The FED announcement to boost the economy is a HUGE DEAL

U.S.stocks shot up sharply in midday trading after investors cheered the Federal Reserve's move to launch a new round of steroid-like stimulus in an effort to invigorate the slow-growing economy and jumpstart a weak job market.

Heading into the closely-watched meeting the consensus on Wall Street was that the Fed would launch a third round of bond buying, an unconventional policy known as "quantitative easing," or QE, in an effort to keep interest rates low and spark more business activity, boost confidence and bolster hiring by businesses.

And the Fed delivered, announcing that it would purchase mortgage backed bonds at a rate of $40 billion per month.

The Fed's aggressive moves pretty much send the message that it will continue to assist the economy And that was met with relief by market participants, says Frank Fantozzi, president and CEO at Planned Financial Services in Cleveland, Ohio.

Believe me, the GOP does not want to hear any of this. Buying bonds at 40B a month should be a serious boost to the economy.

Expect a serious denouncement by Romney and Crew. Full story, here.

Talking about jobs is one thing, Acting is another

Today's job report is a hard core reminder that things are not rosy out here on Main Street. In fact, things have not changed and are getting worse. As politicians are worried about the national debt, Main Street (where the votes are) is being drowned out here.

Unemployment ticked up to 9.1% with a measly 54,000 jobs being added. That is not only pathetic but downright sad. But the D.C. politicians could care less about the people on Main Street; they are slaves to the corporations and banksters out here.

The real people, the little people? Washington, D.C. could care less about us, until they want our vote. That is a real, reality.

Unemployment rose to 9.1%, only 54,000 jobs added.

Employment rose far less than expected in May to record its weakest reading since September, while the jobless rate rose to 9.1 percent as high energy prices and the effects of Japan's earthquake bogged down the economy.

Nonfarm payrolls increased 54,000 last month, the Labor Department said on Friday, with private employment rising 83,000, the least amount since June. Government payrolls dropped 29,000.

Economists polled by Reuters had expected payrolls to rise 150,000 and private hiring to increase 175,000 in May. The government revised employment figures for March and April to show 39,000 fewer jobs created than previously estimated.

The job creation slowdown confirmed the economic weakness already flagged by other data from consumer spending to manufacturing. It could stoke fears about the depth and duration of a slowdown that started early in the year.

Let's face it and be blunt, the time for a jobs program was when Barack Obama assumed the presidency in 2008. When President Obama walked into the Oval Office in January, 2009 the most pressing thing this country faced was the economy wrapped up with joblessness. Well, the opportunity was squandered. A stimulus package that did very little to help Main Street, which was laden with tax cuts that jump started nothing, has us all back at square one. Along with all of this, there are still over 14M upward of folk unemployed, many who have utilized their UI benefits and still don't have a job.

We also do not have politicians in Washington, D.C. with the political will to really change anything. Since, the Democrats took over in 2009 they walked in very tepid steps. With unemployment still a reality on Main Street, the fight was given to an over blown health care package that was bumbled in explanation from the very beginning. In the end, two years wasted on a health care package the public did not understand, thanks to the lack of communication from the Democrats and demagoguery from the Republicans which led to the GOP taking the House back.

And when President Obama was asked to fight more from Congressman Waxman, this is what was said:

"He was a little testy with the Waxman question. Essentially, Mr. Waxman was urging him to fight more," one legislator said. "The president reminded folks that he's the president sitting in that chair and he knows how to negotiate."

Obama also told the assembled Democrats not to count on more fiery rhetoric from the Oval Office.

"He said, 'There's a difference between me and a member of Congress,'" another lawmaker said, paraphrasing the president as saying: "When I say something the markets react, all of society reacts, other countries react. I've got to be careful with what I say. I can't just say it for brinkmanship. I've got to say it in a way so that I get what I want said, but I don't upset markets and so on."

My, scared to step on Wall Street toes, while Main Street is drowning. To read there will be no more fiery rhetoric, should be the hand writing on the wall for many Americans. There will be no job help for you. Forget about keeping your home, though you may be victim of the largest financial scam in history of this country, gas prices and food prices are not coming down soon, and folk you will just have to deal with it. It is obvious that the White House needs Wall Street money, now more than ever to win next year. We just have to deal with it.

That is the reality.

Along with all this crap swirling around, we now have to hear of repeated DEFICIT TALKS, while the country is drowning in high gas prices, high food prices, and a housing market so FUCKED UP that it will be decades to straighten out. How can anyone possibly help us, when they want to take everything we have left away from us? And we have a Democratic President willing to negotiate on that? As long as we have a President who is willing to let taxes for the rich remain in tact, there will never be a will to do the right thing for the common man. Believe me; it is being played out in state after state, city after city, street after street. With so many houses in foreclosure there now is not enough rental property to help the massive families that need it. Another reality.

What really hurts the most is that very little has been done to help folks on Main Street. Very little. Many promises were campaigned on but families and individuals don't see it or feel it. Case and point, I was watching the news last night here in Chicagoland and there was a housing forum here to help people behind in their mortgages. Members from various banks were there, but what got me was that people lined up the night before to speak with someone to help save their homes. Over 100,000 people, estimated showed up. One Latina woman spoke to a reporter on camera and said that she voted for Obama, but have seen no change in her life. Her husband lost his job and unemployment is not enough to pay for their mortgage. Lastly, she stated that people need jobs in this country and there are no jobs.

