Monday, January 28, 2008

New York Times Finds Bush Economy Was Good Before It Went Bad Two Weeks Ago

The New York Times can't help itself. It is a phenomenon that was observed by Ace and others for years. Even as the economy was going gangbusters and people were doing well, the Times and other media outlets were constantly engaging in doom and gloom prognostications that the sky was falling and recession and hard times were around the corner.
Mr. Bush has spent years presiding over an economic climate of growth that would be the envy of most presidents. Yet much to the consternation of his political advisers, he has had trouble getting credit for it, in large part because Americans were consumed by the war in Iraq.
The New York Times played cheerleader for those claiming that the economy was in the dumps, and regularly buried good news by claiming that the current situation was worse than the period before.

Things kicked into overdrive in the past several weeks as the real estate markets have cooled off significantly due to the sub-prime financial crisis (self inflicted by those markets because lenders were busy doling out loans to folks who were completely incapable of paying and those buyers were more than content to get adjustable rate loans without thinking that the interest rates could go up). We've gotten nonstop stories about how the real estate markets are cratering and they ignore the fact that a correction in the real estate markets means that those homes are actually now more affordable to homeowners - especially those who have solid credit and are willing to put down 20% convention mortgages. It's a bad time to be someone engaged in flipping homes or someone who should probably never have been given a home loan in the first place because they wouldn't qualify under tighter rules that are now taking hold in the mortgage industry.

AJ Strata also notes the Times' backhanded compliment to Bush on the economy.

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