Bill O’Reilly: MoveOn Forced CNBC To Hire Howard Dean

Bill O’Reilly gets funnier by the day (or scarier, depending on your perspective). His latest broadcast falsehood is that MoveOn.org has wielded its mighty power to “force” NBC/Universal CEO Jeff Zucker to hire Howard Dean as a contributor to CNBC. This display of domination was allegedly in response to conservative commentaries by CNBC’s Jim Cramer and Mark Haines.

Even if someone was stupid enough to believe that a relatively small political activist group could boss around the chief of a major entertainment and news empire, the accusation is completely without foundation. In fact, Sam Stein of the Huffington Post, who did some actual reporting, unlike O’Reilly, found that:

“…the decision to bring the recently departed DNC Chair on board, the source says, was finalized well before the current wave of CNBC-angst. So while grassroots groups have sprouted up in recent weeks petitioning the network to make wholesale changes, Dean’s hiring can’t be viewed as a direct result of public pressure.”

O’Reilly’s stupidity, however, extends even further. The source he quotes for his baseless and false allegation is Noel Sheppard. O’Reilly identifies him as the author of a column in the Washington Examiner. What O’Reilly doesn’t tell you is that Sheppard also happens to be the Associate Editor of NewsBusters, an arm of the uber-conservative Media Research Center. The MRC was just revealed to be the source for many ideologically twisted stories on Fox News, a fact that former anchor Brit Hume confessed just last week. Now O’Reilly has admitted that he too is disseminating MRC propaganda as if it were news. It should be noted that neither O’Reilly nor Sheppard produced any evidence that either MoveOn or Zucker played any role in Dean’s employment.

As if that were not enough, O’Reilly went on to disparage Dean saying that he “know[s] little about economics.” Where O’Reilly gets the gumption to knock Dean’s credentials is beyond me. Dean served as governor of the state of Vermont for twelve years. For a portion of time he was Chairman of the National Governor’s Association. Prior to that he was a Wall Street stock broker. And his father was a top executive at Dean Witter Reynolds. But O’Reilly, who expounds on economics every day is a former tabloid TV news reader. So on whose advice would you prefer to rely?

On the comedy tip, O’Reilly is even having trouble organizing his outrage. For years he has been hammering NBC and its cable units as being irredeemably compromised by wicked leftists. He reveled in characterizing them as despicable purveyors of group-think. The following quotation, however, reveals a psyche that is sorely starving for air.

“Now many on Wall Street believe Jeff Immelt, the CEO of General Electric which owns NBC, has completely lost control of his company, including the actions of Mr. Zucker. The evidence of that is that MSNBC is supporting and promoting the same far-left loons that are hammering the sister outfit CNBC. I mean, how rich is this?”

First of all, the “many on Wall Street believe” canard is an example of a lazy intellect. O’Reilly won’t, and can’t identify these imaginary critics. Secondly, his complaint that MSNBC is critical of CNBC contradicts his contention that all NBC units think alike. Even worse, by mocking this diversity of opinion, he is implying that he would prefer it if they did think alike. Of course, he would prefer no such thing. He would simply go back to accusing them of being blindly and uniformly liberal. It’s the O’Reilly way

What’s Up With CNBC?

The cable news wars have been raging for years. But for the most part the combatants have been confined to the big three: Fox News, CNN, and MSNBC. Headline News and CNBC have been regarded as niche players that weren’t really on the front lines.

All of a sudden CNBC has become the most talked about cable news network, just as the nation has inaugurated a new president and tries to weather a fierce economic storm. Much of the attention is couched in ridicule. Rick Santelli’s rant, that cast a bunch of elite commodities traders as emblematic of average Americans, was only taken seriously by the likes of Michele Malkin and her mush-brained followers. Jim Cramer was exposed as the clown that he is by a much better and more professional clown, Jon Stewart.

The backwash of this publicity parade is a boost for CNBC’s ratings and visibility. But why is it happening now?

CNBC has long been a friend to the business community. Its reporting rarely alerted viewers to imminent crises (like the the one we are enduring now) or corporate malfeasance (like Enron and Madoff). The anchors were openly chummy with CEOs, whom they courted for access, and some, like Larry Kudlow, were overtly partisan. CNBC elevated the art of bloviating by introducing the Octo-Pundit, where as many as eight self-styled experts yelled at each other from their respective video cages.

