Krugman: Bubblewashing

[eridani]

http://krugman.blogs.nytimes.com/2015/09/02/bubblewashing/?_r=2

Almost 15 years have passed since I warned about media “balance” that involved systematically abdicating the journalistic duty of informing readers about simple matters of fact. As I said way back when,

If a presidential candidate were to declare that the earth is flat, you would be sure to see a news analysis under the headline ”Shape of the Planet: Both Sides Have a Point.” After all, the earth isn’t perfectly spherical.

So have things improved? In some ways, they may have gotten even worse. These days, media balance often seems to involve retroactively rewriting history to avoid telling readers that one side of a policy debate got things completely wrong.
In particular, when you see reports on monetary disputes, you often see characterizations of what the Fed’s right-wing critics have been saying that go something like this, in the WaPo:

Among the criticisms: The Fed was keeping interest rates artificially low and fueling speculative bubbles. The helicopter-drop of money known as quantitative easing did little more than inflate stock markets and fund Washington’s deficit spending. The bailout of big banks left them bigger than ever. Um, no. The people who gathered at the anti-Jackson-Hole event weren’t warning about bubbles and too-big-to-fail. They warned, in apocalyptic terms, that runaway inflation was just around the corner. Here’s Ron Paul; here’s Peter Schiff.

Um, no. The people who gathered at the anti-Jackson-Hole event weren’t warning about bubbles and too-big-to-fail. They warned, in apocalyptic terms, that runaway inflation was just around the corner. Here’s Ron Paul; here’s Peter Schiff.