The newspaper bailout countdown clock
I think it’s time to start the newspaper bailout countdown clock. A few weeks ago, I joked that it wouldn’t be long until the junky New York Times started crawling to the government for a handout. Now, with the Fed waving its magic wand and redefining American Express as a “bank holding company,” with insurers and Hollywood getting a cut of the Crap Sandwich 2.0, with indebted state governments looking for help, and with China lobbying and with automakers poised to get a bigger piece of the action, my joke isn’t so funny anymore.
Will it be the NYTimes or Tribune that makes the first plea? Here’s the latest on Tribune’s cash troubles:
Tribune CEO Sam Zell’s entry in the understatement of the week contest: “We are operating in an exceptionally difficult financial and economic environment.” True, but Tribune’s problems stretch back further and go deeper than backlash from the current economy. The company reported a Q3 loss of $124 million Monday, compared with earnings of $84 million for the same period last year. Compared with Q307, revenues declined 10 percent, to $1 billion, while operating cash flow dropped 67 percent year over year. But Zell isn’t understating anything when he talks of how aggressively Tribune is moving, as evidenced by the $45 million charge for severance and termination benefits. Nearly all of that went to reducing publishing headcount; overall, the company cut the equivalent of 1,300 full-time positions.
Every last corporate special interest and imperiled business has some water-carrier in Congress arguing that they’re “essential to the economy” and “too big to fail.”
I’m tellin’ ya: It won’t be long before the dying newspaper industry starts clamoring for our money because we can’t live without them.
Tick, tick, tick…
***
More:
Total spent on bailout-palooza to date: $3 trillion and counting…
Pelosi supports the automakers’ bailout.
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Well, if they weren’t such a tool for the left, perhaps their subscribers/readers wouldn’t have left in droves.
Let’s just nationalize everything!
After all Maxine Waters told us that was her FINAL SOLUTION to any problem.
“I’m tellin’ ya: It won’t be long before the dying newspaper industry starts clamoring for our money because we can’t live without them.”
A: No! Hell, no!
Never thought of that I bet, fair coverage and not so much leftists suckup? Too late for me, I will never buy newspaper again. Think of the trees saved.
Also considering dropping out of cable TV who needs it, just to listen to leftist drivel and tinkling up their legs.
I fully expect it! It will be along the rationale of PBS or the Fairness Doctrine. Gotta have those diverse voices!
We’re doomed.
they have nationalized the banks.. papers will be next, once they have the energy industry we are doomed. look for a generated crisis with prices for oil and instead of drilling they will take over the industry. he is moving fast to RULE over us..
How come all the libs that voted for bho aren’t buying this newspaper? They, and almost every other paper were in the tank for bho. Let those who voted for bho buy the paper and wallla, out of debt.
L
At this rate we will be bankrupt BEFORE Obama swears in.
The news media is a victim of their own choosing. The bias is obvious and it makes everyone, Republican, Democrat or Independent, less trustworthy of what they read. This effects of bias are most evident in the bottomline of the newspaper industry because the internet media can be a substitute for the print media, but the effects also obvious with the MSM TV news which so heavily favored obama as to be nothing more than a propaganda arm of the socialist worker’s party.
And, frankly, Maxine Water has a point. The nations is being water tortured by bailout after bailout with no end in sight. The constant drip, drip, drip of massive amounts of dollars makes it almost impossible for the average American to plan for the future. Stupidly, the politicians somehow believe that one-time bailouts or one-time stimulus packages will change the dynamics of this mess. Frankly, what is needed is a massive tax cut for people and businesses, and tax credits for starting new businesses. And, let’s not forget, a real cutback on government size and regulation.
It’s funny how we supposedly have capitalism that is no longer based on capital - it’s based on debt. Our government has the power to simply print money to get its “capital” for spending. If they’re feeling somewhat responsible that day they will ask China or Japan to buy treasuries so the books at least balance.
I can, and I have – for quite some time now, thank you very much!! What a joke they have become.
We’ve been bankrupt for a long time.
We shouldn’t be too hasty in condemning the bailout of newspapers. After all, we’re probably going to need them for clothing after the Big “O” gets done with us.
As the bard of the bumper writes: “Keep working millions on welfare[, corporate and private,] are depending on you”.
As the bard of the bumper writes: “Keep working. Millions on welfare[, corporate and private,] are depending on you”.
No kidding! Did you hear the latest in CA? They are proposing raising the income tax by 5%!!!!!
We’re already paying 9.6%!
So, that would make it nearly 15% in income tax, then add to that Obama’s increase in income taxes, that will add up to 55% rate.
Wonderful. I’m moving to Nevada — a no income tax state (at least for now).
It’s funny how we supposedly have capitalism that is no longer based on capital - it’s based on debt.
———————————–
I must agree with this astute observation. What I wonder is whether every country in the world will just go ahead and print money - and money, therefore, will have little real meaning in the future.
