How Do We Cover a Financial Crisis?
How'd we get into this mess, and how do we get out? That's something I hear a lot lately. And it's not about the election. While a raucous, entertaining, and important presidential race has been hurtling to the finish line, we've also had to deal with a financial crisis that has crept and now galloped to the top of the public's list of concerns. When Warren Buffett calls the events of the past few weeks an "economic Pearl Harbor," we'd all better pay serious attention.
Which is not to say that we haven't been writing about the unraveling housing and financial markets for quite a while. U.S. News has always been more about Main Street than Wall Street, so it came naturally to view the highfliers with a skeptical eye going back years. We took a hard look at the shaky structure of Fannie Mae and Freddie Mac in June 2003—and concluded that meaningful reform was unlikely. In his column, Mort Zuckerman started sending up caution flares about the dangers of falling home prices and an overleveraged financial sector starting in May 2006. Since the summer of 2007, we've been all over the story, culminating in our cover this past March "Why the Housing Crisis Is Bigger Than You Think." Yet it's fair to ask if we, and our colleagues in the media, did enough soon enough. Lots of stories get written every week, but were we making it clear that something truly unusual was building? And what about reinforcing the common-sense notion that markets do not rise forever? Of course, if you give us the benefit of the doubt and think we hit the right notes, did any of the warnings even matter?
Next. Perhaps the more important question is, What can we do about it now? Odds favor some tough economic times to come. Our job is to help you make sense of a blur of arcane and conflicting information and, when we can, offer possible solutions or strategies. We're not your accountant or your priest. We don't have all the answers, but we're pretty good at weighing the wisdom of experts and distilling the results. In the magazine and online every day, we can at least bring a focus on family and personal decisions, from healthcare to retirement planning, that will take on added urgency in the months ahead.
I'd like to hear your thoughts on both issues. Did the media do a good enough job seeing this crisis coming? Did U.S. News? And what comes next? How can we cover this story to give you the facts you need? Drop me an E-mail at editor@usnews.com, or join the real-time comments fray below.
—Brian Kelly
Tags: U.S. News & World Report | economy | journalism | media | Wall Street
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Reader Comments
The financial crisis has really publicized some of the worst practices on Wall Street, many of which socially conscious investors have worked to remedy over the years. It’s good to see the global financial crisis take center stage during the SRI in the Rockies’ responsible investment industry conference with the belief that a more socially responsible approach to investing can—and should—play a role in helping to transform the investing world. Here is their link for those interested in learning more on this event: www.SRIintheRockies.com
How do you cover a financial crisis ?
You ask, "Did U.S NEWS do a good enough job seeing this crisis coming?" The answer is in your own "editors note". You mention one article in 2003 and one in 2006 and extensive coverage since 2007. There were approximatly 150 issues of your magazine from 2003 thru 2006 and you had TWO articles? Wow!! pat yourself on the back.
Is there really a "mortgage crises"?
Aproximatly 75 Million Americans own a home. and appoxamatley 1 million are in forclosure. That means that 299 million people do not have a mortgage problem. The people on wall street have a problem.
What we have is a JOBS CRISES. There are many news reports about the job losses over 400,000 in Michigan alone in recent years. I have been a REALTOR for 14 years. The only reason any of my customers lost their homes is becuase they lost their jobs.
All these reporters and politicians talking about the "UNEMPLOYMENT RATE" what they do not talk about it how that is calculated. I believe the number comes from the unemployment office, which self employed people like Realtors, Contractors,hair dressers,anybody that works for a family owned business is not allowed to collect unemployment.
Once a persons 26 weeks of unemployment runs out they do not count as unemployed anymore. So, the rate goes up, and things are BAD. The rate goes down and things are suppose to be good. But it is not good because, alot of people did not find jobs and the UNDER EMPLOYED are not calculated.
I would really enjoy some INVESTIGATIVE REPORTING.
Right now politicians are saying that the United States is spending around 10 Million a month in IRAQ. There are How many military personnel there? It seems every charitable organization has collection drives for the troops for things like tooth paste, sun screen and toilet paper? what the heck is the 10 million covering. Oh, Bombs. How many of those have been used lately?
Over all I enjoy reading U.S NEWS. I haven't missed a regular issue in 9 years and look forward to the magazine every week.
Covering Financial Crisis
The news media could improve coverage of the financial crisis by reading factcheck.org and reporting on the following issues:
The liberals directed Fannie Mae, Freddie Mac, and others to make loans to people who clould not afford them and we got the predictable results. Interest only, no down payment and undocumented income loans were irresponsible. Liberals also rejected attempts at regulation. This is another failed liberal social program.
Does undocumanted income mean undocumented worker?
Is it fair for someone who purchased a $200,000 house they could afford to subsidize someone who purchased a $400,000 house they could not afford?
Why are so many large expensive houses and so few affordable houses being built?
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