Fox News has fired paid contributor and market analyst Tobin Smith for receiving compensation to promote the stock of Petrosonic Energy, a violation of network policy. According to a Media Matters review, Smith's company, NBT Equities Research, also received compensation for promoting numerous other companies through his website and conservative newsletters, and used his Fox News credentials to hawk volatile stocks to conservatives.
MarketWatch's Chuck Jaffe reported that Smith issued "sponsored investment research" to tout Petrosonic's stock in a 20-page mailer, for which NBT received $50,000. The paid endorsement is against Fox's policy that "no contributor to FBN [Fox Business Network], nor his/her firm, and/or family members are allowed to accept financial consideration of any kind whatsoever to issue research, advertisements, or to otherwise promote individual stocks or securities." In a post today on his website, Smith acknowledged that he is "no longer a Fox contributor" but defended his "business of sponsored research for uncovered emerging growth companies." He also wrote: "For the record, my last contributor agreement with Fox News did NOT include any exclusion from me or my company sponsored research. But that is water under the bridge."
MarketWatch -- which, like Fox News, is owned by News Corp. -- noted that companies hire people like Smith for sponsored research "to help small stocks find a market using fluff-and-shine hyperbolic chatter" at novice investors.
Smith's company produces voluminous quantities of sponsored content. In June alone, NBT's website has featured posts by Smith with compensation disclaimers for GlyEco ("200,000 options of GlyEco"), Petrosonic ("$50,000"), Brazil Minerals ($40,000), Barfresh Food Group ("$35,000 and 75,000 restricted shares"), and Pulse Beverage ("$50,000").
Smith also regularly pitches paid stock promotions to conservatives through right-wing email newsletters. Media Matters identified at least six recent instances in which Smith's NBT Group was compensated to promote a company's stock via Townhall.com newsletters. The companies include Medient Studios in 2013 ("225,000 shares"); BOLDFACE Group in 2013 ($50,000); IceWeb in 2012 ($50,000 via a third-party firm); Plandai Biotechnology in 2012 ("$30,000 monthly and 1.4 million shares for a one year"); Replicel Life Sciences in 2012 ("a fee of over $1000.00 in cash"); and Petrosonic in 2012 and 2013 ($50,000).
Since mid-December 2012, Smith has sent compensated Petrosonic advertisements to subscribers of email lists for Townhall.com, National Review, Dick Morris Reports, and CainTV, which is run by Fox News contributor Herman Cain.
MarketWatch wrote that Smith's Petrosonic advertising pitches ignored several problems with the company's finances, including its lack of revenues, "Petrosonic's rising losses, negative cash-flow and the 'going-concern letter' from auditors who think there is 'substantial doubt' in Petrosonic's ability to survive."
Other stocks that Smith promoted to conservative newsletter subscribers paint a similarly rosy picture of volatile companies with low share prices. At least two stocks are now virtually worthless: BOLDFACE Group closed yesterday at $.06 and IceWeb closed at $.02. Two other companies, Plandai Biotechnology and Replicel, are both trading at between approximately $.50 and $.65. And Medient Studios is trading at near $1 a share.
From the June 19 edition of Fox Business' Varney & Co.:
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Fox Business host Stuart Varney baselessly suggested non-citizens will now be compelled to vote as the "end result" of the Supreme Court's decision that Arizona cannot trump federal election law and make it harder for its citizens to register to vote.
In its 7-2 decision in Arizona v. Inter Tribal Council, the Supreme Court rejected Arizona's argument that its state registration law is immune to the federal National Voter Registration Act (NVRA) of 1993, an "open and shut" decision authored by conservative Justice Antonin Scalia that was handed down only three months after oral arguments.
Varney, however, responded to the breaking news that the Court had struck down yet another unconstitutional Arizona law by claiming the decision would not only allow non-citizens to vote, they will now go forth and do so. His guest, Fox News senior legal analyst Andrew Napolitano, while admitting Arizona has a terrible record at enacting constitutional legislation, added to the misinformation by incorrectly asserting "the states decide what the standards are for voting." From the June 17 edition of Varney & Company:
Fox Business host Lou Dobbs downplayed proposed cuts to the Supplemental Nutrition Assistance Program (SNAP) that experts have estimated could end eligibility for millions of low-income households.
