economic collapse<\/a> of two thousand and seven, two thousand and eight is the Fannie Mae Freddie Mac scandal.<\/p>\nDavid Scranton: <\/strong>Sure.<\/p>\nDan Gainor: <\/strong>For years Wall Street Journal led the charge saying that this was an organization and an operation that was destined for chaos and the American public would be on the hook for billions and billions of dollars. New York Times picked up on it much to their credit, Washington Post picked up much to their credit and there was almost complete and utter silence on ABC, CBS, NBC, CNN to the point where Charlie Gasparino who you know… I remember coming out at the time and he was railing on the networks and saying that the reason why they’re not talking about this is bias. But here’s the reason why? Because the journalists were convinced that Fannie Mae, Freddie Mac helped ordinary you know particularly poor and underprivileged people get mortgages. So they would go to talk to their buddies on the Hill who invariably were pro Freddie Mae and Freddie Mac and they’re telling them oh, there’s nothing wrong. So it ends up being this enormous disaster costing taxpayers you know hundreds of billions of dollars. And only when everything really hit the fan did the networks even at all attempt to cover it.<\/p>\nDavid Scranton: <\/strong>Yeah and anyone who owned Fannie Mae or Freddie Mac stock back then actually knows what’s happened to that is there’s been a huge loss of wealth for shareholders. So you’re absolutely correct.<\/p>\nDan Gainor: <\/strong>yeah and I mean that’s you know where is the responsibility for that if you’re an investor and you rely on the regular media to tell you what’s going on then you’re just a (unclear\u00a028:18) fool.<\/p>\nDavid Scranton: <\/strong>I love it a dazzling fool. Alright well, so for viewers obviously you know you don’t want Dan Gainor to refer to you as a dazzling fool so pay attention to different sources and as I would say always ask the question why. You know why is it something’s being touted for us? Marti Johnson’s going to be here in just a minute and actually talking about that as part of her report. So Dan, I want to take this moment to thank you very much for being part of our show today as usual.<\/p>\nDan Gainor: <\/strong>Well thank you very much, I enjoyed it.<\/p>\nDavid Scranton:<\/strong> Okay and we’ll right back in just a minute with Marti, stay tuned.<\/p>\nMarti Johnson: <\/strong>Thanks David, as a media professional myself for many years I’ve always prided myself on my own journalistic ethics and professionalism and so too have the many colleagues I’ve had the privilege of working with. But after hearing today’s guest it will probably come as no surprise that trust in the media as a whole is at an all-time low in this country. According to a two thousand and fourteen Gallup poll only forty percent of Americans surveyed said they trust the media’s ability to report the news and information fully, accurately and fairly. The interesting word in that survey question is ability, because in truth biased reporting and media spin usually aren’t caused by one lone wolf reporter or an editor with a personal agenda. More often, they’re the result of fundamental flaws in the way mass media works and operates. And that’s especially true when it comes to the financial media, today we’re going to take a closer look at those flaws which support the point financial author Dan Solon was making when he wrote to be a successful and responsible investor you need to ignore most of what is in the financial media. Well everyone is aware that the mass media has changed dramatically in the past ten to fifteen years, prior to that the majority of us relied on daily newspapers, T.V. and radio as our primary sources of news and information. the internet changed all of that and today we’re bombarded with headlines, updates, breaking news alerts almost constantly from our laptops, desktops and yes, even our cell phones not to mention the T.V.’s and the radios. Unfortunately, the dramatic increase in the presence and variety of mass media in our lives has only served to enhance the flaws that threaten journalistic objectivity, not diminish them. As a result we’ve seen an equally dramatic increase in the pervasiveness of hype and spin and a decrease in the presence of balanced and truly objective reporting. But what exactly are the flaws driving the situation and why are they even more prevalent in the financial media? To a large extent they stem from the simple fact that most of the outlets in the business of reporting news and providing information are in fact businesses. As such, they’re competing against each other businesses providing the same services competing for readers, viewers, subscribers and of course, advertisers. With so many news sources in the competitive mix and the internet and cable T.V. accessible to viewers and readers around the clock. All of these businesses are compelled to deliver fresh and updated content twenty-four seven and to try and distinguish themselves from competitors. As a result the lines between news advertising and infotainment have become increasingly blurred and modern journalists are under more pressure than ever to put pleasing their bosses and growing their businesses and