Good News And Bad News For News Corp

This is a fairly busy news day for the man who owns the news. Rupert Murdoch’s News Corp released its quarterly earnings report and is still smarting from the smack it received by the marketplace. While the economy overall is in a dismal state, and particularly media enterprises, News Corp has suffered a loss that exceeds all of their competitors. Murdoch acknowledged the significance of their record-setting $6.4 billion loss, saying the pitiful results were…

“…a direct reflection of recession that is deeper than anyone predicted. Indeed this is the worst global economics crisis we witnessed since NewsCorp was established more than 50 years ago.”

Almost every division, film studios, TV stations, Internet, and especially, newspapers, suffered steep losses. The company wrote down $3.6 billion on the Wall Street Journal alone. And going forward, News Corp advised Wall Street that income will decline another 30% for fiscal 2009. By way of explanation, Murdoch confirmed a theory that I set forth last year. He revealed that the loss of advertising revenue from auto manufacturers was the “thing that really is killing us.” That’s not surprising when you note that four of the top five advertisers are car makers. Murdoch also revealed something with which regular viewers of Fox News should be well acquainted:

“Even on [finance] terms, we have never been a company that tolerates facts.” [Some reports now say that Murdoch said “fat” not “facts”]

The good news is that the cable group was not amongst the contributors to the downside. Part of the reason may be that Fox News recently renegotiated their carriage agreements with cable operators, which likely produced a favorable comparison to the previous year’s income.

In addition, Fox News seems to be enjoying a ratings revival. For the two weeks following Barack Obama’s inauguration the network performed markedly better than the two weeks prior. However, it appears that the bulk of the improvement came from just two programs – the newly launched Glenn Beck and the reconstituted Hannity (minus Colmes). So the Fox strategy of doubling down on the neanderthal conservatism may be paying off.

I would conclude that this bump was the result of frightened and depressed right-wing viewers huddling in the warmth of the channel where they get the most comfort. It must be a lonely and harrowing experience to have witnessed the election of a Socialist Muslim who was born in Kenya and refuses to recite the Pledge of Allegiance. The red glow of the Fox “Breaking News” graphic is soothing in a way that can only otherwise be achieved with an abundance of prescription drugs. I would just like to remind the Fox Junkies that there will always be a morning after.

In Honor Of Ronald Reagan’s Birthday

Ronald Reagan would be 98 years old today were he alive. So on this special occasion, I thought it would be appropriate pay tribute with an excerpt of the new book by Will Bunch, “Tear Down This Myth.”

Reagan: Tear Down This MythIt was Ronald Reagan himself who, as the spotlight faded on his presidency in 1988, tried to highlight his eight-year record by reviving a quote from John Adams, that “facts are stubborn things.” The moment became quite famous because the then-77-year-old president had botched it, and said that “facts are stupid things.” The tragedy of American politics was that just two decades later, facts were neither stubborn nor even stupid – but largely irrelevant.

Any information about Iran-Contra or how the 1979-81 hostages were released (Rudy Giuliani had falsely claimed during the 2008 race they were freed when “the Gipper” looked Iranian leaders in the eye) that didn’t fit the new official story line was being metaphorically clipped out of the newspaper and tossed down “memory hole” – the fate of any information that would have undercut Reagan’s image as an all-benevolent Big Brother still guiding the conservative movement from above.

A more factual synopsis of the Reagan presidency might read like this: That Reagan was a transformative figure in American history, but his real revolution was one of public-relations-meets-politics and not one of policy. He combined his small-town heartland upbringing with a skill for story-telling that was honed on the back lots of Hollywood into a personal narrative that resonated with a majority of voters, but only after it tapped into something darker, which was white middle class resentment of 1960s unrest.

His story arc did become more optimistic and peaked at just the right moment, when Americans were tired of the “malaise” of the Jimmy Carter years and wanted someone who promised to make the nation feel good about itself again. But his positive legacy as president today hangs on events that most historians say were to some great measure out of his control: An economic recovery that was inevitable, especially when world oil prices returned to normal levels, and an end to the Cold War that was more driven by internal events in the Soviet Union and in Eastern Europe than Americans want to acknowledge.

His 1981 tax cut was followed quickly by tax hikes that you rarely hear about, and Reagan’s real lasting achievement on that front was slashing marginal rates for the wealthy – even as rising payroll taxes socked the working class. His promise to shrink government was uttered so many time that many acolytes believe it really happened, but in fact Reagan expanded the federal payroll, added a new cabinet post, and created a huge debt that ultimately tripped up his handpicked successor, George H.W. Bush. What he did shrink was government regulation and oversight — linked to a series of unfortunate events from the savings-and-loan crisis of the late 1980s to the sub-prime mortgage crisis of the late 2000s.

Happy birthday you greedy, lying, war-mongering, phony, SOB.