Folks, that is what 2012 is about. Not this other irrelevant bullshit flying around but JOBS.

Finally, we better hope and pray that the Republican Party does not find a way to come together. We better hope that the Republican Party continues on the path of inner destruction. If a real candidate from the Republican Party emerges one, who can strike a chord with the American people about creation of jobs, the Democrats, especially President Obama will be in trouble.

Cross-posted @ Daily Kos

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Did tax cuts for the rich create jobs in this country?

This is a fair and direct question.

The reason I am asking it is because the negotiated tax plan from the White House with the Republicans touts it will create jobs.

My thing is this, "The millionaires and billionaires have had this tax cut for 10 years, where are the jobs?"

This is a valid question because does anyone believe that continuing this tax cut will create jobs in this country?

We are knocking on the door of 10% unemployment in this country and I don't see any relief of these numbers, anytime soon. In fact, we need to create over 200K jobs a MONTH to catch up with inflation and the unemployment rate to off set it and we are talking about 200K a month for close to 2 years.

Look, the reality is this; all of this is a set up to marginalize President Obama further, along with the Democrats. If you don't believe it, watch the ratcheting up for the next year from the GOP. Watch about the continued lack of leadership, weakness from this president meme. And the GOP has been stating this about him WAYYYY before Democrats got frustrated and started saying this publicly.

This dog and pony show will continue, it will not slow down or stop. Every time President Obama wants something, he will be forced to cave to the Republican agenda. Pushing these rich folk tax cuts is just kicking the can down the road and empowering, proving the point to the Republicans. The Republicans believe they can defeat Obama in 2012, control the congress again, and make these tax cuts permanent. The Republicans don't believe this economy will turn around anytime soon, the fact of the matter is that we don't have enough jobs to employ folk in this country.

The next act from the Republicans will be the call to PAY FOR THIS SHIT. And guess what they will trot out? Social Security and Medicare cuts. The GOP will continue to whine that these programs will bankrupt this country and must be overhauled. Along with this disastrous meme, will be the reminder to President Obama that he is for "Pay Go". Remember, words do matter and he did say he supported it. This will put President Obama in another box. And you think folks are angry at rich folk tax cuts, watch your Grandmother go off when she witness President Obama state, "..cuts in payment to social security must be done to save this country."

It will be a sham.

Why a sham? Because the Republican Party is the party of spend, spend, and spend. They spent us into the ground under George W. Bush, but spent the money on what they felt is best for themselves and their rich buddies. That is how it went down. When the Democrats came in power, we get shamed on the deficit and it must be under control, programs must be cut. This bullshit is the biggest sham of all because we are spending fake money now to pass this tax cut and if the deficit was so damn important, WE WOULD NOT BE TALKING ABOUT THIS. Personally, I don't know if this tax cut deal will pass or not. But I do know that President Obama will become a mockery if it does.

Finally, from TomP's diary a comment from lisastar:

caller on Ed's show yesterday (7+ / 0-)

an international flight attendant reporting on what she overhears from US CEOs on her flights. It's all about opening new factories overseas and buying second homes in the 3rd world country of choice to make it easier to commute.

Another caller in the import business said: Trickle down economics works great to create jobs - JOBS OVERSEAS. The wealthy are investing alright, just not in America.

Screw the president's bill.

That is the real point here (and I heard the same caller on Ed's radio show). Until any President have the fortitude to revamp trade agreements to China, India, Brazil, etc. This argument will continue to go in circles. This country is feeling the affects of a poor NAFTA agreement and bad trade agreements resulting in CEO's of this country opening up their manufacturing plants abroad to the tune of 1.00 an hour for personnel with no benefits. This country can not compete with that and to be brutally honest, it won't change. President Obama can say whatever he wants, but the real banker that we owe is China and those floodgates of their bad gear, food is not going to stop coming into this country anytime soon.

That is the dilemma about jobs in this country and why we will be sitting on high unemployment for a very long time. Tax cuts to the rich are not going to create any jobs and if you believe that, then a cup of reality is much needed.

Cross-posted @ Daily Kos

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Unemployment's ugly number rose to 9.8%, bad news all around

Well, if the Obama Administration did not know that JOBS, JOBS, JOBS is what this country wanted and put them in charge to head, they know now.

This economy is not getting better and no amount of spin will help. Oh, U.S. just added 39K jobs last month and that is pathetic.

And extending unemployment is a non-brainer, including adding another tier. If congress, on both sides of the aisle, fail to do this, there will be hell to pay down the road.

Employers added fewer jobs than forecast in November and the unemployment rate unexpectedly increased, underscoring the Federal Reserve’s decision to pump more money into the economy to spur growth.

Payrolls increased 39,000, less than the most pessimistic projection of economists surveyed by Bloomberg News, after a revised 172,000 increase the prior month, Labor Department figures showed today in Washington. The jobless rate rose to 9.8 percent, the highest since April, while hours worked and earnings stagnated.

