How are they lying now? In this case, they've been telling us the economy is good and presenting all the data in such a way as to make it seem true. The truth is that for the majority of Americans, the economy has been in the shitter for 7 years. Sure, GDP is up and unemployment still isn't that bad, though worse than when Clinton was president. The problem is that most of the GDP benefit is raked in by the top 1% of Americans and unemployment is depressed by people taking crappy jobs and leaving the job market.
Why is the housing bubble bursting such a problem? Because that's the prime source of the illusion that people are doing well. Refinancing for extra cash made it seem like incomes weren't all that bad when in reality they've stagnated or fallen over 7 years. More people buying homes made it seem as though more people were doing better when it was all smoke and mirrors that let them buy the homes in the first place. Sure, it did help a little by boosting construction jobs, but not really enough to offset the costs that are now coming due. The collapse of the housing bubble isn't just going to give us a savings & loan kind of scandal with lenders realizing their loans are crap, it'll also cost thousands their homes and future earnings now that it is so much harder to file for bankruptcy, AND it'll keep people from spending 'cause they won't have the illusion of prosperity or refinancing to turn to.
What does this have to do with declining CD and book sales? People don't have the disposable income they need to make such purchases. CDs and books are two categories that are likely to be the first affected by any spending slowdown. They are a great indicator of looming recession or an intensifying one. However, the government and news outlets tell us everything is fine, Bush's tax cuts are dandy, the economy is growing, and because of these lies the music and book industry start looking for other reasons their sales are slumping. It can't be the rotten economy, everyone says the economy is great. Well, everyone except our employees and customers...
Another reason for transparency in government and for liberals to be in power.
And yet another example of how Fox, The Wall Street Journal, The Economist, etc... are, in the words of Jon Stewart, hurting America.