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Australian media: economic panic mongers
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There’s an air of panic creeping into media coverage of the financial crisis, and it’s not helping anything. Kerry O’Brien was semi-hysterical while interviewing the Prime Minister last night, in a shocking performance that seemed to suggest O’Brien was convinced the Apocalypse was mere moments away. Evidently Kerry had taken Steve Keen’s claim the previous night about a looming depression to heart, which was why he was babbling things like
In fact O’Brien wouldn’t even let Rudd answer a number of his questions, so eager was he to spell out how awful things were.
You forgot to throw in terrorism, abortion, reconciliation and Middle East peace as well, Kerry. Maybe you need to talk to some economic commentators other than the guy presenting the single most wildly pessimistic forecast. And understand that equity markets do not Equal the real economy – a view that seems disturbingly widespread among journalists and editors. Now the focus is turning to guaranteeing bank deposits, a problem started by the Irish when they gave into temptation to do so, despite the problems it instantly created for everyone else. For most of the 1990s and this decade, the Irish have been lecturing the world about their “tiger economy”. Turns out their capacity for economic management didn’t last five minutes in a real economic crisis, and its failure promptly caused chaos across Europe. When the crisis is over, there should be a day of reckoning not merely for the investment bankers and ratings agencies involved, but also for the politicians, like those in the Irish Government, who lost their heads and pulled stunts like this. David Uren reports in The Oz that Government is “under growing pressure” to guarantee bank deposits. But where is the pressure coming from? He doesn’t say. There’s no “pressure” beyond journalists wondering if, because they’re doing it in Europe, we should be doing it here. There is zero case for guaranteeing deposits. In fact there’s a strong case against it. Our banks are exploiting the crisis to further entrench their oligopolistic position by buying out ailing competitors. They will continue to make record profits. Given their strong and strengthening position, shares in the major banks would have to be one of the best buys on the stock market currently. A deposit guarantee would be a taxpayer gift to these rorters and Shylocks worth billions, essentially committing the Government to look after their creditors no matter how badly they manage their funds. Moreover, by its very nature it would raise the question of whether there was actually something seriously wrong with the banks that no one knew about. But what if there’s a run, people say. Maybe I’m too young, or haven’t watched It’s A Wonderful Life enough times, but I can’t get excited about the prospect of bank runs. Bank runs were fearful things when banks were places you put your money. These days they’re places you borrow money from, not give money to. Their loan books and asset bases far exceed the value of domestic deposits, meaning there’s no way anyone could be out of pocket if depositors have first call on bank assets – which in Australia they do. Rudd and Swan have done a good job so far of keeping their heads, reassuring voters and contrasting our prospects with those of Europe and the US. Just because the equity markets are in the grip of panic doesn’t mean the media has to yield to irrationality as well. |
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17 Comments
Not sure why I bother to say I agree with everyone else who felt that O’Brien’s harrangue just pathetic. Perhaps the sad part was the huge diservice it does to the quality interviewers still with the ABC. What would it take to bring Virginia Trioli into primetime? Surely there is a place for KO’B on ABC2. The other option would be for Maxine to trigger a byelection in Bennelong and come back on a rescue mission.
I didn’t mind the smug PM getting those sharp jabs in the ribs. He gets way too much pandering as it is and I do mean Joe and Mary Public.
So Kerry O’Brien was semi-hysterical. What’s new? He’s been past his use-by date for years.
We need journalists who will ask questions like,
‘How much money are the banks actually making?’,
‘Is it true that Lehrman has walked out with a $60 million bonus?’
‘When are politicians’ retirement payments going to be brought in line with every one else’s pensions, and also be means tested?’
Finally, let’s seize the assets of the corporate cowboys who got us into this mess, and put them in state houses, and force them to use public transport.
Bernard - thank goodness someone in the media has risen above the doomsday scenario and taken the financial “crisis” for what it is.
