I’m shocked.
Tag: economics
Barry will pork the budget, but cut our defense.
The Dad-blasted idiot!
The Obama administration has asked the military’s Joint Chiefs of Staff to cut the Pentagon’s budget request for the fiscal year 2010 by more than 10 percent — about $55 billion — a senior U.S. defense official tells FOX News.
Last year’s defense budget was $512 billion. Service chiefs and planners will be spending the weekend “burning the midnight oil” looking at ways to cut the budget — looking especially at weapons programs, the defense official said.
Some overall budget figures are expected to be announced Monday.
Obama met Friday at the White House with a small group of military advisers, including Admiral Mike Mullen, chairman of the Joint Chiefs, Gen. James Cartwright, vice chairman, and Gen. Jim Jones, National Security Council chairman.
via Defense Official: Obama Calling for Defense Budget Cuts – FOXNews.com.
He does this, but he’ll pork the hell out of that stimulus package. What a damned douche nozzle! 😡
I know what I’d like to call ol’ Bambi right about now. But I’m biting my tongue….. quite hard.
Others: RedState, Josh_Painter’s blog, Hot Air, Stop The ACLU Gateway Pundit, Riehl World View, THE ASTUTE BLOGGERS, The Jawa Report and Cold Fury
GDP shrinks to 3.8 percent, signaling bad economic conditions
This is not good at all.
The United States economy shrank at its fastest pace in a quarter century from October through December, the government reported on Friday, as consumer spending and business investment collapsed, signaling more economic contraction in the months ahead.
In the broadest official accounting of the toll of the credit crisis, the government reported that gross domestic product shrank at an annual rate of 3.8 percent in the fourth quarter of 2008. While that was less than economists’ expectations of a 5.5 percent drop, the decline would have been much steeper — more than 5 percent — if shipments of goods had fallen as sharply as orders.
President Obama seized on the figures Friday morning, calling the contraction a “continuing disaster” for working families, and again urged Congress to pass a package of tax cuts and spending. The House, divided on party lines, passed an $819 billion stimulus plan on Wednesday, and Senate is expected to take up the measure next week.
“What we can’t do is drag our feet or delay much longer,” Mr. Obama said. “The American people expect us to act.”
The president also announced the creation of a Task Force on Middle-Class Working Families, which will seek to raise living standards of working families. It will be led by Vice President Biden.
Wall Street tumbled after the numbers were released, with the Dow Jones industrial average falling more than 100 points in midday trading. The broader Standard & Poor’s 500-stock index was down 1.5 percent.
The slide in gross domestic product — a crucial measure of economic health — is likely to continue at an alarming pace well into the summer as consumers continue to curtail spending and businesses reduce their capital investments and cut their payrolls, economists said.
In the fourth quarter, rising inventories accounted for the difference between the overall 3.8 percent contraction of the economy and a steeper 5.1 decline in final domestic sales.
“The difference between 3.8 and 5.1 percent is the inventory buildup,” Nigel Gault, chief United States economist at IHS Global Insight, said. “My only explanation is that companies could not cut production fast enough.”
With inventory accumulation gone, the economy will contract in the first quarter at more than a 5 percent annual rate, Mr. Gault said.
Employers reduced their corporate investments in computers, office equipment, machinery and other capital goods by an annualized 19.1 percent in the fourth quarter.
Trade fell, as Americans bought fewer Asian-made televisions and computers, and global demand for American goods and services ebbed. Exports in the fourth quarter declined 19.7 percent while imports dropped 15.7 percent.
Josh Bivens, an economist at the Economic Policy Institute said that the drop in exports was distressing because of their contribution to growth in recent years.
“That’s been a real key strength to the economy,” Mr. Bevins said. “They were punching above their weight for a couple of years, but they have really collapsed.”
And American consumers, who took on home equity loans and large amounts of credit card debt to finance their lifestyles earlier in the decade, curtailed their spending for a second consecutive quarter. Consumer spending, which typically accounts for two-thirds of economic growth, fell 3.5 percent in the quarter, after decreasing 3.8 percent in the third quarter.
