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Obama MTP Interview: Obama Big Three automakers ‘strategic mistakes’

Project Would Be the Largest Since the Interstate System

President-elect Barack Obama shakes hands with Florida Governor Charlie Crist as Illinois Governor Rod Blagojevich looks on during a bipartisan meeting

President-elect Barack Obama shakes hands with Florida Governor Charlie Crist as Illinois Governor Rod Blagojevich looks on during a bipartisan meeting

On the heels of more grim unemployment news, President-elect Barack Obama yesterday offered the first glimpse of what would be the largest public works program since President Dwight D. Eisenhower created the federal interstate system in the 1950s.

Obama said the massive government spending program he proposes to lift the country out of economic recession will include a renewed effort to make public buildings energy-efficient, rebuild the nation’s highways, renovate aging schools and install computers in classrooms, extend high-speed Internet to underserved areas and modernize hospitals by giving them access to electronic medical records.

“We need to act with the urgency this moment demands to save or create at least 2 1/2 million jobs so that the nearly 2 million Americans who’ve lost them know that they have a future,” Obama said in his weekly address, broadcast on the radio and the Internet.

Obama offered few details and no cost estimate for the investment in public infrastructure. But it is intended to be part of a broader effort to stimulate economic activity that will also include tax cuts for middle-class Americans and direct aid to state governments to forestall layoffs as programs shrink.

House Speaker Nancy Pelosi (D-Calif.) has called for spending between $400 billion and $500 billion on the overall package. Some Senate Democrats and other economists have suggested spending even more — potentially $1 trillion — in the hope of jolting the economy into shape more quickly.

Read it all…

Nice background today! I wonder if that’s a view of Chicago out the window.

President-elect Barack Obama lays out key parts of Economic Recovery Plan >> Transcript here

Treasury Secretary Henry M. Paulson Jr. spoke at a news conference at the Treasury Department on Tuesday in Washington.

Treasury Secretary Henry M. Paulson Jr. spoke at a news conference at the Treasury Department on Tuesday in Washington.

The United States government unveiled $800 billion worth of new loans and debt purchases on Tuesday, hoping another massive infusion of cash would smooth troubled credit markets and make borrowing easier for homebuyers, small businesses and students.

The Federal Reserve said it would buy up to $600 billion in mortgage-backed assets from government-sponsored mortgage giants Fannie Mae and Freddie Mac. It would buy up to $100 billion in debt directly from the companies and up to $500 billion in mortgage-backed securities.

“This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally,” the Federal Reserve said in a statement.

Separately, the Fed and Treasury Department announced a $200 billion program to ease commercial lending on debt like student loans, car loans or business loans. The Fed would lend up to $200 billion to holders of asset-backed securities supported by car loans, credit card loans, student loans, and business loans guaranteed by the Small Business Administration.

The program would be seeded with $20 billion in “credit protection” from the Treasury Department, which is drawing the money from the original $700 billion bailout.

“It gives institutions liquidity and it’s clearly direct lending that will help consumers,” Treasury Secretary Henry M. Paulson Jr. said Tuesday at a news conference.The announcements came one day after President-elect Barack Obama unveiled his economic team and tried to assure Americans that he was seeking to fill any leadership vacuum, and said his economic advisers would begin working “today.” The advisers include Timothy F. Geithner, his choice for Treasury secretary. 

 nyt-logoprinter

Something for the prediction lovers out there!
He’s someone who says things are going to be looking up!

11-11-2008-7-55-03-am1

By Jonathan Mann

(CNN) — Who is the president of the United States? The real president?

Right now, the US may have two of them — neither entirely up to the job.

In constitutional terms, George W. Bush occupies the Oval Office until his term ends on January 20 with the inauguration of his successor.

But a new CNN/Opinion Research Poll finds that Bush is the least popular president since pollsters first began measuring approval ratings half-a-century ago.

His Republican party has, of course, just been defeated in presidential and congressional elections and many Republicans blame him personally. Democrats blame him for a whole lot more. So even though the calendar gives him two more months, he has virtually no mandate left.

Barack Obama isn’t president. His supporters in the United States and around the world can barely contain their excitement about what’s ahead, but for now he has only the nebulous position as the next guy in line, the “president-elect.”

In constitutional terms, the president-elect doesn’t have any legal authority, but that hasn’t stopped him. Obama is exercising all the authority he can.

He’s come forward quickly to talk about his plans. He’s pushing Bush to support a bailout for the US auto industry before Bush leaves office. Obama’s made it clear that he expects measures for the economy from the Congress too.

“While we must recognize that we only have one president at a time and that President Bush is the leader of our government, I want to ensure that we hit the ground running on January 20 because we don’t have a moment to lose,” Obama said.

There are 11 weeks between the election and the inauguration, the in-between time known as the Transition. But Obama is compressing the calendar.

It could be that the crisis in the US economy demands strong leadership right now and the American people expect him to offer it. It could also be that Obama doesn’t want to wait.

“He is immediately muscling his way into power,” complains former Bush speechwriter David Frum. “Barack Obama said at his first press conference that the US has only one president at a time. He didn’t say who that president was.”