Read more here
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Barack Obama has a lot of work to do

2012 is WIDE OPEN for the Republicans.

Unlike 2008 when the sitting VP did not run, which made it wide open for both parties.

2012 is sizing up all the wannabee presidents on the Republican side.

While we watch that side show, we need to work on our own show.

It starts with Barack Obama re-energizing his base, period.

kos put on the front page, "Obama can side with Big Business, or the voters".

kos is right about what he wrote in reference to the Chamber of Commerce. Does anyone in their right mind actually believe that the Chamber of Commerce or those Banksters and Gangsters on Wall Street will give Barack Obama the time of day? It was their corporate money that was heavily invested in the 2010 mid-terms that helped to elevate the Republicans win. All the robber barons want is for the next two years to be destructive, convoluted as the first two years.

Yes, the first two years was convoluted and full of mixed messages that the public never understood. The GOP was not challenged on lies and given the bully pulpit to spread all the lies they wanted to, while our side sat back like crickets.

I don't want to hear all that President Obama and the Democrats did because in actuality for many Americans it was minimum, not enough and many did not know about it.

I am looking at 2012 and if Barack Obama continues to coddle up to the same folk that basically gave him an "F and U" then he is going to have a hard 2012.

President Barack Obama emerges from a bruising midterm election with uncertain prospects for the next one in 2012, according to a new McClatchy Newspapers-Marist poll.

Nearly half of his own base - 45 percent of Democrats and Democratic-leaning independents - want someone to challenge him for the Democratic nomination, according to the poll.

And, assuming he wins re-nomination, barely more than 1 in 3 voters, or 36 percent, said they'll definitely vote for him, while nearly half, 48 percent, said they'll definitely vote against him.

"There's some serious electoral jeopardy and his position is very tenuous," said Lee Miringoff, the director of the Marist Institute for Public Opinion at Marist College in Poughkeepsie, N.Y., which conducted the national post-election poll.

There are some angry folk in the Democratic Party. Many who wanted this administration to concentrate on the economy and jobs, when in the end it was the economy and jobs with the perception that the White House did not do anything that led many to just say forget it when it came to going to the polls.

That is what happened.

And we can sit around here and argue with each other or look at this in the reality it is.

2 million individuals are about to be thrown off unemployment in December, right around the holidays. An extension is needed, while we are still the majority in power, seems like very little is being done.

Paul Gilbert lost his job managing a restaurant in Phoenix in May and said he's had a terrible time finding a new one.

"I have put out at least 25 resumes a week and have only had two interviews," Gilbert told HuffPost. "I want to work. I love to work. I'll do anything, someone please give me a job."

Now he's worried he'll lose the $240 a week he's been receiving in unemployment insurance. Despite a historically bad job market, two million people could be cut off from their unemployment benefits during the holidays if Congress fails to reauthorize federally-funded jobless aid that expires at the end of the month. Gilbert said the Arizona Department of Economic Security told him he's in the cutoff boat.

"It's going to be a long December for a lot of people," Gilbert said.

What kind of fucked up party are we in? I don't get this. Are these millionaire Democrats in congress (yes, many are that) so far removed that they don't get what is happening out here? Don't you see? This is why the voters don't see a difference between the Democrats or Republicans. Especially, since we continuously have Democrats acting and voting like Republicans.

In the meantime, The Robber Barons had corporate RECORD PROFITS, while the rest of America (mostly middle class) is struggling harder than ever. This coming from gangsters and banksters who have funneled massive amounts of money to Republicans, have smeared President Obama (who has been generous to these greedy fucks to the hilt), and continue to whine about not enough tax breaks, etc. When is this going to stop?

This is what the public is upset about. And it can not continue. Not if we want to win in 2012. Many here forget that we were losing over 700K jobs a month when Barack Obama assumed the presidency. What the public wanted and demanded was to fix this economy and create jobs. This did not and has not happened. When the average Joe and Josetta are sitting at their kitchen table or on their computer in Quick Books balancing their checkbook, they do not want to continue to hear about how you stopped the bleeding in the economy because their bleeding has not stopped. These are the same folks who are taking continuous hits on their wages, hours cut, and many lost jobs, barely existing on unemployment, losing their homes. Along with these challenges, they have children who must be taken care of, many who want to go to college and frankly can not because it is too expensive. And let's not talk about how the poverty rate has grown in record number. The only focus the Obama Administration needs to work on is the one with the public and what they want, not big business who has made massive amounts of money off of our backs. President Obama can not continue to coddle big business and do nothing for the ordinary man. If he continues this, he will be a one term president.

Obama's political weakness helps explain why so many Republicans are thinking of running for their party's nomination against him. That race is wide open, the McClatchy-Marist poll showed, with former Massachusetts Gov. Mitt Romney the early leader, but several others are competitive.

With politics about to pivot toward the presidential campaign, the poll underscored that Obama's standing will be a major factor.

He enters the second half of his term with his approval rating holding steady at 45 percent, 48 percent disapproving and 7 percent undecided.