I do get some satisfaction opening my (free) NYT headlines email each day and reading the NYT.com on my BB for free. I’m glad to contribute to their demise. I’d rather cut off my fingers than click on an ad.
The papers may ask for a bailout, but the light of day I think would kill this one. They just do not provide an unique essential service. Let ‘em fail.
BSR
FDR depression-era “solutions”. You know, the ones that actually exacerbated the depression? You’ve got to be freaking kidding me. Is there any intelligence out there in government land? How do these lunatics get into and stay in power? I’ll tell you… look at the fools who voted Murtha back in and you will know.
The “citizens” of this country do not deserve to be in the presence of the veterans we are honoring this day. By electing the Murthas, Pelosis and Obamas of this world we effectively spit on their graves and the memories of their sacrifices.
So, I guess subscriptions in deep blue NYC aren’t enough to pay the NYT’s bills?
Interesting.
We bail out the insurance companies, then the banks, then the automakers, and now I’m being asked to bail out California because they don’t know how to manage money, cut spending, and deport illegals who suck the taxpayers dry here.
When do I actually get to start enjoying my own money? If there’s anything left of it in the end?
The only difference I can see is that people actually use credit and buy cars. Nobody reads newspapers, so the lie about recouping the “investment” can’t even be told here.
Oh well… there’s only so much that can be pilfered from the American taxpayer before the well runs dry. Looks like it will just happen sooner rather than later.
When will enough be enough?
What would happen if millions of us refused to pay? Would they put us all in jail?
We can sit here and complain all we like, but when will we ACT?
Let’s see, we just finished off a 2 yr presidential race. This has to be the biggest newspaper sales event for the next 3 years. Somehow, these ‘news’ guys managed to lose money at a time when people want more news than ever.
I find it just ‘fascinating’ that they cannot see how much they have lost when they lost credibility.
I believe stock in Smith & Wesson is looking good for investment.
As usual, the libs (including Demagograts & Repugnantcans)call for more taxes - NEVER reduced spending. We’re being ratcheted into the poorhouse, folks. When are we going to wake up? When are we going to put an end to this madness? Are just going to sit here and watch our nation sold off right in front of us? Are we going to allow these thieving white-collar criminals laugh all the way to their golden parachute bank accounts? We need to do something before it’s too late!
Not only will your money be taxed away to try and maintain a grip on the massive liabilities that this country has been incurring, but each dollar is going to be massively devalued by the buck-busting new policies of the Federal Reserve. My friend, we’re going to get Weimarized, and it’s going to happen soon.
Well golly. We had a flood here in August and my business has been down quite a bit. I’ve been preoccupied with making our home a decent place to live again. If they’re turning the treasury into a candy store, where do I get in line?
But seriously, I don’t want the government’s help with my business, primarily because I don’t want to risk them getting their fingers in the way I do my work. And that’s what’s going to happen once The One sets up programs to help folks like me. Screw that!
I must note here that my family is very grateful for all the great things FEMA did for all of us so quickly, but especially for my neighbors who thought they were well insured but found out too late that they weren’t.
I had to laugh at the right-on comment regarding the irony of living in a capitalist nation based on debt. Can we officially coin the term “debtitalism” here?
Why does Sam Zell give a damn? He bought the Tribune with other people’s money, so what if he loses it. Maybe newspapers should actually look at their actual demographic and realize half the country can’t stand their “presentation” of the “facts”, and isn’t buying their song and dance. The Atlanta Journal, once it was turned over to one-trick-pony “everything’s racist” editor Cynthia whateverhernameis, has lost half it’s base and quit selling papers south of Atlanta because no one wants to read their trash anymore. They get NO sympathy from me at all. Nor will I put 50 cents in a paper box in the future.
It’s actually called Keynesian Economics - I would call it totalitarianism though. Every single one of our political elite believe wholeheartedly in this form of economic policy.
The “everything’s racist” editor of the Journal is Cynthia Tucker. She’s also the main reason no one reads the Journal any more in or out of Atlanta.
All your dollars are belonging to us.
St. Obama
Strictly from an investment standpoint, NYT stock is a bargain and it will go up with the influx of your money. So, there is no reason to stay away from it (you are putting money into it anyhow.
Just my take.
Rogue Cheddar said:
I believe stock in Smith & Wesson is looking good for investment
I’m not sure if that’s such a good idea. If Obama and Pelosi’s minons can’t make guns outright illegal then he’ll just try to “bankrupt” gun companies like he said he would do with the coal industry
Good God.. I can see it now.. the major media outlets being categorized as a “Utility” and must be bailed out.
What is this newspaper of which you speak? The same stuff I use to start campfires? The same stuff I use to line my bird cages?
At least the coverup of Obama’s deeds makes sense.
