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Merrill Lynch Fears More Circ Flaps; Advertising Fallout (La Slimes fall out)
Editor and Publisher.com ^ | June 21, 2004 12:20 PM EST | Jennifer Saba

Posted on 06/23/2004 9:09:53 AM PDT by Grampa Dave

Merrill Lynch Fears More Circ Flaps; Advertising Fallout

By Jennifer Saba

Published: NEW YORK Troubled by last week's circulation scandals at Hollinger International's Chicago Sun-Times and the Tribune Co.'s Newsday and Hoy, Merrill Lynch's Lauren Rich Fine released a report today calling into question the reliability of circulation figures for the entire industry. "Our biggest fear," the report said, "is that these two announcements may not be isolated incidents."

The worst consequence could be declining ad revenue, if advertisers doubt the reliability of circulation figures. The report says that the most vulnerable spot will be preprint inserts as they are purchased entirely on circ reach. It added: "Circulation is likely to remain a controversial topic in the near term."

The report also takes to task the Audit Bureau of Circulations, saying that the overstatement of circ figures seems to "suggest that there may be loopholes in the ABC audit system" and "at the very minimum, it suggests that ABC's audits need to be completed much sooner." Many newspapers use the ABC publisher's statements to sell advertising because there is a lag in the ABC audited reports. All newspapers are audited once a year. Those with a circ under 25,000 have the option of going through an audit every two years.

Also Fine points to the Rosie magazine circulation flap and the ripples it sent through that industry: "It appears that concerns about inaccuracies in the magazine circulation statements, a fallout from the Rosie magazine trial, have had more impact on magazine advertising in the last year than we thought. We hope the same will not happen to the newspaper industry."

-------------------------------------------------------------------------------- Jennifer Saba (jsaba@editorandpublisher.com) is associate editor for E&P.


TOPICS: Business/Economy; Crime/Corruption; Extended News; News/Current Events
KEYWORDS: chicagotribune; circulationlies; laslimes; lyingnewspapers; newspapers
Good now Wall Street is looking at the left wing fishwraps re recently reviewed lies about circulation. The left wing newspapers appear to be up to their eyeballs in fraud re claiming to news when they are the PR wings of the DNC and Islamofascists. Now it appears that they have been lying about their sold circulation counts.

"The worst consequence could be declining ad revenue, if advertisers doubt the reliability of circulation figures. The report says that the most vulnerable spot will be preprint inserts as they are purchased entirely on circ reach. It added: "Circulation is likely to remain a controversial topic in the near term."

1 posted on 06/23/2004 9:09:55 AM PDT by Grampa Dave
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To: jmstein7

More ammuntion for possible law suits against the left wing newspaper owners for acts of fraud.

Now Wall Street is putting out warnings about lies re sold newspapers.

This comment about the failed Rosie BS magazine is interesting:

" Also, Fine points to the Rosie magazine circulation flap and the ripples it sent through that industry: "It appears that concerns about inaccuracies in the magazine circulation statements, a fallout from the Rosie magazine trial, have had more impact on magazine advertising in the last year than we thought. We hope the same will not happen to the newspaper industry."


2 posted on 06/23/2004 9:21:24 AM PDT by Grampa Dave (John Fonda al Kerry began his political life as a Pro Commy Vietnam War protester!)
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To: crushkerry

More bad news for the liberal mediots who own the fishwraps which lie about circulation/subscription numbers.


3 posted on 06/23/2004 9:22:23 AM PDT by Grampa Dave (John Fonda al Kerry began his political life as a Pro Commy Vietnam War protester!)
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To: Grampa Dave

Hey, what's the big deal? We've known that these papers lie for years. Where's the surprise? And, there is no connection betwen their circulation fabrications and their editorial pages mendacities!