"The good news for Obama was that, after the midterm, there wasn't any greater desertion," Miringoff said. "That's the best news. The bad news for him, people are still very tenuous about him."

His political problems start with his own base.

Months ago, I laughed at any Republican running against Barack Obama, but I am not laughing now. Why? The Republicans kicked our ass in the communication game, the message game and the framing game. They did not do SHIT to deserve taking the House of Representatives back, but look what happened. If we continue to concede everything to them, not stand up for what our principles are, we are going down. And if Barack Obama does not start standing up and speaking in frank, lay man words so the voters GET IT, he is going to have some real issues in 2012.

Remember, of the polling out here from the populous, they don't like either party. That means that they see no difference between the two parties, which means why should they vote. And these are the voters we need to come back to us, not the shilling at each other on Daily Kos, but that voter we touched in 2008. We need them badly in 2012 because right now, they are just not into us.

Finally, the continuous argument of not criticizing this administration is weak. Millions did not show up for us on November 3rd for a reason and it surely was not because they read some diary on Daily Kos that made them stay home. They stayed home because we have not done anything for them that they can see tangible here and now in their lives. The bottom line is this; there are way more poor folk, middle class folk, than rich folk. Continue to not do anything for your own people out here and they will continue to sit on that couch and not vote for you.

Cross-posted @ Daily Kos

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President Obama's Weekly Address, "Crossroads on the Economy"

In this week’s address, President Barack Obama broke with Republicans in Congress who are putting special interests ahead of the American people and offering only a rehash of the very same economic policies that led to the financial crisis. When the GOP asked the American people, through a website, for ideas, one that drew great deal of interest is ending tax breaks for companies that ship jobs overseas. But when the administration closed one of the most egregious loopholes for companies creating jobs overseas, Republicans were almost unanimously opposed. Rather than offering a path to a better future, their plan is an echo of a disastrous decade the country cannot afford to relive.



Transcript

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President Obama's Town Hall Meeting on CNBC

Some questions were tough to the President, but a worth while watch. The event was held in Washington, D.C., September 20, 2010. And if you have any doubt that the November mid-term election is NOT about this economy, you are truly living in la-la land.



Transcript

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President Obama's economic remarks in Parma, Ohio

Now President Obama is pulling out his gun and going after the Republicans by finally calling them OUT by name. About time.




Transcript

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Minority Voters and the Young "NOT ENGAGED FOR NOVEMBER"

That is bad news for the Democrats.

Minority and young voters made a significant mark on the 2008 presidential election with their high turnout; today, however, these groups appear to have reverted to previous levels of interest in voting in the context of midterm elections. Most notably, in contrast to 2008, when whites and blacks were about equally likely to say they were giving "quite a lot of" or "some" thought to the presidential election, whites are much more likely than blacks to be thinking about the 2010 elections: 42% vs. 25%, a gap exceeding those from recent midterm elections.

Many can speculate on why the non enthusiasm by these groups, but the bottom line is Democrats need these groups to show up in November. No one can dismiss that the economy is number one, especially for the African-American community which is at over 16% in unemployment, but there are other factors.

I read a diary from a 20-ish diarist who laid it out why the young voters are not in the Democrats corner. It comes down to what the Democrats and Obama promised during 2008 campaign and did not deliver, especially on health care (which is abysmal and will become Obama's Achilles heel) and restructuring student loans for the college age kids. About the student loan issue, it is unbelievable that you can purchase a home at 4.5% interest rate and for student loans borrowing money is over 6%. Something is drastically wrong with this picture.

The reason this is happening is the recession, and the perception that Democrats are not doing enough to fix it. There is a feeling that Democrats tricked people into thinking that they were going to make big changes to the country, and then failed to make those changes.

You might think this is an unreasonable criticism, that the Democrats are doing the best they can, and that they never said they were leftists. I can understand that point of view, and it makes a lot of sense. But let's look at what millennials are dealing with in this economy, and it might not seem so unreasonable.

You might be comfortable with the way things are. You might not be interested in radical changes. You might be okay with incrementalism. But others are different. There are very big problems in the USA, and they are making many people very miserable. It's not wrong for these people to ask that the problems affecting them be fixed.

Now, these are some of the problems that are affecting young people.

The unemployment rate among young people is very high:

The unemployment rate for young Americans has exploded to 52.2 percent -- a post-World War II high, according to the Labor Dept.

Tons of people are graduating from high school and college, and they are finding that they can't find jobs.

And they have tons of debt that they need to pay:

Student loans outstanding today — both federal and private — total some $829.785 billion, according to Mark Kantrowitz, publisher of FinAid.org and FastWeb.com.

This is a problem. All my life, I was told that if I did good in school, and went to college, that I would be able to find a good job. That was obviously not true. There don't seem to be any jobs in this economy, let alone good ones.

Instead of telling your kids that they will be able to succeed if they work hard, you might consider telling them that life's a bitch, and then you die. That seems a bit more realistic than the "American Dream".

For those that do not believe the Democrats are in trouble, think again. They are in huge trouble. Gallup released a poll that has the GOP with a 10 point edge over the Democrats. I thought this was an outlier, but NBC/WSJ just released a poll and have the GOP with a 9 point edge.

