Economy's distress deepens
Pelosi vows to have stimulus bill by Jan. 20
WASHINGTON — Most Americans knew it already, but now it's official: The country is in a recession, and it's getting worse. Wall Street convulsed at the news and a fresh batch of bad economic reports, tanking nearly 680 points.
With the economic pain likely to stretch well into 2009, Federal Reserve Chairman Ben Bernanke said Monday he stands ready to lower interest rates yet again and to explore other rescue or revival measures.
Rushing in reinforcements, Treasury Secretary Henry Paulson, who along with Bernanke has been leading the government's efforts to stem the worst financial crisis since the 1930s, pledged to take all the steps he can in the waning days of the Bush administration to provide relief. Specifically, Paulson is eyeing more ways to tap into a $700 billion financial bailout pool.
On Capitol Hill, House Speaker Nancy Pelosi, D-Calif., vowed to have a massive economic stimulus package ready on Inauguration Day for President-elect Barack Obama's signature.
That measure, which could total a whopping $500 billion, would bankroll big public works projects to generate jobs, provide aid to states to help with Medicaid costs and provide money toward renewable energy development. Crafting such a colossal recovery package would mark a Herculean feat: Congress convenes Jan. 6, giving lawmakers just two weeks to complete their work if it is to be signed on Jan. 20.
None of the pledges for more action could comfort Wall Street investors. The Dow Jones industrials plunged 679.95 points, or 7.70 percent, to close at 8,149.09.
It was another white-knuckle day, punctuated by grim economic reports. An index of manufacturing activity sank to a reading of 36.2 in November, a 26-year low, the Institute for Supply Management reported. Construction spending fell by a larger-than-expected 1.2 percent in October, the Commerce Department said.
Adding to the gloom, the National Bureau of Economic Research, a group of academic economists, concluded Monday that the country has been suffering through a recession since December 2007.
With NBER's determination, the United States has fallen into two recessions during Bush's eight years in office. The first one started in March 2001 and ended in November of that year.
The economy jolted into reverse in the final three months of last year. After a short spring rebound, it contracted again in the summer. Economists say it is still shrinking and will continue to do so through at least the first quarter of next year.
Unlike past recessions, consumers are bearing the brunt of this one. Clobbered by job losses, hard-to-get credit and hits to their wealth from sinking home values and plunging portfolio investments, consumers have cut back sharply on their spending, throwing the economy into chaos.
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purgatory420 (anonymous) says...
here's a good idea; how about cutting the government's already obesely bloated salaries in half. the money can go back into the pockets of hard working americans who actually DO something for the country. think we'd see change then? maybe they would stop slobbering all over each others genitals and focus on something other than their next self-induced pay raise. but its a sign of the times. noone cares about anything anymore unless they can make a quick and easy buck doing it. especially our filthy leaders. which is why the economy still falters. the government officials have yet to figure out how they will fill their guilded coffers at the expense of the middle class.
December 2, 2008 at 6:57 a.m. ( permalink | suggest removal )
islandbenzbc (anonymous) says...
Don't worry...the "messiah of change" takes over on January 20th!
December 2, 2008 at 7:11 a.m. ( permalink | suggest removal )
SimplyMad (anonymous) says...
Yes the economy is terrible, but its good to be king!
Barack Obama to buy rare $30,000 rhodium ring for his wife to say 'thanks for your support'.
Rhodium - source = South Africa! I love the shear hypocrisy of the left. Black miners working in dismal and disgusting squalor, for the first Afican-American first ladies $30K ring. The common man...right!
December 2, 2008 at 8:11 a.m. ( permalink | suggest removal )
islandbenzbc (anonymous) says...
SimplyMad: Great post! Change? No...the same old tax and spend by the democrats...
December 2, 2008 at 8:17 a.m. ( permalink | suggest removal )
roxiann (anonymous) says...
Why can't the media get it right? They now say we are in a recession for a year now (we knew that long before they said it!)Were they to busy predicting and manipulating the news to notice?
December 2, 2008 at 8:40 a.m. ( permalink | suggest removal )
GeecheeBoi84 (anonymous) says...
