Schifferes roberts (eds ) the media and financial crises; comparative and historical perspectives (2015)

THE MEDIA AND FINANCIAL CRISES The Media and Financial Crises provides unique insights into the debate on the role of the media in the global financial crisis Coverage is interdisciplinary, with contributions from media studies, political economy, and journalists themselves It features a wide range of countries, including the USA, UK, Ireland, Greece, Spain, and Australia, and a completely new history of financial crises in the British press over 200 years Editors Steve Schifferes and Richard Roberts have assembled an expert set of contributors, including Joseph E Stiglitz and Lionel Barber, editor of the Financial Times The role of the media has been central in shaping our response to the financial crisis Examining its performance in comparative and historical perspectives is crucial to ensuring that the media does a better job next time The book has five distinct parts:      The Banking Crisis and the Media The Euro-Crisis and the Media Challenges for the Media The Lessons of History Media Messengers Under Interrogation The Media and Financial Crises offers broad and coherent coverage, making it ideal for both students and scholars of financial journalism, journalism studies, media studies, and media and economic history Steve Schifferes is Marjorie Deane Professor of Financial Journalism at City University London He covered the financial crisis for BBC News Richard Roberts is professor at the Institute of Contemporary British History, King’s College London Publications include studies of HSBC, Schroders, the City, Wall Street, Bank of England, Equitable Life and financial crises This page intentionally left bank THE MEDIA AND FINANCIAL CRISES Comparative and historical perspectives Edited by Steve Schifferes and Richard Roberts First published 2015 by Routledge Park Square, Milton Park, Abingdon, Oxon, OX14 4RN and by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2015 Steve Schifferes and Richard Roberts for selection and editorial matter; individual contributions the contributors The right of Steve Schifferes and Richard Roberts to be identified as authors of this work has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988 All rights reserved No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data The media and financial crises : comparative and historical perspectives / edited by Steve Schifferes, Richard Roberts Includes bibliographical references and index Financial crises Press coverage Global Financial Crisis, 2008-2009 In mass media I Schifferes, Steve II Roberts, Richard, 1952HB3722.M442 2014 070.4'49338542 dc23 2014011540 ISBN: 978-1-13-802278-2 (hbk) ISBN: 978-1-13-802279-9 (pbk) ISBN: 978-1-31-575457-4 (ebk) Typeset in Bembo by Taylor & Francis Books CONTENTS List of figures and tables Notes on contributors Acknowledgements Editors’ introduction Steve Schifferes and Richard Roberts Overview: Soothsayers of doom? Lionel Barber viii x xiii xv xxiii PART I The banking crisis and the media Willful blindness: The media’s power problem Dean Starkman Why the media got it right Chris Roush 16 The US media and the 2009 stimulus package Anya Schiffrin 28 The British media and the ‘first crisis of globalization’ Steve Schifferes and Sophie Knowles 42 From Wall Street to Main Street: Australian finance and business journalism and the crisis Michael Bromley 59 vi Contents PART II The Euro-crisis and the media 73 The Irish press, politicians, and the Celtic Tiger economy Mark O’Brien 75 The Spanish press: No illusions Ángel Arrese 87 European media views of the Greek crisis Stylianos Papathanassopoulos 103 PART III Challenges for the media What are financial journalists for? Damian Tambini 10 The media and the crisis: An information theoretic approach Joseph E Stiglitz 11 Why the public doesn’t trust the business press Steve Schifferes 12 The mediation of financial information flows: Traders, analysts, journalists Peter A Thompson 13 Paying for crisis news: The dilemmas of news organizations Gerben Bakker 119 121 140 153 169 187 PART IV The lessons of history 201 14 Financial crises and the birth of the financial press, 1825–1880 James Taylor 203 15 Boom, crisis, bust: Speculators, promoters, and City journalists, 1880–1914 James Nye 215 Contents vii 16 ‘Run on the Bank’: Covering the 1914 financial crisis Richard Roberts 227 17 The pound and the press, 1919–1972 Richard Roberts 245 18 ‘Goodbye, Great Britain’? The press, the Treasury, and the 1976 IMF crisis Duncan Needham 261 PART V Media messengers under interrogation 277 19 UK financial journalists quizzed by MPs Edited by Jeff Hulbert 279 Index 291 FIGURES AND TABLES Figures 4.1 4.2 4.3 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 11.1 11.2 11.3 11.4 11.5 Frequency of terms used to describe the economic situation Sentiment relating to Gordon Brown and David Cameron Frequency of terms relating to austerity Number of news items per newspaper (%) News items by size (%) News items by type (%) What did the newspapers say about Greece as a case that needed help? Did the newspapers regard Greece as a deserving case or not? Is Greece part of the problems of the eurozone and the EU? Is the Greek case seen as a positive or negative dimension of the eurozone? The position of the newspapers with regard to Greece’s membership of the eurozone Is the EU seen as a saviour of Greece and as a legitimate source of help? Did the newspapers comment on the future of the eurozone and/or the euro? Personalities or politicians referred to most often Changes in frequency of keeping up with financial matters, 2005–2011 The most important issue facing Britain today, 1987–2012 Lack of trust in business journalists Audience news preferences Most trusted news sources in an economic crisis 45 50 51 109 110 110 111 111 112 112 113 113 114 114 154 155 156 157 160 Figures and tables ix 11.6 Changes in sources used for personal financial information, 2005–2011 12.1 Financial information flows between institutional and public channels 15.1 An equity index for the London stock market, 1868–1914 15.2 Number of companies formed in England and Wales, 1878–1900 15.3 Number of public offers of equity, 1885–1914 15.4 Number of financial newspapers launched, 1886–1915 15.5 Lifetimes of financial newspapers launched, 1886–1915 15.6 Median newspaper life by year of launch, 1886–1915 18.1 Sterling/dollar exchange rate and PSBR as a percentage of GDP, 1967–1979 162 180 216 218 218 223 223 224 262 Tables 3.1 3.2 8.1 11.1 11.2 13.1 13.2 13.3 13.4 16.1 Overall bias by publication: articles and editorials Use of sources by publication: non-editorials The newspapers surveyed Perceptions of how well major UK institutions are run, 1983–2012 Trust in journalists to tell the truth, 2003–2012 Major economic characteristics of the news trade and their implications for the business of gathering and selling news Measurable properties of economic, political, and social qualities Overview of business models used by raw news traders in Europe since the Renaissance Informal overview of aspects of news reporting in several types of