A combination of sky-high GOP enthusiasm, a deep sense of pessimism about the country’s direction and dissatisfaction with President Barack Obama's stewardship of the economy has given Republicans a clear advantage heading into the November midterm elections, according to the latest NBC News/Wall Street Journal poll.

With the Labor Day holiday marking the traditional starting point of the campaign season, Republicans have a nine-point edge among those considered likely voters, plus a near 20-point lead among those expressing the highest amount of interest in the midterms.

In addition, six in 10 believe the country is on the wrong track; nearly two-thirds think the nation is in a state of decline; and a similar number aren't confident that their children’s generation will enjoy a better life.

Perhaps more ominous for Democrats, the number of Americans who approve of Obama's handling of the economy — the top issue in the country — has declined below 40 percent for the first time.

“We all know that there is a hurricane coming for the Democrats,” says Democratic pollster Peter D. Hart, who conducted this survey with Republican pollster Bill McInturff. “We just don’t know if it will be a Category 4 or a Category 5.”

I have been writing consistently since last spring for this White House and Democrats to focus on the economy and job creation.

That did not happen, the unemployment numbers are still sky high and the Democrats will pay the price in November.

The health care fight was the one that took all the oxygen out of the room. In fact, you don't see anyone running on THAT craptastic piece of legislation. With little cost containment, you will soon see many Americans angry at not being able to afford coverage. The Democrats had a chance with the public option, something the public wanted but ditched it to the backroom deals, which ended up having the public forced to purchase health insurance. We are going to pay a price at the polls in November for this huge mistake and miscalculation towards the American Public.

Barack Obama does not have too much political capital left. If the Democrats lose massively in November, all roads lead back to him as head of the Democratic Party. And in all honesty, it should. All the decisions came from the West Wing, including the horrific communication. Please after November let us say adios to Robert Gibbs and friends, they failed to communicate much of this administrations agenda and it shows. Along with Gibbs, send David Axelrod, Rahm Emanuel, Jim Messina packing. Their advice to the President have him boxed into some of the worst poll numbers out there, especially his handling of the economy.

How this administration missed all the clues from the public shows that they were not engaged with the public. There will be some long faces in November, but the final decision must come from Barack Obama, himself. Until he changes and shows that he "gets it", the bad news will continue to ROLL IN.



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President Obama's Labor Day remarks on the economy from Milwaukee, WI

President Obama spoke to union workers on Labor Day at Laborfest in Milwaukee. He announced a long-term jobs program that would exceed $50 billion to rebuild roads, railways and runways. He also criticized Republicans for causing hard economic times.



Transcript

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Catastrophic home sale numbers (Video)

Again, until the mortgage/home industry rebounds (which is no time soon), this economy will continue to be where it is at, atrocious...oh, that tax credit needs to be reinstated, SOON...



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Desperation, 1930's style....

This is what desperation is all about:



The above are Americans outside of Atlanta, Georgia in line to get on a WAITING LIST for low income housing. These are people who were working, laid off, and now losing everything. 13,000 people showed up in 90 degree plus heat just to have their names put on a waiting list, what does that tell you?

This is desperation on the 1930's scale.

No one believes that the economy is recovering and as folks are being kicked off unemployment, what will happen to them? Are we becoming the country of "if it is not me, I don't give a damn?" Because it sure looks like that to me. A tier 5 unemployment plan must pass congress or we will start seeing babies, mothers, children, fathers in the streets due to desperation, if they are not there now.

A Tier 5 unemployment extension could benefit US financial markets. After the stock market closed today down 265 many are investors are wondering what it will take to get the US financial markets robust again. With consumer spending at an all-time low and nearly 14 million Americans without work some help is in order if we are going to see the economy thrive again.

While we can argue and parse over whatever happens on a daily basis, this election, as I have said for over a year is about this economy. And baby, this economy is shitty and scummy for millions out here. When folks don't have jobs the wheels of motion stops for everyone in the economic chain. This is from purchase power, home values, health care access, food on your table, the whole nine yard.

From the NBC/WSJ Poll out today:



November is a hard sell to an electorate who is angry at BOTH PARTIES. It is not about the Republicans because the electorate get them, they are not about shit, basically, but it is about what the Democrats have done which many don't get.

Lastly, the die hard Democrats will vote, including practically everyone on this site. The problem is getting all those other voters, soft voters, independents who pushed us over the finish line to stay in our corner and from all the polling we have a lot of work to do. They are highly skeptical, angry, and feel that nothing is getting done. They pushed us over the finish line in 2008 and gave us a massive mandate and numbers in congress.

Now it is time to pitch to these people to come out. Make them feel that we are in their corner, even for the unemployed worker, let them know that if the Republicans get in charge they can kiss their unemployment good-bye. We have to say this and mean it. They must because this election will probably be tighter than a tick, every vote matters and count. For every one person that says they are not voting or will "maybe" vote, that is two votes WE must make up. Remember that.

