1. NBC & TheNBC & The
Economic CrisisEconomic Crisis
By Allison Stein, ArianaBy Allison Stein, Ariana
Katzman, Danielle Haskin, ElliottKatzman, Danielle Haskin, Elliott
Polakoff, and Lindsay HurdPolakoff, and Lindsay Hurd

2. What is NBC?What is NBC?
 NBC is one of the four major broadcastNBC is one of the four major broadcast
networks in the U.S.networks in the U.S.
 Besides the news NBC includes bothBesides the news NBC includes both
daytime programming and prime-time TVdaytime programming and prime-time TV
showsshows
 Because of this NBC attracts a broadBecause of this NBC attracts a broad
audienceaudience
 Not for your typical finance junkieNot for your typical finance junkie

3. NBC.COMNBC.COM
 News is not the main focus on NBC.COMNews is not the main focus on NBC.COM
 The website diverts you to other NBCThe website diverts you to other NBC
affiliated website such as example MSNBCaffiliated website such as example MSNBC
and Meet the Press.and Meet the Press.
 More about promoting NBC as a BRAND andMore about promoting NBC as a BRAND and
a NETWORKa NETWORK
 As a result of this news is put on theAs a result of this news is put on the
backburnerbackburner
 Entertainment sells, news doesn’tEntertainment sells, news doesn’t

4. The Early StagesThe Early Stages
February 3, 2001: Nightly News Tom BrokawFebruary 3, 2001: Nightly News Tom Brokaw
 First signs of falling economyFirst signs of falling economy
 ““The economy is churning out new jobs in different areas but basically they justThe economy is churning out new jobs in different areas but basically they just
aren't paying enough”aren't paying enough”
 The unemployment rate was starting to reach its highest in 15 monthsThe unemployment rate was starting to reach its highest in 15 months
 Never tell viewers why the economy is falling….Never tell viewers why the economy is falling….
September 8, 2001: Nightly News John SeigenthalerSeptember 8, 2001: Nightly News John Seigenthaler
 Decline in economy still, only the housing marketing is good, warningDecline in economy still, only the housing marketing is good, warning
 ““Signs of slow down”Signs of slow down”
 ““Housing is one of the strongest markets but signs of weakness closing in allHousing is one of the strongest markets but signs of weakness closing in all
around”around”
 People are “Getting out while the getting's good”People are “Getting out while the getting's good”

5. Early StagesEarly Stages
The Housing BubbleThe Housing Bubble
September 29, 2002: Nightly News, John SeigenthalerSeptember 29, 2002: Nightly News, John Seigenthaler
 Increase in housing prices still but…Increase in housing prices still but…
 ““Experts warn that in some areas it has grown too much too fast, that theExperts warn that in some areas it has grown too much too fast, that the
housing bubble could burst, forcing values down”housing bubble could burst, forcing values down”
 BUT a “Solid investment in your future”BUT a “Solid investment in your future”
 Contradiction: Hot Market vs. will it burst?Contradiction: Hot Market vs. will it burst?
May 31, 2005: Nightly News Brian Williams “Through the Roof”May 31, 2005: Nightly News Brian Williams “Through the Roof”
 Prices of homes jumped 15%, prices outweighing incomePrices of homes jumped 15%, prices outweighing income
 ““Economists don’t believe it’s a national bubble they believe it is only a local”Economists don’t believe it’s a national bubble they believe it is only a local”

6. Early StagesEarly Stages
The Housing BubbleThe Housing Bubble
May 24, 2006: Nightly News Brian WilliamsMay 24, 2006: Nightly News Brian Williams
 Loans are the culprit, “housing on the bubble”,Loans are the culprit, “housing on the bubble”,
increasing mortgage rates and pricesincreasing mortgage rates and prices
August 2, 2006: Nightly News Brian WilliamsAugust 2, 2006: Nightly News Brian Williams
 Targets the average consumer from all sides (credit cards andTargets the average consumer from all sides (credit cards and
electricity)electricity)
 Financial Expert Rick Sharga explained “In a worst case scenarioFinancial Expert Rick Sharga explained “In a worst case scenario
you could have so many properties entering foreclosure that ityou could have so many properties entering foreclosure that it
depresses the value of homes on the market”depresses the value of homes on the market”
 His firm saw a 25% increase this spring and he said “This wave ofHis firm saw a 25% increase this spring and he said “This wave of
resets is the wildcard in housing”resets is the wildcard in housing”

