The New York Times (NYSE: NYT) has admitted that it gave MoveOn.org a huge discount on a full-page advertisement attacking Iraq commander General David Petraues that it didn't deserve.

Public Editor Clark Hoyt argued in his column yesterday that MoveOn.Org should have paid $142,083 for the "General Betray US?" ad instead of $64,575. The ad also violated the Times' own standards and shouldn't have run in the first place, Hoyt said, pointing out that the ramifications for the blunder are huge.

"It gave the Bush administration and its allies an opportunity to change the subject from questions about an unpopular war to defense of a respected general with nine rows of ribbons on his chest, including a Bronze Star with a V for valor," he said. "And it gave fresh ammunition to a cottage industry that loves to bash the Times as a bastion of the 'liberal media."

Even though the Times screwed up, this error was one of idiocy, not malfeasance. People can buy advertisements that are guaranteed to run on a certain day and those that run at a time that's not guaranteed for a cheaper rate. MoveOn.org, which explains its thinking behind the ad here, should have been charged the more expensive rate.