With no end in sight to the downturn, the stark numbers on Friday are likely to intensify the debate over an enormous stimulus plan moving through Congress.
Christina D. Romer, chairwoman of President Obama’s Council of Economic Advisers, said the report offered more evidence that the economy continued to contract severely, and said “immediate action” was needed to shore up the financial sector and broader demand.
“Aggressive, well-designed fiscal stimulus is critical to reversing this severe decline and putting the economy on the road to recovery and improved long-run growth,” Ms. Romer said Friday in a statement.
Michael E. Feroli, a United States economist at JPMorgan Chase, said, “The fact that you’re not seeing any evidence that things are turning for the better has added quite a bit to the urgency to get things done and do something substantial.”
via Pullback Less-Than-Expected in 4th Quarter – NYTimes.com.
The downward spiral continues, the fallout from the breaking of the bubble that existed during the Bush Administration. The Bubble that was created by the Clinton Administration. Instead of listening to Ron Paul, who did have the proper correction for this mess; instead were are attempting to throw money at the problem, this will end in disaster. Ron Paul spoke about this, in a video that I posted. He also spoke with the people on MSNBC’s Morning Joe, here’s that Video: (Via Jack Hunter)
Of course, the mental midgets on “Morning Joe”, just did not get it at all. 🙄
Welcome to the massive screwing of the American people folks! Your beloved leaders have failed you, and now, we all have to suffer. 😡
Why does America always do stupid things like this?
I will never, ever understand why America does stupid things like this right here, ever!
The Obama administration on Friday made an emergency contribution of more than $20 million for urgent relief efforts in the Gaza Strip, a day after the United Nations launched a flash appeal for $613 million to help Palestinians recover from Israel’s three-week military operation there.
The State Department said President Barack Obama had authorized the use of $20.3 million from the U.S. Emergency Refugee and Migration Assistance Fund for humanitarian assistance to the 1.4 million Palestinians in Gaza.
The money will go to U.N. agencies and the International Committee of the Red Cross, which are distributing emergency food assistance, providing medical care and temporary shelter, creating temporary employment and restoring access to electricity and potable water, the department said in a statement.
The Israeli offensive killed nearly 1,300 Palestinians, including hundreds of civilians, and caused an estimated $2 billion in damage, Palestinian officials say. The assault was launched to halt years of Hamas rocket fire on southern Israel.
You want to know where this money is going to end up? In the hands of Hamas, the very terrorist organization that was attacking Israel, in the first place. This money is supposed to be reserved for American Citizens, not for foreign countries! You know, I find it absolutely amazing that the United States of America, would support a military attack on Gaza by Israel to defeat terrorists; only to have them send aid to the very people that Israel attacked. Not only this, our government is using money that is specifically earmarked for the people of the United States of America. This is an outrage! Someone should be complaining to the high Heavens about it!
The reason this outrages me so much is this; yeah, that money might go to American agencies approved by our Government, but ultimately, it will end up right back into the hands of the Hamas terrorists.
I will never understand why America continues to prop up those they claim are terrorists.
Ron Paul once again, speaks the truth.
This comes via LewRockwell.com Blog.
Ron Paul just telling it like it is. People call him a kook, but, you know what? He’s absolutely right.
You want to know why the Neo-Conservatives hate this man so much? Because he exposes them for the fascist, Anti-American scum that they are.
Technorati Tags: Bailouts ,economics ,Economy ,Lew Rockwell ,Libertarian ,Opinion ,Neo-Conservatives ,Paleo-Conservatives ,Politics ,Republicans ,Ron Paul
A damned good read!
This is awesome, go give it a read:
Despite such sentiments among many economists, the stimulus plan is certain to be passed by Congress and signed by President Obama.
Which means the last chance to head off “stimulus” boondoggle is to make sure the money isn’t there to be spent. And since our debt-ridden government has no money of its own to flush away, and will have to borrow the cash, scaring off potential lenders is the best bet.
So, come on America. Say it in print, on the radio, on TV, on blogs and in advertisements. Say it loud and say it proud: If the world is dumb enough to loan more money to the U.S. government, don’t expect it to be paid back. The Americans who will be making decisions in the decades to come won’t be bound by the folly of the current crop of office-holders.