Money makes the World Go Around…..They were promised a reward for getting him elected, and they will get it. Our money. Wow the dems are really really smart. and we have steele and newt. You have got to be kidding.
omsb,
Was that a reference to this?
(which in turn was referenced by this).
Liberal journalists are not as useless as one might think. They are outstanding as bad examples, like your mother telling you, “Do your homework or you will end up a journalist!”
BSR said ” The papers may ask for a bailout, but the light of day I think would kill this one. They just do not provide an unique essential service. Let ‘em fail.”
They do have 1 decent service,when you are in a pinch and have nothing else handy,you might have to go for it.
I get this horrible sense that this is how state-run media gets started. Regular media can no longer compete, get absorbed by the state, then the state destroys all the competition.
Doesn’t it all seem… just a little too perfect? Just as banking, insurance and healthcare will soon be state-run, automotive and news organizations are following the same steps.
I used to line the bird cage with the NYT but the bird’s IQ dropped 25 points so, I stopped.
For reasons I’ll never understand, bailouts are becoming the way to go at all levels of government. Here in PA, the voters overwhelmingly approved a referendum to allow the state to borrow $400,000,000 to bailout struggling municipal sewage systems. The money will be parceled out by a Harrisburg bureaucracy. WHAT FREAKIN’ NEXT?!
BAILOUTPALOOZA!!!
*tosses confetti*
I have been saying this for weeks now and you can bank on a newspaper bailout happening.
The rationale offered will be the newspapers offer news to those who have no other means of seeing news.
It does not matter that radio and internet, even TV suffice, the truth won’t matter.
The newspapers will be bailed out to buy another 4 years of loyalty to The One.
…and they will pay him back handsomely!
Yes, I understand that when she campaigns for prez in 2012 in the democratic primaries, she’ll be touting how she was for nationalizing everything before anyone else even thought of it.
Just what is it going to take before people finally get enough and march on Washington? What will be your last straw?
The Amercian Express thing is troubling. If the Gov’t starts broadening its scope of companies to bail out, there will be hell to pay.
Want to do the economy some good? Shut the doors on the Tribune and the New York Times and have those people go out and get jobs doing something productive for once.
Fiat money is always a charade.
Yeah, I think the NY Times will be first in line. They believe in welfare, their writers want to be on welfare as long as the salary is the same.
Everything to the far left will be “too big” to fail. Crappy schools, too big to fail. TV networks, unions, buggywhips, everything….no failure allowed. We are the USSR of the 21st Century.
Boy this is one of those, “if a tree falls” kind of things.
If they get bailed out and we never read their trashy papers, how will we ever know they got bailed out?
Most of those in power in government want the government to be mostly in power. So why not control as much wealth as possible via govt giveaways to big and important though marginal companies.
Steny Hoyer said we must save the car companies as they’re responsible for 1 in 10 jobs, i.e., cars, car parts, and so on. Dishonest. The car parts industry will do just fine without the car manufacturers. Can’t the left ever make an argument without lying?
Give them a break. They may know know how.
Oh woe! What ever will my puppy dachshunds do without a NY Times to widdle on?
Please Michelle, change your mind - if only for the puppies…
GRRRRRRRRRRRRRRR blew that one.
Fixed it.
Who will control the content and the editorial pages? A little conflict of interest. HMMMMMMM!!!
If the government bailed out (or I’ll be nice and use the liberal euphemism…rescued) the NYT, when do you think, pray tell, they would ever divest themselves of these assets? Right…NEVER.
So if the government, which is supposed to be of the people, by the people and for the people suddenly owns its own newspaper, I suggest we ought to have the right to rename it.
My suggestion: Pravda.
no, wait…that’s already been taken? Dangit!
LOL…and we didn’t call each other or anything! Good point, FM!
This shows the problem with Peggy the Moocher and her ilk: they think small.
That’s why he’s pushing for Bush to sign the legislation (if the Dems pass any) before he’s inaugurated, so Bush will get blamed for everything.
When Chrysler was bailed out by Washington in the 1970’s, Washington Post cartoonist Herblock drew a cartoon of a dry-cleaner requesting a bailout for his shop lest economic fear and lack of confidence spread among dry cleaners and out to the general public.
And Ms. Malkin, my favorite Lincoln quote, which was apparently censored in an earlier comment on your American Express posting, is even more applicable to newspapers.
chsw
My thoughts for sometime now, in regards to your last line, “but when will we react?”
Hopefully before it’s too late, it’s getting there folks…little closer everyday.
When he petitions Congress to disable our first strike nuclear capabilities.
He did say he wants a nuclear free world and might actually believe the Russians will abide by any agreement.
Anything short of that and we will be good little Americans and sit on our hands.
The beauty of this bailout is the politicians can pretend to rally around the Constitution and say they are protecting “freedom of the press.”