It may be in poor taste, but oh well... It's funny as S**T to see y'all boi truly "salty" as hell for once, lmao! White folks are still in control of damn near everything, Obama merely gets "elected" (not even appointed to office yet), and y'all are already whining and crying.... Say what ya will, this post isn't intended to be politically or socially correct in any way. I just find this s**t highly amusing... But, I'ma tell y'all -- and all the other fools on P&C boards who feel their sentiments are just as important -- the same thing people told those upset after the 2004 election... "SHUT UP, SUCK IT UP, and yes, he IS your president!"
NOBODY likes change when it's not in their favor! But be a f***ing adult and deal with it...
Quality post, purgatory420!
December 2, 2008 at 8:47 a.m. ( permalink | suggest removal )
SimplyMad (anonymous) says...
GeecheeBoi84 - LOL, you seem to be the one that needs to get a grip. I like to point out that Obama is no different than any other politician. He doesnt care about you or the economy or the poor black folks digging for diamonds and metal in dung holes in South Africa, to supply his wife a $30k ring! No change, just the same ole smae ole.
December 2, 2008 at 9:14 a.m. ( permalink | suggest removal )
SimplyMad (anonymous) says...
Jim_notcase_Islander, you cant blame all of this on Bush.
President Bush has publicly warned of possible financial failure of the government-sponsored Fannie Mae and Freddie Mac enterprises. Furthermore, the president put forward thoughtful plans to reduce the risk.
Each time he gave the warnings, Congress ignored them. This year (2008), President Bush, expecting the worst to happen, publicly called for reform 17 times and again Congress went about their own business of doing nothing, so the warnings went unheeded.
Fannie Mae and Freddie Mac Invest in Lawmakers;
Recipients of Fannie Mae and Freddie Mac Campaign Contributions, 1989-2008
Dodd, Christopher $165,400
Obama, Barack $126,349
At a 2004 hearing, see Democrat after Democrat covering up to protect Fannie Mae and Freddie Mac (their Cash Cows) from suggested regulations by Republicans
http://www.youtube.com/watch?v=hN31-n...
Change? $30K ring for Mrs Obama, and what are the manufactures of Rhodium conserned about?
"The mining community in South Africa is suffering from the high number of people with Aids working in the industry.
The epidemic is continuing to grow in South Africa, resulting in more money being spent by employers on everything from hospital treatment to training up replacements for those suffering with or killed by the virus.
The big platinum producers are likely to lose around R21.9 million this year to Aids, through reduced production and increased training and treatment costs, Mr Fourie added."
December 2, 2008 at 9:28 a.m. ( permalink | suggest removal )
SimplyMad (anonymous) says...
My goodness Jimbo, you are such a race baiter. Why do you have to be such a bitter preson? I am just pointing out the hypocrisy of the left and your new (half) black president.
You need serious help, hang in there, free mental health is on the way.
I wonder how many of Obama's family, his aunt in public housing (illegaly) and brother living in a shanty in Kenya, could he help with that $30k? Just hypocrisy.
December 2, 2008 at 9:47 a.m. ( permalink | suggest removal )
SimplyMad (anonymous) says...
Jimbo, jimbo, jimbo....
The Economic Impact of South Carolina's Military Bases
* A total of $7.3 billion in sales accrues annually to South Carolina businesses because of the military's overall presence in the state. Of this total, $5.9 billion is due to military base operations, $1.3 billion is due to the in-state spending of military retirees, and just under $100 million is due to military-related visitors.
* Across South Carolina, a total of nearly 142,000 jobs are directly or indirectly supported by the presence of the military. This job total represents nearly 8 percent of total employment in South Carolina. Of this job total, about 54,000 are jobs located directly at military bases; the remainder are spread across virtually every sector of the state's economy.
SUMMARY OF MILITARY IMPACTS IN SOUTH CAROLINA
* The military's presence supports about $5.1 billion annually in personal income for South Carolinians. Again, this income flows throughout the economy, not just to those directly employed at the military installations.