On the June 11 edition of Lou Dobbs Tonight, Dobbs reported on proposed changes to the farm bill, the legislation that includes authorization and funding for the SNAP program. After noting that both the House and Senate versions of the bill reduced SNAP funding by several billion dollars, Dobbs downplayed the effects of the cuts: "The Senate bill would actually cut spending on food stamps by an almost negligible $4 billion, but a bill awaiting debate in the House calls for a $20 billion cut in food stamps. Still, when you're talking about both measures providing $700 billion to food stamps alone over the next decade, neither cut, of course, is particularly sharp."
But the cuts would have significant effects on SNAP eligibility. The Center on Budget and Policy Priorities estimated that the version of the bill advanced by the House Agriculture Committee, which cuts about $20 billion from SNAP over 10 years, would cause almost 2 million low-income people to lose SNAP eligibility and limit access to school meals:
From the June 11 edition of Fox Business Network's Lou Dobbs Tonight:
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After months of struggling with how to report on good economic news, Fox News finally found a new strategy to attack consistently positive labor market gains: move the bar to an unreasonable height. While downplaying the May 2013 jobs report that was better than expected, Fox misleadingly cited employment growth during the Reagan administration and proposed a new standard for growth so unreasonably high that it has only been met three times in the past 30 years.
On the June 7 edition of Fox News' America's Newsroom, contributor Charles Payne downplayed the May 2013 jobs report -- a report that was better than expected -- saying, "You know, in the grand scheme of things, none of us should really like the number." He then compared the number to the September 1983 jobs report when the economy added 1.1 million jobs. Later, Payne guest hosted Fox Business' Varney & Co. where contributor Monica Crowley claimed, "At this point in the recovery, you should be generating 300 -- 500,000 jobs a month." She also brought up the September 1983 report.
PAYNE: You know what, all things considered, what you just laid out: it's better than expected. But you know, in the grand scheme of things, none of us should really like the number. It's extraordinarily mediocre with what we've gotten in the past. You know, the way we've come out of recessions in the past, we've had some amazing, robust times. I mean, going all the way back to Reagan where one month we actually had one million jobs created in a single month. For us to still be well under 200,000 is really disheartening. But you know, the good news is, a lot of people thought it could have been worse.
MACCALLUM: Wow, that's an - I just want to go back to what you just said. So during the Reagan recovery there was a single month period where we added a million jobs?
PAYNE: One single month. A million - by the way, we had a whole lot less people too.
But Payne and Crowley ignored the context of the 1983 report. While Payne portrayed it as just one example of the so-called "Reagan recovery," according to The Wall Street Journal's Market Watch blog, it was actually an outlier. Market Watch also pointed out that about 640,000 of the 1.1 million jobs can be attributed to striking AT&T employees returning to work. In reality, the average monthly job growth during the Reagan administration was 168,000.
Crowley's assertion that the economy "should be generating 300 -- 500,000 jobs a month," is also unreasonable. When Market Watch evaluated a similar claim by Gov. Mitt Romney, it found that job growth had only surpassed the 500,000 mark three times in the past 30 years. From Market Watch:
How rare is it for 500,000 jobs to be created in a month? The last time was in May 2010 -- when the U.S. hired thousands of workers to conduct the Census. (The next month, payrolls shrunk by 167,000.)
Lest Romneyites think that only President Barack Obama struggled to make that grade, neither President Bush, older or younger, saw job creation that strong. President Clinton had one-plus 500,000 month, when in September, 1997, 507,000 positions were created. (Aided by the return of striking UPS workers.) President Reagan enjoyed a spectacular 1.11 million-job month in September 1983, but that was the only plus-500K mark and was boosted by roughly 640,000 AT&T workers returning from a strike.
Payne and Crowley's claims represent a new line of attack, but this isn't the first time Fox News has reset the bar on how it characterizes economic news. As the economy has consistently improved, Fox News has repeatedly struggled to portray good news in a negative light. In some cases, it has even cut its economic coverage in half.
From the May 31 edition of Fox Business' Lou Dobbs Tonight:
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On May 29, CNN and MSNBC hosted all-female panels to respond to Pew research released that day that found that a record number of working women earn more than their spouses. Fox News, however, hosted no panel on the subject that day and Fox Business hosted an all-male panel that concluded that the research was a reflection of society's downfall.
Pew Research released a study on May 29 which found that mothers are the primary or sole source of income in a record 40 percent of all American households with minor children. Pew's report included both single mothers and married mothers who earned a higher income than their husbands. In response to the study, both CNN and MSNBC hosted panels of female guests to discuss the findings.