But with a lineup like Fox News and current events that favored their niche, they still needed a little extra push to get the recognition they felt they deserved. So along comes Santelli and Cramer and a concerted effort to expand their conservative profile.

Despite the blathering of Bill O’Reilly, the NBC News division has never been left wing. MSNBC was once the cable home of Michael Savage, Oliver North, Tucker Carlson, Laura Ingraham, and it still features Joe Scarborough and Pat Buchanan. The rise of Keith Olbermann and Rachel Maddow occurred strictly because of their success, not ideology. Nevertheless, in the past NBC has demonstrated its cowardice in the face of criticism. They are the network that canceled their own number one rated program, Phil Donahue, for fear of being tagged anti-war.

By ramping up the rightist rhetoric on CNBC, NBC News is attempting to harvest popular outrage from both ends of the political field. They can continue to throw liberals a bone with their primetime MSNBC schedule, while cozying up to their natural right wing allies on the business-oriented CNBC. And neither network will have its programming muddied with ideological balance. As an ancillary benefit, NBC will try to tamp down the criticism they receive from the right by pointing to their new heroes of ham-handed conservatism.

In the end, CNBC just hopes to siphon a few viewers away from Fox News, and to smother the new born Fox Business Network in its crib. Unfortunately, the way they have chosen to do that is to emulate the Fox model which is focused on aggressive conservatism, and hysterical, paranoid personalities. That won’t work for CNBC in the long run because Fox viewers are too cult driven. They won’t abandon the comfort of that with which they are familiar for a subsidiary of that which their Fox masters have convinced them is evil.

Now, more than ever, CNBC needs to concentrate on providing responsible financial journalism. By making themselves truly indispensable in the field for which they claim expertise, they will be far more likely to succeed and to serve the interests of their viewers.

Jon Stewart On CNBC

Further evidence that the only substantive review of the media takes place on Comedy Central. This is a must-see Daily Show clip wherein Jon Stewart mercilessly takes apart CNBC.

As a reminder, even though Stewart couldn’t name another business network (he eventually came up with Bloomberg), there is another one. And it’s much worse than CNBC.

The Fox Business Network was launched about a year and a half ago. At the time the chairman of News Corp said:

Rupert Murdoch: “…a Fox channel would be ‘more business-friendly than CNBC.’ That channel ‘leap[s] on every scandal, or what they think is a scandal.'”

Obviously Murdoch didn’t know what he was talking about. CNBC has long been a good friend to business. But FBN was created for that purpose. And, by the way, Murdoch also owns the Dow Jones index, which he acquired along with the Wall Street Journal.

Also, don’t miss Stephen Colbert’s amazing take on Glenn Beck’s asinine “War Room” (be sure to watch both videos).

Happy Birthday Fox Business Network

Today is the first anniversary of the debut of the Fox Business Network, Rupert Murdoch’s newest propaganda platform. Ratings for the network are still so low that, even after a year, Nielsen cannot certify their reliability and they are not published. When numbers were leaked earlier this year they revealed a pitiful performance that drew only 8,000 daytime viewers, and 20,000 in prime time. CNBC, by contrast, drew an average of 284,000 viewers during the day and 191,000 in prime time.

This hasn’t stopped Murdoch from pursuing his ambition for a business channel that would be…

“…more business-friendly than CNBC. That channel leap[s] on every scandal, or what they think is a scandal.”

Ironically, the network that was hatched to put a rosy hue on business news appears to have had the opposite effect on the financial world into which it was born. The week that FBN launched the Dow Jones was at an all-time high. Since then the Dow, which also became the property of Murdoch when he purchased it along with the Wall Street Journal, has plummeted 33%.

Is it mere coincidence that the markets went straight down immediately after having been touched by Murdoch’s bony, demon finger? The first week that FBN was on the air the Dow dropped over 500 points. That should have served as a warning of the devastation yet to come.

