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May 21, 2009
Democrats Seek Money for Minority-owned Broadcasters
Democrats seek financial rescue of minority-owned broadcasters
High-ranking House Democrats are urging the Treasury Department to prop up minority-owned broadcasters suffering from a lack of capital and lost advertising revenue amid the economic slump.
House Majority Whip James Clyburn (D-S.C.) is leading an effort to convince Treasury Secretary Timothy Geithner to take “decisive action” by extending credit to this sector of the broadcasting industry.
Clyburn and other senior members, including House Financial Services Committee Chairman Barney Frank (D-Mass.) and Ways and Means Committee Chairman Charles Rangel (D-N.Y.), argue that minority-owned broadcasters are sound businesses, but that the recession could undermine the government’s efforts to diversify the airwaves.
A number of members from the Congressional Black Caucus signed the letter, too.
“While many jobs are at stake, a more important principle — the government’s fundamental interest in promoting a diversity of voices, including service to underserved communities — is severely threatened,” the members write in a draft of a letter that was scheduled to be sent Tuesday.
The letter comes as some of the biggest recipients of government bailout money, including JPMorgan Chase & Co., Goldman Sachs and Morgan Stanley, jockey to repay government bailout money. As banks seek a way out from the government’s restrictions, other industries struggle and seek government support. Some firms seeking to repay the government argue that the government’s restrictions have burdened their businesses.
The congressmen suggest the Treasury Department could provide access to capital to minority-owned broadcasters, which they say represent less than 7 percent of full-power radio stations and a “negligible” ownership of television stations.
“They are looking for continued access to capital to continue their otherwise fundamentally sound operations,” the members write.
The letter suggests Treasury could set up a credit facility specific to the industry, similar to the government’s efforts to support auto suppliers, or possibly set up a program for bridge financing and government-backed loans until the economy improves.
“In addition to the credit crisis, also weighing heavily on minority broadcasters is a significant decline in advertising revenues, particularly the loss of automobile advertising,” the congressmen write.
The members are asking for a meeting with the Treasury Department and minority-owned broadcast entities and representatives from the National Association of Black Owned Broadcasters.
Other members signing the letter are Democratic Reps. Bobby Rush (Ill.), Edolphus Towns (N.Y.), Maurice Hinchey (N.Y.), Carolyn Maloney (N.Y.), Maxine Waters (Calif.), Gregory Meeks (N.Y.), G.K. Butterfield (N.C.), Barbara Lee (Calif.), Lynn Woolsey (Calif.) and Bennie Thompson (Miss.)
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Wild Thing's comment.........
I think this is Racist!
“They are looking for continued access to capital to continue their otherwise fundamentally sound operations,” the members write.
Scratching my head, I don't get it. If they are " otherwise fundamentally sound operations", then why are they looking for a handout. Wouldn't they have their own capitol? They own backing from advertisers etc. This just does not make sense to me.
From Rush on this, he gave a great take on this:
When Tim Geithner and Barack Obama buy companies, they run them. What's happening here, this is about statists owning media. This is the first step toward Obama and the government owning minority radio stations. Crisis is an opportunity, after all, remember? "High-ranking House Democrats are urging the Treasury department to prop up --" I mean they propped up GM, they own it, right? They propped up the banks, they own it, the mortgages, they own it, right? Propped up minority-owned broadcasters suffering from lack of capital and lost advertising revenue.
Now, later in the story, here's the irony: "In addition to the credit crisis, also weighing heavily on minority broadcasters is a significant decline in advertising revenues, particularly the loss of automobile advertising." Ha! Make me laugh! It is Obama who has slashed the advertising budgets of the auto companies! Obama, the first black president, has cut the Chrysler ad budget in half; he's going to do the same thing to General Motors. That hurts the media, and particularly the minority-owned media, according to this story.
So Obama will get an opportunity to buy into the broadcasting business. This is shades of Hugo Chavez. But the unintended consequences of these people taking over the automobile companies -- they haven't stopped to think. Shutting down all of these dealerships? Did they know how important to communities dealerships are, these owners, what they do, they donate to charity, they prop up the local symphony, they do a lot of things, and they're being shut down.
The lack of revenue in local communities that will result from these dealerships being shut down is going to be devastating. It's going to mean more people out of work, not just at the dealership. It's going to mean less charitable operating revenue in these communities
.
....Thank you Mark for sending this to me.
Mark
3rd Mar.Div. 1st Battalion 9th Marine Regiment
1/9 Marines aka The Walking Dead
VN 66-67
Posted by Wild Thing at May 21, 2009 05:48 AM
Comments
I wonder why they're going after the "financially sound" minority owned stations? Maybe he figures they'll be more apt to accept the money? Once they do, they will loose control over their stations.
Posted by: BobF at May 21, 2009 07:35 AM
It is racist, plain and simple. The reason minorities usually don't go into broadcasting is they don't speak well. They can't ennunciate the words properly unless trained from an early age. I don't want to listen to ebonics and latino vulgar slang on my tv news, do you?
Posted by: Lynn at May 21, 2009 08:18 AM
“They are looking for continued access to capital to continue their otherwise fundamentally sound operations,” the members write.
Let me get this straight, these minority Stations are fine except they don't have any money. Is that a dumb statement or what ? Isn't the sole purpose of a Radio Station or any business to make money. They don't have any advertising hence no money. Why would advertisers buy commercial time on a Station where there is no money, the purpose of advertising is to generate business not give away money with no chance of a return on their investment. But I suppose these Stations are...TOO BIG TO FAIL, too ?
So now we are going to have Radio Stations in the Black community on Welfare just like all their listners, so how in hell does this solve anything. So now the whole community is on Government Assistance.
Posted by: Mark at May 21, 2009 08:22 AM
Run up and down the radio dial and see if you don't hear lots of Latino chatter and polka music and lots of Black rap. Seems like they are doing OK if there are that many minority stations.
This is just strictly about more government control and the attempt by liberal politicians to diminish conservative talk radio. At the same time they will give funding to more (racial)minority stations. These minority stations then will toe the government line and of course encourage their listeners to get out and vote the liberal line.
Posted by: TomR at May 21, 2009 12:37 PM
Bob A., yes, they better think hard about
this. I would not want the gov. to tell me
how to do a show.
Posted by: Wild Thing at May 21, 2009 11:43 PM
Lynn, no I don't either, I know what
you mean.
Posted by: Wild Thing at May 21, 2009 11:45 PM
Mark, hahhaa yes that is what it will be
welfare stations. That is so stupid.
Posted by: Wild Thing at May 21, 2009 11:48 PM
Tom, that is so true, there are tons of
them on the radio.
Posted by: Wild Thing at May 21, 2009 11:50 PM