If enough of us say it, the world will listen, and cut off the tap.
If that doesn’t stop the spending spree, nothing will.
via Disloyal Opposition: Screw the stimulus — let’s scare off the lenders.
I could not have said it better myself. 😀
Good luck with that!
The DC Examiner challenges President Obama:
“After a relentless expansion of big government for decades under both Republican and Democratic administrations, the nation’s economy is finally buckling under the load. In his inauguration address, President Barack Obama blamed “greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age.” But Obama’s $825 billion stimulus plan contains few “hard choices”- just lots more government spending.
“The hardest choice off all is to scale back government at the local, state and federal levels and stop the seemingly inexorable growth of entitlement programs that are bankrupting the nation. But is the Obama administration up to this kind of real change?”
I hate to say it, but it’s just not going to happen.
Welcome to the new nationalized USA!
(Via the Libertarian Party Blog) (H/T IPR Blog)
From the “Awesomeness” Stack
Earlier today, I received a tweet from John Hawkings over at Right Wing News. Which pointed to a posting over on his Blog. John Hawkings also runs the Conservative Ads over on BlogAds; which you can get great ad prices over there, might want to check that out.
Anyhow, there was this e-mail that John was talking about, that I guess he saw over at DailyKos, that was attributed a Michael Crowley , however Mr. Crowley says he did not write it, but just the same, the posting is quite awesome.
Check it out:
The President’s Weekly Video Address
Related: Download the Recovery Plan Metrics Report
Transcript: (Source: The White House)
Remarks of President Barack Obama
Weekly Address
Saturday, January 24th, 2009
We begin this year and this Administration in the midst of an unprecedented crisis that calls for unprecedented action. Just this week, we saw more people file for unemployment than at any time in the last twenty-six years, and experts agree that if nothing is done, the unemployment rate could reach double digits. Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of four. And we could lose a generation of potential, as more young Americans are forced to forgo college dreams or the chance to train for the jobs of the future.
In short, if we do not act boldly and swiftly, a bad situation could become dramatically worse.
That is why I have proposed an American Recovery and Reinvestment Plan to immediately jumpstart job creation as well as long-term economic growth. I am pleased to say that both parties in Congress are already hard at work on this plan, and I hope to sign it into law in less than a month.
It’s a plan that will save or create three to four million jobs over the next few years, and one that recognizes both the paradox and the promise of this moment – the fact that there are millions of Americans trying to find work even as, all around the country, there’s so much work to be done. That’s why this is not just a short-term program to boost employment. It’s one that will invest in our most important priorities like energy and education; health care and a new infrastructure that are necessary to keep us strong and competitive in the 21st century.
Today I’d like to talk specifically about the progress we expect to make in each of these areas.
To accelerate the creation of a clean energy economy, we will double our capacity to generate alternative sources of energy like wind, solar, and biofuels over the next three years. We’ll begin to build a new electricity grid that lay down more than 3,000 miles of transmission lines to convey this new energy from coast to coast. We’ll save taxpayers $2 billion a year by making 75% of federal buildings more energy efficient, and save the average working family $350 on their energy bills by weatherizing 2.5 million homes.
To lower health care cost, cut medical errors, and improve care, we’ll computerize the nation’s health record in five years, saving billions of dollars in health care costs and countless lives. And we’ll protect health insurance for more than 8 million Americans who are in danger of losing their coverage during this economic downturn.
To ensure our children can compete and succeed in this new economy, we’ll renovate and modernize 10,000 schools, building state-of-the-art classrooms, libraries, and labs to improve learning for over five million students. We’ll invest more in Pell Grants to make college affordable for seven million more students, provide a $2,500 college tax credit to four million students, and triple the number of fellowships in science to help spur the next generation of innovation.
Finally, we will rebuild and retrofit America to meet the demands of the 21st century. That means repairing and modernizing thousands of miles of America’s roadways and providing new mass transit options for millions of Americans. It means protecting America by securing 90 major ports and creating a better communications network for local law enforcement and public safety officials in the event of an emergency. And it means expanding broadband access to millions of Americans, so business can compete on a level-playing field, wherever they’re located.