Mass bailout is the most brazen lurch towards socialism since the New Deal and we can thank a Republican president for preemptively handing so much power to an incoming socialist government.
bengals9
Brilliant minds run together.
The NY Times and the Democrats are like two people currently living together. They just want have the ceremony that legalizes the marriage.
Where are all the envirowackos? You’d think they would like fewer newspapers, cars, reduced manufacturing, fewer homes built and less consumerism, since it is soooo good for the environment.
Iacoca offered to not get paid until the loan was repaid. I doubt you will hear that from any of them today.
Iacocca offered to not get paid until the loan was repaid. I doubt you will hear that from any of them today.
oops…sorry for the double post
It’s better for the environment if the newspapers go out of business. Using that logic, we can pit left wing socialist loon against left wing socialist loon.
You know, I didn’t work for 18 months during the dot com bubble burst. Where was my industry’s bailout?
Isn’t it amazing how just a few years later, we’re completely recovered, minus all of the bogus “paper companies” responsible for the bubble?
All of these businesses should go under in order to clean house and get bought up by someone more responsible. All of them.
Anyone interested in my collection of dot com T-shirts?
Hey, instead of just bailing newspapers out, why doesn’t the government (forcibly) take partial ownership of them? What could possibly go wrong with that?
I bet the libs would finally be against government intervention.
Memo to United States Government: You are losing all credibility.
Signed: Southpaw the taxpayer
Memo to President-elect Barack Obama
For those of us that have struggled over the years to pay our bills on time and not have had the pleasure of filing for a bankruptsy, have saved and strived to put money away for that rainy day, have never collected one red dime of welfare, nor have we asked for much in return after paying the tax man, I can only say - what a bunch of idiots we all were!
Thank you and your fellow elected critters, and President Bush for bringing this to our attention. We would also like to thank the number of complete mindless morons you were able to convince to vote for you. The joke will ultimately be on them because there is simply no way you can do any of what you promised in your campaign. Those same young people will be the ones that find it impossible to get a job, and if they do, they’ll be unable to live with any dignity. The entire country will be paying for the complete socialistic takeover of private assets, corporate assets, and small businesses.
Perfect. A national civil defense force which is mandatory for indoctrination. A corrupt quasi-political organization…Acorn. Liberal indoctrinating schools and now we can nationalize our newpapers so they are government owned. Nothing to see here.
Zell and the Tribune(does he not own the LAT too?) endorsed Obama. Tell him to cry on Zero’s shoulder.
Fishwrap.
We are mortgaging our children’s future. Pun intended. When does the madness stop or is it just beginning?
I believe that we should take a note from the greens. Do you know how carbon negative newspapers are? They cut down trees, lots of trees, they burn tons of fossil fuels to get the paper and then to distribute it, and finally they use so much electricity to fabricate paper and then to print it. It should also be mentioned that they are unnecessarily redundant, what with cable and the internet. We should ask that all newspapers be banned from printing and must now all be published online.
Bailing out a failing newspaper would be a huge First Amendment violation. Feckless as they are, my congress critters would hear from me daily.
put your energy into getting a recall petition done, it would probably have more effect….
I put the
St Louis Post Dispatch under my cat’s
litter box; I guess that’s redundant.
Sometimes she misses the box alltogether and poops right on the paper.
I always put it Obama side up.
algore’s company laid people off.
How can that be?
Why algore could have paid those salaries himself by simply halfing his burrito expenditures
I guess he has his priorities
And people are not one of them
On the brighter side instead of calling them layoffs, he could market it reducing his companies carbon butt-print
Well, I think we should all own a piece of the NYT or WaPo. It doesn’t matter if it is stock or the actual newspaper. That way when the recession gets really bad we won’t have money to buy TP so a piece of the NYT will come in handy! Of course, it will all be George W. Bush’s fault….
Hey. Circuit City was in line first!
By the time they get to us here with bailouts, the only thing left will be the “bill”. It’s becoming a money “feeding frenzy” out there. Once nationalization of the economy is done, there won’t be a thing left for the taxpayer, but “payment demands”, and higher prices for the goods we buy. I wonder how much food the FDA bought at higher than market value, this year, from farmers and destroyed (You don’t hear about that in the news, of course). We’re already paying 500% more in sugar than the rest of the world. With price freezes again, and minumum prices, it will be a mess for the consumer. Of course, it will be all Bush’s fault. It’s getting old, democrats.
Because most of them can’t read…..
Enough of this bailout business. Every company is crying for Federal money.
Its like the government is a kindergarden school teacher handing out lolly pops… everybodys going to want one.
I believe Companies need to take responsibilites for themselves. Reguardless if your not responsible for this credit disaster like Fanny and Freddie are… You are in charge of the company… dont come crying to us now that you lost business. Suck it up and bear through it. If you dont make it … tough. Nobody said Life is easy or fair.