was a particular problem in their reporting of the financial crisis.the financial crisis.

They are clear because they are informative and up to-date They are clear because they are informative and up to-date but fail to be consistently helpful.but fail to be consistently helpful.

How To ImproveHow To Improve Though they give many statistics about the housing bubble and Though they give many statistics about the housing bubble and

increased foreclosures BUT they don’t inform citizens on what they increased foreclosures BUT they don’t inform citizens on what they should do to avoid this situation should do to avoid this situation

They make it very easy for people to watch it and make the same They make it very easy for people to watch it and make the same mistakes, need to explain mistakes, need to explain preventionprevention

Make their website more accessible and with more news contentMake their website more accessible and with more news content Give more background information on the issues they are reporting on Give more background information on the issues they are reporting on

so the audience can understand the big pictureso the audience can understand the big picture