Why is the media so incredibly pro-bailout? (loan, credit, debt)

[lifeisbigger]

Why is the main-stream media so incredibly pro-bailout? I can think of two reasons:

- The folks who advertise for these channels, especially CNBC, are the big boys ... and so for CNBC to stay afloat, the big boys have to be in good shape.

- The main-stream media is, actually, just a bunch of propoganda-pushers.

I'm looking for any other reasons ...

Thanks!

[Refugee56]

I would like to believe that the folks at CNBC have studied the issue and have concluded there is no other solution. They are just more informed at Finance and Economics than the regular person who does not understand how bad the economy is and react to it emotionally.

[lifeisbigger]

Originally Posted by Refugee56

I would like to believe that the folks at CNBC have studied the issue and have concluded there is no other solution. They are just more informed at Finance and Economics than the regular person who does not understand how bad the economy is and react to it emotionally.

You would like to believe it. I would like to believe it, too. But do you believe it?

[TexianPatriot]

market queens have a vested interest in seeing this bill pass.

[chuck22b]

I don't know... if there wasn't a bail-out they'll have a lot more to report in the coming months... and years...

Unemployment... crime... businesses going under... they should be against the bail out since in theory they'll have more news to report.

[davidt1]

Originally Posted by lifeisbigger

Why is the main-stream media so incredibly pro-bailout? I can think of two reasons:

- The folks who advertise for these channels, especially CNBC, are the big boys ... and so for CNBC to stay afloat, the big boys have to be in good shape.

- The main-stream media is, actually, just a bunch of propoganda-pushers.

I'm looking for any other reasons ...

Thanks!

The news media is owned by big business. So they have a desire to see this bank bailout passed. They know the sheep will listen to them. If repeated or heard enough times, a lie will sound like truth, at least to the sheep anyway.

Let me give you an example. Last night I saw on the news here in Houston a story about a local car dealer laying off 50 people because business has been slow for them in the last 2 quarters. The reporter who did the story didn't interview the CEO or any of the people who work for this company; yet she somehow magically out of thin air linked this lay-off to the failed bailout. And she did it with straight face too. I became infuriated and sad, sad because I know sheep will buy it.

All lot of sheep are as confused as ever. So Let me explain why banks and big business want this bailout passed and why the politicians will do and why the media will support it. Banks borrow money from the Federal Reserve at something like 2%. They loan this money out at 7% and pockets the difference. If you have a business that makes money this easily, would you want to protect it at all cost? Of course you do. That's why banks want this bailout passed. The government/bank connection needs little explanation here. Banks contribute big money, and most government treasury, commerce and federal reserve officials worked for the banking industry.

What about the news media? News media are part of big business too. GE owns CNBC. Investment banks own GE.

Who owns CNN? or MSNBC? ABC? : LA IMC

[chuck22b]

Originally Posted by davidt1

All lot of sheep are as confused as ever. So Let me explain why banks and big business want this bailout passed and why the politicians will do and why the media will support it. Banks borrow money from the Federal Reserve at something like 2%. They loan this money out at 7% and pockets the difference. If you have a business that makes money this easily, would you want to protect it at all cost? Of course you do. That's why banks want this bailout passed. The government/bank connection needs little explanation here. Banks contribute big money, and most government treasury, commerce and federal reserve officials worked for the banking industry.

The banks can already do that through the discount window. They don't need the bail out to be able to borrow through that window. Nor does the Fed (central bank) need congressional approval to inject capital (print money/sell treasuries).

So far... none of it has worked. Banks aren't able to lend since credit isn't flowing into the bank from investors (or the cost of credit has risen). Therefore, banks are borrowing from the Fed instead to keep some liquidity.

The fed will have to continue to inject capital... and companies will continue to borrow through the discount window UNTIL... the foreigners are willing to buy company debt and packaged securities.

The Bail out is to address this issue. Why aren't investors buying corporate bonds and securities? It's mainly because they're on a holding pattern (credit freeze) because they don't know how much these companies and papers are worth. The bail out creates a new entity that allows for the purchase with oversight of the unmeasurable assets so that the "investors" (foreigners) can resume funding the banks instead of the Fed funding the banks.

-chuck22b

[davidt1]

Originally Posted by chuck22b

The banks can already do that through the discount window. They don't need the bail out to be able to borrow through that window. Nor does the Fed (central bank) need congressional approval to inject capital (print money/sell treasuries).

So far... none of it has worked. Banks aren't able to lend since credit isn't flowing into the bank from investors (or the cost of credit has risen). Therefore, banks are borrowing from the Fed instead to keep some liquidity.

The fed will have to continue to inject capital... and companies will continue to borrow through the discount window UNTIL... the foreigners are willing to buy company debt and packaged securities.

The Bail out is to address this issue. Why aren't investors buying corporate bonds and securities? It's mainly because they're on a holding pattern (credit freeze) because they don't know how much these companies and papers are worth. The bail out creates a new entity that allows for the purchase with oversight of the unmeasurable assets so that the "investors" (foreigners) can resume funding the banks instead of the Fed funding the banks.

-chuck22b

Without the bailout some might go under. They can't borrow anything if they are closed. That was my point. The media would have the everyone believe that that would be the end of the world. There would be short-term pain, but other banks will take over and the business of banking will continue.

[bhcompy]

The TV media may be for it but I've read a lot of the internet media that are against it, like Jubak and such.

[HappyTexan]

Look who is behind and funds the MSM. That's why most stories are one sided and biased.