* The total impact of the military on businesses in the Midlands amounts to $2.3 billion each year. This economic activity helps support 55,500 jobs and $1.9 billion in personal income in the Midlands area.
* The military's impact in the Charleston area amounts to $3.5 billion worth of sales at local businesses, a total of 64,300 jobs, and $2.2 billion in personal income.
http://www.allbusiness.com/government...
http://www.crda.org/news/local_news/r...
http://www.ers.usda.gov/publications/...
December 2, 2008 at 10:37 a.m. ( permalink | suggest removal )
iceman1978 (anonymous) says...
The economic situation we're in has been a long time coming. Although I consider the Bush administration to be one of the most corrupt and incompetent in recent memory; I don't hold them solely accountable for what's happened to our economy. To some extent I believe that both parties are to blame for this.
December 2, 2008 at 10:52 a.m. ( permalink | suggest removal )
dhshjh (anonymous) says...
JimIslander.... No where did I see SimplyMad talk about race. You are the one bringing up race. Boy you are sure an angry person. He was just talking about a $30,000 ring our new president,(regardless of race),is buying for his wife while most of us can't even buy food in this economy..."Just because he is a cheapskate and bought his wife a cheap piece of junk ring he thinks anyone who does otherwise is doing something wrong."...I'm glad that you can afford that much on a ring. I sure can't.
As far as both parties being at fault, I definitely agree. Bush couldn't do this himself, it took the help of our great democratic congress.
December 2, 2008 at 11:51 a.m. ( permalink | suggest removal )
AFWally (anonymous) says...
The 1/2 caucasian Obama can only change what he's allowed.
December 2, 2008 at 12:17 p.m. ( permalink | suggest removal )
ColdBud (anonymous) says...
Both political parties are most definitely to blame for the economic mess that we are in now... too a point. Waste, fraud and abuse in all of our government programs (local, state and federal) had a major part in bringing us to out current state. Politicians are not the only ones to blame though. Neither are banks and mortgage companies. People that have tried to live beyond their means shoulder a lot of the blame. Having families that you can't afford to properly raise and support, buying vehicles and homes that you can't afford to pay off, saying "yes" to every credit card offer that shows up in your mailbox or at the check out register.
We may be in a recession, but it hasn't affected me in the least so far. It'll have to get much worse before it does affect me and my family. Why? We don't spend beyond our means or commit to credit that we cannot afford. We have a very large "buffer" built in to our budget. Bush, Clinton, Bush Sr., Regan, Carter and many other Presidents contributed to this mess. So did we... as a public.
I hope Obama leads us in the right direction. I'll reserve judgment until he takes office and starts taking action. I will admit though that I am concerned about the high number of Clintonites he's placing in his cabinet. I fear we're in for more of the same old political crap we've dealt with for decades.
December 2, 2008 at 12:53 p.m. ( permalink | suggest removal )
mkris (anonymous) says...
The communications for Obama's transition, Dan Pfeiffer, flatly denied a Daily Mail report that Obama is buying an exotic $30,000 ring to thank his wife "for her support during the election."
Thank you to the Right wing-nuts who posted the rumor about a ring;/
December 2, 2008 at 1:52 p.m. ( permalink | suggest removal )
ColdBud (anonymous) says...
I really don't care how he spends his personal money. I can't think of a better way to spend money than making one's wife happy. He's wealthy. Everyone already knows that. Who cares how he spends his personal money as long as it doesn't show a trend towards irresponsibility. If I had his money, I'd put $30,000 down on a new bass boat for my wife in a heart beat :)
December 2, 2008 at 2:01 p.m. ( permalink | suggest removal )
iceman1978 (anonymous) says...
What is the big deal if Obama spent $30,000 on a ring? If you earn your money and have worked for what you have; you should be proud of it. To criticize Obama for spending that kind of money on jewelry for his wife is along the same lines of those people on television who whine and try to guilt people into sending money for starving people in various third-world hell holes. We've all seen the commercials right? For just a dollar-a-day:blah, blah, blah.
When you've worked for what you have, you apologize to no one.