4 posted on 06/23/2004 9:23:26 AM PDT by Tacis (,)
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To: Grampa Dave

BTTT


5 posted on 06/23/2004 9:26:25 AM PDT by Fiddlstix (This Tagline for sale. (Presented by TagLines R US))
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To: Grampa Dave

So, is Wall Street worried about things like declining single paper sales declinining while mysterious "other" sales go up to keep circulation even like this NYT data?

http://www.nytco.com/investors-nyt-circulation.html


6 posted on 06/23/2004 9:26:31 AM PDT by claudiustg (Go Sharon! Go Bush!)
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To: Grampa Dave

These are liberals. Many print executives even with degree's and MBA's. These libs are making brilliant decisions:

1). Subscriptions are plummeting; Let's jiggle the circulation/subscription numbers to keep the ad revenues constant. Busted! (ethics?)

2). Subscriptions are plummeting; Begs the question as to WHY? Liberal Answer: Bring back readership by bagging the non-bias angle and increase the 'liberal' stories, copies, and posts with the 'liberal' ideology slant. Brilliant!

With business sense like this, hope they fold.


7 posted on 06/23/2004 9:52:27 AM PDT by BluSky (“Don’t make me come down there.”)
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To: Grampa Dave

Has the NY Times or LA Times been implicated in this scandal?


8 posted on 06/23/2004 9:53:35 AM PDT by Teplukin
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To: Grampa Dave

Your assigment, if you choose to accept it, is to search the LA Times data base for all its editorials about the need for corporate reforms and good governance..


9 posted on 06/23/2004 9:57:40 AM PDT by ken5050
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To: Teplukin
One of the risks of conglomeration is the loss of local control; it is likely that these disclosures reflect a pattern that leads back to the top.

Given the spate of accounting irregularities in many areas of economic activity and a seeming willingness on the part of Justice to prosecute, we could see some interesting developments soon.

10 posted on 06/23/2004 10:06:25 AM PDT by Old Professer (Interests in common are commonly abused.)
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To: Tacis

Well now that Jake Reno is out of DC, there appears to be a new mindset about liberal fraud at corporate levels.

This is probably scratching the surface of this infected crust of a boil.


11 posted on 06/23/2004 10:08:00 AM PDT by Grampa Dave (John Fonda al Kerry began his political life as a Pro Commy Vietnam War protester!)
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To: Grampa Dave

Gee, why isn't Elliott Spitzer hauling these frauds into court?


12 posted on 06/23/2004 10:11:53 AM PDT by eno_
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To: Teplukin

The LA Slimes was part of the first expose that I posted about 2-3 weeks ago. The Slimes is owned by the Tribune that is noted in this article.

They had to let over 100 employees go when this stuff floated to the top.

There have been postings in the last year about the NY Slimes with ?'s re their paid circulation. The NY Slimes is required reading at many colleges and universities. So the Slimes gives special discounts to students. Of course if they live outside of NYC, they can't really help local advertisers using the NY Slimes.

The best kept secret of the Rosie fiasco was her lies about paid subscriptions. She committed fraud and should go to jail with Martha. As a result apparently ad $'s across the board to magazines went down.


13 posted on 06/23/2004 10:12:40 AM PDT by Grampa Dave (John Fonda al Kerry began his political life as a Pro Commy Vietnam War protester!)
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To: eno_

Are these newspapers based in NY?

However, that is a great question to save when something similiar comes up for the Ny Slimes.


14 posted on 06/23/2004 10:13:56 AM PDT by Grampa Dave (John Fonda al Kerry began his political life as a Pro Commy Vietnam War protester!)
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To: Teplukin

Here is the article/thread that I posted earlier this month about the LA Slimes inflating its subscriptions.


LA Slimes/Tribune stock takes a hit w/less ad $'s

http://www.freerepublic.com/focus/f-news/1149807/posts

Tribune falls after warning, downgrade, (LA Slimes and Chicago Tribune)

CBS.MarketWatch.com. ^ | 8 June 2004 | Russ Britt


Posted on 06/08/2004 8:30:53 AM PDT by Grampa Dave


Tribune falls after warning, downgrade

By Russ Britt, CBS.MarketWatch.com

Last Update: 11:01 AM ET June 8, 2004

LOS ANGELES (CBS.MW) -- Shares of Tribune Co. dropped 4 percent Tuesday in the wake of the newspaper publisher's warning on sales projections and a downgrade from a Wall Street analyst.