their brands ahead of serving the public. The result, very often is reporting the lacks objectivity and a spun to the liking of an individual and interest group or an advertiser. But this flaw runs even deeper when it comes to financial media, it begins with the fact that the heads of major financial firms on Wall Street are financially obligated to their shareholders first and to their customers and clients second. They have a legal obligation to maximize shareholder value in part by keeping customers invested in the markets as much as possible. People are more likely to invest obviously and to stay invested if they’re optimistic about the markets and believe they’re moving upward. As a result Wall Street C.E.O.’s and the people who work for them have an inherent need to sell positivity. And to always speak optimistically about the markets regardless of how often economic realities are moving or the markets might be trending. Why, however does this supposedly objective financial media so often fall in the habit of serving the same pro market spin to the public or as Dan Solon bluntly put it, serving as a shill for the securities industry. One reason, is that most financial media outlets are corporate owned and therefore obligated to some extent to help that Wall Street C.E.O. please shareholders by selling optimism. That\u2019s why most of the high profile market analysts you see on the internet and cable T.V. always seem to be touting stocks. Pushing them regardless of market conditions while ignoring the very existence of other investment operations and options. Their opinions aren’t based on independent objective research but on in-house sources and usually there’s no firewall between the company’s research department and its ownership and its advertisers. Most of these analysts know that if they contradict the company line they run the risk of losing their high profile, high salaried jobs. Of course, the overcrowded and highly competitive nature of today’s twenty-four seven media that I just spoke about is also part of the problem. In the midst of this fast paced competition, financial news sources today like news providers in general increasingly fall in the habit of simply pulling stories off the wire to use an old inside ball game journalistic term. They repackage news content already circulating rather than devote resources to developing their own that’s why what you hear from one financial source is so often the same thing you hear from another financial source. They haven’t done separate research and reach the same conclusions by coincidence, they’ve simply gotten all of their information from the same place. And there’s still another issue specific to the financial media industry that makes objective reporting and finding that information difficult. It stems from the fact that a great many articles written for financial publications or broadcasts aren’t written by financial experts or qualified market analysts. Rather they’re contributed by professional writers and even when the writer is highly qualified and very experienced he or she may not have a single area of expertise. Their resume may include everything from athlete interviews for Sports Illustrated to travel articles for Cond Nast this kind of broad based background is common in journalism. You can always trust a good writer to do research when putting together any story but the sources he or she uses to gather their information vary. And unfortunately, it’s quite common for writers contributing to financial publications to use the most convenient sources which very often happen to be among the publications advertisers. The fact is that successful magazines, programs and websites get the majority of their revenue not from readers, viewers and subscribers but from advertisers. And who do you suppose are financial media’s biggest advertisers overall? At the top of the list not surprisingly brokerage firms and mutual funds, obviously these are going be more… these sources are going to be more than happy to provide the reporter with information for his piece. But will it be objective information? Probably not, more likely it will be information that again conforms to his company’s inherent need to sell optimism and to please shareholders by putting a positive spin on the stock market and market based products and strategies. That\u2019s why it’s so important for our members of the Income Generation and all investors today to understand that so much of what bombards them on the internet is not really objective news and information. Particularly when it comes from financial news, rather the majority of it is spin biased rhetoric and disguised advertising. the result of fundamental flaws and the very framework of today’s increasingly convoluted and highly competitive mass media.