On the May 29 edition of CNN's CNN Newsroom, Brooke Baldwin hosted fitness expert Donna Richardson and career consultant Maggie Mistal to comment on the study. Richardson discussed her experience as the primary provider and caregiver in her household and Mistal offered advice to working mothers.
Likewise, on the May 29 edition of MSNBC's All In with Chris Hayes, Chris Hayes hosted Rep. Debbie Wasserman-Schultz (D-FL), Salon's Rebecca Traister and MomsRising.Org's Monifa Bandele to comment on the study.
According to searches of Media Matters' internal video archive, Fox News hosted no such panel on May 29. Fox News hosts Shepard Smith and Bret Baier and Fox Business's Lauren Simonetti briefly mentioned the study.
Lou Dobbs on the May 29 edition of his Fox Business show Lou Dobbs Tonight hosted a panel of all men -- Fox contributors Juan Williams, Erick Erickson, and Doug Schoen -- to discuss the study. On this panel, Erickson reacted to Pew's research by comparing the relationship between men and women to the relationship between male and female animals, concluding that men losing their dominant role in the family is "tearing us apart."
Fox News' The Five co-hosts Greg Gutfeld, Andrea Tantaros, Dana Perino, Eric Bolling, and Bob Beckel covered the Pew Research study on May 30, supporting Erick Erickson's position that the increase in the number of women earning more than their spouses signals a breakdown of society.
The post has been updated for clarity.
Still in search of ways to attack the federal government's investments in green technology, Fox Business baselessly claimed that the battery for the all-electric Tesla Model S "conks out after about 16 miles." In fact, the car is noted for its 200-mile battery range, which is superior to that of other electric vehicles on the market.
Positive developments about Tesla Motors' fortunes have been selectively covered by media of late, and the increasing likelihood that the company will be a long-term success has led some outlets to seek ever more inventive ways of criticizing the Department of Energy loan that it received (or pretend it never got a government boost at all). On Thursday's edition of Varney & Company, Fox Business reporter Elizabeth MacDonald aptly illustrated this phenomenon, claiming that Tesla Motors and Space X founder Elon Musk "has got to fix the Tesla [Model S] battery ... which conks out after 16 miles or about a half-hour of usage."
However, the Model S has actually been touted as a potential "game-changer" for its stated range of either 206 or 265 miles when fully charged (depending on which of the two batteries owners choose). At a consistent 55 mph clip, the larger battery can exceed a 300-mile range. Actual numbers may vary, as Tesla points out, according to "driving conditions and how you drive and maintain your vehicle," but the company's online tool shows a range of just over 150 miles for the smaller battery even at 65 mph, at freezing-point temperatures, with heat and headlights turned on and windows rolled down (i.e. less-than-favorable mileage conditions). The notoriously tough car reviewers at Consumer Reports, which earlier gave the Model S a near-perfect rating, cautioned that the car's actual range may not always align with the stated range, but reported nothing close to what MacDonald claims.
In 2011, MacDonald also appeared to pull a figure out of thin air to attack green energy investments, claiming that Evergreen Solar received "$43 million in federal money," when the bankrupt company had actually not received any federal money, according to The New York Times.
UPDATE (5/31/13): Elizabeth MacDonald acknowledged Friday on Varney & Company that she "gave incomplete information" on the battery range of the Model S, noting that one hour of charging using a mobile connector will add 31 miles to the car's range, while the fully-charged 85 kw battery has a range of 300 miles.
Fox host Lou Dobbs and several Fox contributors -- all men -- lamented news that a record number of women are now the economic breadwinners of their families. The Fox figures worried about the dissolution of American society and nature.
Pew Research released a study on May 29 which found mothers are the primary or sole breadwinner in a record 40 percent of all American households with minor children. Pew's report considered both single mothers and married mothers who earned a higher income than their husbands.
On his Fox business program, Dobbs described the Pew study as "showing that women have become the breadwinners in this country, and a lot of other concerning and troubling statistics." He went on to call the report suggestive of "society dissolv[ing] around us."
Fox contributor Juan Williams agreed, calling record female breadwinners indicative of "something going terribly wrong in American society":
What we're seeing with four out of 10 families, now the woman is the primary breadwinner. You're seeing the disintegration of marriage, you're seeing men who were hard hit by the economic recession in ways that women weren't. But you're seeing, I think, systemically, larger than the political stories that we follow every day, something going terribly wrong in American society, and it's hurting our children, and it's going to have impact for generations to come.