Maybe there isn’t just one president – more like two half-presidents, one wounded and one waiting, and both trying to make the most of the two months ahead.

Source: CNN

green-job-crossroads

President-elect Barack Obama is hearing from private sector economists, and some members of his economic advisory team that Congress should consider — and he should sign into law in January — a far broader stimulus package than anyone has publicly discussed to date.

Instead of $300 billion dollars, which has been the upper limit, they are now talking about $500 billion, which is 3 to 4 percent of GDP.

These advisers are looking at analysis that says next year unemployment could top eight percent, private sector spending could drop six percent of GDP, and the Federal Reserve is basically out of room to do anything more with monetary policy.

So they argue the nation’s economy will need that injection of capital.

How? They’re talking about implementing it through infrastructure — roads and bridges. Tax cuts. Investments in so-called green-jobs and alternative energy development. Unemployment extensions. And other aid to state and local governments.

But the big question is: how do you get the stimulus without making it permanent spending that increases the deficit over the long term?

President-elect Barack Obama has made no final decisions on a stimulus package, but this is what they’re contemplating right now.

Source: ABC News

11-11-2008-7-55-03-am

On the day that President-elect Barack Obama visited the White House, a new national poll illustrates the daunting challenges he faces when it becomes his home next year.

Only 16 percent of those questioned in a new CNN/Opinion Research Corporation survey released Monday say things are going well in the country today. That’s an all-time low. Eighty-three percent say things are going badly, which is an all-time high.

“The challenge Obama faces has never been greater. No president has ever come to office during a time when the public’s mood has been this low. In the 34 years that this question has been asked, the number who say things are going well has never fallen below 20 percent,” said Keating Holland, CNN’s polling director.

The 83 percent saying things are going badly is “more than in 1992, when the first President Bush was ousted because of ‘the economy, stupid.’ That’s more than in 1980, when President Carter got fired after the malaise crisis. That’s more than in 1975, after Watergate and the Nixon pardon,” said Bill Schneider, CNN senior political analyst.

So far, Obama seems to be meeting the public’s high expectations. Two-thirds of all Americans have a positive view of what he has done since he was elected president, and three-quarters think he will do a good job as president.

Click to enlarge

Click to enlarge

The all-time low on the public’s mood may have something to do with the poll’s finding that President Bush is the most unpopular president since approval ratings were first sought more than six decades ago. Seventy-six percent of those questioned in the poll disapprove of how he is handling his job.

That’s an all-time high in CNN polling and in Gallup polling dating back to World War II.

“No other president’s disapproval rating has gone higher than 70 percent. Bush has managed to do that three times so far this year,” Holland said. “That means that Bush is now more unpopular than Richard Nixon was when he resigned from office during Watergate with a 66 percent disapproval rating.”

Before Bush, the record holder for presidential disapproval was Harry Truman, with a 67 percent disapproval rating in January of 1952, his last full year in office.

Source: CNN

johnmccainholdscampaignrallyofallon0vqrvimmhaxl

John McCain’s chaotic operation may well rank among recent history’s least successful efforts.

The GOP presidential campaign of 2008 will certainly be one that historians discuss for years to come. But not in the way that some Republicans had hoped for when they selected an experienced maverick, loved by the media, to face off against an inexperienced African-American who had trouble vanquishing his opponent in the primaries.

To be fair, the odds were stacked against any Republican. The economy has suffered while the incumbent president was phenomenally unpopular. Democrats were well organized and well financed. They found, in Barack Obama, an exceedingly charismatic and dynamic candidate.

But nothing is inevitable in American politics. A strong campaign, combined with the issue of race and fears about Obama’s inexperience, could have produced a different outcome.

History is filled with examples of campaigns marked by bad decisions and poor performances that undermined their chances of victory. In 1964, Republican Barry Goldwater made statements that allowed President Lyndon Johnson to depict him as a candidate too far out of the American mainstream. Eight years later, Richard Nixon returned the favor to Democratic Sen. George McGovern, who had put together a campaign that appealed to the New Left and other activists inspired by 1960s activism but failed to bring in traditional Democratic constituencies such as organized labor. In 1988, Democrat Michael Dukakis was the proverbial deer in the headlights when Republican Vice President George H.W. Bush and his team redefined the technocratic Massachusetts Democrat into an extreme card-carrying ACLU liberal who let out murderers on weekend furloughs. Bush then stumbled in 1992 with his tin ear about the economic recession. In 1996, Republican Robert Dole ran a lethargic campaign that emphasized nostalgia and suspicion while President Bill Clinton ran around the country boasting about peace and prosperity. During the last election, Sen. John Kerry didn’t adequately defend himself against “Swift-Boat” attacks.

arab-mccain

But Team McCain ran a campaign that ranks on the bottom of this list. This was an aimless and chaotic operation made worse by poor choices at key moments. Their first mistake was picking Gov. Sarah Palin. Though in the first week following her selection, Palin energized the conservative base of the GOP, she became a serious drag on the ticket. This turned into one of the worst picks since McGovern selected Thomas Eagleton, a Missouri senator who withdrew after revealing that he had gone through electroshock therapy and suffered from “nervous exhaustion.” By picking Palin, McCain simultaneously eliminated his own best argument against Senator Obama—the limited experience of his opponent—while compounding his own most negative image, that of someone who was erratic and out of control. The pick also fueled the feeling that grew throughout September and October that the Republican candidate was willing to take any step necessary to win the campaign. The Palin pick made every decision that followed seem purely political.