crisis situation The UK financial press in 1914 33 35 108 158 159 188 190 193 196 228 296 Index 183; retention of public as a concern of government 44; retention of public as a concern of the financial sector 44, 147, 182–83, 208, 217, 289; retention of public as a concern of the media 32, 158, 161, 219; surveys and polls of public 158, 195 Conseco Finance Conservative Party (Spain) 94, 96, 97 Conservative Party (UK) 51, 52, 54, 245–49, 257, 270 corruption: of the 19th Century railway press 207–10; accounting fraud 18, 23, 81, 143–44, 145, 151n10–11; advertising 221; as a sustaining force of the Celtic Tiger economy 77–81, 84; bribery of editors and journalists 11, 212, 226; exposure of by the 19th Century press 205–6, 211, 212; the failures of the Australian press to expose 62–63; fictionalized reports of 220–21, 226; fraudsters as exposers of fraud 208–9, 225–26; in Greece 106, 107, 116; institutional as a major public concern 12, 13; investigative reporting of financial on Wall Street 7; investment fraud 11, 19; lying by PR entities 132; manipulation and intimidation of the press 78–79; marketing deception by Citigroup 10; media exposure of actual practices 8–9, 11, 124; the media phonehacking scandal 156, 165n7; Ponzi and pyramid schemes 170, 183n3; predatory lending 7–10, 23, 43–44, 46; press involvement with blackmail 220, 221; puffery and puff pieces in the media 20, 150, 208, 221, 225, 231; the scandal involving Ameriquest 9, 12–13; the scandal involving Bernard Madoff 19, 215; the scandal involving Enron 18, 24, 29, 123, 130, 151n10; the scandal involving Grant, Sampson, and Evans 209–10; the scandal involving Sir Fred Goodwin 48; the scandal involving the Anglo Irish Bank 75–76, 81; tipsters and tip sheets 135, 222, 231; toxic assets 141, 170, 182, 288, 289; within the American press 4; within the Australian press 62 Countrywide 4, 7, 9, 10 Cramer, Jim xxv, 39n3 Crawford, Malcolm 269 credit: as a driver of financial markets 182–83, 208, 233; creditworthiness 188–90, 195, 198n10; facilities for national bailouts 49, 265, 270, 273n11, 274n36, 274n44; global crunches and crises 45–46, 48, 130, 233, 236–37; the importance of protecting a nation’s fiscal 236–39, 248, 250, 256–57, 261–62, 274n47–48; institutional ownership of risky assets 44; and leveraged investment 170, 172–73, 182–83, 183n3; media warnings of a meltdown 18, 23, 24, 283, 287; predatory lending 12, 14, 18; rating agencies 5, 76, 96, 180, 182 Crips, Stafford see Chancellors crises: the adjustments to media coverage during 82, 194–96, 197; financial 140, 146, 169–70, 173, 176; as an impetus to the growth of the press 187, 194; international 39, 94–95, 107, 147, 248; the management by Bradford and Bingley of its 47, 282, 288; the management by Northern Rock of its 43–44, 282–83; media coverage of 107, 116, 146–47, 173, 183–84, 251; media coverage of 20th Century currency 245, 248, 251–57, 261; press coverage of during the 19th Century 203, 217, 233; press silence configured as patriotic duty during 95–96, 237, 249, 251, 254–55, 269; proposals to restrict the UK press during 279, 289–90; reporting of the 1914 financial 233–37; reporting of the 2007 global financial 104–7; scapegoating of the media during 29, 47, 164, 281; the self-restraint of the press during 95–96, 237, 249, 254–55, 269, 279; the transformative effect of on the press 227–33; wartime press coverage 194, 196, 199n27, 240–41, 251–52; see also stability Crook, Clive 30 Crump, Arthur 211 Cunliffe, Walter 232, 239, 246 cycles: business and economic 61, 62, 169, 172, 180–81, 184; and the growth of the business press 222–25; the media as a driver of economic 179, 184, 194; of socio-economic reform 6, 10, 63 Daily Express 48, 228, 246, 248, 251, 254 Daily Mail: commentaries on the 2008 economic crisis 48; coverage of financial news by the 237–38, 246–48, 250–51, 254, 255, 257; the Daily Mail Exchange 239–40; the public response to the 159–60, 228 Index 297 Daily Telegraph: commentaries on the economic crisis 46, 50, 52, 54; coverage of financial news by the 245–46, 251–52, 264–65, 266, 271, 287; coverage of the global financial crisis 108, 109; the public response to the 159, 228 Darling, Alastair see Chancellors debates: concerning coverage of the 2008 economic crisis 5–7, 16–17; concerning Obama’s stimulus package 28, 32, 36–38; concerning the British economic crisis 42, 45, 46, 49, 52–54; concerning the PSBR 266–69; the power of the press to set agendas for 31 debt: the 1890 crisis in Argentina 216–17; the 1976 crisis in Britain 261–63, 265; accumulation of in Ponzi and pyramid schemes 183n3; the British national 52; collateralized obligations (CDOs) 131, 172, 173; the crisis in Greece 106, 115; the crisis in Ireland 80, 83; the crisis in Spain 96–97; media coverage of crises 130–31, 254–55, 287, 289; personal accrued through predatory lending 9–14, 23, 43, 46; risky assumed by institutions 18, 172, 288, 289; sovereign 96, 97, 261, 263, 265, 272n9 defamation 78, 128, 134, 137 Defence of the Realm Act 240 deflation 247–48, 262–63, 268, 269, 271 Delevan, Richard 81 Democratic Party 28, 29, 34 Dennis, Brady 25 deposit insurance 44, 54n2, 281 depreciation 249, 263, 264, 269 depressions 19, 37, 251 deregulation: as a hindrance to investigative journalism 14, 17, 42, 85, 90, 148; business pressures favoring 23, 148 Der Hovanesian, Mara 11, 13, 24 derivatives 16, 18, 23–24, 45, 283, 287 Deutschland 90 devaluation: the 1919–20 of the British pound 247; the 1931 of the British pound 248–49; the 1949 of the British pound 253–54; the 1967 of the British pound 254–56; and the 1976 PSBR crisis 261, 264, 265, 267–68, 269; media coverage of British 245, 256–57; see also sterling Die Presse (Austria) 108, 109 Domestic Credit Expansion 270, 274n47 Doyle, Gillian 76, 122, 133, 134 Drumm, David 75 Duguid, Charles 211–12, 228-31, 239, 247 Dunne, Seán 81 economic journalists 252–56 economics versus business 145–46 Economist: coverage of financial news in the UK 217, 227–31, 238–41, 245–49, 251–52, 254–55; coverage of Spain’s financial crisis 94, 95–96, 98; coverage of the PSBR controversy 266, 270, 273n17; coverage of the UK financial crisis (2007–2010) 43, 46, 51, 52; the influence of in Australia 65 economists: commentaries by 25, 81, 107; and the concept of belief systems 151n7; the gulf in perceptions between financial professionals and 147, 150; the involvement of in the 1976 PSBR debate 266–69; as journalists 32, 82, 232, 253; Keynes and Keynesian economics 31, 32, 33, 49, 124; Krugman 25, 30, 32, 39, 88; the role of in causing economic crisis 148; the schools of thought among 147, 148, 151n7, 255; as sources for the media 32, 33, 36, 82, 148 editorials: as advertising tools 192, 207, 219; as political tools 10, 30, 237, 245; regarding Obama’s 2009 economic stimulus 30–34, 39, 39n6 editors: City 206, 208–11, 228–29, 229–37, 240–41, 245–48, 250–51; as commentators 45, 208–9, 245–48, 249, 253, 266–68; as contact points for government 95, 234–35, 237, 241, 246, 250; as experts and authors 206, 208–9, 232, 252–53, 255; as investigative reporters 24–25, 279–80, 283; the political influence of 10, 30, 95, 232–33, 241; the power of to shape the