I know that some are skeptical about the size and scale of this recovery plan. I understand that skepticism, which is why this recovery plan must and will include unprecedented measures that will allow the American people to hold my Administration accountable for these results. We won’t just throw money at our problems – we’ll invest in what works. Instead of politicians doling out money behind a veil of secrecy, decisions about where we invest will be made public, and informed by independent experts whenever possible. We’ll launch an unprecedented effort to root out waste, inefficiency, and unnecessary spending in our government, and every American will be able to see how and where we spend taxpayer dollars by going to a new website called recovery.gov.
No one policy or program will solve the challenges we face right now, nor will this crisis recede in a short period of time. But if we act now and act boldly; if we start rewarding hard work and responsibility once more; if we act as citizens and not partisans and begin again the work of remaking America, then I have faith that we will emerge from this trying time even stronger and more prosperous than we were before. Thanks for listening.
(H/T HotAir)
Others: New York Times, AmSpecBlog, Political Machine, AMERICAblog News, Political Punch, Gothamist and ONTD: Politics
Quote of the Day
Some of the high-flying icons of the prosperity gospel—the belief that God rewards signs of faith with wealth, health, and happiness—have run into financial turbulence.
Not all of their troubles can be blamed on the nation’s economic crisis, say critics of the name-it-and-claim-it theology found in some charismatic churches.
“I believe the charismatic movement, of which I am a part, is in the midst of a dramatic overhaul,” said J. Lee Grady, editor of Charisma magazine. “God is shaking us.” Grady predicts the movement will look much different in a few years as it refocuses on evangelism and overcoming what he calls the distraction of “materialism, flashy self-promotion, and foolish carnality.” But Scott Thumma, a Hartford Seminary sociologist who studies megachurches, is not so certain.
“Most clergy who preach a prosperity gospel would interpret for their congregation any conflict, scrutiny, or questioning as an attack of the Devil and proof that they are following God,” he said.
***
But godliness with contentment is great gain. For we brought nothing into this world, and it is certain we can carry nothing out. And having food and raiment let us be therewith content. But they that will be rich fall into temptation and a snare, and into many foolish and hurtful lusts, which drown men in destruction and perdition. For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows. But thou, O man of God, flee these things; and follow after righteousness, godliness, faith, love, patience, meekness. Fight the good fight of faith, lay hold on eternal life, whereunto thou art also called, and hast professed a good profession before many witnesses. (1 Timothy 6:6-12 KJV)
(via)
Toyota is feeling the pinch too.
So much for that stupid Neo-Con line saying that the slump in auto sales is the automakers fault.
Via the New York Times:
TOKYO — Toyota Motor will idle its plants in Japan for 11 days in February and March to reduce output in the face of steeply declining global vehicle sales, the company said Tuesday.
The Japanese auto giant said the suspension would affect production at all 12 of its directly operated domestic plants, which include four vehicle assembly plants and also factories that make transmissions, engines and other parts. The closings are in addition to a three-day shutdown this month at these plants that Toyota had already announced.
The move is unusual for a company that just a few months ago seemed unable to keep up with voracious global demand for its fuel-efficient vehicles. But even strong players like Toyota have failed to escape the drastic slowdown in the global auto industry.
The company said it would idle the plants to reduce stocks of unsold vehicles amid a relentless slide in sales, particularly in the United States, its biggest market. Last month, Toyota’s sales there dropped 37 percent, a larger decline than at its struggling American rivals General Motors and Ford.
Plunging sales and a stronger Japanese yen, which reduces the yen value of overseas profits, forced Toyota to forecast last month its first annual loss in 70 years at its vehicle-making operations.
Toyota did not say how many vehicles would be affected by the suspension announced Tuesday. The company said its four domestic assembly plants produced 1.5 million vehicles in 2007, the most recent year for which the company has figures. Toyota-brand cars are also made by other companies in the Toyota group.
The company had already announced that it would shut down truck production at two United States plants for three months
Its American rivals — General Motors, Ford Motor and Chrysler — have also idled plants across North America in response to the slowdown.