The second mistake was going dark. McCain missed the biggest lesson of the Reagan Revolution: conservatives usually do best when they appeal to America’s optimism and develop a positive campaign around a vision for the country. President George W. Bush understood this in 2000, stressing compassionate conservatism, and in 2004 he couched his candidacy in an optimistic argument about how the Bush Doctrine could strengthen America against terrorism and restore the kind of security that seemed lost after 9/11.

McCain and Palin rejected this approach, instead putting together a campaign that was almost entirely negative and focused on attacking their opponents. They sounded much more like Goldwater in 1964 than Reagan in 1980, opening themselves up to Obama’s charge that they were willing to divide the nation for the purpose of winning the election. They called Obama a socialist, an extremist and even linked him to a terrorist. The campaign got so out of control that a man at one Palin rally yelled “Kill him!”. McCain had to restore order at a town meeting when one woman explained how scared she was of having an “Arab” in office. Still, the McCain campaign continued to run advertisements connecting Obama to 1960s radical Bill Ayers.

11-6-2008-3-29-20-pm

The third mistake was the “no-state” strategy. In contrast to Obama’s “50-state” strategy whereby Democrats hoped to win support in red states, the Republican ticket moved from one state to the next without any clear rationale. Just as the Republicans lacked a broader vision, they also lacked a clear electoral strategy. From the start, they were playing catch-up and allowing Democrats to drive their decisions. The goal seemed to be courting support only when polls were narrowing rather than deciding in which states to focus their efforts. While Democrats systematically laid out their organizational and financial efforts, Republicans scrambled from one place to the other.

The fourth mistake was the way McCain handled the crisis on Wall Street. McCain’s decision to temporarily stop the campaign and possibly call off the debate at the start of the Wall Street crisis in September looked terrible. McCain often looked a lot like President Bush in 1992: uncertain about what to do about the economy and at many moments not seeming to care. In contrast, Obama’s decisions and performance seemed presidential.

McCain’s final mistake was to leave his most politically powerful argument until it was too late. While there were many problems with Joe the Plumber, the argument could have been used much more effectively against Senator Obama: that the Democratic ticket was too left of center, especially on the issue of taxes. Toward the end of the campaign, McCain picked up some steam in states like Ohio and Pennsylvania. But the argument came much too late and at a point when many Americans had become so cynical, and turned off, by the Republican campaign that McCain could not restore his strength.

Now, the McCain-Palin campaign will be added to the list of devastated losers. The odds against the Republican ticket were formidable as any political scientist will tell you. But McCain could have put up a more effective fight. Perhaps the best outcome for Republicans would be if they took the campaign to heart, learned from their mistakes, and figured out for the next time around how to put together a campaign that looks more like 1980 than 1964. At the same time the next GOP candidate needs to look toward the future, realizing that at least when it comes to the economy, the conservative era has finally come to an end.

Julian E. Zelizer is a professor of history and public affairs at Princeton University’s Woodrow Wilson School. He is the co-editor of “Rightward Bound: Making America Conservative in the 1970s” and is completing a book on the history of national-secu rity politics since World War II, to be published by Basic Books.

newsweek_logo

 

John McCain and his wife – are in a unique group in America – their wealth means that they fall into the top 1% – 2% income gap. His big idea – is that the wealthiest should have more – in order – to in a father-like fashion – have some of their wealth trickle down – to all the social classes below.

It is with this thought that – John McCain believes that the 3% tax increase that Obama intends to put on earnings/profits over $250,000 – that existed during the Clinton era – the same era that saw the biggest economic expansion in US history – that is tax code is equivalent to socialism, welfare and a government hand out.

Even today as the U.S. Treasury is being pillaged by corporate America, there has been an absence of any significant economic middle class(*) backlash here in America. As the wealth gap between the middle class and upper class has increased more than any time in our history, Americans seem to be mostly helpless in stemming this trend toward inequality.

Will the tide finally turn during an Obama Presidency? After analyzing Obama’s economic positions (including health care, tax policies and budgeting), most economists say “yes!”

After eight years of the Bush Presidency, McCain style deregulation and tax policy that favors the rich, the American middle class has been taken hostage and told they will lose everything (trickle down financial ruin) if they do not bailout the big banks, investment firms and insurance companies. Bush & Cheney have perfected the panic mode wealth transfer that Naomi Klein describes so well in “The Shock Doctrine.” This multi-trillion-dollar parting gift is their payback to the upper class that helped orchestrate their election.

the wealth gap between the middle class and upper class has increased more than any time in our history

The U.S. Treasury gained support for the bailouts by promising stricter rules on grossly excessive executive compensation. But now we find out that financial workers at Wall Street’s top banks — the greedy ones that got us into this mess in the first place — are going to receive payouts worth more than $70 billion and, according to the Guardian, “… a substantial proportion of which is expected to be paid in discretionary bonuses, for their work so far this year – despite plunging the financial system into its worst crisis since the 1929 stock market crash.”