news 5, 19, 79, 226, 237, 289; the power of to shape the standards of journalism 15, 20, 129, 231; the shortcomings of 21, 39, 80, 142, 220, 286 elections: the influence of economic crisis on Britain’s general (2010) 42, 49, 50–53; the influence of economic crisis on Spain’s (2012) 97, 99 Elliott, Larry 46, 54 El Mundo 91, 94, 95–96, 108, 109 El País 91, 94, 96, 98, 108, 109 Emmott, Bill 46 Enron: the deceptive accounting practices of 24, 130, 151n10; the exposure of 18, 21, 29, 123, 134 298 Index equities: 19th Century British markets 215–16, 218–19; media coverage of markets 130, 135, 217, 271; see also stock market Estefanía, Joaquín 88 ethical standards for journalists 121, 124–25, 127–30, 132–33, 135–37, 156 Eureka Report (Australia) 64, 68n6 European 115 European Central Bank 104, 107 European Commission 104 European Union 92–93, 97, 99, 103, 105, 106 eurozone 103–8, 111–14 Evans, David Morier 206–7, 208, 210, 211, 222 Evening News 228, 237, 246, 251 Evening Standard 228, 238, 246, 248, 251, 268 exchange rates: the Bretton Woods system of fixed 245, 247, 248, 253; the Exchange Rate Mechanism (ERM) 155, 257; floating 255, 263, 265, 272; foreign 233, 264; the function of as an economic indicator 189–90, 195, 239, 262, 267; the knowledge requirement for reporting on 174; the sensitivity of to comments in the press 147 Extraordinary Popular Delusions and the Madness of Crowds (1841) xvi Fairfax Media (Australia) 61, 65, 68n4, 68n7 Fallon, Michael 279, 284 Fannie Mae (Federal National Mortgage Association) xxvi, xxvii, 6, 18, 22–24 Federal Reserve Bank: the functions of as an economic stabilizer 36, 38, 39–40n7, 151n3, 152n14, 272n10; press interpretations of the actions of the 17, 145–46 Federal Trade Commission 10 feedback loops 169–73, 176, 183–84 Figaro, Le (France) 108, 109 Financial Instability Hypothesis 169–72, 176, 181–83, 184n3 financial journalism: origins of 203–06 financial markets: asset values as indicators of the performance of 169–72, 178, 182, 183–84, 184n5; the beauty contest analogy by Keynes 124, 172, 184n4; capital markets 44, 125, 203, 283; debt and bond markets 130, 162; feedback loops in 169–73, 176, 183–84; the global links among 23, 49, 80–81, 233; and the growth of the business press 222–25; information and confidence in 152n19, 169–71, 180, 183, 217–19; information flows in 169, 170, 172, 176, 180–83, 183–84n5; investor expectations as a driver of 124, 169–72, 175, 178–83, 194; obscurantist practices in 145; the press and herd behavior 176, 183–84, 193–94, 195, 255; press coverage of the 76, 90, 131, 137, 144, 206; rationality and irrationality in 124, 125, 137, 141, 147, 211; the short-term orientation of the 32, 34, 44, 140, 147; turmoil in America’s 32, 37, 151n3; turmoil in Britain’s 44, 47, 227, 237, 252, 265; turmoil in Ireland’s 75, 82–84; turmoil in Spain’s 93–98; the vulnerability of to flawed economic models 148 Financial Monitor and Lion’s Mouth (1889–1890) 225 Financial News: coverage of devaluation crises in the UK 245, 246, 248, 249, 251; coverage of the 1914 financial crisis 227, 229–31, 235, 238–39, 241; during the 19th Century 212, 219, 221–22, 225 Financial Services Authority 163 Financial Times: coverage of devaluation crises in the UK 245, 248–49, 251, 253–55, 257; coverage of Obama’s 2009 stimulus 30, 32, 36; coverage of the 1914 financial crisis 227, 228, 231–33, 235, 238, 239–41; coverage of the financial crisis in the UK (2007–2010) 44, 46, 47, 49, 51; coverage of the global economic crisis 13, 65, 88, 90, 98, 122, 144; coverage of the PSBR controversy 263, 264, 266, 268–71; the influence of on business news 7, 25, 43, 65, 133, 252; origins of the 219; publication standards of the 280–81, 285, 289 Financial Writers’ Dinner 231, 232, 233 First Alliance Corporation 8, 9, 13 Fleet, Kenneth 251–52 Focus (Germany) 116 Forbes 4, 5, 7, 9, 65, 90 Ford, President Gerald 274n36 Fortune: coverage of financial news by 11, 18, 24, 33, 35; the influence of on business news 7, 21, 25, 65, 90; misdirected financial coverage by 4, 14 Foust, Dean Fox Business Network xxvi, 23, 65, 68n8 Index 299 France 108, 109, 187, 191-92, 273–74n33 Frankfurter Allgemeine Zeitung (Germany) 90, 108, 109 Freddie Mac (Federal Home Loan Mortgage Corporation) xxvi, xxvii, 6, 18, 22 Frederic, Harold (The Market Place, 1899) 220–21 Freedom of Information Act (1966) 145 Fuggers (Augsburg) 187, 189 Gasparino, Charles “Charlie” xxvi Gauke, David 47, 55n17 GDP measures 46, 49, 162, 262, 263 Geard, John 232 Germany: coverage of the economic crisis in Greece 109, 115; and the economic bailout of Greece 108, 115; the media’s portrayal of Chancellor Merkel 114–15; rejection of Keynesian solutions by 49; studies of crisis coverage by the world’s media 90–91; Wolff-Continental 188, 192 Giffen, Robert 211 Glass–Steagall Act (1933) xxvii global financial system: the aborted attempt to employ Keynesian policies by the 49; British global initiatives to control the crisis in the 49, 106–7; coverage of the crisis by the British press 42, 46, 53; EU summits 105; G20 summits 49–50; the impact of the Lehman Brothers bankruptcy on the 46–47, 51, 53; information as the mover of markets 124–25; interconnections among investors 80–81, 83; the media coverage of crises throughout the 88–92, 115–16, 130–31; sovereign debt crises 96, 97, 161, 261, 263, 265; systemic fragility 44, 76, 169–70, 172, 182–84; turmoil throughout following the 1914 ultimatum 233–37; see also crises global media: coverage of the eurozone link to the crisis in Greece 111–14; coverage of the Greek populace during the crisis 115–16; coverage of the recession in Greece 106, 107–11; the divergence of opinion over Greece’s need and its worthiness 110–11, 113; and the European Union 104, 105–6; growth of the prior to World War I 230; the influence of the on issues that transcend national borders 105, 106, 110–16; the influence of the on negative or positive national events 104–5, 107, 115–16; the leading corporate entities of the 108 Globe 228, 235, 237, 238, 241 Godley, Wynne 267–68 gold: Britain’s 1914 crisis 232, 234, 236–37, 241; Britain’s gold standard crises 245, 246–51, 273n11; Britain’s speculative boom in 215–17, 221, 225 Goldman Sachs 4, 25 Goodwin, Fred 44–45, 48, 287 Goozner, Merrill 21 Government Accountability Office 32 Gramm–Leach–Bliley Act (1999) xxvii Grant, Baron Albert 209–10 Great Depression (1930s) xvi, 19, 37 Great Mirror of Folly (1720) xvi Greece’s financial crisis (2008–2010): the austerity measures imposed to contain 109, 115; coverage of by the German media 108, 109, 115; the financial recession 106, 107; media coverage of its impact on other EU members 106; the negative international coverage of 103–4, 112–13, 115–16; the plight of the Greek populace 106, 107, 115–16; press coverage of Angela Merkel’s responses to 114–15; Prime Minister George Papandreou 114, 115, 165n6; study of the global media’s coverage of 107–16 green shoots 94, 95–96, 147–48 Greenspan, Alan xxv, xxvii, 151n2 Greenwood, Ross 65 Guardian, coverage of the economic crisis in the UK by 46, 50, 54 Handelsblatt 90 Havas 188, 191, 193, 194 Hayes, Tom 31 HBOS 47, 288 Healey, Dennis see Chancellors Heath, Prime