How the financial media will spur the next financial crisis

Lynn Stuart Parramore writes for Salon.com that the business media is doing nothing to prevent the next financial crisis.

Parramore argues, “Yet in the financial media bubble, being critical of Wall Street means that you are a wild-eyed radical from the far left, a view which is particularly surprising given the rush of even conservative Republicans like Sen. David Vitter to brandish their bank-taming credentials.

“The official inquiries into JPMorgan’s activities may indicate a shift toward a more aggressive stance by the U.S. government in trying to prevent American banks from ripping off the public and their investors, and that’s a good thing. Of that $11 billion JPMorgan may have to pay for its mortgage shenanigans, $4 billion could go to consumer relief for struggling homeowners. That’s something, though clearly a fine that only adds up to two quarters of JPMorgan’s profits isn’t nearly enough.

“But financial media personalities like Maria Bartiromo are standing in the way of this process by continuing to act as the marketing arm of Wall Street and apologists for people like Dimon. In her brain, Eliot Spitzer is a demon for going after AIG, public employees are responsible for state budget problems, and banks are being unfairly assaulted. And unicorns are producing her show.

“If the Bartiromos have their way, we may never adequately prosecute fraud, hold executives accountable, or get giant banks like JPMorgan under control so they don’t go on to wreck the entire economy and cause even more damage than they did the last go-round. Wall Street cheerleading from the business press could help bring on yet another financial crisis when one of these banks implodes.”

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