Update [2010-8-11 21:45:59 by icebergslim]:

I felt this is important for this discussion. Americans have always thought ownership of a home is money, equity for the future. As the housing market has obliterated itself, many Americans are just walking away from their debt, responsibility. Remember, walking away from loans, debts is a sign of desperation or no carishness, which makes it harder for the over blown housing market to rebound. In fact, I know a couple whose home equity has vanished and are just walking away from the loan. For them, it is not that they can not afford to pay it, they can, they are just choosing NOT TO PAY IT because there is no monetary value in the home. This is another paradox going on out here.

During the great housing boom, homeowners nationwide borrowed a trillion dollars from banks, using the soaring value of their houses as security. Now the money has been spent and struggling borrowers are unable or unwilling to pay it back.

The delinquency rate on home equity loans is higher than all other types of consumer loans, including auto loans, boat loans, personal loans and even bank cards like Visa and MasterCard, according to the American Bankers Association.

Lenders say they are trying to recover some of that money but their success has been limited, in part because so many borrowers threaten bankruptcy and the collateral in the homes backing the loans has often disappeared.

Cross-posted @ Daily Kos

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Bad job numbers, bad unemployment numbers, bad all around

Again, November is about JOBS, this ECONOMY. The White House finally figuring this out is a tad too late on this. As long as people are unemployed, foreclosures at record highs, consumer confidence is low, this is going to continue for some time.

And that is why it will be tough for Democrats in November when the public has disdain for BOTH, Democrats and Republicans. The election of us vs. them with the public hating both.

Oh, those census jobs that bloated the REAL NUMBERS? Those jobs are done and the fallout is what we see, a weak job market as many said from the very beginning.

Companies showed a lack of confidence about hiring for a third straight month in July, making it likely the economy will grow more slowly the rest of the year.

Private employers added a net total of only 71,000 jobs last month, according to the Labor Department's July report Friday. That number was far below the roughly 200,000 needed each month to reduce the unemployment rate. The unemployment rate for July was unchanged at 9.5 percent.

The modest job gains were even weaker when considering a loss of government jobs at the local, state and federal levels in July that weren't temporary census positions. Factoring those in the net gain was only 12,000 jobs.

“The good news here is we are not falling off a cliff; we are getting job growth,” Mark Zandi, chief economist at Moody’s Economy.com, told CNBC Friday. “But obviously this is not enough. If we don’t see better job growth later this year and next the recovery is in jeopardy.”

The government sharply revised down its jobs figures for June, saying businesses hired fewer workers than previously estimated. June's private-sector job gains were lowered to 31,000 from 83,000. May's were raised slightly to show 51,000 net new jobs, from 33,000.

Overall, the economy lost a net total of 131,000 jobs last month, mostly because 143,000 temporary census jobs ended.

Source

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Remarks by President Obama at UNLV in Nevada on the economy, July 9, 2010 (Video, Transcript)

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What the hell is the Obama White House doing?

Yes, what the hell are they doing?

This stance on cutting deficits will wipe us out, totally in November.

Why?

This country wants the government to SPEND MONEY FOR JOB CREATION, but the Obama White House is on the side of Republicans for cuts.

This is totally, fucking, STUPID amidst 9.5% unemployment and close to 20% underemployment. I mean fucking stupid.

All this cutting will throw policemen, firemen, teachers, in the pile of unemployment.

All this cutting will blow the unemployment numbers up even more.

All this cutting will double and triple classrooms across this country, along with massive school closings. These cuts should anger ALL AMERICANS across this country for schools.



Look, it is nice that Washington, D.C. is full of rich ass people, yes, RICH ASS PEOPLE. They are so far removed from what is happening out here that they don't get it. The Obama White House is starting to look like that.

It is very dangerous to keep very mum while millions of Americans checks are being revoked due to fucking games being played in Washington, D.C. It is even more dangerous to try to frame the unemployed Americans as lazy bums or "Welfare Kings or Queens". Many of these folks have worked ALL THEIR LIVES and have lost or are losing everything that is equal to the American Dream. Playing around with this is a political bomb that the Democrats need to be in front of. And I mean 24/7.

Also, being bold means bringing plans, ideas to get this country BACK TO WORK. Even if it means SPENDING. If you have a solid idea that can get this country back to work, the American Public will stand with you. They will not stand with you if you are perceived as not knowing what the hell to do about it. It also does not mean to play into the Republican meme of cutting the deficits. Not when this country is sinking into the abyss.

Want to cut something that will bring big time revenue? What about that fucking defense budget? What about getting out of Iraq and Afghanistan? What about that? What about nation building HERE in this country instead of in Afghanistan and Iraq? What about plugging the corporate loop holes for companies off shore? We are arguing over keeping teachers and first responders who are NEEDED in this country, but just let that defense budget continue to bloat. But cutting money to educate our kids, our future leaders is just OK.

We need to stop this shit.

