How to Read the Newspaper

You’ve heard me rant about the mass media coverage of the housing market before. Today I wanted to give a (hopefully brief) lesson on how to read the newspaper. If I am successful, you too can start reading between the salacious and incendiary lines.

The article up for examination is is the latest article in the Glendale News Press about the housing market, titled “Local Foreclosures Soaring” , presumably in Glendale. If you click on the link you’ll get the story in a new window, read it along with this post.

1. Emotionally Charged Words and Phrases

First, I want you to notice the liberal use of emotionally charged words and phrases. Examples in this article are, “Home prices in Glendale and Burbank plummeted”, “foreclosures soared”, “housing troubles plague Burbank”, and, “The plunging numbers”. More neutral words, yet still accurate, are “home prices fell or declined”, “Foreclosures rose or increased”, “the falling or declining numbers”.

Let’s be honest. There is bad news. Some people are definitely getting hurt, but the sky is not falling!

2. Astronomically High Numbers

In this article watch for are astronomically high percentages. The author often cites foreclosure rates rising 418%, 127% and even 800%, and it certainly sounds like the sky is falling. The percentages are right , but it is really one foreclosure in 2007 and three or four the next year. The real story is the ratio of foreclosures to the number of home in the area or how many foreclosures here vs the number of foreclosed homes in another similarly sized area. These astronomical numbers do nothing to inform you, they only scare you.

3. Quoting experts out of context

Quoting experts out of context or changing the context is another big sin. The author quotes two knowledgeable people in this article. One is a Burbank Realtor and the other a homeowners association president. Both are quoted accurately (I checked), but the context is all wrong. Before and after the quotes the author makes a dire statement and than goes to a quote that, if read correctly, actually contradicts the statement. At one point the author says “Foreclosures shot up 800%” and then proceeds to quote Judy Graff, who says, among other things, ““If you look at actual numbers, there really aren’t necessarily as many foreclosures as you might think.” He then follows her quotes with the statement, “lenders started foreclosure proceedings on a record number of California homeowners”. By bookending Judy with two very negative statements he makes her whole statement look grim. (She is actually quite realistic and hopeful)

4. Switching Locations Without Notice

Lastly, I note that this author switches from reporting local conditions to regional and state conditions with no notice. Comments on future foreclosure proceedings relate to the entire state and the quoted economist is talking about Los Angeles County. In fact, the sub-headline is, “Experts say area’s worsening housing market has tipped the economy more toward a recession.” This is a quote from the economist talking about Los Angeles County! And the reader still thinks we are talking about Glendale and Burbank.

I learned in college that the mass media has to pander to the audience and the audience wants bad news. And, as much as I idealize journalism as a place for fair and balanced reporting, neutral language and a straight recitation of the facts is boring. However, we, as an informed public, must learn critical reading skills. Accept that the media is looking for the most salable angle in every story. The media is not there to inform or enlighten – they are there to survive.

Continue to read, it is your gateway to knowledge, but never forget to ask questions.

Tagged as: bank foreclosure, Glendale, News press, Northwest Glendale