Chicago-based Tribune (TRB: news, chart, profile) fell $1.88 to $46.80 after the company said Monday it expects sales growth to be slower than expected within its publishing group and will have to take a $10 million to $15 million charge in the second quarter to make up for it.

That prompted A.G. Edwards analyst Michael Kupinski to downgrade Tribune stock to "hold" from "buy." Kupinski said, however, that Tribune's downside should be "limited."

"In our view, the likely catalyst toward higher stock valuations will be positive earnings surprises and sequential growth in quarterly revenues," Kupinski wrote in a note issued Tuesday. "Patient investors willing to wait an upturn in revenue growth at the company, which appears possible in a favorable economic environment, are encouraged to retain positions."

The publisher of the Los Angeles Times and Chicago Tribune said it will take the charge because it is reducing expense growth from 5.5 percent down to 3 percent. Tribune officials said, however, they still expect to fall within analyst estimates for the quarter.

Tribune is cutting 200 staff positions, undertaking newsprint conservation programs and reducing spending in all departments. Company officials said the growth plans that existed earlier in the year weren't meeting expectations.

"Although help wanted advertising is improving month-over-month, and preprints year-to-date are delivering strong growth, other advertising categories are not meeting the aggressive plans we had for the year," Jack Fuller, president of Tribune Publishing, said in a statement. "The shortfall is limited to a few newspapers, including the Los Angeles Times."

Tribune expects sales growth of roughly 4 percent for the full year.

The company put out its warning as it announced sales were up 3.2 percent for a roughly monthlong period ended May 23.

Russ Britt is the Los Angeles Bureau Chief for CBS.MarketWatch.com.


15 posted on 06/23/2004 10:18:03 AM PDT by Grampa Dave (John Fonda al Kerry began his political life as a Pro Commy Vietnam War protester!)
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To: ken5050

"Your assigment, if you choose to accept it, is to search the LA Times data base for all its editorials about the need for corporate reforms and good governance.."

One of the nice things about being 65 is when asked to do the impossible. I just smile and say, "No Thank, you!"



16 posted on 06/23/2004 10:19:28 AM PDT by Grampa Dave (John Fonda al Kerry began his political life as a Pro Commy Vietnam War protester!)
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To: Grampa Dave

Most are part of corporations publicly traded in NYC exchanges, and have been bought and sold based on valuation that are based in large measure on circulation. They have been defrauding investors and advertizers.

Or, look at it this way: Shell's restatement of oil reserves amounts to securities fruad because of the strong tie to valuation. Same with circulation.


17 posted on 06/23/2004 10:21:54 AM PDT by eno_
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To: BluSky; Liz

Your summary below is excellent. Left wing liberals in charge of companies got a free ride during the Clintoon bubble before it burst in May of 2000.

Anyone who invests in a liberal controlled company deserves what they will get. The arrogance and inability to "play by the rules" and their total lack of integrity makes them very poor business execs.

Your excellent comments repeated again:

"These are liberals. Many print executives even with degree's and MBA's. These libs are making brilliant decisions:

1). Subscriptions are plummeting; Let's jiggle the circulation/subscription numbers to keep the ad revenues constant. Busted! (ethics?)

2). Subscriptions are plummeting; Begs the question as to WHY? Liberal Answer: Bring back readership by bagging the non-bias angle and increase the 'liberal' stories, copies, and posts with the 'liberal' ideology slant. Brilliant!

With business sense like this, hope they fold.


18 posted on 06/23/2004 10:23:12 AM PDT by Grampa Dave (John Fonda al Kerry began his political life as a Pro Commy Vietnam War protester!)
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To: eno_

Yes, you are right.

Spitzer went after Mutual Fund Companies based all over America. (Did he whack any NY Fund Companies?)

Someone should contact Spitzer's office about this blatant fraud.


19 posted on 06/23/2004 10:27:20 AM PDT by Grampa Dave (John Fonda al Kerry began his political life as a Pro Commy Vietnam War protester!)
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To: Grampa Dave
I don't see any hard evidence that the NY Times has hyped its circulation figures. It is possible, but I am not convinced.

Agreed, the NY Times is left-wing. But both they and the Wall Street Journal did one heck of a job after 9/11, covering the city. And they do a great job of covering basebal & track, two of my favorite sports. (The Wall Street Journal obviously has a better editorial page).