<\/p>\nDavid Scranton: <\/strong>When it comes to your money you always have to ask the question why? As in why is this particular advisor or this particular reporter recommending the approach that they are to me? This is especially true in the financial services industry as we’ve seen today. Some of the reasons to be weary of what you see and hear are that so many of the so-called experts on T.V. and the magazines and even professional advisors invited to your kitchen table to help. Have a vested interest in promoting whatever sells their products or services, this lesson extends to all areas of your life. So when you’re hiring a professional be it a landscaper or a contractor or even a lawyer or doctor remember to ask yourself why? Why are they recommending what they are and is it really what’s best for me? One of the examples I like to use when speaking to my clients is as follows. Let’s say that I told you I were having some back pain and I went to four different medical professionals to get help. Now, I ask how many different solutions do you think I might get from four different medical professionals? Well, what if I told you that they came back with four completely different recommended treatments. At first, you might be alarmed but then if I told you that one was an orthopedic surgeon, one was a chiropractor, another was a physical therapist and perhaps the fourth was an acupuncturist. Now it would actually make sense, this is because in the medical field and as well as every other field. Everyone has an expertise and they’re likely to want to help your issue with whatever they can provide and subsequently get paid for. You know there’s a saying when you’re a hammer every problem looks like a nail, so in the medical example knowing the why the different experts are recommending what they are is very, very important. The same is true for the financial industry, and I’ll include investment analyst appearing on T.V. in this group also, ask yourself why they’re recommending what they are indeed recommending and maybe because that’s what they’re getting paid for recommending. Just like you’ll probably never see a time when a stock broker says stocks are bad investments you’ll probably never hear a real estate broker say real estate is a bad investment. Now, when it comes to your health, most people of the Income Generation understand the differences between these four various medical professionals and what they do. Unfortunately, differences are not as well understood in the field of financial services, people tend to paint the financial industry and financial advisors with one broad brush. They look at all advisors being very much the same even though they know that doctors for example are very much different. In reality, there are many different types of financial advisors just like there are different types of doctors, lawyers, construction contractors and even beauticians. You want to make sure you go to the one who is a best fit for the why for which you’re seeing them. This is important and it will soon be designating an entire show to determine the type of advisor that’s right for you and as I said earlier preferably one that’s required to act as a fiduciary. So you could be even more comfortable that they’re acting on your behalf. You know in my personal practice Sound Income Strategies, I talk to prospective clients all the time who are currently working with stock market based advisors. Often these advisors work for one of the big brokerage firms but at times they’re independent. Many times these prospective clients are surprised to find that they have a majority of their money in the stock market, I’m generally not surprised if you think about it this is why stock brokers are called stock brokers. They typically search to find solutions with the limited answers found within the stock market. Like I said earlier, if you’re a hammer every problem looks like a nail, today we got sit down with Dan Gainor and learn about all the good work being done at the Media Research Center. I for one am grateful the MRC exists and his role as media watchdog, I’m personally happy to have shared this resource and to help the Income Generation understand that this information is there for you. I want to also thank Marti Johnson for her reporting, Marti’s report was very important for all of us to understand the role that advertisers play in shaping what makes it on to business news. Now I cannot wait for next Sunday when we have conservative icon and bestselling author Steve Forbes on to discuss how three things are going to potentially save our country. Repealing Obamacare, redesigning the tax code and reforming the Federal Reserve he says it’ll bring our nation back out of its Malays and on its track to growth and prosperity.<\/p>\nSteve Forbes: <\/strong>And in terms of a stable dollar you know you once… the dollar works best, money works best when it has a fixed value. You know money is not wealth, money measures wealth the way scales measure weight or ruler measures length and money…<\/p>\nDavid Scranton: <\/strong>Forbes has written a new book on the subject called Reviving America. I’ve just finished reading it personally and I look forward to sharing this great thinker with you. if you haven’t signed up yet for a complimentary special report titled The Income Generation which allows readers to discover many answers to their invest the questions. Sign up now at The Income Generation dot com, you’ll discover a wealth of useful ideas for financial security that you may have never known existed. Well that’s it for today, I’m David Scranton you’ve been watching The Income Generation and we will see all of you next week.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":"