I'll just take this directly from Media Matters:
Summary: Fox News' Martha MacCallum claimed that "after weeks of economic doom and gloom, the Obama administration is now singing a slightly different tune. Take a look at what was said in recent interviews this weekend." Fox News then aired clips of administration officials purportedly giving an optimistic view of the economy, which included video of Joe Biden stating: "The fundamentals of the economy are strong." However, Biden did not make those remarks during an "interview[]" over the past weekend; he made those remarks at a September 2008 campaign event in which he criticized statements by John McCain.
You can read more and watch the video here. Apparently, there is no low that Faux news will reach to smear someone.
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