Last year, for instance, Merrill Lynch’s chairman Stan O’Neal took a golden parachute deal worth over $160 million, after announcing losses of nearly $8 billion at his firm. Did Mr. O’neal’s labor bankrupting Merrill Lynch really justify $159,935,000 more dollars from society than a teacher or fireman?

The politics of capitalism attempts to fool us into believing in extreme individualism –e.g., that every man is an island. But, the truth (starkly exposed by Mainstreet needing to bailout Wallstreet) is that we are closely interconnected even if worlds apart in wealth and influence. Mr. O’Neal taking $160 million out of the money system to spend on extravagances, does effect the teacher and fireman via the national debt they will incur to bailout Mr. O’Neal / Merrill Lynch.

we find out that financial workers at Wall Street’s top banks — the greedy ones that got us into this mess in the first place — are going to receive payouts worth more than $70 billion

Where did the billions of dollars lost by the banks go? Did the money just evaporate? No. Most of it went to these huge CEO and executive payouts to expand the obscene wealth of the upper class. Someone has to pay for the mega-yachts, extravagant parties, multiple mansions and other extravagances of the rich. If you want to see where your money is going, just tune into “Lifestyles of the Super Rich.”

Once again, responsible hard-working citizens are paying for the lavish lifestyles and reckless financial abandon of the upper class. How ironic that the same institutions that have been feeding off the middle class like leeches for decades (via unreasonable fees, large interest rate spreads, insurance rate hikes, hyped-up investment schemes, etc.), are now begging for more blood money.

The middle class and poor get crumbs from measly “bailouts” such as the lackluster sub-prime mortgage assistance program and a tax rebate check for $600; while the rich get more tangible bailouts to the tune of billions. Capitalism for the middle class, socialism for the rich, indeed! This is what you get when corrupt Republicans and the Corporate sociopathic personality rule the economy. One of the ways to change this dynamic is to remove corporation’s status as a separate entity unbound by individual consequences and place more responsibility on the executives that direct corporate actions.

though the “upper middle class,” “lower middle class,” “working class,” and “lower class,” combine to make up 99% of the United States population, the remaining 1% owns about one third of private wealth.

We need to end the the welfare era for the rich via tax cuts, Halliburton / war “no bid” handouts, oil company gouging and corporate bailouts. Instead, the American government needs to lift the middle class with investments in education, job training, energy independence (from domestic oil companies too!), health care and economic programs such as small business development and tangible mortgage assistance.

The only choice for fiscal conservatives in this election is Obama. By electing Obama POTUS and other fiscally sympathetic representatives, the middle class can then exercise its newfound power over insurance companies, corporations and bankers. You want us to bail you out? Here are some of our demands:

1) Corporations and the rich need to pay higher taxes, period. We are tired of hearing that higher corporate and upper class taxes will increase the jobless rate and slow the economy.

Even Warren Buffet (an Obama supporter) says that our current tax system unfairly puts more of the tax burden on the working class than the rich. The rich pay more taxes as a total collected, but much less of a percentage as the middle class.

Mr. Buffet goes on to say, “There’s class warfare, all right,” Mr. Buffett said, “but it’s my class, the rich class, that’s making war, and we’re winning.”

2) We want tougher consumer regulations on the insurance, credit card and banking industries along with fair mortgage lending practices. It’s time for Wallstreet, insurance company’s and banks to forgo some of the excessive profits we have seen in the past and pass savings along to their clients.

3) Middle class and small business tax cuts. It’s time for some “trickle up” economics.

When Obama becomes President of the United States with a Democratic Congress, the middle class will once again have a strong voice in national politics. If you were advising Obama as he begins his Presidency in 2009, what policies would you suggest he initiate to stimulate and strengthen the economy and middle class (instead of corporate bailouts)?

(*For this (HP) blog’s purpose I’m referring to the “middle class” as everyone who is not in the “upper class.” Even though the “upper middle class,” “lower middle class,” “working class,” and “lower class,” combine to make up 99% of the United States population, the remaining 1% owns about one third of private wealth.)

Source: HP

How to rack up debt seems to be the first lesson many American college kids learn these days. In Bloomington, the staff at the famed Mother Bear Pizzeria consists of mostly Indiana University students working their way through school. Catching the rare free moment between orders, workers explained the stress they are feeling in these rocky economic times. The recent credit crunch at the banks and the chaos on Wall Street has already added to their worries – undercutting family credit records, draining stock funds, and causing some students to question what their future will hold.

ANP


Now that FNC has reinvented itself as the “24-hour ACORN and Ayers” network, it’s more obvious than ever that they don’t give a damn about the pocketbook issues facing middle-class Americans.

Based on a search of closed caption data gathered since Sunday, FNC has mentioned the GOP’s favorite issues (ACORN and Ayers) nearly thirty percent more frequently than they mentioned the GOP’s least favorite issues, the economy and the middle class.

