ABC Hypes 'Market Meltdown' with Misleading Data

Published: August 6, 2007, 5:48 pm

Tags: economy, housing, stock market, bianna golodryga, diane sawyer, abc, good morning america

Diane Sawyer kicked "Good Morning America" off this morning with economic worries about Wall Street, the "credit crunch" and "record" foreclosures. We do begin with the week on Wall Street, where the Dow took another huge hit, plunging 280 points in just two hours. The cause of the worst credit crunch in almost quarter a century and you've seen it in the neighborhoods a record number of foreclosures, said Sawyer. But according to the Mortgage Bankers Association (MBAA), foreclosures are not at a record when viewed by percentage. GMA's one-sided talk of a record number of foreclosures misled viewers. Foreclosures are up compared to 2006, but so are the number of home loans. MBAA explained the foreclosure inventory rate is at 1.28 percent and is nowhere near the record of 1.51 percent, reached in the first quarter of 2002. Mentioning the percentage of foreclosures would have given ABC viewers perspective on the issue. Instead, like

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