Media outlets like CNBC, The Wall Street Journal, Fox Business, and Bloomberg Television have been giving a platform to a disgraced financial firm that was fined $1.5 million by the Securities and Exchange Commission for engaging in "deliberate fraud" and profiting from "false statements."
The firm, Stansberry Research, heavily markets itself in conservative media by catering to right-wing audiences' fears of President Obama and big government. It predicts doomsday "End of America" financial scenarios that involve waves of violence, "martial law," and the destruction of the American economy. Last year, for instance, Stansberry claimed on its EndofAmerica.com website that on "July 1st, 2014," "'H.R. 2847' goes into effect. It will usher in the true collapse of the U.S. dollar, and will make millions of Americans poorer, overnight." (America and the dollar did not end.)
Numerous observers have criticized Stansberry's marketing practices as "misleading," "dubious," "questionable," and "an example of the worst excesses of financial marketing."
The firm also paid a $55,000 civil monetary penalty to the Social Security Administration in 2011, while not admitting wrongdoing, to settle an allegation it broke federal law.
Media outlets are demanding that Hillary Clinton be subject to an independent review of her personal email account to disprove their own baseless suggestions that she engaged in illicit activity or failed to properly disclose all work-related correspondence. The demand ignores that every State Department employee, regardless of whether they use government or personal accounts, decides for themselves whether or not to preserve their emails.
From the February 26 edition of CNBC's Squawk Box:
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CNBC anchor Joe Kernen praised Gov. Scott Walker's (R-WI) efforts "to get your state's finances in order" and suggested "reasonable people" would agree with his economic record. In reality, job and wage growth under Walker have trailed behind the national average, and he "will skip more than $100 million in debt payments to balance the books thrown into disarray by his tax cuts."
Kernen began his February 19 Squawk Box interview by telling the potential 2016 presidential candidate that "we've been together every step of the way on this show since your first election." He added, "I'm not going to recuse myself. But, you know, maybe [co-anchor] Andrew [Ross Sorkin] is here to grill you."
Kernen cheered Walker's economic and fiscal leadership. After Walker said he won his election because "in times of crisis, economic and fiscal in particular, they want leadership," Kernen said: "If there was an objective person watching the way the governor of Illinois approached that state's problems, and the way you approached it, I would think most reasonable people would say it looks like the way to do this maybe isn't just raising taxes to cover an ever increasing state budget."
Walker said, unchallenged, that Wisconsin's "tax burden is down, the economy is moving up, we've got a stable workforce, we've got all the sorts of advantages you want. And we're still -- plenty more work to be done, like it needs to be done across America, but there is a sharp contrast, no doubt about it."
In advance of the Federal Communications Commission's February vote on net neutrality rules, media have promoted distortions of the proposed regulations, suggesting net neutrality is an unpopular, "Orwellian" takeover of the internet that may stifle innovation, hurt the economy, and raise costs for consumers. In reality, net neutrality has broad bipartisan support, promotes competition, and has been the guiding principle behind Internet innovation since its inception.
This year saw landmark reports on climate change, detailing the ever-increasing scientific certainty that human activities are driving catastrophic climate change and that action needs to be taken to prevent the worst effects. Yet despite the fact that more Americans than ever support action on climate change, conservative media went to ridiculous lengths to cast doubt on the scientific consensus behind global warming, citing everything from free market economics to witchcraft, touting conspiracy theories and predictions of an "ice age," and even fulfilling Godwin's law.
Here are the 11 dumbest things conservative media said about climate change this year:
11. Bill O'Reilly: "It's Easier To Believe In A Benevolent God, The Baby Jesus" Than Manmade Climate Change. On the December 16 edition of Fox News' The O'Reilly Factor, Bill O'Reilly led a discussion on whether or not it is easier to believe in the birth story of Jesus than in manmade climate change, positing that it is "easier to believe in a benevolent God, the baby Jesus, than it is in some kind of theory about global warming." When his guest pointed out that 97 percent of climate scientists agree that human activities are driving global warming, O'Reilly baselessly countered, "I wouldn't put it that high. I've read a lot about it." He concluded: "[I]t's a choice -- people choose to believe."