The numbers are staggering:

  • Combined, FNC has mentioned “ACORN” or “Ayers” 1,231 times
  • Compare that to 963 references to “economy” or “middle class”

FNC’s propaganda puts it out way out on a limb. Combined, MSNBC and CNN have made 798 references to ACORN or Ayers. Remember, that’s both networks, combined.

Put another way, FNC has mentioned ACORN or Ayers 50% more often than both of its competitors put together.

::: :::

Raw Numbers:

 

FNC

MSNBC

CNN

ACORN

706

67

112

AYERS

525

340

279

Economy

826

1032

954

“Middle Class”

137

170

163

 

A special thanks to Beyond Media for loaning me an evaluation unit of a Snapstream Enterprise Server, which I used to generate these numbers.

Source: Daily Kos

Although McCain says ‘I’m a Fighter’ no one history has made a comeback – from being 10 points down in the polls 3 weeks before the election – to win. Everyone is wondering – what’s McCain’s message – and maybe he should make that clearer – but I think what has happened is that people have heard his message and haven’t bought it. Tax cut proposals for multi-millionaires and billionaires – while the average person is losing their jobs or seen money tighten through higher prices. And because of the US administration of which John McCain belonged – not only the US economy, but economies around the world have been rocked by decisions John McCain and his trusted economic adviser made – the economic adviser one who was saying America has become a nation of whiners – and the recession was in people minds.

Sen. John McCain has said he wants to shift the national dialogue away from the ongoing economics crisis and onto Sen. Barack Obamas character, and will likely use the stage of tonights debate to do just that.

Sen. John McCain has said he wants to shift the national dialogue away from the ongoing economics crisis and onto Sen. Barack Obama's character, and will likely use the stage of tonight's debate to do just that.

Obama Wants to Talk About the Economy; McCain Wants to Talk About Obama

Sen. John McCain has said he wants to shift the national dialogue away from the ongoing economics crisis and onto Sen. Barack Obama’s character, and will likely use the stage of tonight’s debate to do just that.

When the candidates meet tonight at Belmont University in Nashville, Tenn., for their second of three debates, the pressure will be on McCain, who is trailing in the polls, to convince people to reconsider their priorities as well as their votes.

That means continuing his campaign’s strategy of attacking Obama’s judgment, analysts said.

“He’s got a very difficult task ahead of him,” said Torie Clarke, a Republican strategist and ABC News political consultant. “He has to do something different. He has to say something that will change the game. He has to inject something into the system that will shake things up, because right now, it does not look good.”

Tonight’s town hall style debate is moderated by Tom Brokaw of NBC News. Brokaw will ask six or seven of the more than 6 million questions submitted over the Internet.

Another dozen or so questions will be asked by a group of 80 undecided voters from the Nashville area selected by the Gallup Poll.

Questions on both domestic and foreign policy will be followed with a two-minute response by each candidate and then a minute of open debate between the two.

McCain favors the town hall format and has previously challenged Obama to other town hall debates, but he arrives tonight at a moment when people say they are deeply dissatisfied with the current Republican administration and worried about their financial futures.

Down in the polls in the key battleground states, McCain and his running mate, Alaska Gov. Sarah Palin, went on the offensive this weekend, aggressively attacking Obama for his association to 1960s radical William Ayers, a move some see as part of a last-ditch attempt to revive a flagging campaign.

Source: ABC News

People all across the country are suffering the fallout from Wall Street’s financial H-Bomb. ANP producer David Murdock and McClatchy Newspaper journalist Tony Pugh have set out on a journey across America to see how economic shock waves from last week’s DC drama are being felt across the land. Their road trip begins in the well-heeled town of Greenwich, Connecticut, where mountains of Wall Street money have created a community seemingly isolated from the tribulations of the common man, but even here, some cracks are beginning to show and those who depend on the rich are beginning to feel the pain.

Source: ANP

Dow slids below 10,000, watched by trader Arthur Cashin wearing a 'Dow 10,000' hat that was given out when the index first hit 10,000 on March 29, 1999

Dow slids below 10,000, watched by trader Arthur Cashin wearing a 'Dow 10,000' hat that was given out when the index first hit 10,000 on March 29, 1999

US stock markets slumped sharply with the Dow Jones falling through the psychologically important 10,000 mark for the first time since October 2004 amid fears that the fallout from the credit crisis will push the country deep into recession.

The Dow Jones fell 569.8 to 9755.5, with the S&P 500 off 64.2 at 1035.0 despite moves by the Federal Reserve to instill confidence in the financial system through capital injections.

Nearly a quarter of the stocks on the New York Stock Exchange hit new lows within an hour of the opening of the markets, with every stock in the Dow Jones index down on the day.

The S&P 500 was flat to its trading level 10 years’ ago, leading US commentators to speak of a “lost decade” in equity markets.

The stock market slumps followed similar moves in Europe where the FTSE 100 was on course for its biggest one-day fall in more than 20 years.

The index of leading shares was down almost 9pc at one stage – the biggest decline since the aftermath of Black Monday in October 1987.