For once, I am in agreement with a Liberal, and yes, it is the same knuckle-headed liberal that insulted Conservatives. Hey, I am one that praises when it’s due and bitches when it’s due too; At least I’m fair. 😉 😀 😛
Matthew Yglesias Weighs in:
This is the conceptual problem with efforts to “save” the car industry through bailouts or union busting or whatever you like. One assumes demand for cars will get higher than it is right now, but the industry has a whole just has more capacity to build cars than there is demand for new cars. Which is fine. When you look across the developed world and try to take stock of the medium- and long-run problems facing the OECD nations there’s just no way you’re going to reach the conclusion that an automobile shortage is a big concern. But obviously it’s not fine for the companies that make cars. There’s going to be a need for some shrinkage.
Yeah, I know, most likely some of the Conservatives who are basically scraping my blog for content are going to try and deride me as a fake conservative, because I stick up for the middle class and because I happen to be the son of retired General Motors Worker and U.A.W. member. Well, I got two words; screw you and the rest of the asshole Madison Ave. Conservatives. 😡
Anyhow, I happen to agree with Matthew here, I live here in the Detroit Area. If the auto industry dies, so does this area. That will cause my parents to suffer, they need the health insurance, as they are both diabetic and the amount of medications that they take is staggering. Anyhow, this article above disproves and basically strikes down the “Meme” that was going around in the Conservative Blogosphere that the issues with the auto industry was the fault of the automakers. Which I totally dismissed as abject bullshit of the highest order. It was the fault of President Clinton for putting pressure on the loan companies to give those toxic subprime loans to those who were considered high risk. That is what started this whole thing. Of course, equal blame can be given to the Republican Congress of 2003 for not changing the laws, after all, they were warned by the Bush White House to do something; and they did nothing at all.
Best thing they could do, was have a hearing, of which the CEO of Freddie Mac pulled the race card, and congress backed off. So, all the blaming of the Auto Companies was nothing more than a feeble attempt by the Republicans at scapegoating the wrong damned people.
Here’s hoping that Japan’s auto industry totally collapses and people, both American and otherwise, have to buy American products, for a change!
Guest Voice: Jack Hunter on “A Governor for Change”
Jack Hunter Blogs at Taki’s Magazine and at The Southern Avenger
Rep. Ron Paul on the Israeli Gaza Conflict
I must admit, the man speaks the truth. I don’t agree with one point however. To me, it does not matter how many missiles Hamas fired into Israel, one missile is one too many. But the rest, I pretty much agree with.
Quote of the Day
Indeed, Toyota claims losses for the first time in 70 years—though how Toyota’s management was able to keep sales up in 1945, when Gen. Curtis LeMay’s B-29s were conducting their nightly visits, escapes me.
Bush may believe he has sinned against free-market principles, but he is following the path of his great free-market predecessor. Ronald Reagan, too, was not prepared to see Japan take down the U.S. auto industry, or steel industry, or computer chip industry, or Harley-Davidson.
Believing Japan was dumping to destroy U.S. companies, Reagan put patriotism before ideology and imposed quotas on Japanese imports. He, too, was castigated by the same commentariat that is berating Bush.
Vice President Cheney, too, has endorsed the bailout of Detroit. Of the senators who voted to pull the plug on General Motors, Cheney is said to have remarked, “It’s Herbert Hoover time” up there in the GOP caucus.
[….]
Like Prohibition in Hoover’s phrase, globalism is “an experiment, noble in purpose, that has failed.”
Funny Video: Sponsor an Executive
This was sent to me by the smartest Democrat I know………………My Mom. 😀
The Reading Room: The Proper Role of Government by Ezra Taft Benson
I was given this link via twitter a couple days ago, I bookmarked it.
I admit, that I didn’t read the entire thing, But I read enough of it, to see that it is something that everyone, of all political stripes should, in fact, read.
Go here to read, “The Proper Role of Government by Ezra Taft Benson”
More Signs of the Hard Times Ahead
This is just not a good thing, at all. 🙁
Via the New York Times:
With unemployment claims reaching their highest levels in decades, states are running out of money to pay benefits, and some are turning to the federal government for loans or increasing taxes on businesses to make the payments.
