Yesterday, The Cable Gamer pointed out that two cable news properties, CNBC and MSNBC, stood to benefit indirectly from the government's bailout of Wall Street--which, coincidentally (not) was expanded on Election Day to include GE Capital; GE Capital, of course, like CNBC and MSNBC (and also broadcaster NBC), is a subsidiary of corporate giant General Electric. So in other words, Uncle Sam is channeling money, circuitously but surely, to MSNBC and its news network siblings.
And now The Politico--not a Cable Gamer, but a hot publication nonetheless--adds some telling new detail about the dealings: The U.S. Treasury Department, nominally controlled by George W. Bush but in reality controlled by Wall Streeters who lean Democrat (at least now) is throwing itself open to input from the incoming team of President-elect Barack Obama. So the Obamans will not have to wait even two months before getting control of the money spigot.
This report should make all the rest of us even more interested in knowing where the money goes, because it's now being overseen, at least in part, by an incoming administration with its whole political life ahead of it, as opposed to the deeply lame-duck Bush bunch.
As The Politico's Victoria McGrane and Eamon Javers explain, not only are Obamans moving in before they officially take power, but they are planning on keeping tight control of the bailout: "Financial observers expect the incoming Obama administration to make the bailout effort their own." Well of course they do! Why wouldn't the Obamans want to get control of disbursing $700 billion, even before their man is inaugurated on January 20? Why wait?
Reuters reported Wednesday night that the planned bonus for MSNBC is coming along nicely. Oops, I meant to say that the $700 billion "TARP" (Troubled Asset Relief Program--not that it matters, because you or I never going to see a dime of it), is now going to include GE Capital, among other companies. I misspoke when I called it a bonus program for Keith Olbermann & Co.--sorry!
As Reuters' David Lawder sums up:
On Tuesday, a source familiar with the Treasury's thinking said the department was exploring how to best expand its capital injection program to provide more liquidity to credit markets, including help for specialty finance firms such as General Electric's GE Capital or CIT Group Inc.
The Treasury said it has made no final decisions on actions it might take, but said any further steps would be made in a "clear and efficient manner while ensuring that the taxpayer is properly protected."
Translated, that means that they are moving forward on the plan. And yesterday, TCG observed:
And now GE Capital is in line to get money from Uncle Sam. All of a sudden, the long strange trip of MSNBC, way to the political left, starts to take on a certain logic. Sure, MSNBC has taken some hits for its obvious pro-Obama bias, but at the same time, MSNBC has surely made some friends. Maybe, in effect, MSNBC placed a bet on Obama. ... All of a sudden, the "go left" plan starts to look like Machiavellian genius.
I mean, if you were the Obamans, wouldn't you think of MSNBC as your favorite news outfit? And so if you got the chance to shovel some aid their way, wouldn't you consider it? You might. And for their part, the Obamans have already considered it--more than considered it.
Yes, indeedy, but just to make sure that they can close the sale with Uncle Sam, GE's corporate children are continuing to butter up Obama. Tonight on NBC Nightly News (which is so in bed with MSNBC that it uses MSNBC's URL a news segment), like last night, the whole tone was pro-Obama. In one egregious editorial choice, Brian Williams' newscast showed cute happy Obama supporters, while the Obama opponent was a ridiculously old and odd-looking man. And on "Hardball," Chris Matthews said that thanks to Obama, we would have government of, by, and for the people for the first time, adding that there would never be a Katrina on Obama's watch. (Now how does he know that?)
So that's the deal, folks, hiding in plain sight: The GE Three--NBC, CNBC, and, most obviously, MSNBC--slather praise on Obama and everyone around him, and in return, the government shovels money GE's way. That's a deal that will send thrills up Matthews leg, to say nothing of GE CEO Jeff Immelt.
But for the sake of the rest of us, what's needed is an investigation. How do these deals get done? When was contact between the government and GE Capital first made? Were there any lobbyists involved? You get the idea.
It's possible, of course, that there's an entirely innocent explanation. Perhaps it's all just a coincidence. But if that's the case, if nobody is doing anything wrong, then let's see all the evidence. Let's see a fully transparent accounting of why the U.S. Government wants to give money to the liberal private media.
And, while we're at it, let's see all the details about who else is getting the money, and a full accounting of all their subsidiaries, including media subsidiaries.
Something tells TCG that this is just the tip of the iceberg.
