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Yeah, Fox News Chicago seems okay enough (not that I watch much local news -- I'm a paper-reader). It's really the cable outlets that are infested with crazy-beetles.
It's because of the really warped promotion system that Murdoch uses. He promotes the loyalest and craziest of the people from each local hub, in order to consolidate the brand message. So it works out that the local stuff ends up more or less under par for crazy, even with their target demographic. And the outrage quotient gets decent ratings so he sticks with it. It's utterly retarded, but works quite well from a business standpoint.