Media figures are touting the Keystone XL pipeline as an "environmentally safe" alternative to truck and rail transportation, uncritically citing a State Department report on the environmental impact of building Keystone XL. But experts and subsequent studies have determined that the report is based on faulty conclusions and grossly underestimates greenhouse gas emissions caused by Keystone.
From the November 19 edition of CNBC's Squawk Box:
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Media are promoting Republican gains in the House and Senate in Tuesday's midterm elections as evidence that the country has shifted to the "center-right" on political issues, despite the fact that ballot initiatives and national polling reveal broad support for progressive positions.
A flagship report found that acting on climate change and improving the economy go hand in hand, which was reported by business media outlets across the globe. But three prominent outliers left their audiences in the dark: CNBC, Fox Business, and The Wall Street Journal.*
On September 16, many major business media outlets from Fortune Magazine to BusinessWeek reported on a recent analysis finding that the next 15 years are essential for acting on climate change, and that it is possible to do so while simultaneously growing the global economy. The report, titled "The New Climate Economy" and carried out by the Global Commission on the Economy and Climate, refutes the "false dilemma" between economic growth and climate change mitigation -- an important finding for businesses that want to thrive in the decades ahead. From Reuters:
Investments to help fight climate change can also spur economic growth, rather than slow it as widely feared, but time is running short for a trillion-dollar shift to transform cities and energy use, an international report said on Tuesday.
Yet the report was ignored by three prominent business media outlets -- a disservice to their business audiences who deserve to know the economic risks of global warming. The outlets that ignored the findings of the "New Climate Economy" report may not come as a surprise: CNBC, Fox Business, and The Wall Street Journal all have a sordid history with reporting on climate change.
When the "Risky Business" report was released earlier this year -- another report detailing the economic costs of climate change inaction -- CNBC was caught soliciting a writer to talk about "global warming being a hoax" to rebut the report's findings. The network's on-air coverage of "Risky Business" featured Squawk Box co-host Joe Kernen criticizing the acceptance of global warming as "Orwellian groupthink." Media Matters analyses found that CNBC misled their audience on global warming in the majority of their reporting on the topic in 2013.
Fox Business also regularly offers demonstrably false reporting on global warming. Co-hosts have often claimed that global warming is over, or even that we are in a period of global cooling. When the Risky Business report was released, Fox Business mocked its findings of heat-related mortalities and dismissed the report entirely as using "scare tactics."
Similarly, Wall Street Journal dismissed the findings of the Risky Business report, with its editorial board calling one of its authors' suggestions for a carbon tax as economically harmful as the 2008 financial crisis. The Journal has downplayed and dismissed the impacts of climate change and other environmental threats for decades, and gives a frequent platform to "skeptics" that urge inaction on climate change and dismiss the basic science behind the consensus.
The New Climate Economy was heralded by political leaders around the world advocating a transformation in the global economy. By ignoring it, these outlets are showing that their priorities are at odds with businesses that want to prosper in a changing climate.
*Based on a search of internal video archives from September 15 to 12 p.m. September 17 for "climate" for Fox Business and CNBC, and a Factiva search for "climate" for Wall Street Journal.
Reuters and CNBC uncritically promoted a new report claiming that government regulations cost the economy over $2 trillion each year, ignoring any benefits of regulation. But the study uses the same flawed methodology as an earlier report by the same authors that was so widely panned that even the organization that commissioned it distanced itself from it.
Charles and David Koch, brothers and the oil barons who are already shaping the 2014 midterm elections according to recently leaked audio recordings, are often portrayed as environmentally responsible advocates of the free-market that are unfairly targeted by Democrats. However, their political influence, which benefits the fossil fuel industry and their own bottom line, is unparalleled.