Thirty states are at risk of having the funds that pay out unemployment benefits become insolvent over the next few months, according to the National Association of State Workforce Agencies. Funds in two states, Indiana and Michigan, have already dried up, and both states are borrowing from the federal government to make payments to the unemployed.
Unemployment taxes are collected by states from employers, but the rate varies from state to state per employee. In good times states build up trust funds so that when unemployment is high there is enough money to cover the requests for benefits, which are guaranteed by the federal government.
“You don’t expect the loans to happen this early in a jobs slump,” said Andrew Stettner, the deputy director of the National Employment Law Project, an advocacy organization for low-wage workers. “You would expect that the states should, even when they are not well prepared, to have savings.”
The Labor Department said last week that initial applications for jobless benefits rose to 573,000, the highest reading since November 1982. It is recommended that states keep at least one year of peak-level benefits in their trusts, but many have not, and already some states are far worse off than others.
Yet more of the ripple effect in the Nation’s Economy. Of course, I could sit here and blame the Democrats or the Republicans. But honestly, who is really to blame here? I personally think it is the fault of both parties really. First off, it is the fault of the globalist Neo-Cons who would rather ship jobs overseas for cheaper labor, than to keep the jobs here on Terra Firma. Second, it is the Democrats, with Bill Clinton putting pressure on the lending companies to offer high risk loans to those, who normally could not afford them. Put simply, it was a system that was set up upon risk and it ultimately failed.
So, now we’re stuck with states with extremely high unemployment rates and states who are having to ask the Federal Government for help to support these people. Now some of my more purist fellow Libertarians would essentially say, “Screw ’em! Let ’em suffer!” But seeing I am from the area, and I do admit to being more a moderate, I do not hold to such asinine views.
I personally think that the worst thing that our Government can do is throw up their hands and panic. Throwing more legislation and huge amounts of money at the problem will not work. The Wall Street Bailout proved that. I think, as a moderate, the best thing that the Federal Government can do is give the States that need the help the funds to keep the unemployment programs running and try the best they can to weather out the storm. The Economy is not going to stay horrible forever, we had a recession in the 1980’s, which was a result of some of the stupidity of the Carter administration. We weathered that storm out and recovered, I believe that we will do the same here. Yes, there will be hardships for a while, but in the end, we will prevail. We always have and will always will.
Local News: It is not just the big three feeling the pinch
It seems that the big three are not the only automakers feeling the pinch.
Via Detroit News:
Honda Motor Co. is reducing production in North America by a further 119,000 vehicles in its fiscal year ending March 31, the company said Friday. Honda previously had announced output cuts of 56,000 vehicles for the year.
The Japanese automaker now expects its full-year output in the region to dip to 1.29 million cars and light trucks, from its original target of 1.47 million.
Production is being cut across the board, with output reductions planned for small as well as larger vehicles, company spokesman Ed Miller said. “Showroom traffic is down for everyone,” he said. “The dealers just aren’t in a position to order the number of cars they had been ordering.”
Production cuts are scheduled for Honda’s plants in Alabama, Ohio, Indiana and Canada, but the company does not plan to lay off any workers.
So much for the idea that the big three are causing their own problems. Looks like the Japanese are feeling the pinch too. I would be willing to bet that you will not be seeing this blogged on any other Conservative Blogs. Because that would mess up the message that it is the Unions fault that G.M. and Chrysler are in the shape that they are in.
Of course they are not going to lay anyone off, the Japanese have all that extra money laying around, they can pay those people to work. They have made it by stealing market share away from the America Workers.
It truly is a pity, those bastards bombed Pearl Harbor in 1941. We defeated them, but they really won the long war, by stealing our jobs and market share, aided and abetted by Globalist Neo-Conservatives, who’s only concern was to make a quick buck.
The Automotive Bailouts: The Other Side of the Story
I have been sitting here, trying to keep out of this. But I have sat and looked at the Republican and Neo–Conservative Spin on this Story and I’m sick of it. 😡
So, I am giving you, the other side of the story, from the horses mouth; without commentary from me.