7. The Bursting of the Bubble
July 29, 2007: Nightly News Lester Holt
• Everyone likely effected in some way
• NBC Pat Dawson: Moments Thursday and Friday when
everyone was looking to get out
• Pat Dawson NBC News correspondent explains “There were
moments Thursday and Friday when it seemed everyone on
Wall Street was looking to get out. The sell-off was triggered
by more bad news in the U.S. housing market and concerns
that both companies and consumers may have increasing
problems borrowing money”
• Henry Paulson Treasury Secretary “I’m not making light of any
of this but this is a readjustment, which is I think, a wake-up
call”
• Maria Bartiromo “You talk to builders or lenders…slow down
will likely go well into 2008 possibly into 2009….the next factor
to look at is whether the consumer is going to have other types
of loans. If that is the case that means we are seeing a real
spillover into the broad economy and possibly looking at the
loss of jobs”.

8. During theDuring the
Crisis (2007-2009)Crisis (2007-2009)
October 16, 2009: Nightly News BrianOctober 16, 2009: Nightly News Brian
WilliamsWilliams
 ““Bigger risk to the economy than the experts areBigger risk to the economy than the experts are
saying”, “most significant current risk to our economy”,saying”, “most significant current risk to our economy”,
“Domino effect is brutal”“Domino effect is brutal”
 Though they briefly touch on important issues they areThough they briefly touch on important issues they are
trivialized because they jumped right to the next storytrivialized because they jumped right to the next story
with no commentary from Brian Williams.with no commentary from Brian Williams.
 Limited selection of reports in 2007.Limited selection of reports in 2007.
 Only 2:30 of a 30 minute news segment was dedicatedOnly 2:30 of a 30 minute news segment was dedicated
to the economic crisisto the economic crisis

9. During the Crisis (2007-2009)During the Crisis (2007-2009)
The Crisis and the ElectionThe Crisis and the Election
September 24, 2008: Nightly News BrianSeptember 24, 2008: Nightly News Brian
WilliamsWilliams
 http://www.youtube.com/watch?v=dnlfyUKBaeohttp://www.youtube.com/watch?v=dnlfyUKBaeo
 The clip focuses on the presidential race andThe clip focuses on the presidential race and
its relationship to candidates position on theits relationship to candidates position on the
economyeconomy
 Again, this was the only segment dedicated toAgain, this was the only segment dedicated to
the economy and only focused on the election.the economy and only focused on the election.

10. During theDuring the
Crisis (2007-2009)Crisis (2007-2009)
January 21, 2008: Nightly News Brian WilliamsJanuary 21, 2008: Nightly News Brian Williams
 Puts the evolution of the crisis into perspective for the average joePuts the evolution of the crisis into perspective for the average joe
 Started a series: “Hard Times, a Nightly News Survival Guide”: A look at howStarted a series: “Hard Times, a Nightly News Survival Guide”: A look at how
our financial markets got where they are and a look at how you can protectour financial markets got where they are and a look at how you can protect
yourselfyourself
 Two things cause the recession:Two things cause the recession:
 1) Price of Oil up 74% in a year-makes many other product prices soar1) Price of Oil up 74% in a year-makes many other product prices soar
 2) Cheap Mortgages: “Convinced Americans anyone could own a home”,2) Cheap Mortgages: “Convinced Americans anyone could own a home”,
“Kept low after 9/11 to boost the economy”, “sparked a borrowing binge”“Kept low after 9/11 to boost the economy”, “sparked a borrowing binge”
As a result…As a result…
 Americans couldn’t keep up with payments and banks stopped lending asAmericans couldn’t keep up with payments and banks stopped lending as
much which means businesses hire fewer workers and consumers buy less-much which means businesses hire fewer workers and consumers buy less-
 Consumer spending it what drives ¾ of economyConsumer spending it what drives ¾ of economy
 Explain that when consumers loose faith you can have a recession veryExplain that when consumers loose faith you can have a recession very
quicklyquickly
 Addressed what went wrong, made us understand that we were in fact,Addressed what went wrong, made us understand that we were in fact,
entering a recessionentering a recession