From the July 25 edition of CNBC's Squawk on the Street:
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CNBC panelist Jeffrey Sonnenfeld suggested that 21st Century Fox's effort to acquire Time Warner is driven by a nepotistic desire to provide Rupert Murdoch's "poor performing" sons with pieces of the family business and highlighted News Corp.'s phone hacking scandal as an example of the Murdoch family's questionable management record.
Time Warner's board of directors took measures to prevent a hostile takeover by Rupert Murdoch's 21st Century Fox by "eliminating a provision in its bylaws that let shareholders call special meetings" -- a move that would prevent shareholders from forcing a vote on the takeover until June 2015.
Panelists on the July 22 edition of Squawk Box suggested Fox's offer undervalues Time Warner. Sonnenfeld, also a dean at the Yale School of Management, went on to say the takeover effort was part of the Murdoch family's plan to "deal with potential succession" by acquiring large businesses to hand over to Murdoch's sons, James Murdoch and Lachlan Murdoch. But Sonnenfeld described the sons as "poor performing" managers, saying in particular that James Murdoch had been tainted by the phone hacking scandal at News Corp.
SONNENFELD: This is basically a deal for Rupert to eventually -- an 83-year-old guy who's run the company for 62 years -- to try to deal with these perpetual succession questions by giving, you know, Lachlan, one son one piece of the business -- one, you know, poor-performing son -- the other poor-performing son, James, another piece of the business in the News Corp.-21st Century Fox split here. But all this [unintelligible] --
ANDREW ROSS SORKIN (host): So you are not a fan of the Murdoch family, it sounds like.
SONNENFELD: Well, they've not distinguished themselves as leaders. You know, Lachlan had a temper tantrum and left a couple years ago and just came back in this spring with this deal for News Corp. liberation of sorts. And then the 21st Century Fox, we have James, who certainly has soiled himself in the whole scandal -- the phone hacking and all the rest in the U.K. And at minimum, a failure of management oversight is awful. Even Fox's shareholders were pretty upset with him.
The cable business channel CNBC continued to push climate change denial on its network, hosting a professor who compared the "demonization" of carbon dioxide to the Holocaust.
Physics Professor William Happer has published no peer-reviewed research on climate change, yet co-host Joe Kernen introduced him as an "industry expert" on the July 14 edition of Squawk Box. After a softball interview with Kernen, co-host Andrew Ross Sorkin challenged Happer for "not believ[ing] in climate change" -- to which Happer responded by telling Sorkin to "shut up." Sorkin then asked Happer about comments he made to The Daily Princetonian in 2009 comparing climate science to Nazi propaganda. Happer doubled down on his comments, stating that "the demonization of carbon dioxide is just like the demonization of the poor Jews under Hitler. Carbon dioxide is actually a benefit to the world, and so were the Jews."
Sorkin also noted that Happer, who has suggested that people should be "clamoring for more atmospheric carbon dioxide," is the chairman of the Marshall Institute, which received $865,000 from ExxonMobil from 1998 to 2011.
While Sorkin's pushback was admirable, it's difficult to determine what benefit CNBC is giving its business viewers by once again hosting Happer to push climate denial, especially as it's becoming clear that unchecked climate change is inherently an economic issue that provides serious risks to businesses. A 2013 Media Matters report found that 51 percent of CNBC's climate change coverage cast doubt on the basic fact that the Earth is warming and that the majority of recent warming is manmade, contrary to a consensus of 97 percent of scientists. The channel recently came under fire for soliciting a story about "global warming being a hoax."
CNBC might also be able to find a few scientists who question whether HIV causes AIDS, whether secondhand smoke is dangerous, or whether vaccines cause autism -- as all three have a few contrarian "experts" supporting their cause -- but it wouldn't be responsible to give them a platform.