A host of the UK’s biggest banks were rocked by turmoil across the European banking sector, with Royal Bank of Scotland falling 22pc at one stage. Mining stocks were also hit, dragged down by fears of falling demand in the face of a growing global slowdown.

Germany’s Dax was off 7.4pc while the Cac-40 in France fell 8.2pc and Italy’s benchmark S&P/Mib fell 9.17pc – its lowest level since the index was established in September 2004.

Traders in the US said the only way to halt the decline, even temporarily, was for central banks around the globe to push through co-ordinated interest rate cuts.

“There is no support to halt share declines. No one is buying,” said one trader at a big US bank. “We were told to reduce our risk and to stay out of the markets. There is too much irrational behaviour out there.”

The stock market declines will heighten fears over the US government’s power to prop up markets despite its success in pushing through a $700bn (£403bn) bailout of the banking system on Friday.

The Federal Reserve acted to shore up confidence in the banking sector today and free up the credit markets by doubling the amount of money it makes available under its Term Auction Facility to $900bn.

Banks will be able to draw down funds from the facility and maintain liquidity in the face of an interbank lending market that has all but ceased to function.

In Asia, Japan’s Nikkei index lost 4.2pc, South Korea’s Kospi slipped 4.3pc and Hong Kong’s Hang Seng fell 5pc. China’s CSI 300 Index fell 5.1pc, as trading resumed after a one-week holiday.

Source: Telegraph

‘TURN THE PAGE’: Obama in Asheville. His poll ratings have risen recently, even in red states such as North Carolina.

John McCain wants to ‘distract you with smears rather than talk to you about substance,’ the Democrat says in Asheville, N.C., a day after Sarah Palin claims Obama would ‘pal around with terrorists.’

ASHEVILLE, N.C. — One day after John McCain’s running mate escalated the vitriol of the presidential campaign by invoking a 1960s radical, Barack Obama accused Republicans of trying to distract voters from the sagging economy with “smears”

Speaking to thousands of voters Sunday afternoon at Asheville High School, the Democratic nominee argued that McCain shares President Bush’s economic philosophy.

“Sen. McCain and his operatives are gambling that they can distract you with smears rather than talk to you about substance,” Obama said. “They’d rather try to tear our campaign down than lift this country up. That’s what you do when you’re out of touch, out of ideas and running out of time.”

The dust-up comes as Obama’s poll numbers have risen in recent weeks, even in some traditionally Republican states, as Wall Street’s woes dominate the news. According to several polls, more voters see Obama as better able to handle the economy than McCain.

Source: latimes

Find out more at The Real John McCain

This Washington Post headline is not real….

But what is interesting is the fact that John McCain hasn’t been talking about the economy.

Source: AM 1090

Oct. 3 (Bloomberg) — The U.S. lost the most jobs in five years in September and earnings rose less than forecast as the credit crisis deepened the economic slowdown.

Payrolls fell by 159,000, more than anticipated, after a 73,000 decline in August, the Labor Department said today in Washington. The jobless rate, the last one reported before the presidential election, remained at 6.1 percent. Hours worked reached the lowest level since records began in 1964.

The world’s largest economy may be headed for bigger job losses as the worst financial meltdown since the Great Depression causes consumers and companies to retrench. A sinking labor market and rising borrowing costs raise the odds Federal Reserve policy makers will cut interest rates by their Oct. 29 meeting.

“The financial panic is a body blow to business confidence, and companies are now battening down the hatches,” Mark Zandi, chief economist at Moody’s Economy.com in West Chester, Pennsylvania, said before the report. “We’re in store for very sizable job losses across many industries. A rate cut by the Fed could come before the next meeting.”

Revisions added 4,000 to payroll figures previously reported for August and July. The Labor Department said it was “unlikely” that Hurricane Ike, which struck the Gulf Coast last month, “had substantial effects” on payrolls figures.

After today, the total decline in payrolls so far this year has reached 760,000. The economy created 1.1 million jobs in 2007. [...]

The jobless rate is up 1.4 percentage points from September 2007. Since World War II, the rate has risen only twice during similar periods before presidential elections. In both cases — when Bill Clinton defeated George H. W. Bush in 1992 and when Ronald Reagan beat Jimmy Carter in 1980 — the incumbent party lost the election.

Americans will go to the polls on Nov. 4 and the October jobs report is due Nov. 7.

“Voters are extremely angry, and they want someone to blame,” said Scott Anderson, senior economist at Wells Fargo & Co. in Minneapolis.

Presidential Race

Democratic presidential nominee Barack Obama has opened up a lead over Republican rival John McCain in the aftermath of their first debate and amid growing concerns about the economy, according to a Pew Research Center survey taken Sept. 27 to Sept. 29. A mid-September poll from Washington-based Pew had shown the candidates were in a statistical dead heat.

Earlier in September, a Bloomberg/Los Angeles Times poll showed more respondents said Obama would do a better job handling the financial crisis than McCain, and almost half of the voters believed he had better ideas to strengthen the economy than his rival.