December 2, 2008 at 2:49 p.m. ( permalink | suggest removal )
SimplyMad (anonymous) says...
Even money says it is NOW a rumor...we shall see.
If he earned it and wants to spend it, fine, the left are all to quick to point out the spending habits of the evil rich and how they dont care about the "poor", it is pure hypocrisy.
I love the way Obama and the left tell us how we should live and spend our money, but when it comes to them....its their money and they can spend it anyway they want.
Typical elitist BS.
December 2, 2008 at 3:14 p.m. ( permalink | suggest removal )
iceman1978 (anonymous) says...
SimplyMad, You won't find me saying that. If Obama were a conservative my position would remain the same.
December 2, 2008 at 3:56 p.m. ( permalink | suggest removal )
SimplyMad (anonymous) says...
iceman1978 - no problem, you are consistant.
So are the leftist elite;
Reid: Capitol Visitor Center Will Minimize 'Smell' of Tourists
Senate Majority Leader Harry Reid is looking on the bright side as the Capitol Visitor Center opens years behind schedule and millions over budget.
The Capitol Visitor Center is opening years behind schedule and millions over budget, but at least it's got good ventilation.
That was Senate Majority Leader Harry Reid's take at the official dedication for the center Tuesday morning, as he quipped that members will no longer have to "smell the tourists" on hot summer days.
"My staff has always said, 'Don't say this,' but I'm going to say it again because it's so descriptive because it's true," Reid said.
He referenced House Minority Leader John Boehner's comments about the long lines of tourists that stream into the Capitol complex, and said: "In the summertime, because (of) the high humidity and how hot it gets here, you could literally smell the tourists coming into the Capitol."
http://www.foxnews.com/politics/2008/...
December 2, 2008 at 5:40 p.m. ( permalink | suggest removal )
lillycollette (anonymous) says...
*
December 2, 2008 at 6:23 p.m. ( permalink | suggest removal )
rollo (anonymous) says...
SimplyMad,
JimIslander is actually Jeff Dunhams' 'Walter'.
How do you carry on a serious discussion with a wooden head on a stick?
December 2, 2008 at 9:01 p.m. ( permalink | suggest removal )
rollo (anonymous) says...
"Recession" is an objective term. Opinion has no place in determining the onset of, or the recovery from a recession.
Look it up!
December 2, 2008 at 9:09 p.m. ( permalink | suggest removal )
Pluffmuddy (anonymous) says...
JimIsle, you must've been asleep in Civics class when they told everyone else that CONGRESS makes the laws... SO, how's it make you feel that THEIR 73% NEGATIVE approval rating is actually to blame for our current crisis??? You're an idiot if you think you can pin this on W...
December 2, 2008 at 10:22 p.m. ( permalink | suggest removal )
stonehead (anonymous) says...
SMad - I bet you are just a little rumor mill with that Obama buying $30k ring thing. But even if it is true, the couple made $4 million a year. There is nothing wrong with buying a few of those things with his own money.
How about your idol Sarah Pailin, who makes only $200k a year but somehow felt no reservation to spend $150k of other people's money to buy wardrobes for herself?
BTW I don't think Pailin is a bad person. But spending that kind of money on clothing just seems to me a pretty bad judgement. It would have made more sense if she spent it on, well, $30,000 dimond rings.
December 2, 2008 at 10:32 p.m. ( permalink | suggest removal )
yird (anonymous) says...
stonehead; If you weren't a bone head you would know that Palin didn't buy any of those clothes. Her handlers did and they were all relinquished by her after the election.
Palin for President 2012.
December 2, 2008 at 11:34 p.m. ( permalink | suggest removal )
stonehead (anonymous) says...
yird - Sounds like you are one of her "handlers". You know her so well you can buy clothes for her without her trying them on or even seeing them.
Yah she is "relinquishing" them, but does it get your money back? Perhaps you can pick up some of those wardrobe cheap. You might look good in it while it's still in style.
Can't wait for Palin 2012. I enjoy the great laughs on SNL.
December 2, 2008 at 11:55 p.m. ( permalink | suggest removal )
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