As long as folks are not working, as long as the the unemployment roll continues to rise, as long as this White House is acting clueless on what to do about it, we lose in November. ****And if the Obama White House has a massive program to get folks back to work, SHARE IT, I have not seen or HEARD IT. Just putting that out there....****

Barack Obama needs new advisers and a new White House. The ones he has now are unimpressive and clueless as to what is going on out here. If the Democrats lose massive in November, expect messaging and communication to be key here. This White House is the worst White House for making sure the public understands what they have accomplished, because many believe they have not done ANYTHING. How is that? The right track/wrong track numbers. This is about the public not understanding what this White House has done and that is an Obama White House problem.

Finally, the deficit is #4 of what Americans care about, behind the economy/jobs, oil spill and health care. That should tell the Democrats something, but it seems they are just ignoring this.

From The Dylan Ratigan Show:



President Obama touting his economic policies, which is all nice, but what about talking about JOB CREATION IN THIS COUNTRY:



Update [2010-7-7 17:56:28 by icebergslim]:

Usual suspects are angered and good. Let it ALL OUT. We all should be angry because November can be a slaughter house. We don't have the juice, excitement on our side. If we lose massively, the question is this, "Why?" And many can write a book on that one.

Update [2010-7-7 20:16:17 by icebergslim]:

To be clear, in case you forgot or did not know, President Obama asked congress for 50 billion dollars for the states to save the SAME JOBS he saved last year from the stimulus bill. If President Obama had 50 billion lying around, he surely would have sent it to the states from the stimulus package, but he does not. The Republicans are stating to get it from the stimulus money and asking for more money in their eyes is a second stimulus.

President Obama urged reluctant lawmakers Saturday to quickly approve nearly $50 billion in emergency aid to state and local governments, saying the money is needed to avoid "massive layoffs of teachers, police and firefighters" and to support the still-fragile economic recovery.

In a letter to congressional leaders, Obama defended last year's huge economic stimulus package, saying it helped break the economy's free fall, but argued that more spending is urgent and unavoidable. "We must take these emergency measures," he wrote in an appeal aimed primarily at members of his own party.

The letter comes as rising concern about the national debt is undermining congressional support for additional spending to bolster the economy. Many economists say more spending could help bring down persistently high unemployment, but with Republicans making an issue of the record deficits run up during the recession, many Democratic lawmakers are eager to turn off the stimulus tap.

Since D.C. is all about "deficits" does anyone believe that congress will actually save all these jobs? The only jobs congress cares about is their own, certainly not ours.

Update [2010-7-7 22:5:8 by icebergslim]:

Arguing about points in the diary is warranted and wanted, but personal attacks as some are doing do nothing but discredit you. Don't like what was written, you write a diary explaining, the Obama Administration's JOBS PROGRAM. We all are waiting, along with millions who need a job, but as long as we continue to see this administration kowtow another point AGAIN, this time for the deficit in one of the worse recessions if not DEPRESSIONS ever, then they deserve to be criticized.

Update [2010-7-7 22:56:5 by icebergslim]:

Final update and h/t to divineorder on this administration's mixed messages:

During the recent G20 in Toronto, more mixed messages emerged, with our President encouraging member nations to spend more to prop up their failing economies while his administration seeks to gut Social Security and Medicare at home. Europe is also cutting back on public programs, hitting the most vulnerable. The major world economies, including us, need to pump money into jobs, new technologies, infrastructure and manufacturing to increase revenues, not cut services. Instead, the G20 ended on a down note, with little accomplished and governments throughout the world agreeing to shirk their responsibilities to their citizens all at once by withdrawing stimulus.

How encouraging.....while we have congress just press the mute button on the jobless....

An international economic organization criticized the U.S. Congress on Wednesday for allowing extended unemployment benefits to lapse at the end of May, a move that thus far has denied more than 2 million Americans a critical lifeline during the worst economic downturn since the Great Depression.

In its report on the global employment outlook, the Organization for Economic Cooperation and Development noted that a "particularly worrisome feature" of America's deep recession is the high number of workers who have been unemployed for more than six months.

Cross-posted @ Daily Kos

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California has NOTHING on Illinois for fiscal disaster

For years, many Illinoisans have heard the rumors of the fiscal house is shaky, well now we see how shaky it is.

There is no way Illinois can survive without drastic cuts in services, re-doing its pension programs, and laying off massively all over the state.

Even by the standards of this deficit-ridden state, Illinois’s comptroller, Daniel W. Hynes, faces an ugly balance sheet. Precisely how ugly becomes clear when he beckons you into his office to examine his daily briefing memo.

He picks the papers off his desk and points to a figure in red: $5.01 billion.

“This is what the state owes right now to schools, rehabilitation centers, child care, the state university — and it’s getting worse every single day,” he says in his downtown office.

Mr. Hynes shakes his head. “This is not some esoteric budget issue; we are not paying bills for absolutely essential services,” he says. “That is obscene.”

For the last few years, California stood more or less unchallenged as a symbol of the fiscal collapse of states during the recession.

Now Illinois has shouldered to the fore, as its dysfunctional political class refuses to pay the state’s bills and refuses to take the painful steps — cuts and tax increases — to close a deficit of at least $12 billion, equal to nearly half the state’s budget.

[snip]

Then there is the spectacularly mismanaged pension system, which is at least 50 percent underfunded and, analysts warn, could push Illinois into insolvency if the economy fails to pick up.