On July 13, 2007, FBN’s Managing Editor, Neil Cavuto, disputed reports of the economy’s weakness saying that he “[didn’t] believe a word of it.” Cavuto previously downplayed the significance of the credit crunch, saying that, because “this ‘meltdown’ affects roughly 4 percent of all mortgages out there” there wasn’t really any problem at all. He then blamed market declines on John Edwards, who was running a distant third in the Democratic primaries at the time, but apparently still had superhuman powers over the stock market.

Cavuto’s colleague, Bill O’Reilly, recently asserted that the market was tanking because traders were pricing in a presumed Obama victory in November. [For the record, the market has performed better during Democratic administrations than Republicans for the past 107 years. And investments accrue more under Democrats]. O’Reilly also has a spotty record of financial analysis. He lambasted General Electric’s CEO, Jeffrey Immelt, with whom O’Reilly is obsessed, saying that he didn’t know how Immelt kept his job after GE’s stock dropped 36%. But O’Reilly must not have noticed that News Corp., the parent of Fox News was itself down 38% – even worse than GE. Maybe he should be asking how Murdoch keeps his job.

So in honor of FBN’s first birthday, investors and news consumers should be aware that this is the sort of credibility you can expect from Fox News and FBN which calls itself: The Network You Can’t Afford To Miss. It’s more like: The Network You Can’t Afford To Watch.

Fox Business Network Ad Deliberately Dishonest

A couple of weeks ago, CNBC’s Jim Cramer was asked by an emailer if he should liquidate his account at Bear Stearns. Cramer said:

“No! No! No! Bear Stearns is not in trouble. If anything, they’re more likely to be taken over. Don’t move your money from Bear.”

Shortly thereafter, Bear Stearns stock collapsed and the company was taken over by JP Morgan Chase. Cramer himself has been castigated and ridiculed for his response from many quarters, and now the Fox Business Network is piling on with a new ad:

The only problem with the ad and other criticism is that Cramer was right. The critics are either being deliberately dishonest or they have a severe case of attention deficit disorder. The emailer was asking specifically about Bear Stearns’ liquidity and whether he should close his deposit account. He was not asking about the company’s stock value and Cramer’s response had nothing to do with that. Cramer correctly pointed out that the company’s depositors would be fine because the Federal Reserve guaranteed those funds and that the worst that would happen is that another firm would acquire them. That’s exactly what did happen.

But that hasn’t stopped Fox from publishing a deceitful ad that misrepresents Cramer’s advice. It’s actually kind of funny that the ad’s tagline is “Turbulent Times Call For A Credible Network.” Credible? You mean like a network that doesn’t lie in their advertisements? I think this would be a more appropriate ad:

I’m no apologist for Jim Cramer. He has a pretty lousy track record on stock recommendations. And for a TV personality who behaves like a clown, he violates the most important rule for a clown – be funny! However, when he’s right he shouldn’t have to take heat from the likes of Fox – the network that, on their first day of broadcast, featured the Naked Cowboy offering financial guidance.

For the Record: On July 13, 2007, FBN’s current Managing Editor, Neil Cavuto disputed reports of the economy’s weakness saying that he “[didn’t] believe a word of it.” Since then the Dow has dropped 1,469 points (10.6%), the mortgage market has thrown thousands into foreclosure, and now a financial powerhouse has been reduced to rubble. That’s the sort of credibility you can expect from FBN which calls itself: The Network You Can’t Afford To Miss. More like: The Network You Can’t Afford To Watch.

Fox Business Not Hurting Business At CNBC

It’s been a month since the launch of the Fox Business Network. Actual ratings data won’t be available for a few more months but data on CNBC is available. To the extent that you can speculate as to FBN’s performance based on the performance of it’s main competitor, there is no particularly good news for the fledgling net.

For the month that FBN has been on the air, CNBC has grown 32% in total daytime viewers and 21% in total viewers for the full day. Of course, there could be other reasons for the ratings growth, but there is obviously no noticeable dip for CNBC as a result of the competition from Fox.

To underscore why viewers may want to stay away from FBN, on Friday they interrupted their news chatter with an alert that Apple was buying an 8% stake in chip maker, AMD. After about a minute they corrected the report saying that it was not Apple, but the government of Abu Dhabi (which both anchors mispronounced) that was buying in to AMD. That minute was plenty of time for investors to have made trades and, subsequently, lost money.

