Nothing was more annoying during the bubble than watching Rolodex-of-Realtors Catherine Reagor and the Arizona Republic cheerleading the bubble and allowing realtors to serve as unbiased "experts" worthy of quotes, when sane people knew it was just a big corrupt ponzi scheme doomed to collapse.
Their amateur-hour reporting actually inspired me to start HP, and I'm sure most of the other bubble bloggers have similar stories. The media failed America (again) and it was up to individuals to do the job that the local media wouldn't or couldn't do.
So, why did this segment of the media fail? Why do they still quote government and NAR housing numbers as gospel? Why isn't Lawrence Yun mocked? Why do they rip-and-read versus analyze, dig and report? Why do discredited realtors get to write unedited cheerleading pieces masquerading as articles? And why don't local papers capture true local market conditions?
Simple. Because of REIC ads.
They didn't want to bite the hand that feeds them. And they chose their REIC masters over their readers. And now America pays the price.
Nice thing though is that these ads are going away (along with the realtors and builders who placed them). What rises from the ashes, time will tell. America needs a strong and UNBIASED media. And the downfall of the REIC may be the best thing that ever happened. Take away the crack, and hopefully the junkie recovers.
Subprime crisis hits papers' property adverts
The subprime mortgage crisis is tearing through the newspaper industry as US papers suffer sharp falls in real estate advertising.
The extent of the damage was visible this month when Tribune Company, which owns the Los Angeles Times and Chicago Tribune, reported a 40 per cent decline in November for its real estate classified advertising revenues.
Gannett, the largest chain, said recently it was on track for a 27 per cent drop in real estate advertising for the fourth quarter after reporting a 23 per cent slide in the third quarter.
Edward Atorino, an analyst at Benchmark Capital, said: "It's spiralling downward at an accelerating pace." He predicted that the problem would "get worse before it gets better".