As an aside, the Times (like many newspapers), is in trouble. Primarily because newspapers are a 19th century phenomenon.. The internet is marginalizing newspapers, much like the auto marginalized trains. Even conservative papers like the Wall Street Journal are feeling the pinch.

20 posted on 06/23/2004 10:31:20 AM PDT by Teplukin
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To: Grampa Dave
I don't see any hard evidence that the NY Times has hyped its circulation figures. It is possible, but I am not convinced.

Agreed, the NY Times is left-wing. But both they and the Wall Street Journal did one heck of a job after 9/11, covering the city. And they do a great job of covering basebal & track, two of my favorite sports. (The Wall Street Journal obviously has a better editorial page).

As an aside, the Times (like many newspapers), is in trouble. Primarily because newspapers are a 19th century phenomenon.. The internet is marginalizing newspapers, much like the auto marginalized trains. Even conservative papers like the Wall Street Journal are feeling the pinch.

21 posted on 06/23/2004 10:31:26 AM PDT by Teplukin
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To: Teplukin

The NY Slimes was not part of this recent questioning re paid subscribers.

A year ago they lost Ad$'s and one of the points brought up was they used circulation inflation by using the nearly free newspapers going to students all over America and many parts of the world.

The last report on their ad$s showed a continuing decrease.


22 posted on 06/23/2004 10:34:14 AM PDT by Grampa Dave (John Fonda al Kerry began his political life as a Pro Commy Vietnam War protester!)
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To: All

Below is a great link about this and other arrogance by the LA Slimes:

http://www.geocities.com/truthmasters/watch04-2.html#0622





Sunday June 20, 2004 - Front Page Headline
ISRAELI SOLDIERS' PHOTOS SHOW ANIMOSITY ALL AROUND IN HEBRON

An Exhibition That Includes Allegations Of Improper Conduct Sparks Controversy

LA Times Shows The Depth Of Its Animosity Towards Israel

While the title claims to report on animosity "all around" in Hebron, the vast majority of this nasty anti-Israel piece, about a politically charged photo exhibition, is devoted to accusing Israeli soldiers of mistreating Arabs. (6/20/04, p. 3 - read TEXT). It is just another creative attack on Israel questioning the "moral dimension of serving in the West Bank and Gaza Strip". We recommend reading this one simply because of the blatancy of its bias. Here's just a taste:


"One soldier recalls watching three colleagues pose with a pair of slain Palestinian gunmen whose bodies were propped up for the snapshot. Another talks of blocking an Arab bride and family members, in formal dress, from driving to her wedding — sending the party home for no reason. Several soldiers describe feeling drunk with power."




"One photograph shows a group of Jewish boys ripping bricks from a Palestinian´s abandoned home. Others show adult settlers ambling with assault weapons. Several images focus on the anti-Arab messages painted on doors and walls. "Arabs to the Gas Chambers," one reads in English. "Kill the Arabs," says another, in Hebrew."

Far from showing Israeli animosity in Hebron this piece shows the depths of LA Times animosity towards Israel. There is no attempt to present Israel's side of the story in any of these alleged incidents. Note the reference to "gas chambers" - another anti-semitic attempt to smear Israel with the "NAZI" label. see LA Times Calls Israel "NAZI" Added to this highly inflammatory and one-sided diatribe is a picture showing some of the exhibited photographs, carefully selected and framed to further inflame anti-Israel passions. As a token afterthought there is a single paragraph on Arab violence recalling the murder of 10 month old Shalhevet Pass in 2001 and the 1929 Arab massacre of Hebron's Jewish residents. Other than that, the article is outright character assassination and an attempt to undermine Israeli resolve.

In another article on this date in the Local B Section, the LA Times reported on the controversy over Muslim students wearing green sashes glorifying suicide bombers at their graduation. (6/20/04, "A Political Yet Peaceful Graduation At UC Irvine", p. B5). Incredibly, neither this article nor yesterday's article on the subject (6/19/04, "UCI Graduation Controversy Overblown, Muslim Students Say", p. B6 - read TEXT) addressed the core issue that the sashes bear the word "Shehada" which is a word glorifying suicide bombers. This controversy was accurately reported on O'Reilly last week (see Fox News) and a local protest of UCI has been organized. see StandWithUs A picture of StandWithUs representatives talking to a student representative of the Muslim Students Union, appeared with today's article.