Erick Erickson, one of Fox's newest contributors, was troubled by female breadwinners and claimed that people who defend them are "anti-science." Erickson told viewers:
When you look at biology, look at the natural world, the roles of a male and female in society, and the other animals, the male typically is the dominant role. The female, it's not antithesis, or it's not competing, it's a complimentary role. We as people in a smart society have lost the ability to have complimentary relationships in nuclear families, and it's tearing us apart.
From the May 23 edition of Fox Business' Lou Dobbs Tonight:
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From the May 20 edition of Fox Business' Lou Dobbs Tonight:
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From the May 17 edition of Fox Business' Lou Dobbs Tonight:
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Fox News and Fox Business previously portrayed electric carmaker Tesla Motors as another "failure" of the Obama administration's green energy investments. But since it is now clear that the company is doing well, both networks have developed amnesia about its federal loan, with Tucker Carlson claiming that "they don't take any government subsidies at all."
Tesla recently reiterated its plans to repay a loan granted through the Department of Energy's Advanced Technology Vehicle Manufacturing program ahead of schedule. This followed a series of positive developments, including the company's first quarterly profits and a shining review of the Model S sedan by Consumer Reports. Financial services firm Morgan Stanley recently told Raw Story that "Many funds approach an investment opportunity by first asking: does the company do something better or cheaper than anybody else? Tesla is beginning to convince the market it may do both."
But no matter how Tesla fares in the coming years, it seems likely that Fox News will change its reporting to follow suit. In 2012, Fox News' claim that Tesla was a "failed" company was eventually adopted by the campaign of then-presidential candidate Mitt Romney. Later, Fox News admitted Tesla was a "success", eventually forgetting its federal loan in the process.
Video created by Max Greenberg and John Kerr.
A New York Times article directly refutes the claims of House Republicans, including Speaker John Boehner, that State Department officials knew immediately that the attacks on a U.S. consulate in Benghazi, Libya in 2012 were connected to "Islamic terrorists." Fox News willingly repeated the attack on its evening programming May 9 -- but now that the Republican distortion has been exposed, will the network clarify its reports for viewers?
Boehner called for the release of a State Department e-mail sent in the wake of the Benghazi attacks that he claimed suggested the assault was perpetrated by "Islamic terrorists." At the House hearing on Benghazi on May 8, Rep. Trey Gowdy (R-SC), purporting to be reading from the email in question, quoted a State Department official as saying, "the group that conducted the attacks...is affiliated with Islamic terrorists." The phrase "Islamic terrorists" holds significance for Republicans who have suggested the administration knew from the outset that terrorists were behind the attacks but initially attempted to cover-up this knowledge for political reasons.
The May 9 editions of Fox News' Special Report with Bret Baier and Fox Business Channel's Lou Dobbs TONIGHT hyped the Republican line. According to a Nexis transcript search, Baier played clips of Boehner calling for the release of the e-mail, to which Fox guest and Fortune columnist Nina Easton responded, "I was happy to see Speaker Boehner call for the release of those internal e-mails. Anybody who thought that this was just a Republican hazing as the opposition party in power, I think those concerns were put to rest yesterday. I mean, there's so many unanswered questions."
Lou Dobbs also played Boehner's call for release of the e-mail, noting afterward that "somewhat predictably, no response from the Obama administration at this hour." Dobbs continued, claiming that Boehner's comments and the May 8 congressional hearings into the administration's response to the Benghazi attacks "open up new questions about the accuracy of the past testimony of former Secretary of State Hillary Clinton."
The New York Times, however, obtained a copy of the e-mail in question and reported that the phrase conservatives are putting in the mouth of the State Department official -- "Islamic terrorists" - is in fact not used to describe the perpetrators of the attack. Rather, the official describes the perpetrators as having ties to "Islamic extremists" -- a distinction with a difference, according to the Times report:
[A] copy of the e-mail reviewed by The New York Times indicates that A. Elizabeth Jones, the senior State Department official who wrote it, referred to "Islamic extremists," not terrorists.
The distinction is important, administration officials said, because while the White House did not initially characterize the attack as terrorism, senior officials, including Ambassador Susan E. Rice, acknowledged the possibility that extremists had been involved in the assault.
Fox News is no stranger to carrying water for the Republican Party, and the network has led the charge to push Benghazi cover-up conspiracies. But now that the latest GOP line on Benghazi has been exposed, will Fox inform its viewers?