OPINION: Making sense of the financial crisis

Oct 05, 2008 (The News & Observer - McClatchy-Tribune Information Services via COMTEX) -- WB | Quote | Chart | News | PowerRating -- The Tar Heel economy has been leaking jobs lately -- have you noticed? I did, as I went back through the past week's papers assessing The N&O's coverage of the financial crisis. Plenty of attention to that huge national/global story, but I wonder how many of us are aware of the effects showing up in our back yard.

Some headlines: "American Fibers files bankruptcy" (350 jobs); "Hanes to close nine plants" (8,100 jobs worldwide); "More in Triangle are without jobs, unemployment hits 5.4 percent;" "GSK to cut 850;" "Sony Ericsson to lay off 400." And, of course, "Wachovia's fall jolts Charlotte" (20,000 jobs in Charlotte at risk). Not to mention: "N&O losing 53 jobs."

These stories have shown up piecemeal, overshadowed by the drama playing out in Washington and the world's financial capitals. Local experts have been assuring the N&O's business reporters that the fallout hasn't hit here yet, but tell that to the people picking up pink slips. I think the N&O could be doing a better job of connecting for readers the link between Wall Street and their own lives.

I asked readers what they thought of The N&O's coverage these last weeks. Most of the responses were positive, with some thoughtful dissents. Some comments:

--"Your coverage has been very thorough, and has given a greater insight to those of us who are not market and economic savvy." -- EDDIE CONN, Warrenton.

--"Perhaps the best N&O story that I've seen is an article ... detailing the difficulty that Wake and Durham counties had in issuing AAA bonds for local use -- the paper needs to continue to report, and to educate the readers on how this crisis effects them." -- BRIAN ANDERSON, Raleigh.

--"I do not plan to make changes in my investments due to the current situation, but do want to remain up-to-date. The N&O meets that day-to-day need, and magazines I subscribe to will complete the picture." -- ALAN PATTERSON, Holly Springs.

--"Follow up on local folks who have been foreclosed on, and what is their story. Good columns for both the editors' sock puppets, Saunders and Sheehan." -- MIKE DODSON, Cary. (I think he means news columnists Barry Saunders and Ruth Sheehan.

--"Superb job by the N&O -- in-depth coverage of the events, the issues and the players. This is what a paper is for -- all the news and opinions in one place, easy to access." -- ROBERT FERONE, Raleigh.

--"Great coverage, but no one has yet explained this in a manner that I can understand, and I've got a ton of money in the stock market and majored in finance" -- TOM PITTMAN, Raleigh.

--"I learned that the holding company for my long-term care insurance (AIG) is broke and now that my bank of almost 50 years (Wachovia) apparently is the same. But through no fault of The N&O, I suppose, I am not sure I really understand either." -- BOB WOODSIDE, Greenville.

--"It hasn't helped me understand the problem and who's really going to be hurt or helped. I know I'll be hurt, and the Wall Street folks and most of Congress and the Bush administration, I expect, will come out richer. But The N&O hasn't really helped me understand the problem or what I can do to protect myself." -- RICHARD USANIS, Raleigh.

From the comments, here's what I think readers are looking for: a) The latest news, as fast as you can provide it. b) Understanding of the causes and impact of the financial turmoil. c) What does it mean to me -- my savings, investments, job, retirement?

I think The N&O has done a good job with the hard news coverage but, as the comments indicate, can do better helping people understand and cope. On most days, the coverage has dominated the front page, consumed a full page in the main news section and added local angles in the business pages.

The N&O's Web site, www.newsobserver.com, adds the elements of speed, immediacy and, potentially, limitless depth. The op-ed pages have brought perspective with lots of opinion and expert commentary on the crisis.

Two editors at The News & Observer are primarily responsible for the news coverage. Jon Wallace, nation and world editor, assembles the financial and political stories from various wire services. He said his goal has been to deliver each day, at the least, the best hard news story on the day's developments and an explainer, or analysis piece, providing perspective on the news. He supplements that, as space and deadlines permit, with related sidebars and information boxes.

The best example was last Tuesday's paper, after the "shocking" House vote against the rescue plan, which displayed on the front page four stories labeled "Wachovia," "The Future," "Analysis" and "Bailout." (Several readers object to the use of "bailout," saying that word adopts the negative connotation employed by opponents of the plan. I agree.)

Business Editor Mary Cornatzer guides the local reporting on the crisis. Her reporters have produced good stories on the impact of the credit crunch on local governments, the effect of the "short-selling" ban on North Carolina financial firms, and all those depressing stories about local job losses.

She and Wallace both are constrained by The N&O's economic woes. Earlier deadlines have meant they have not been able to get into the paper late-moving stories and analysis from wire services, and Cornatzer's reduced reporting staff (shrunk from 11 to six in the last year) can't get to all the local angles.

But she agreed with me that the paper can and should do a better job of bringing the macro story down to the micro -- the local businesses and people for whom credit crunches translate into job losses, home foreclosures, loan rejections, personal suffering.

"Our big challenge is how vast the topic is and how different our area is," Cornatzer said. "You know it's out there, and you just have to dig deeper to get it, because you're talking about people who are hurting."

The Public Editor can be reached at ted.vaden@newsobserver.com or by calling (919) 836-5700.

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