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As the author of the original article, I can absolutely assure you he said it. He discussed it at some length during his opening monologue of his radio show yesterday, then discussed it again during his TV show last night. Here's an excerpt from his TV show. Chatting with Brent Bozell of the Media Research Center, Bill said the following:

"The New York Times is sitting this out, absolutely sitting it out editorially. I believe it's because they don't want to alienate their liberal Jewish base here in New York City."

Again, he propounded the theory at much greater length earlier in the day on his radio show, mentioning the Globe, WaPo and LA Times as well.

Bill O'Reilly is in the right ballpark with his opinion of the Liberal Jewish readers of these papers. What I think is much more to the point is that the NYT doesn't wish to offend it's Liberal Jewish base, but they absolutely cannot afford to offend it's Jewish advertisers.

Pinch couldn't put out that rag if he didn't have advertising revenue. The Liberal Jews in NYC put Bloomberg in office, they elected Hillary Clinton to the Senate, and they pretty much are wrong on every single thing that they do. But they also have families, they also remember the stories of pogroms and the Holocaust, even if they don't do it consciously. Just look at the number of American Jews who are involved in "social causes" such as the ACLU or the big tent of anti-war organizations. From Bella Abzug to Abby Hoffman back when to Mort Zuckerman or Chuck Schumer today.
At best, they are misguided. At worst, they are malignant.

The owners of major businesses who advertise in the Liberal papers, even if they are the sort of misguided Liberal Jewish Democrats that I think of as the A&E Jews, are not going to stand for some editorial board slamming Israel.
Joe Lieberman is a good example, even though he is not a direct advertiser. I believe that it was his mother or mother-in-law who survived the Nazi death camps. The Bronfmans are Seagrams (or were, not sure) and the owners of the renowned Saks stores are American Jews. They won't give money to anyone who slams their forebearers. The NYT might think they are courageous and noble, but threatened with the loss of the big bucks, they are revealed as scared mice doing nothing in hopes of getting those crumbs. They were free to slam BOR because he is of Irish Catholic descent. I'd love to hear them do the same to Chuckie Schumer and get away with it.
Not going to happen.