When the market is bouyant and things are sailing along nicely, it’s often difficult for people to recall how life is when things are less bouyant. So, when Howard used to talk with pride about the rise of the so-called Mum & Dad investors under his watch, I would always grimace at the potential social fall-out come a market collapse.
Perhaps those chicks are now coming home to roost for those who’ve made a life out of living beyond their means.
I watched the Kerry O’Brien interview - it really was terrible. The last “nightmare” question was extraordinary. I thought Rudd did a good job handling O’Brien and really put him in his box with his last answer. The show has been much better while Kerry was away.
K.O’B last night looked like he had been back on the bottle again
Not even Kerry’s hair on his head is true blue any more…..
Kerry O’Brien’s interview with Kevin Rudd was appalling and I think Rudd did very well in answering O;Brien’s questions. It was very uncharacterisitc of O’Brien to be quite so hysterical.
Perhaps a few more days R&R is the go for Kerry.
Go Bernard. I’m with you. Missed the interview but know what you mean. Mind you Crikey is guilty too of over dramatising for effect from time to time.
I also saw the interview and for an ardent ABC watcher I was disgusted with Kerry O’Brien’s badgering of the PM. In his hysterical interviewing he was all but accusing Rudd of being totally, singlehandedly responsible for this financial crisis! I think its time Kerry retired. Then on Lateline we had to put up with Lee Sayles’giggling girly interview with Alistair Campbell! She was behaving like a 16 year old with a crush.
What is happening to our ABC?
The best you can do is write about something positive and at least try to forget about the market altogether.
I agree that Kerry O’Brien has passed his use by date. The 7.30 report is of only occasional value these days. I agree with one of the former responses, that it was better when he went on leave. He and Fran kelly need to leave the stage to allow for the return of real journalists; just I have not sen too many of these lately and wonder what they sound and write like?
I don’t think its Kerry who’s passed his use-by date unless he dictates the content of 7.30 Report. The show marshmallowed mid year when the political focus shifted to later in the program. It’s veered back with a bias to the sensational. O’Brien’s had a brilliant handle on that program until recently which sounds like production or Board influence. If the ABC’s also being ravaged by the quick bucks no value bean-counters then any wonder we’re turning it off as well.
While I think Mr Rudd was as evasive as usual (you can almost see the little person on his shoulder recitiing “stay on message, stay on message”) but I do wonder how he got quite so far under O’Brien’s skin.
Compare this to quality of interviews lately from Leigh Sales or Ali Moore and perhaps it’s time to put someone out to pasture (I mean he was referenced in Frontline…).
That’s IF you believe the market and economy is based on sentiment.
I think the true fact of the matter is that we’re discovering we can no longer live beyond our means.
I know I havn’t lived beyond my means. I know those that were managing my money were living beyond there’s. Their greed was overcharging; excess, excess excess. Just like movie stars and singers and ‘ad exec’s and managers of money and pollies protected supers..-outrageous it was greed plain and simple. What I’ve lost in my super could have bought 5 new cars, yet my own car is 11 years old and my house could do with a makeover for my elder years. So who is driving the 5 cars I lost,the white goods I delayed till retirement.
I know dam well I didn’t give it away. It was taken, by the merchants of greed. And what I have left is not even gauranteed. Noblese oblige- what a joke. I’m going to be a angry ripped off retiree. Just as well I’ve gone back to work. Kerry was proboably babbling in disbelief that his own hard earnt savings were nabbed by the pavlov salivators of greed… his retirement days must be a strong light not too far away- go for them Kerry.. give them no comfort.. permission granted..
Very well said Bernard Keane. Kerry O’Brien’s histrionic performance was truly dismal and compared very badly with stand-in Mark Bannerman’s interview of Malcolm Turnbull earlier in the week. Perhaps O’Briern’s new hairstyle ‘went to his head’. I thought Rudd dealt with him pretty well overall. And while we’re mentioning Steve Keen… look, he’s entitled to claim ‘I told you so’, but does he really have to look as if he’s enjoying the savaging of everyone’s financial position quite so much?