Why we shouldn't need a blogging code of conduct

Bloggers everywhere got a kick to the gut when a CNN iReporter falsely reported that Steve Jobs was rushed to the hospital with a severe heart attack.

CNN's iReport, Original Story

"Steve Jobs was rushed to the ER just a few hours ago after suffering a major heart attack. I have an insider who tells me that paramedics were called after Steve claimed to be suffering from severe chest pains and shortness of breath. My source has opted to remain anonymous, but he is quite reliable. I haven't seen anything about this anywhere else yet, and as of right now, I have no further information, so I thought this would be a good place to start. If anyone else has more information, please share it." - johntw

CNN was quick to withdraw, and right to do so. Could it be any more vague? How could anybody take something written this way seriously? It wreaks of ruse.
I was a student journalist in college, and this "piece" breaks nearly every rule they taught us. This isn't a story, its gossip fodder, and it belongs in "The national Enquirer", and poorly written even for their standards.
A statement quickly surfaced that said, in part,

“iReport is an entirely user-generated site where the content is determined by the community. Content that does not comply with Community Guidelines will be removed. After the content in question was uploaded to iReport, the community brought it to our attention. Based on our Terms of Use that govern user behavior on iReport, the fraudulent content was removed from the site and the user’s account was disabled.”

The key word here is user-generated, meaning John Doe public. We don't know who this person was that generated this false iReport, or why. Some have speculated that its sole purpose was to undermine The Apple Corporation, and shake an already unsteady stock market. The false news of Mr. Jobs untimely demise caused Apple stock to drop several points and cost its shareholders a great deal of money. While some were screaming for the iRorter's head, and calling for a SEC investigation, (There actually was one), let us not lose sight that it was an iReport. By their own definition an iReporter is a CNN end user. I don't think the problem is with the person that filed the fake Jobs story, but rather with people who use the iReport forum to get cutting edge, breaking news. Did the iReport give facts or names to back up the story? Did anybody follow up on them if they did? If this story caused so much strife that it affected Wall Street, am I to actually believe that not one single trader on the floor had the foresight to check the stories authenticity? Maybe I'm being naive, but I would have made at least one phone call before I sold Apple short, and I'm not even a fan boi.

Had I clicked on the guys/girls iReport and seen a video of Steve Jobs on a gurney clutching his chest, then maybe I would have thought, "Hey, I think Steve-O just had a coronary!" but I don't think that was the case. So how did this story gain so much momentum? Perhaps because of the stories roaming the net about Jobs having pancreatic cancer.

We don't need a code of conduct for bloggers. What we need is plain old common sense! Those old adages of, "If it doesn't feel right, it probably isn't", "If you can't say anything good about somebody, don't say anything at all." or the like, hold true even when blogging.