Boycott Of The LA Times Website

An article that apparently appeared only on the LA Times website did mention the "Shehada" controversy. That article is available at United Jerusalem, a pro-Israel website ("Disputed Stoles OK'd By UC Irvine" - read TEXT). JtB boycotts the LA Times website since every hit on it enriches them by helping to generate advertising revenues. There are no links to the LA Times at JtB. We ask all supporters of Israel to boycott the LA Times website and to remove links to it from their websites and substitute our website in its place.

An LA Times credit to report. An interesting piece on a local pilot, Robert F. Maguire Jr., who helped conduct Operation Magic Carpet, the airlift of Yemenite Jewish refugees to Israel in 1949. (6/20/04, "Jews Discover An Unsung Hero", p. B2 - read TEXT) He was recently honored by the Simon Wiesenthal Center. The occasional token benign interest piece only serves to highlight the degree of bias of this viscerally anti-Israel newspaper.

Subscribers, please call 1-800-252-9141 and cancel your anti-Israel and anti-semitic LA Times. Non-subscribers, please let all your friends know about Join the Boycott at http://www.geocities.com/truthmasters/jointheboycott.htm






Tuesday June 22, 2004 - page C2 headline
LOS ANGELES TIMES CUTS ABOUT 160 JOBS
The Move Which Affects Both Business And Editorial Operations Follows Lower Than Expected Ad Revenues

On Job Cuts....

"Los Angeles Times Cuts About 160 Jobs" looks to be an attempt at damage control. It was in today's Business Section of the paper and was authored by "a Times Staff Writer" (6/22/04, p. C2 - read TEXT). It informs us that about 60 reporting jobs and about 100 business operations jobs will be lost. It does not elaborate on the reason for the cuts, the "lower than expected ad revenues". Since news of the cuts had already reached the media (see Ad Revenue Shortfall), the LA Times may have decided that announcing these details was the best way to avoid damaging speculation by others.

....And Inflated Circulation Numbers

The LA Times also announced that Tribune, the parent company, has found inflated circulation numbers at two of its newspapers, and is reviewing circulation accounting procedures at all of its papers including the LA Times:


"Tribune said Monday that it was conducting a review of circulation practices at all of its newspapers, including the Times, after finding inflated sales figures at two of its publications; Newsday based in Melville, NY on Long Island and the Spanish language daily Hoy."


JtB has received several complaints from subscribers who have canceled their paper and say the LA Times continues to deliver it. One boycotter reported still receiving the paper two years after canceling! Last year a boycotter was incensed when she canceled and the LA Times kept sending it to her despite her several calls to them to stop. see The Meaning Of "Stop Sending Me The LA Times" Continuing to deliver is a way a newspaper can pad its circulation numbers.

Please Write To Macy's

Advertisers have an important role to play in bringing fairness and justice to the media. JtB recently organized a protest campaign to Macy's, the principal LA Times advertiser. We strongly urge everyone who has not yet done so, to write to Macy's to protest the agenda driven, biased reporting of the LA Times. see Macy's contact form

JtB has received copies of many good letters of protest to Macy's. Here is a particularly good one:



Dear sirs,
I've resisted believing but I see it on a daily basis: the Los Angeles Times bias against Israel is so extreme and so consistent that the paper can only reasonably be characterized as an enemy of the Jewish State. They went so far recently as to publish an opinion piece calling for the end of Israel, as if that were within the realm of reasonable discourse. They regularly criticize Israel for each and every effort that country makes in a defense against terrorism. Their criticism isn't even limited to the editorial pages but appears disguised as "news" reports on its front page as well.
And this in time of war, when our own country is facing threats from the very same Islamist terrorists as is Israel.
The only principled response to such consistent anti-Americanism and venom toward Israel (which, as our close ally, is merely used as a substitute and a proxy for the United States by those who oppose both countrys' decency and efforts at self defense) is a boycott of the Los Angeles Times. No principled person -- or organization -- can continue business as usual with a news organization dedicated to the destruction of an ally of the United States.
I say this with sadness, as I'm a 25 year reader of the Times. I've also been a regular customer of Macy's for as long as that store has been in California and buy probably 90% of my clothes there. But I won't continue to patronize a business that supports, through its ad dollars, the Los Angeles Times.
Business is business, but there's got to be a point, especially in wartime, when doing what is right and honorable takes precedence over commercial interests. I hope you'll do the right thing, and that you and I can continue to do business for years to come.
Sincerely,
Steven, Sunland, CA