Minister Edward 257, 262, 273n11 Hechinger, John Hennessey, Peter 253 Henriques, Diana B 8, 18, 21, 23 Hess, Henry 222, 225, 231 Hill, Headon (Guilty Gold, 1896) 221 Hirsch, Fred 255, 256 Hirst, Francis (F W.) 228, 231, 238, 241 Hobson, Oscar 246, 248, 252 Hong Kong 132, 138n4 Hooley, Ernest Terah 220–21, 222, 226 Hooper, Wynyard 231 House of Commons Treasury Committee xxv-xxvi, 279–90 300 Index Household International, Inc 9, 10 housing and property markets: business press coverage of the Irish 76, 80–81; business press coverage of the Spanish 94–95; business press coverage of the UK 43, 46; business press coverage of the US 7, 11, 17–18, 22–24, 29 Hudson, Mike 12, 13, 14 human interest stories 29, 62, 104, 145, 146 Iglesias, Magis 88 Independent 46, 49, 52 Independent (Ireland) 75 inflation: asset 170, 182, 184, 184n3; government concerns regarding 38, 43, 105; the inverse relationship of to bond values 144; in the UK 43, 249, 256, 262–64 information: access to as a concern of the media 143; as the basis for legal action 4, 6, 12–13; bundling and selling by early agencies 189–92; censorship during World War I 240–41; consumer demand for 21, 25, 82; databases as sources of 196–97; disclosure of 78, 124, 178, 286; distinguishing business from economics 145–46; distortion of 89, 121, 142, 146, 150; the effects of corrections and updates to 180–84; the enabling power of 140–41, 161–63, 165n8, 211; establishing the monetary value of by news agencies 189–96, 199n30; flows of in financial markets 169–72, 179–80, 180–83; frames 5, 14, 15, 175, 177–79, 183–84; the influence of on market prices 78, 124–25; investigative reporting and freedom of 145, 149–50, 152n14, 280–81; the limited usefulness of market fundamentals 169–73, 178–79, 182–83; management of by the global media 109–10, 115–16; manipulation of by public relations entities 34, 122–23, 129, 131–33, 137; manipulation of by sources 34, 146–48; manipulation of by the media 4, 6, 123–24, 135–36, 141; manipulation of during 19th Century 206–12; market feedback loops 169–73, 176, 184; meta- 172, 177, 178, 179; negative, positive, and non- 219, 225, 226; nondisclosure of 11, 126–27; the public right to 3, 4, 13, 103; the public’s preferred sources for 158–61, 161–62; real-time 171–72, 176–78, 179; and the risk of public panic 44, 47, 83, 234–35; rumors 135, 174–75, 181–84, 206, 212; screening of by 19th Century journalists 206–8; the simplification of for the public 76, 79–80; transparency of 124, 145, 169, 177, 184, 289–90; the withholding and manipulation of during Ireland’s boom 76, 78–79, 80; see also briefings; leaks Informe Semanal (Spain) 97 Ingrassia, Larry 88 Interbrew case 128 interest rates: as a tool for stabilizing national economies 37–38, 145, 146, 254, 264, 271; and economic prospects 37, 217; and housing markets 22, 23; the influence of on asset values 170–71; the inverse relationship to bond prices 144; as news 22, 176, 189, 190, 195; the predatory manipulation of 23 International Monetary Fund (IMF): and the 1976 bailout of Britain 261–72, 272n1, 275n89, 276n112–13; and the bailout of Greece 104, 107, 109; and the bailout of Ireland 75; other assistance by 253, 272n4, 273n11; and the proposed 2009 global bailout 49 Internet: the changes in journalism forced by 66, 136, 150; the functions of the as a news outlet 29, 108, 159, 162, 186, 289; see also websites investigative reporting: comparisons as tools for 38–39; on corruption in the subprime market 8–11, 18; counterfactual analysis as a tool for 38; during the 19th Century 205–7, 212; economic analysis of Obama’s 2009 stimulus 30–32, 36, 37; to expose powerful institutions 12–13, 14, 152n14; the financial expertise required for 6, 18, 20, 21, 25, 29; and freedom of information 145, 150, 152n14; the growth of in Australia 62; institutional support for 14, 133–34, 137, 146, 150; of interest rate manipulations 23; the limitations of 174; on the link of Wall Street to the subprime market 13–14; and muckraking 9, 13, 18; scepticism as a characteristic of 21, 44; warning stories preceding the 2008 crisis 7–9, 12, 13, 19, 22–24 investors: the behavioural patterns of 96, 125, 141–42, 169, 182–83, 211; consensus and herding behaviours Index 301 among 170–72, 175–76, 180–84, 184n5, 194–95; the dependence of on other investors 172, 176–77, 181–82, 183–84n5; as drivers of economic crises 23, 149, 172–73, 215–16; as drivers of financial markets 169–71, 182; as drivers of market feedback loops 169–73, 176, 184; early publications to assist 204–8, 209; the financial losses of through corruption 19, 170, 207–8, 225; fraudsters posing as protectors of 220–21, 225–26; the impact of rumours on 180–83; the influence of analyst opinions on 121, 175–80, 183–84, 285; the information requirements of 141, 146, 176–79; institutional and professional 23, 125, 172, 174, 176–77; joint-stock companies 60, 205, 208, 230, 238; the management of financial risk among 180, 195; the manipulation of by corporations 142, 143, 169, 208–9; as the media’s target audience 15, 19–21, 29, 123, 130, 133; press warnings to 22, 46, 183–84, 208–9, 211–12; publications targeted to 21, 61, 211, 222–26, 227–31, 245–46; speculators 23, 24, 203, 206, 208–9, 215; versus the general public 15, 29, 83, 122 Ipsos MORI 155, 165n5 Ireland’s Celtic Tiger economy: bank expansions under the 75–76; the manipulation of information during the 77–81; official assurances concerning the 79, 81, 82, 83, 84; post-boom investigations 84; property developers as promoters of the 78–79, 81, 83; the transition to austerity from 75, 80; the unsustainable bank risks underlying 76, 79–81 Irish business press: the behavior of Taoiseach Ahern toward the 81, 84; criticisms of the 76, 79, 83–84; the demonizing of sceptical journalists during the boom 81, 83, 85; the focus on personalities and businesses by 76, 79–80, 81, 84; the newsgathering constraints on the 76–79, 83; the postboom distrust and scepticism of the 82–83, 85; the power of advertisers over the 76, 81, 85; the power of public relations firms over the 75, 77, 79, 85; a study of eight journalists 76–85; support of the boom within the 76, 77, 78, 84–85 Irish Nationwide Building Society 81 Irish Times 81, 83 ITV 43, 159–60 Japan xxv, 39 jargon 18, 79, 156, 161–62 Jay, Peter 252–53, 256, 272 Jenkins, Peter 268 Jenkins, Simon 279, 281, 286, 288 Johnstone, Edward 230–31 journalists see business journalists; sources Kaletsky, Anatole 46, 49, 54 Keegan, William 254–55, 256, 272n1 Keynesian economics 28, 31–33, 49, 252, 268 Keynes, John Maynard: the activities of during the 1914 banking crisis 232, 238–39; and the crises over Britain’s gold standard 248, 250–51; on financial markets as beauty contests 124, 172, 183n4; on the power of animal spirits 147, 195 Kiddy, Arthur 228, 231, 233, 246 King, Mervyn 42–43, 44, 55n2, 55n6 Kissan, Edgar 248 Knight-Bagehot Fellowship 149 Koch, David 65 Kohler, Alan 64 Kristof, Nick 39 Krugman, Paul 25, 30, 32, 39, 88 Kurtz, Howard xxvi, 5, 17 Kynaston, David 219 Labor Party (Australia) 66–67 Labouchere, Henry Du Pré 211–12 Labour Party: government during the 1919–1972 crises 246, 248, 249, 254, 255; government during the 