Monday, January 09, 2006

Good economic news spun wrong by NYT

There is continuing good news on the economy. But the New York Times keeps spinning it negatively. Don Luskin has made a second career pointing out economist Paul Krugman's misuse of facts in his NYT columns. Now he has discovered that a very respected financial analyst is fed up with the NYT - Ed Yardeni. Luskin quotes Yardeni:
It is obvious that the folks at The New York Times don't like the Bush Administration. They are entitled to their opinions which should be based on facts. Otherwise, they run the risk of losing their credibility just as CBS anchorman Dan Rather did because he let his dislike of Bush cloud his journalistic objectivity. My peeve is with the Times' reporting and editorializing on the latest employment numbers released on Friday: (1) In their story on the employment numbers, they felt obliged to observe "that Bush's policies were not the primary reason for the economy's strength." (2) In their January 7 editorial titled "An Anemic Jobs Recovery," they focused on December's "paltry" increase and didn't mention the big upward revision to November. (3) Nor did they mention that first-reported employment data has a long history of upward revisions as shown in the Alert below. (4) Instead, the Times whined that only 2 million jobs were created in 2005, 1.5 million less than at this point in the last recovery. The longer-term comparisons are even "uglier." Job growth in the current expansion "is the worst by far of the four comparable economic upturns since 1960..." There is no mention in the editorial that the jobless rate was only 4.9% in December, matching the 4-year lows hit in August and October.
If respected Wall Street analysts are warning their customers to not believe what they read in the NYT a new day is arriving.

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