The boycott is growing. Please call 1-800-252-9141 and cancel your LA Times and please help spread the word about Join the Boycott at

http://www.geocities.com/truthmasters/jointheboycott.htm


23 posted on 06/23/2004 10:52:22 AM PDT by Grampa Dave (John Fonda al Kerry began his political life as a Pro Commy Vietnam War protester!)
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To: Grampa Dave

The no-holds-barred mentality---like Clinton's admission that he dallied with Moanica "because he could"---is rampant in all aspects of liberalism and is a cautionary tale about the dangers of having liberals in positions of power, especially in govt and in finance.


Libs sense of entitlement is disgusting. Libs recognize no greater good higher than themselves. Also explains why they are paranoid about public manifestations of religion. Like holding a cross before a vampire.....they just go all to pieces (smirk).

Libs get their jollies dictating to the rest of us how to live, and what we can or cannot think or believe.


24 posted on 06/23/2004 11:20:22 AM PDT by Liz
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To: Grampa Dave
"Although help wanted advertising is improving month-over-month..."

Who wrote this story, and how did they let this fact get into print? Someone is not doing their job. Any news that shows positive economic growth must be supressed! Heads will roll for this!

25 posted on 06/23/2004 12:26:30 PM PDT by webheart
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To: Teplukin
I don't see any hard evidence that the NY Times has hyped its circulation figures. It is possible, but I am not convinced.

As an aside, the Times (like many newspapers), is in trouble. Primarily because newspapers are a 19th century phenomenon.. The internet is marginalizing newspapers, much like the auto marginalized trains. Even conservative papers like the Wall Street Journal are feeling the pinch.

It is hard to see how the New York Times would be able to resist the temptation to maintain its revenues by the simple act of inflating its circulation numbers, which are not that exact anyway. There's probably quite a bit of estimating going on there. They must want to remain the "Newspaper of Record!"

Of course, I neither read nor trust the NYT. My opinion: Their stories are biased, their polls are biased. I avoid Starbucks because they always have the NYT on sale. And I don't use their website either.

26 posted on 06/23/2004 12:36:53 PM PDT by webheart
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To: Grampa Dave
The worst consequence could be declining ad revenue, if advertisers doubt the reliability of circulation figures.

Die commie scum.

27 posted on 06/23/2004 12:39:47 PM PDT by spodefly (This post meets the minimum daily requirements for cynicism and irony.)
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To: Liz

"Libs sense of entitlement is disgusting. Libs recognize no greater good higher than themselves. Also explains why they are paranoid about public manifestations of religion. Like holding a cross before a vampire.....they just go all to pieces (smirk)."


28 posted on 06/23/2004 9:22:53 PM PDT by Grampa Dave (John Fonda al Kerry began his political life as a Pro Commy Vietnam War protester!)
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To: webheart

"Although help wanted advertising is improving month-over-month..."

"Who wrote this story, and how did they let this fact get into print? Someone is not doing their job. Any news that shows positive economic growth must be supressed! Heads will roll for this!"

I thought that was amazing that admittance made it into the article.


29 posted on 06/23/2004 9:24:41 PM PDT by Grampa Dave (John Fonda al Kerry began his political life as a Pro Commy Vietnam War protester!)
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To: spodefly

"Die commie scum."

Exactly!

America and the world would be a better place if these scum closed their doors due to their lying, arrogance and what may be fraud.


30 posted on 06/23/2004 9:26:27 PM PDT by Grampa Dave (John Fonda al Kerry began his political life as a Pro Commy Vietnam War protester!)
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