11. After theAfter the
Crisis (2009-2010)Crisis (2009-2010)
January 10January 10thth
, 2010: Nightly News Lester, 2010: Nightly News Lester
HoltHolt
 Experts from across political spectrum say that Obama’s housingExperts from across political spectrum say that Obama’s housing
program is a disappointment.program is a disappointment.
 ““It’s being overwhelmed by the magnitude of the problem. MoreIt’s being overwhelmed by the magnitude of the problem. More
has to be done.” (Mark Zande, Moody’s Chief Economist)has to be done.” (Mark Zande, Moody’s Chief Economist)
 Defenders say progress has been made, program is meeting it’sDefenders say progress has been made, program is meeting it’s
targetstargets
 Michael Barr, U.S. Treasury and creator of program: “I think we’reMichael Barr, U.S. Treasury and creator of program: “I think we’re
going to have to do a better job of continually reaching borrowers”going to have to do a better job of continually reaching borrowers”

12. After theAfter the
Crisis (2009-2010)Crisis (2009-2010)
July 9, 2010: Nightly News Lester HoltJuly 9, 2010: Nightly News Lester Holt
 Unlike previous NBC news report, there are explanations forUnlike previous NBC news report, there are explanations for
why Obama’s homeowner program isn’t working:why Obama’s homeowner program isn’t working:
 Elizabeth Warren: “Banks aren’t doing enough to help…Elizabeth Warren: “Banks aren’t doing enough to help…
Often mortgage services make more money for themselvesOften mortgage services make more money for themselves
if a family goes on to foreclosure…Because program isif a family goes on to foreclosure…Because program is
voluntary, mortgage servicers have final say. There is novoluntary, mortgage servicers have final say. There is no
real muscle to the program and no real requirement that youreal muscle to the program and no real requirement that you
have to follow guidelines of the program”.have to follow guidelines of the program”.
 On the other hand, NBC uses Warren as a source ofOn the other hand, NBC uses Warren as a source of
criticism when she chairs the panel that oversees moneycriticism when she chairs the panel that oversees money
used to find program.used to find program.

13. After theAfter the
Crisis (2009-2010)Crisis (2009-2010)
 http://www.youtube.com/watch?v=HUMXKNhttp://www.youtube.com/watch?v=HUMXKN
 Ann Curry asks what the solution is forAnn Curry asks what the solution is for
people to avoid the mortgage crisis. Thispeople to avoid the mortgage crisis. This
is an appeal directly to the citizen tois an appeal directly to the citizen to
understand the issue.understand the issue.

14. General TrendsGeneral Trends
 Did a good job with being up-to date on the latest breakingDid a good job with being up-to date on the latest breaking
newsnews
 Their reporting style is one that tries to do too many thingsTheir reporting style is one that tries to do too many things
at once in an attempt to appeal to all of the masses.at once in an attempt to appeal to all of the masses.
 They lay out the information but they fail to give the back-They lay out the information but they fail to give the back-
story and tell you what to do with it.story and tell you what to do with it.
 Although they brand themselves as being the news channelAlthough they brand themselves as being the news channel
for the mass-audience they fail to adequately educate theirfor the mass-audience they fail to adequately educate their
audienceaudience
 They skim the surface of every important issue but fail to goThey skim the surface of every important issue but fail to go
deeper. This was a particular problem in their reporting ofdeeper. This was a particular problem in their reporting of
the financial crisis.the financial crisis.
 They are clear because they are informative and up to-dateThey are clear because they are informative and up to-date
but fail to be consistently helpful.but fail to be consistently helpful.

15. How To ImproveHow To Improve
 Though they give many statistics about the housing bubble andThough they give many statistics about the housing bubble and
increased foreclosures BUT they don’t inform citizens on what theyincreased foreclosures BUT they don’t inform citizens on what they
should do to avoid this situationshould do to avoid this situation
 They make it very easy for people to watch it and make the sameThey make it very easy for people to watch it and make the same
mistakes, need to explainmistakes, need to explain preventionprevention
 Make their website more accessible and with more news contentMake their website more accessible and with more news content
 Give more background information on the issues they are reportingGive more background information on the issues they are reporting
on so the audience can understand the big pictureon so the audience can understand the big picture