1976 crisis 263, 271, 272; government during the 2007–2010 crisis xxvi, 42, 44, 49–50, 54, 256 Lambert, Richard 47, 55n16, 286 Larsson, Stieg 16 Latin America xxii, 39, 217 Lawson, W R 232 leaks: hostilities towards press 47, 269, 281; as the manipulative sharing of information 128, 132, 217, 249, 262, 269–71; see also briefings; information Lee, George 80, 82 Lehman Brothers: the bankruptcy of and the global financial crisis 46–47, 51, 53, 95, 181, 288–89; the financial practices 302 Index of 8–9, 13, 14, 151n10, 173; the media coverage of 4, 13–14, 23 lending: the 19th Century foreign loan market 204–5; the 1976 controversy in Britain 261–66, 271, 272n10, 273n19; investment-based borrowing 170, 183n3; media coverage of corrupt practices in America 3–4, 6–14, 18, 22–24, 43; media coverage of corrupt practices in Britain 43, 47, 280, 282; media coverage of corrupt practices in Ireland 80, 81; predatory 9–14; risky practices 115, 152n14, 181, 182; see also credit; debt Lenihan, Brian 83–84 Leonhardt, David 33 leverage see risk Leveson inquiry xxiii, 165n7, 219 libel 143, 209–12, 213n39, 221, 225–26 Libération (France) 108 Lippmann, Walter 3, 4, 13 litigation as a result of investigative reporting: against Citigroup for subprime abuses 10; against Lehman Brothers for subprime abuses 9; American states versus Wachovia 10; configuring journalistic rights and responsibilities 128 Lloyd George, David 233–40 Lloyds Bank 47, 234, 236, 288 Lloyd’s List 188, 189 Loeb, Gerald M 19–20, 21 London 42, 46–47, 48, 53 London Stock Exchange 227, 235 Loomis, Carol 18, 24 Lord, Richard Los Angeles Times 7, 9, 12, 15, 33 Mackay, Charles xvi Macmillan, Prime Minister Harold 256 MacRae, Douglas 219 Malone, Carole 48 Malone, Michael S 31 Manchester Guardian 246, 248, 249, 250, 254 Mann, John 279, 283, 287 Market Abuse Directive 126, 127 markets see financial markets; global financial system; housing and property markets; money markets; stock markets Marks, Harry 212, 219, 221, 225–26 Maxwell, Robert 115 McFall, John (Chair Treasury Committee) 279, 281, 283 McLean, Bethany 24 McRae, Hamish 46, 49, 52, 53, 54 McWilliams, David 80, 82 Meason, Malcolm (The Profits of Panics, 1866) 208–09 Mechanics’ Magazine 207 media: bias and stereotyping in the international press 91; flaws in coverage by the nonbusiness press 145–48; the general daily press 15, 64, 90, 91, 94; global corporations 62, 156; as an influence on financial markets 124–27, 134, 179, 182; as an influence on the global public 99, 103–4, 141–42; the manipulation of the 142–48; market incentives to shape the 141, 149; the power of its visual tools 43–44; the power of negative news 76, 82–83, 104–5, 123, 219, 286; the power of to influence economic policy 254–55, 266–69, 272; public scepticism toward the 156, 160, 162, 164; radio 20, 64, 65, 159–60, 186, 252; scrutiny of executive compensations by the 23, 31, 48, 83, 173; self-assessment of crisis coverage by the 87–88; television 43–45, 97, 115, 159–60, 251, 270 Merkel, Angela xix, 114, 115 mining: as a journalistic specialism 60–61; speculative booms in 62, 205, 209, 215, 225 Minsky, Hyman 169–72, 177, 181–82, 184n3 models: asset valuation 170–73, 215; business for financial journalism 59, 66, 133–34; business of global news agencies 187–93, 196–97, 199n18, 199n23; economic 32, 39–40n7, 147, 148, 151n7; Northern Rock as a poor example among business 44, 280, 281, 285; the undermining of traditional business by the Internet 150 Monde, Le (France) 108, 109 Money Advice Service 163 Money Market (1866) 209 money markets: 19th Century 205–6, 209; 20th Century 233–34, 236–37; pre-crisis turmoil 43, 178, 280 Montalvo, José García 94 Morgensen, Gretchen 18, 23 Moriarty Tribunal (Ireland) 84 mortgage lending: corrupt practices in on Wall Street 5–6, 8, 10–11, 14; investigative stories and warnings about 8, 9, 11–12, 14; the questionable practices of Fannie Mae and Freddie Mac 4; the regulation of resulting from press investigations 9–10 muckraking xvi, 9, 13 Index 303 Mudie, George xxvi, 279 Murdoch, Rupert: on the functions of the press 61–64, 66, 67; the media empire of 33, 59, 65–66 Neue Zürcher Zeitung (Switzerland) 90 New Century 9, 10 News of the World 48, 165n7, 229, 240 newspaper circulation: the dominance of Murdoch’s empire over Australian 63, 65; increases in during financial crises 43, 116, 251; in the UK 227–29, 246, 251 Newsweek 31, 33, 35 New York Stock Exchange 19 New York Times: comment on New Year’s Day 1929 regarding prosperous outlook xxiii; the influence of on business news 5, 7, 21, 90, 108, 109; investigative reporting of Wall Street by 8, 18, 23, 25; misdirected financial coverage by 4; the support of Obama’s 2009 stimulus package by 30, 31, 33, 36, 39 NICE decade (non-inflationary, constantly expanding growth) 43 Noel-Fearn, Henry (The Money Market, 1866) 209 Norman, Governor Norman 246, 247, 252 Norris, Floyd 18, 23, 152n22 Northern Rock bank 42–44, 47, 53, 124, 130, 280–88 Obama, President Barack xvii, 28, 34, 36, 37, 147 O’Brien, Denis 84 Observer 204, 228, 235, 246, 248, 251, 252, 254 O’Hagan, Henry Osborne 219, 226 O’Harrow, Robert Jr 25 OPEC 262 Osiel, Mark J 125 O’Toole, Fintan 83 Overend Gurney crisis (1866) 208 Overstock.com case 128 Paish, Sir George 228, 233–35, 237, 239, 241 Pall Mall Gazette 219, 228, 229, 235 Palmer, C H 228, 231 panic: 19th Century 206, 209; accusations against the press of causing 164; as a product of creeping market fragility 170, 172, 211; and the British press 43–44, 46, 47, 53, 164; government and press actions to avert 234–35, 240, 251, 257; and the Irish press 83; the media’s selfassessment regarding 88, 282, 283; Spanish attempts to prevent 94–95; suppression of information to avoid 95, 124, 142, 237, 249, 254–55 Papandreou, Prime Minister George 114–15, 165n165 Paulson, Henry M., Jr 47 PCC (Press Complaints Commission) 47, 127, 128, 136, 137–38n2 Pennant-Rea, Rupert 254 People’s Party (Spain) 99 personal finance as a news topic 43, 63, 156–57, 159, 163 Peston, Robert: on the crisis reporting of the media 88, 130, 280–85, 288; the role of in the British banking crisis 43, 44, 47, 54n1, 55n3 Phileleftheros (Cyprus) 108 Pinkerton, William 19 Pittman, Mark 145, 152n22, 152nn13–14 Plender, John xxvi, 13 Porter, Dilwyn 212n1, 219, 231 Posner, Michael 267–68, 275n65 Powell, Ellis 228, 231, 232 Press Association 187, 246 Press Bureau 240, 241 Press Committee 240 prices: the ability of the media to misrepresent 122, 126, 136, 144; asset values in financial markets 169–72, 178, 182, 183–84, 199n33; the potentially misleading character of housing 17, 24, 43, 94; price discrimination 198n12; price signals 169, 171, 198n12; for the provision of news 191, 192, 197, 198n12; the publication of as the origin of financial journalism 60, 187, 189, 204, 206, 229; the sensitivity of to market information 151n5, 169–71, 177–78, 181, 183–84, 286–88; the sensitivity of to news events 66, 78, 104, 124, 195, 233; as short-term indicators 29 PSBR (Public Sector Borrowing Requirement) 262, 263, 265–71, 275n89 public: the capacity of the press to manipulate opinion 4, 43–44, 83, 99, 104–6, 115–16; consumers and consumerism 6, 11–12, 194; the