I did not ask that you agree, I simply ask that you listen and hear this man out. Now I am almost sure, that the Blogs, that I have linked to, will remove my trackback, like the Neo-Con Fascists that they are. I mean, it is all about controlling the message with those guys. 🙄
Here we go:
Part 1:
Part 2:
Media Q & A:
Media Q & A Part 2:
Media Q & A Part 3:
There you have it. The other side of the story. You decide.
(Source UAW.ORG)
Welcome to my World!: New Unemployment Claims Reaches 26-Year High
Video: (Via Breit Bart)
Back Story via AP:
New claims for jobless benefits rose more than expected last week, exceeding even gloomy expectations for an economy stuck in a recession that seems to be deepening.The Labor Department reported Thursday that initial applications for jobless benefits in the week ending Dec. 6 rose to a seasonally adjusted 573,000 from an upwardly revised figure of 515,000 in the previous week. That was far more than the 525,000 claims Wall Street economists expected.
Elsewhere, the U.S. trade deficit rose unexpectedly in October as a spreading global recession dampened the once-strong sales of American exports and the volume of oil imports surged by a record amount, the Commerce Department said.
More layoffs were announced Thursday. New Britain, Conn.-based tool maker Stanley Works said it plans to cut 2,000 jobs and close three manufacturing facilities, while Sara Lee Corp., known for food brands such as Jimmy Dean and Hillshire Farm, said it will cut 700 jobs as the Downers Grove, Ill.-based company outsources parts of its business.
New jobless claims last week reached their highest level since November 1982, though the labor force has grown by about half since then.
I have one thing to say about this; “Welcome to my World!” I’m glad to see that the rest of America has caught up with Michigan. 😀
However, I will say this, that there are people out there who are in worse shape then me. I have people to rely on, and some of them do not. Most, if not all, have mortgages to pay, mouths to feed and so on. So, while it might be easy to be flippant and write with snark about it, the reality is that this economic downturn is going to affect many people. 🙁
While some that read this Blog, especially those over at certain forum, which I will never link to, might think that I do not appreciate the situation I am in. The truth is, that nothing could be further from the truth. It is not lost on me how fortunate that I am. Never has been. I am very blessed, I really do know this. As I have written many, many times on this Blog, if were not for my parents, I would be living under a viaduct somewhere.
I am just hoping that things do turn around, with a new President and Congress, maybe, just maybe, jobs can come back to this area. I am hoping. I really am.
Until then. I will be writing here.
Has this economic crisis changed the way banks do business?
Citizen Economists asks the question, “Is this the End of Fractional Reserve Banking?”
It’s quite the interesting read.
Let’s Boycott Alabama
It seems that there is a grassroots effort to get a boycott Alabama, in response to the Alabama Senator Richard Shelby’s attempted stonewalling of the bridge loans to the Big Three. Well, it’s big two now, Ford will not be needing the help.
Anyhow, here is a e-mail written by my Mother, who is a spouse of a retired General Motors worker.
Senator Shelby,
I doubt that you read the emails sent to your office but perhaps it will be read by someone who will show you the many emails you are sure to receive, and will point out to you just how wrong you are. There are a lot of derogatory comments that could be made but I prefer to try to point out a few facts that you evidently have not wanted to know. My husband and my father are both General Motors retirees and I know firsthand from where I speak.
Perhaps you think the auto workers are wealthy, making that mysterious $75 an hour that has been bandied about in the media. Unfortunately that is very far from the truth. They have never made that much, even including benefits, and most of them live from paycheck to paycheck trying to make ends meet like most middle class people. If the auto companies go bankrupt as you desire, not only will the auto workers lose their jobs, but also jobs directly and indirectly connected, such as suppliers, stores and restaurants located near the plants and of course it will trickle down to the cities who will lose the tax revenues these plants produce. We are not only talking about Detroit and Michigan but every state that has a plant or plants belonging to the Big 3.