States cannot go bankrupt, technically, but signs of fiscal crackup are easy to see. Legislators left the capital this month without deciding how to pay 26 percent of the state budget.

The governor proposes to borrow $3.5 billion to cover a year’s worth of pension payments, a step that would cost about $1 billion in interest. And every major rating agency has downgraded the state; Illinois now pays millions of dollars more to insure its debt than any other state in the nation.

“Their pension is the most underfunded in the nation,” said Karen S. Krop, a senior director at Fitch Ratings. “They have not made significant cuts or raised revenues. There’s no state out there like this. They can’t grow their way out of this.”

[snip]

The Community Counseling Centers of Chicago is another of those workaday groups that are like the stitches on a baseball, holding together poor and working-class neighborhoods. With an annual budget of $16 million, the agency tends to families torn by crime and violence as well as people who are psychologically stressed and abusing drugs.

[snip]

On any given Monday morning, the agency’s chief administrative officer, John J. Troy, 61, has no idea how he is going to keep its doors open until Friday. He said the state had not come through with an expected $2.2 million, which is about six months of arrears. He has laid off and recalled employees three times in the last two years.

“Two weeks ago, I had days to meet my $420,000 payroll and all I was looking at was a $200,000 line of credit from a bank,” recalled Mr. Troy. “I drove down to Springfield and said, ‘Hey, you owe us $3 million.’ They said: ‘Oh, that’s nothing. We owe another agency $10 million.’ ”

“The fact of the matter is,” he added, “I don’t sleep much these days.”

The reality is this, many of these states across this nation was helped by stimulus money and they need the same money to keep their doors open, as last year. The other reality is that this economy has not grown much, the stimulus stopped the states from closing doors and laying massive employees off. If these states do not get any more stimulus money, which looks like they will not, expect double digit unemployment. THE REAL NUMBERS and far worse than the 9.5-10.0% that this country has been lingering at since 2009.

NYT

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Jobless rate 9.5%, jobs lost in June, still bad all around for jobs

The 9.5% is for folks that have stopped looking. The jobs lost are those CENSUS JOBS, the TEMPORARY JOBS. The hiring from private industry is only 83K and jobs in this country are still non-existent. And ain't it nice that congress gets to go home without extending unemployment benefits for the over 1.2M that need it. In fact, when they get back to D.C. and look it over, more than 2M will be bounced off. Nice, congress, for an institution that has more DAYS off of work than actually DOING WORK. And D.C. wonders why people HATE congress....

A wave of census layoffs cut the nation’s payrolls in June for the first time in six months, while private employers added a modest number of jobs, according to the government’s latest report on the labor market.

Employers cut 125,000 jobs last month, the most since October, the Labor Department said Friday. The loss was driven by the end of 225,000 temporary census jobs. Businesses added a net total of 83,000 workers, an improvement from May. But that's also below March and April totals.

The unemployment rate dropped from 9.7 percent to 9.5 percent, the lowest level since July 2009. But it fell because 652,000 people gave up on their job searches and left the labor force. People who are no longer looking for work aren't counted as unemployed.

Source



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President Obama's Town Hall Meeting on the Economy in Racine, WI (Video, Transcript)

This town hall meeting was in Racine, Wisconsin, June 30, 2010



Transcript

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41,000 new jobs created in the private sector, OUCH!!!

It takes around 125,000 new jobs each month just to match population growth.

Did you get that? 125,000 new jobs each month to match population growth.

Yes, the unemployment is back down to 9.7, but let's be real here, that is only temporary. And as I wrote last month, I want to see the real job numbers when the temporary census jobs shake out by the end of the summer. From the jobs report, the growth of jobs is from the government, in census jobs, temporary jobs.

Then we are back to square one. Looking at anemic numbers like 41,000 jobs a month from the private sector.

We are past, "Houston, we got a problem...."

Friday's employment report underscores the critical transition now underway in the U.S. economy. As the impact of government stimulus fades, job creation will have to come from growth in the private sector.

The latest data on the job market weren't encouraging.

A wave of hiring by the government brought a surge in employment; some 431,000 jobs were added for the month. But almost all of them were temporary Census Department jobs that will last for only a few weeks or months. Private sector employers added just 41,000 net new workers to their payrolls in May. Payroll gains were revised downward for March and April by a combined 22,000.

Even forecasters who are upbeat about the economic recovery were discouraged by the numbers.

“You’ll need to see (job gains) of about 200,000 to be considered a serious advance,” said Robert Barbera, chief economist at ITG.

The large number of census jobs added in May will also weigh on employment data in the months ahead. As those short-term jobs expire, they’ll count as jobs lost in the upcoming payroll data.

My question is this, "What happened to all those tax breaks for businesses to hire people?" My answer is this, "It does not look like it is working." And to Republicans, if you want to use TAX BREAKS, look at what is happening!!! It is not working. Time for some new innovation to addressing job creation in this country and not the same old stale, repackaged solutions that USED TO WORK, but is not working now.



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President Obama's Economic Speech at Carnegie Mellon, June 2, 2010 (Video)

This speech was given 6/2/2010.



Transcript

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