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Source: Bloomberg

Down to the wire now. Sarah and Dina are up early cramming and jamming for tonight’s big face-off. They’re finding Sarah’s weak spots and plugging holes. If Mr. Joe Biden tries to slap Sarah’s face with her own rape kit, she’ll be ready.

See earlier Sarah Palin Vlogs here

Source: 23/6

McCain is stuck between a rock and a hard place – his judgment is on the line with Palin – I suppose all he can hope for is that old Palin magic to come through for him – but she can’t always talk out of a teleprompter. McCain at 72 has a job to convince everyone to vote in a fool – and we have already voted in one – and the fireworks of his administration are all around us!

McCain says that he always puts country first. In this important case, that is simply not true.

Will someone please put Sarah Palin out of her agony? Is it too much to ask that she come to realize that she wants, in that wonderful phrase in American politics, “to spend more time with her family”? Having stayed in purdah for weeks, she finally agreed to a third interview. CBS’s Katie Couric questioned her in her trademark sympathetic style. It didn’t help. When asked how living in the state closest to Russia gave her foreign-policy experience, Palin responded thus:

“It’s very important when you consider even national-security issues with Russia as Putin rears his head and comes into the airspace of the United States of America. Where—where do they go? It’s Alaska. It’s just right over the border. It is from Alaska that we send those out to make sure that an eye is being kept on this very powerful nation, Russia, because they are right there. They are right next to—to our state.”

There is, of course, the sheer absurdity of the premise. Two weeks ago I flew to Tokyo, crossing over the North Pole. Does that make me an expert on Santa Claus? (Thanks, Jon Stewart.) But even beyond that, read the rest of her response. “It is from Alaska that we send out those …” What does this mean? This is not an isolated example. Palin has been given a set of talking points by campaign advisers, simple ideological mantras that she repeats and repeats as long as she can. (“We mustn’t blink.”) But if forced off those rehearsed lines, what she has to say is often, quite frankly, gibberish.

Couric asked her a smart question about the proposed $700 billion bailout of the American financial sector. It was designed to see if Palin understood that the problem in this crisis is that credit and liquidity in the financial system has dried up, and that that’s why, in the estimation of Treasury Secretary Hank Paulson and Fed chairman Ben Bernanke, the government needs to step in to buy up Wall Street’s most toxic liabilities. Here’s the entire exchange:

    COURIC: Why isn’t it better, Governor Palin, to spend $700 billion helping middle-class families who are struggling with health care, housing, gas and groceries; allow them to spend more and put more money into the economy instead of helping these big financial institutions that played a role in creating this mess?

    PALIN: That’s why I say I, like every American I’m speaking with, were ill about this position that we have been put in where it is the taxpayers looking to bail out. But ultimately, what the bailout does is help those who are concerned about the health-care reform that is needed to help shore up our economy, helping the—it’s got to be all about job creation, too, shoring up our economy and putting it back on the right track. So health-care reform and reducing taxes and reining in spending has got to accompany tax reductions and tax relief for Americans. And trade, we’ve got to see trade as opportunity, not as a competitive, scary thing. But one in five jobs being created in the trade sector today, we’ve got to look at that as more opportunity. All those things under the umbrella of job creation. This bailout is a part of that.

This is nonsense—a vapid emptying out of every catchphrase about economics that came into her head. Some commentators, like CNN’s Campbell Brown, have argued that it’s sexist to keep Sarah Palin under wraps, as if she were a delicate flower who might wilt under the bright lights of the modern media. But the more Palin talks, the more we see that it may not be sexism but common sense that’s causing the McCain campaign to treat her like a time bomb.

Can we now admit the obvious? Sarah Palin is utterly unqualified to be vice president. She is a feisty, charismatic politician who has done some good things in Alaska. But she has never spent a day thinking about any important national or international issue, and this is a hell of a time to start. The next administration is going to face a set of challenges unlike any in recent memory. There is an ongoing military operation in Iraq that still costs $10 billion a month, a war against the Taliban in Afghanistan and Pakistan that is not going well and is not easily fixed. Iran, Russia and Venezuela present tough strategic challenges.

Domestically, the bailout and reform of the financial industry will take years and hundreds of billions of dollars. Health-care costs, unless curtailed, will bankrupt the federal government. Social Security, immigration, collapsing infrastructure and education are all going to get much worse if they are not handled soon.

And the American government is stretched to the limit. Between the Bush tax cuts, homeland-security needs, Iraq, Afghanistan and the bailout, the budget is looking bleak. Plus, within a few years, the retirement of the baby boomers begins with its massive and rising costs (in the trillions).

Obviously these are very serious challenges and constraints. In these times, for John McCain to have chosen this person to be his running mate is fundamentally irresponsible. McCain says that he always puts country first. In this important case, it is simply not true.

Sarah Palin Vlog #1: Katie Couric Interview

Sarah Palin Vlog #2: Debate Prep

Sarah Palin Vlog #3: Cramming for the Economics Debate

Source: 23/6

Mortgage crisis state by state

Mortgage crisis state by state

How could John McCain think the economy was sound ~ for who?