It’s odd to me that you think that two companies that have been in business for over 100 years and one that is over 83 years old do not know what they are doing. If this is true how do you explain the fact that they sell over 50% of the cars purchased in the world and have won many, many multiple awards over the years for their cars? Do you perhaps think that people are just too stupid or uneducated to realize they are buying an inferior product? And the award givers are too dumb to realize they are giving an award to a poorly built, not very innovative dinosaur? Maybe you need to voice that opinion in your next media interview. I’m sure people would be interested to hear it.
You need to come out of your office and meet with the GM, Ford and Chrysler workers themselves. Could you really look them in the face, knowing they have families to support and bills to pay and tell them you think they should join the ranks of the unemployed? Do you think it is their fault that the economy has taken such a downturn because of mismanagement on Wall Street, the banks and yes, the government?
The auto companies and the union are trying their best to jump through all the hoops the Congress is throwing at them, as ridiculous as some of them are. To let them go under will cause a depression like this nation has not seen in many years. I hope you think long and hard about that.
By the way, I fully support the boycott of your state.
Y’all see where I get the writing skills from? I was told that I could post that, as long as I did not sign her name.
Anyhow, if you’d like to join the grassroots effort boycott Alabama. Please go to the Official Boycott Alabama Page.
Well, they did call them “High Risk” Loans…
Seems that the people that defaulted on their mortgages, have defaulted again, even after all this aid that has been tossed around. So reports Reuters:
Recent data suggests that many borrowers who received help with mortgage modifications earlier this year tended to re-default on their payments, a top U.S. banking regulator said on Monday.
“The results, I confess, were somewhat surprising, and not in a good way,” said John Dugan, head of the U.S. Office of the Comptroller of the Currency, in prepared remarks for a U.S. housing forum.
“Put simply, it shows that over half of mortgage modifications seemed not to be working after six months,” he said.
Dugan said based on data collected from some of the biggest U.S. institutions, like Bank of America, Citibank and JPMorgan Chase, home foreclosure starts fell 2.6 percent in the three months ended in September.
However, data which is to be issued by the OCC and the Office of Thrift Supervision (OTS) next week could throw cold water on a push by some U.S. policymakers for loan modifications as the key remedy for the ailing U.S. financial and economic crisis.
Dugan said recent data showed that after three months, nearly 36 percent of borrowers who received restructured mortgages in the first quarter re-defaulted.
The rate of re-default jumped to about 53 percent after six months and 58 percent after eight months, Dugan said, without providing an explanation for the trend.
Regulators speaking at an OTS-housing forum did not provide any explanations for the causes behind the data.
“We don’t know the answers yet, but these are the types of questions that we have begun asking our servicers in detail,” Dugan said.
Sheila Bair, chairman of the Federal Deposit Insurance Corp, who has been pushing for fast and systematic loan modifications, said regulators need to examine re-default data more closely.
“I think it’s very important to look at this data carefully and know what it says and what it doesn’t say,” Bair said.
Dugan said the third-quarter report will show many of the same disturbing trends as other recent mortgage reports, as credit quality continued to decline across the board and delinquencies rose for subprime, alt-A and prime mortgages.
He said the report will also show that the greatest delinquencies were in prime mortgages.
I can tell you exactly what the answer is. You do not hand out mortgages to people that you know damned well that they cannot pay for them. That is the answer! This is why the Country, The Big Three and Wall Street are in the mess that they are in now, in the first place. Because fucking Bill Clinton and his team of morons decided to FORCE lending companies to gives loans to HIGH RISK persons, and they’re called that for a reason, they’re known not to pay their bills!
High Risk is called High Risk for a reason! Duh! Man, I could have told them that and I am a High School Drop out with A.D.H.D. 🙄
“Clue needed on Asle 5, Clue needed on Asle 5 Please.”
(Thanks Q & O)
Depression Parties?
That what Newsweek is reporting is the new trend.
Ronald Bailey over at Reason received an invite to one.
Depression-style refreshments will be served – stone soup, radiator cocktails, and spam (vegetarian and non-vegetarian).
Oy. What will they think of next? 🙄
Exit Question: Vegetarian Spam? Eeeww.
Oh, and… Will this be a featured song? :