More reasons: On Tuesday FBN reported that Hewlett-Packard missed their earnings estimate by a penny. Eleven minutes later they admitted that they had erroneously reported the net income instead of the operating income, which actually beat estimates by four cents. I really hope that no one is trading based on what they see on FBN.

Fox Gives You The Business

Not two weeks after Rupert Murdoch confesses to propagandizing in support of the war in Iraq, he visits the confessional again, this time with regard to his new Fox Business Channel. At a media summit sponsored by McGraw-Hill, Murdoch promised the gathered conferees that:

How can any viewer take seriously what they will see on a Fox Business report?

“…a Fox channel would be ‘more business-friendly than CNBC.’ That channel ‘leap[s] on every scandal, or what they think is a scandal,’ he said.”

This admission squares nicely with his previous one. It’s obvious he thinks nothing of manipulating news coverage to achieve his ends. Now he feels that the captains of industry, beleaguered by their own corruption, require his defense. The notion that a news network, business or otherwise, should be “friendly” with the subjects they are covering violates every precept of journalism. After making this announcement, how can any viewer take seriously what they will see on a Fox Business report? How will we know if their chumminess leads to deceptively positive stories? How will we know whether they are neglecting signs of budding scandals to protect their buddies? Had they been around when Enron was imploding, FBC would have reported on the tantalizing fare in the company commissary. I, for one, wouldn’t want to invest based on information that came from such a network.

Murdoch’s accusation that CNBC is somehow hostile to business can only be regarded as a paranoid hallucination. Even Business Week derides that viewpoint as:

“a conclusion almost any observer of the channel will find difficult to support.”

Financial news broadcasting is not an easy business to throw together. In 1991, FNN, the Financial News Network, went out of business, selling its assets to CNBC. More recently, Time, Inc.’s CNNfn couldn’t even get off the ground. New York mayor/billionaire, Michael Bloomberg’s network has about half the subscriber base of CNBC. Murdoch will launch with even less than that.

Despite the obstacles, it’s clear why News Corp. would want to enter this market. Although CNBC’s ratings are low, they can charge more for their ads because they deliver an affluent and influential audience that is highly desirable and difficult to obtain. Fox covets both that audience and those advertisers. Their vertical business structure makes it easy for them to package ad campaigns so that they would benefit other Fox properties like their news network, broadcast network, station group, magazines, and newspapers. And since Fox doesn’t care if their reporting is accurate, so long as it’s “friendly,” corporate advertisers might be inclined to favor Fox with their ad dollars. Remember that the cable companies that would carry FBC, and the media companies that might report on them, are also corporations that may want to take advantage of the pro-business slant that Murdoch is offering.

All of this produces some troubling scenarios. A business news network that promises to be friendly with its subjects is essentially serving as the PR arm of the corporations it covers. Consequently, those corporations that want to enjoy this coverage can show their appreciation by buying more ads. Conversely, the ad sales division of the network could pressure advertisers to pony up if they wanted good news to be included in the next broadcast. This sort of relationship is poisonous from the start, yet it is exactly what Murdoch is proposing.

Another problem is that the existing business channels are going to be nervous about the impending competition with Fox. If they keep their heads about them, focus on the quality of their own product, and exhibit some measure of respect for journalistic ethics, then things should work out. But that isn’t how it’s gone down in the past. As Fox News began to challenge its predecessors, they folded like origami sheep. They concluded that the way to compete with Fox was to be more like Fox. That was a disastrous strategy that landed them squarely in Fox’ shadow.

If Murdoch is allowed to pollute this new market with the aberrent philosophy he stated above, it will be a serious blow to the goals of honest, independent journalism. It will mean that they would control the perceptions of our politics, our culture, and our economy. If we want to preserve a free society that values a thoughtful and informed citizenry, we must be relentlessly vigilant. We must keep close company with our representatives and with the agencies that govern the media. We must take steps to be certain that we are knowledgeable and prepared, because…

…this is serious business!

Update from Forbes: [2/18/07] CNBC hasn’t sat back. Spokesman Kevin Goldman answered the criticism coming from Fox Business Channel: “It doesn’t surprise me that our alleged competition is already starting with its usual lies and propaganda.”

Under the threat of competition, they are starting to, finally, tell it like it is.