dependence of the on the press 20–21, 94–95, 98–99, 103, 140–41; distrust of government and the business sector by 304 Index the 158, 160–61, 162; distrust of the business press by the 16, 28–29, 153, 155–59, 164, 165n7; the effects of crises on financial news consumption 60, 153–55; the failure of the media to address the plight of the common man 153, 155–57, 163, 174, 183–84; government as a promoter of perception and confidence 146–47, 151nn2–4; government regulators as protectors of the 6, 123, 128, 141; the herd mentality of the 141–42, 172, 176, 195; information as tool that empowers the 140–41, 161–63, 165n8; the lack of economic literacy within the general 103–4, 155–56, 161–62; the lack of financial literacy within the general 153, 162–64; the media as defender of the interest 127–29, 130, 280–81; the media’s charges of inattentiveness by the 17, 24; the news as a product of public interest 21, 29, 82, 204–5, 212, 230; the news interests of the 93, 156, 157–58; panics versus the right to know 80–81, 95, 234–35, 240–41, 280–82, 287; the plight of the Greek 106, 107, 115–16; the post-boom plight of the Irish 75, 82; predatory lending to the 12, 14, 18, 22, 183n3; the preferred sources of information of the 158–61; and the selffulfilling prophecy dynamic 142, 172, 173, 176, 183; taxpayers 22, 47, 75, 80, 238; versus the institutional interests of the press 6, 15, 190; versus the interests of investors and speculators 29, 77–79, 122–24, 126–27, 141, 174; versus the professional interests of journalists 142–43; see also audience public relations: the function of as gatekeepers of information 34, 122–23, 129, 131–33, 137; the influence of over Ireland’s business press 75–77, 79, 85; the influence over Australia’s business press 62–64 Pulitzer Prizes 17, 19, 24, 25 radio 64–65, 84, 159–60, 251, 252, 288; see also broadcasting Railway Magazine 207 railway mania in 19th Century Britain 195, 203, 205–8, 212 Railway Times 207 Raines, Franklin 22 Rajan, Raghuram xxv Rajoy, Prime Minister Mariano 97, 98, 99 Randall, Jeff xxvi, 46, 49–50, 54, 279–80, 283, 286–87, 289 RBS (Royal Bank of Scotland) 44–45, 47, 48, 287–88 recessions: American press coverage of 25; British press sensitivity to the economic label 45–46, 49, 51, 52; conservative interpretations of 31–32, 33; global coverage of Greece in the eurozone 104, 106, 107, 109, 112, 115 Reckard, E Scott 9, 12 Reeve, Charles 228, 246 reflexivity: game 172–73, 181–82; informational 124–25, 169–71, 178–84; performative 172–73; transactional 172 reform: as a product of good reporting 44, 54n2, 124; cycles of economic 6, 10 regulation: as a complement to reform 10, 15, 90, 124; as a deterrent to innovation 140; deregulation and “light touch” 14, 17, 42, 85, 90, 148; self- by journalists 125–27, 289 regulators: failures of in Ireland 80, 82; failures of in the UK 42, 48, 53–54, 285–86; failures of in the US 9, 10, 12, 18–19, 88, 141; and the media 6, 10, 16–17, 23, 123–24; the pressures on from Wall Street 23; as protectors of the public interest 5, 6, 123, 127–28, 148 Rehn, Olli 114 reporting: the advent of modern financial journalism 229–30; approaches to economic 30–31; the consideration of alternatives as basic to good 15, 30, 36, 37, 54; the constraints on in Ireland 77–78, 82–85; the constraints on in Spain 87–88, 91–93, 97; consumerismoriented 62, 63, 80; counterfactual analysis 38; the desirability of scepticism in 129, 133, 137, 283–84, 287; distortions in 122, 148–49; early financial 203–5, 208–9; free speech protections of journalistic 127–28; of the global economic crisis 104–7; the goals of Australian business 61–62, 66–68; the importance of tone in 281–82; of international crises 195–96; leaked stories 128, 132, 217, 249, 261–62, 269–71; the management of conflicting information 176, 182, 183; the need of multiple, alternative sources for good 91, 128, 149, 261–62; perspective in 15, 183; the quality of American business 10–12, Index 305 17–21, 28–29, 34–36; rumour management 135, 174, 175, 181–83; of the truth 158–59, 169, 183, 281, 287; verification standards 129–30, 134, 144, 169, 280, 284–85; versus predicting 13, 16, 31 Repubblica, La (Italy) 108, 109 Republican Party 28, 30, 36 Reuters: coverage of financial news by 98, 174–76, 187; coverage of Obama’s 2009 stimulus 31, 33, 35; the financial health of 25, 133; marketing of raw news by 187, 188, 191–94, 194; reader surveys by 157–60 Reynolds defence 128 Richards, Steve 49, 52–53, 54 riots 109, 115, 116 risk: consumer comprehension of 18, 24, 194; failures of the press to comprehend 38, 64, 66–67, 76, 133; failures of the Spanish press to comprehend 87, 89–90, 93, 94, 95; financial sector mismanagement of 38, 44, 46, 140–43, 172–74, 289; high financial leverage as 145, 170, 173, 181–82; hindsight views of 18, 64, 182; information as a means of clarifying 123, 140–41; as justification for investment profits 24, 143, 170, 172, 182; the obfuscation of by bull and boom environments 4, 24–25, 38, 46, 149, 170; the obfuscation of by deregulation 14, 42, 85, 90, 148; protectors against 5; shortsightedness as 142, 149; sustainability as a test of 76, 80, 133–34, 137, 170, 181; systemic 44, 76, 169–70, 172, 174, 183; unsustainable values as 24, 141; warnings of in the American media 11, 19, 22–24, 173, 182; warnings of in the British media 44, 46, 283, 287 Ross, Brian Roubini, Nouriel xxiv Royal Bank of Scotland (RBS) 44–45, 47, 48, 287, 288–89 RTÉ News (Ireland) 80 Rudd, Prime Minister Kevin xxviii, 67, 181–83 rumours 135, 174–75, 180–83, 206, 212, 280 Russia xxii Salgado, Elena 95 Sampson, Marmaduke 209–10, 211 Santelli, Rick 39n3 Sarkozy, Nicolas 114 Sasseen, Jane 32 scandal see corruption Schechter, Danny xxv Schmidt, Hermann 228, 238 securities: ARMs 4, 16, 23, 112; CDOs and CMOs 5, 10, 131, 161, 170–73, 181; consumer investment in 19, 29; credit default swaps 6, 13, 145; derivatives 16, 18, 23–24, 45, 283, 287; fraud 10, 11, 17; mortgage-backed 10, 17, 23, 285; passive reporting of market performances 21, 29; speculation in risky 23 Securities and Exchange Commission 18, 124, 128 sell side analysts 174–76 Shiller, Robert 40n9, 194 Shonfield, Andrew 252, 254 Simonis, Henry (The Street of Ink, 1917) 227, 229, 230, 231, 241 Sinclair, Upton xvi Skinner, Sir Thomas 232 Sky News 44, 64, 65, 159–60, 279 Sloan, Allan 18 Socialist Party (Spain) 94, 99 Soir, Le (Belgium) 108, 109 Solbes, Pedro 97 Soros, George 152n19, 169, 171 sources: the American media’s management of its 30, 34–36, 37; the biases of 141, 142, 145–48; capture by as an inherent problem for journalists 122–23, 142–43, 183; capture by public relations entities 34, 122–23, 129, 131–33, 137; capture of the American media by their 28–29, 34–36, 143–45; capture of the Australian media by their 62, 63; capture of the Irish media by their 76–78, 81, 84; capture of the media as a global problem 89; capture of the Spanish media 89; the cognitive capture of journalists by their 143, 145, 149; distortions in 148–49; government and business 28, 77–79, 90; identification of captures 149–50; journalists’ dependence on the expertise of their 34, 53, 122, 170, 173–78; protection of 127–28, 284, 286–87; some