He has admitting in the past ~ not understanding the economy ~

And Palin is clearly clueless. She spent 88 days working as governor out of 19 months. Palin once walked in to a meeting of Alaska’s Mayors ~ where they had just taken a vote ~ on whether anyone of them had met with her ~ few raised their hands ~ the story goes that Palin entered the meeting spoke for a few minutes ~ then told everyone there she had to cut the meeting short as she was on her way to an anti-abortion rally. The whole thing is being to look way too maverick!

TERRY FINNEGAN
I am forced to admit a fatal fascination with Sarah Palin. I think that some very sharp Republican operatives have ensnared me in a magician’s trick. Boy, that ol’ maverick John McCain really gambled on this one. And it looks like he has come up all aces. Polls tighten, and Electoral College estimates swerve close enough to concern anyone hoping to end our current Bush nightmare.

So let’s review what is at stake. Maverick claims that only he can define victory in Iraq, regardless of Iraqi sentiment, U.S.-Iraq agreements, or popular yearnings. Maverick claims he will institute new energy initiatives after a career of voting down alternative energy development. Maverick claims that the Bush tax cuts are the only means to getting us out of our current economic woes, even though he vigorously opposed them seven years ago during a much stronger economic phase.

You can add your own list of horrors that we will continue to struggle with-health care, growing income inequality, warfare in place of diplomacy, torture, executive overreach, court appointees. But hand it to Karl Rove’s doppelganger-we are talking Sarah, not talking issues.

So the Republicans gamble all on a little known woman, hoping that her unseemly side stays hidden for 60 days. Let me posit an election guess. Somehow, the potential bombs that are strewn throughout her Alaskan story will fail to ignite. McCain will carry this newfound enthusiasm pulling down enough states to scare prayers out of Democratic secularists. However, he will not crack the glass ceiling of 270 electoral votes. He would need to run the table of all possible states in play and just like Gore and Kerry he will get tripped up somewhere. My guess would be Ohio as the Dems control the state voting apparatus this time.

So what gives with the Palin fascination? Mrs. Palin clearly shows how reckless Senator McCain has become, how little he is in personal control of his party’s agenda. Much has been made that her vetting was short on depth and length. He wanted Lieberman or Ridge, politicians who unfortunately were DOA for large segments of the Christian right. Who controlled this VP pick? Who is running the show?

What happens if Sarah Barracuda becomes president shortly after winning the election? Can anyone safely say? This election is not about the issues per the Republican campaign chief. Smart move, as focusing on the issues will bring the GOP nothing but electoral disaster.

I foresee a real possibility that Sarah Palin will blow up in the Republicans’ face. The pastiche she has cobbled together is full of holes. She “sold the plane on eBay”? No, she listed it there, but sold it at a loss through a broker. She said “thanks, but no thanks” to Congress on the bridge? No, in fact Alaska kept the money. She wants privacy for her pregnant daughter? Then why parade said daughter and fiancé in front of the nation?

Yes, my fatal fascination with Mrs. Palin has all the earmarks of watching a car crash. Will she escape serious harm? Troopergate? Whose-babygate? National Enquirer snooping? Will the entire charade blow up with some level of proof about their allegations of an affair? McCain’s gamble on the inexperienced Mrs. Palin is only troubling given that we have a scant two months to know if she can handle the job. It is possible that this gamble will backfire catastrophically and harm the Republicans for years. I’ll be watching closely, fatally fascinated, yet praying that Barack keeps his focus on the issues.

Source: Wednesday’s Journal

If we live in a society ~ and a world ~ everyone is a part of it. As someone responsible for making laws you should consider how changing one part will affect another ~ John McCain only thought about how the changes he made or supported would affect the corporations and those on Wall Street – putting into law ways that they can make more profits over benefits to the average person in wider society.

Imagine giving a corporation a tax break for shipping jobs overseas ~ this in essence penalizes those who would keep jobs in the US. Job losses coupled with the rogue mortgage selling, meant more money for Wall Street ~ but if you don’t have job and can’t pay your mortgage ~ and if 1 million people don’t have a job ~ then the debt on these mortgages ~ which is sold on to institutional buyers of debt ~ doesn’t get paid and neither does the insurance covering that debt. No wonder AIG had a cash short fall.

John McCain’s ideas on deregulation amounted to tinkering ~ and pottering around for corporate benefit. While he was trying to protect/increase corporate profits ~ he and his party’s efforts have left everyone out of pocket and in a position to cover this corporate debt.

President Bush poses for photographers after delivering a prime-time speech from the White House on the ailing financial markets, Wednesday, Sept. 24, 2008, in Washington. (AP Photo/Lawrence Jackson)

WASHINGTON — President Bush said Wednesday that lawmakers risk a cascade of wiped-out retirement savings, rising home foreclosures, lost jobs and closed businesses if they fail to act on a massive financial rescue plan. “Our entire economy is in danger,” he said.

“Without immediate action by Congress, American could slip into a financial panic and a distressing scenario would unfold,” Bush said in a 12-minute prime-time address delivered from the White House East Room that he hoped would help rescue his tough-sell bailout package. “Ultimately, our country could experience a long and painful recession.”

Said Bush: “We must not let this happen.”

Source: HP

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