incentives of to manipulate the press 142–45, 174–76; ties of British journalist to their 53, 54; see also business journalists South Africa 190, 192, 215–16, 217 South Sea Bubble (1720) xvi, 211 Spain’s financial crisis: the 2009 stimulus package 95, 97; attempts by the Socialist 306 Index government to control 94–96; the character of 93–94; comments on by Prime Minister José Luis Rodríguez Zapatero 95; the emergence of 93–94; misleading statements regarding 89, 90, 94, 95; the real estate bubble (2003–2007) 94–95; Salgado and the “green shoots” image 94, 95–96; and Spanish nationalism 92, 93, 95, 96; under Prime Minister Mariano Rajoy 97–98, 99 Spanish business press: ABC 94, 96; as a product of Spain’s EU membership 92–93; constraints on the 89, 94, 98; criticisms of the 87, 92–93, 98; discussions of a bailout 91, 97–98; El Mundo 91, 94, 95–96, 108, 109; El País 91, 94, 96, 98, 109; the failure of to perceive Spain’s financial crisis 87, 91–93, 94; its traditional deference to the banking sector 96–97, 98; the success of as a warning mechanism 94–98 speculators: the activities of financial 96, 170, 181, 182, 261; as perpetrators of booms and bubbles 121, 203, 206–7, 208–9, 215, 256; press warnings against 211; the relationships of with company promoters 215–17 Sprigge, Cecil 250 stability: during times of market confidence 171–72; the Financial Instability Hypothesis 169–70, 172, 181, 183; the gold standard as the key to 248–49; Stability Pact of the European Union 106, 107, 109; see also crises Stability Pact 106 Standard 208, 210, 216–17, 228, 231, 233 Star 228, 229, 232, 235, 238, 240 Statist 227-28, 233, 235, 238, 240, 245, 251 Steffens, Lincoln xvi Stephens, Philip 49, 51, 53, 54 sterling: as the cause of the UK’s sovereign debt crisis 263, 265; crises in the UK 245, 252, 253, 254; depreciation 249, 263, 264, 265, 269; exchange rate with the American dollar 239, 246–47, 253–55, 261, 262, 264; foreign holders of as a concern 248, 251, 263, 273n17; and the gold standard 247–51; government cuts to defend value 249–50; government mismanagement of crises 254, 255; government-press interactions concerning crises 250; the overvaluation of 255, 263–64; press crisis commentaries 254, 255–56, 257; press self-censorship to protect the pound 245, 247–48, 255; the reserves supporting value 236, 248–50, 253, 256, 261, 263–64, 271, 273n19; speculative attacks on 255–56, 261; vacillations in public confidence in the pound 250, 253; see also devaluation Stewart, Jon xxv, 39n3 Stock Exchange: the London 227, 229–32, 235, 238–41, 282; the New York 19 Stockholm Syndrome 4, 88 stock market: the 19th Century 204, 211, 215–16, 217, 222, 225; IPOs and company formations 174, 217–19, 221–22; and the media 19, 21, 29, 42, 78, 136, 252; stock prices 29, 104, 124, 204, 206, 233; see also equities strikes 116, 255 Strong, Benjamin 247 studies: by the American Journalism Review 5–6, 90; on the challenges facing journalists 129–37; by the Columbia Journalism Review 6–8, 10, 12–14, 90; of the financial literacy of business journalists 121–22; of global media coverage of the Greek economic crisis 107–16; of Irish business journalists 76–85; of the language used to describe the economic plight of the UK 46, 51–52; of the media and corporate governance 123–24; on the professionalisation of journalism 125; of reporting on Obama’s 2009 economic stimulus 30–39; of the role of the world’s media during crises 88–92 Stutchbury, Michael 64, 68 subprime mortgage market 6, 8–14 Süddeutsche Zeitung (Germany) 90, 108, 109 Sunday Tribune (Ireland) 81 surveys and polls: BSAS (British Social Attitudes Survey) 158–59, 161; of businessmen, economists, and journalists 32, 63, 123, 175; miscellaneous of the British public 52, 165nn3–5, 190–91, 195, 208, 282; of public interest in finance and economics 93, 154, 157, 159, 162, 163; of public trust in the media 153, 158, 162; see also audience Sydney Gazette (Australia) 60 Sydney Morning Herald (SMH) 60–61, 62, 64, 65, 68n4 tabloid press 48, 53, 66, 158–59, 161 Tageszeitung, Die 90 Taibbi, Matthew 25 Index 307 Tarbell, Ida xvi television: as a source of news 159–60, 251; Australian 62, 64–65, 66; finance and economics programming 43, 251; the power of images 43–45, 47, 97, 115, 270; see also broadcasting Tett, Gillian xxv, 44, 122, 283, 287 The City; Or, the Physiology of London Business (1845) 206 Thorne, Guy (Sharks, 1904) 220 Thorpe, Charles 228, 235 Thurso, John 279, 288, 289 Time 31, 33, 35 Times, The: coverage of devaluation crises in the UK 245–47, 249, 251, 252–53, 255–57; coverage of financial news by 123456; coverage of the 1914 financial crisis 228, 231–32, 237, 238, 240; coverage of the 2008 financial crisis 8, 46, 49; coverage of the PSBR controversy 265–72, 273–74n33, 274n44; during the 19th Century 205–6, 208, 210, 211, 217–18, 222 Todd, Mark 279, 286 traders 18, 169, 173–82, 174 trade unions 79, 106, 158 Trichet, Jean-Claude 114 Truth 211, 229 tulip mania (1630s) xvi, 151n5 Tully, Shawn 11, 24 UK financial crisis (1825) 204–06 UK financial crisis (1847) 206–08 UK financial crisis (1866) 208 UK financial crisis (1890) 216–17, 219 UK financial crisis (1914): the advent of professional press standards 231–33; the advent of the modern financial journalism 230–31; the Bank of England during the 234–37, 240–41; the bank runs 233–35, 241; the banks and the government 233–39, 240–41; the breakdown of financial markets 233–35, 237–40; censorship and self-restraint of the press 240–41; the Cold Storage Scheme 237, 240, 241; confrontation of the by Lloyd George 234, 235–36, 237–38, 239, 240; the Daily Mail Exchange 239–40; editorials and commentaries during the 235, 236, 237, 238, 241; efforts by Keynes during the 232, 238–39, 241; efforts by Paish to stem panic during the 233–35; the gold shortage and government currency notes (Bradburys) 232, 234, 236–37, 241; the hoarding of coin during 236–37, 241; press efforts to support government 234–37, 240–41; the pre-war financial press 227–30; the Stock Exchange 235, 238, 239–41; the stress on foreign exchange during the 233, 236, 239; the Treasury 236, 237–39, 240, 241; as an unanticipated crisis 233, 240; the use of financial moratorium as crisis containment 237, 240; wartime financial markets 236, 237, 238, 239, 240; the wartime press 238, 240–41 UK financial crises (1919–1972): the Bank of England during the 245, 246, 252, 254; confrontations of by the Chancellors 248, 253–54, 255, 257; devaluations of the pound 245, 247, 248, 253–54, 254–55, 256–57; economic journalism 252–53; editorials and commentaries during the 247–50, 253, 255; efforts by Keynes during the 248, 250–51; embargoes and tariffs to protect the pound 247, 254; the fixed exchange rate system 245, 247, 248, 253; the floating exchange rate system 245, 248, 253, 255–57; gold coin supplies 246–47, 248–49; the gold standard 247–51; government-press interactions 246, 250, 252, 256–57; government secrecy concerning the pound 245, 246, 247, 253, 254–55; the post-war financial press 251–53; the pound as a political issue 248–49, 254, 257; press actions to protect the pound 245, 249, 253, 254–55, 256; press commentaries regarding devaluation 253–56; press criticisms of government crisis management 254–57; public confidence in the pound 254, 255250; sterling-dollar exchange rates 246–47, 253, 254, 255; support of the pound as a patriotic act 254–55; the wartime press 249, 251–52 UK financial crisis (1976): confrontation of the by Chancellor Healey 261, 263–66, 267–72, 273n11, 274n48; confrontation of the by Prime Minister Callaghan 266, 268–69, 270, 271–72, 274n36, 276nn112–13; the depreciation of sterling 263, 264, 269; editorials and commentaries regarding the 263–66, 268, 269, 270, 271; the exchange rate policy 263, 265, 267, 272; export-led economic recovery to solve the 262–64, 308 Index 266–68, 271; the IMF bailout facility 263, 265, 266, 273n11; the IMF demands 261–63, 265, 266, 268, 269–71, 274n47; inflation as a concern 262, 263, 264; the influence of economists on the 266–69; interest rate manipulations 264, 271; oil prices as a factor 262, 263, 272n9, 273n11; the position of sterling holders 263, 264; the press as an intermediation device for government and the IMF 269–72; the press as a public forum 261–62, 266–69, 271; protectionist policies as a consideration 267–68; the PSBR (Public Sector Borrowing Requirement) reduction proposals 263–65, 268, 269–71, 275n89; the PSBR debate in the press 266–69; reserves levels 261, 263, 264, 271, 273n19; a sterling crisis becomes a sovereign debt crisis 261, 263, 265; the sterling-dollar exchange rate 261, 262, 264, 271; unemployment as a major concern 267, 269, 275n89; valuations of the pound 261, 263–64, 266–69, 271, 272n2, 274nn35–36 UK financial crisis (2007–2010): and the 2010 general election 52–53; as a product of poor regulation 42, 48, 53–54; the bank run and failure of Northern Rock 42, 43–44, 47, 53, 280–88; the crucial episodes during the 42; the embrace of austerity as a solution 42, 49–52, 54, 156, 270; and the failure of RBS 44–45, 47, 48, 287, 288–89; the House of Commons Treasury Committee investigation 279–90; the impact of visual images 43–44, 281–82, 288; information verification by the press 280–81, 284–85, 286; investigative reporting on Northern Rock 280, 281–83, 285; the mortgage market prior to and during the 43, 47; Northern Rock’s flawed business 283, 285, 288; the pre-crisis economic boom 42, 287, 289; press warnings prior to the 283, 288–89; public interest given priority by the press 280–81, 284, 288–89; responses to by the Labour Party government 42, 44, 49, 50, 54; responses to by the Tory Party 50, 52, 254; rumours and blogging as exacerbating influences of the 280, 281, 286; self-restraint in reporting 280–81, 284–86, 287, 289; Treasury Committee assessments 279, 289–90 UK Treasury: fiscal decisions by the 272–73nn9–11, 273n24, 275n89; interactions with the British media 233, 236–37, 250–52, 255–57, 284; management of the 1914 financial crisis 235–39; management of the 1931 financial crisis 248–51; management of the 1976 financial crisis 262–66, 268–72; media coverage of the activities of the 44, 240–41, 245–46, 263, 269; the Parliamentary committee and the press 47, 54n2, 279, 289 unemployment: as a target of Obama’s 2009 stimulus 28, 31–32, 36–38, 39–40n7, 148; during Greece’s economic crisis 104, 106, 107; during Spain’s economic crisis 95, 97; as an issue during UK financial crises 156–57, 248, 250, 267, 269, 275n89 USA Today 32, 33, 35 US economic crisis: AJR study of media performance during the decade preceding the 5–6; American Reinvestment Act (2009) 28, 30, 32, 39; approaches used to report on the 30–31; CJR study of media performance during the decade preceding the 6–7; the coverage of arguments for austerity 38–39, 39–40n7; the coverage of protectionism 28, 30, 31, 36; the coverage of tax cuts 28, 30, 31, 34, 36–38; the coverage of the implementation of the 32, 36–37; the coverage of the job market 28, 31, 32, 36–38, 39–40n7; the coverage of the Keynesian approach 31, 32, 33; economic analysis of the 31, 32, 37–38; investment banks 9, 13, 14; misguided reporting of by the business press 6–8, 14; the Obama administration 28, 34, 36, 37, 147–48; the political arguments regarding the 28, 38; the political biases of specific news organizations 30–36; the pre-crisis Bush administration 14, 23, 31, 151n4; reactions to by the Democratic Party 28, 30, 34, 38; reactions to by the Republican Party 28, 30, 36; reporting patterns preceding the 6, 10, 12, 14; the ultimate powerlessness of government 146–47; warnings of by investigative journalists 8–13, 24 US Treasury 45, 47, 274n36 Viggers, Sir Peter 279, 286, 287 Index 309 Wachovia Bank 10 Wall Street corruption: government collusion with 9; manipulation of regulators 9, 23; mortgage boiler room practices 5, 8, 10–11, 12–13 Wall Street Crash (1929), misguided press predictions preceding the xxiii Wall Street Journal: the changes to by Murdoch 59, 65–66, 67–68, 68n8; coverage of America’s financial crisis 25; coverage of Fannie Mae and Freddie Mac 18; the influence of on business news 7, 21, 22, 128, 133; the opposition of to Obama’s stimulus package 31–32, 33, 34, 35 warnings: against Obama’s 2009 stimulus 30–31, 33; as a product of financial expertise 122–23; asset value inflations as 169–72, 182–84, 184n4; the debate over the adequacy of media 4–7, 13–14, 16–17, 24; during the Celtic Tiger boom 76; general alerts around the globe 90; the legal obligations of journalists to give 126–29; studies of those preceding the 2008 crisis 5–8, 12–14; the success of in Spain 94–98; versus predictions 13, 14, 16 Washington Mutual Washington Post: coverage of the economic crisis 17, 18, 19, 23, 25; the influence of on business news 7, 15, 21, 90 Wass, Sir Douglas 262, 263, 266 websites: bloggers 127–28, 129, 135, 137, 281; blogs 25, 47, 60, 65, 280, 288; business 65, 81; Columbia Journalism Review 7, 29n4; compared to print reporting 129–30, 133–35, 136; of the international media 108; journalist 59; launchings of business newspapers (1879–1915) 222; news media 43, 60, 65, 108, 154, 159–60; the Northern Rock 282, 283; see also Internet Welles, Chris 20 West, Michael 64 Westminster Gazette 211, 228, 229 White, William xxiv Whittome, Alan 269, 275n94 Williams, Francis 246, 249, 250–51 Wilson, A.J 230, 231 Wilson, Prime Minister Harold 254, 256 wire services: coverage of global financial news by 25, 172, 176–77, 178, 192; the coverage of the 2009 stimulus by 30, 31, 35 Withers, Hartley 231, 232, 238, 241 Wolff-Continental 188, 192–94 Wolf, Martin xxvi, 46, 54 Working Lunch (BBC) 43 World 210, 211, 229 WorldCom 18, 21, 24 Young, Edward Hilton 228, 231, 232, 241, 246 Zapatero, Prime Minister José Luis Rodríguez 95, 114 .. .THE MEDIA AND FINANCIAL CRISES The Media and Financial Crises provides unique insights into the debate on the role of the media in the global financial crisis Coverage... better job next time The book has five distinct parts:      The Banking Crisis and the Media The Euro-Crisis and the Media Challenges for the Media The Lessons of History Media Messengers Under... about the media s role in the crisis, and situate the coverage in historical and comparative perspectives The book is divided into five parts Parts I and II examine the role of the media in an