Archive for the ‘credit’ Category

Obama, Biden Chat Up Economy; Congress Talking “Stimulus II”

March 15, 2009

Here’s the President’s strategy: TALK the economy up.

President Barack Obama on Saturday downplayed divisions between the U.S. and Europe over how to tackle the world’s financial crisis and said China should have “absolute confidence” that its sizable investments in the United States are safe.

Larry Summer and Paul Volker added similar happy chit-chat.

Even Joe Biden, who has never been wrong on anything before, said a recent uptick in the stock markets is a result of the “Obama factor.”

We went from crisis to prosperity with the stroke of a pen and the use of a teleprompter!

Presto!  You’re now confident!

Problem is: China doesn’t believe it.  And they hold about one-quarter of the U.S. debt, about $1 trillion.  And we want them to buy a bunch more.

Wen Jiabao said this week he was worried about America’s ability to repay China.

He never said that before….

And Tim Geithner at least looks worried.

Sen. Sherrod Brown, D- Ohio, pauses in the elevator after arriving on Capitol
Geithner

And people in Congress are already saying the $740 billion-plus stimulus is maybe not enough.

“Biden should stop talking the ‘Obama Factor’ and President Obama might not talk up the economy so much in case he needs to go to the Congress for hundreds of billions more in additional stimulus money,” said William Kristol of the Weekly Standard on the Fox News Sunday show with Chris Wallace.

On that same show Senator Bob Corker (R-Tenn.) said, “solve the credit problem and eliminate toxic assets before asking for another stimulus.”

Bob Corker
Corker

He seemed incredulous that Geithner had not yet addressed these problems.

“Move the second stimulus idea way to the side,” Corker said, “until we solve the credit problem.”

Obama Talks Up Economy:
http://news.yahoo.com/s/ap/200903
15/ap_on_go_pr_wh/obama_economy_72

Biden on the Economy:
http://news.yahoo.com/s/ap
/20090315/ap_on_go_pr_wh/biden_5

Related:
Obama: Fire Geithner

 Pelosi’s Stimulus II? Lawmakers Propose No Cost, High Employment Energy Package

Obama, Geithner: recession requires global action 

Even Democrats Showing Signs Of Economic Despair, Worry at White House Inertia

Pelosi: Congress Needs to ‘Keep the Door Open’ to Second Stimulus Package
Speaker Nancy Pelosi, D-Calif. is kissed on the cheek by one ...

Pelosi

http://riggword.wordpress.com/200
9/03/15/obama-says-dont-worry-
be-happy-now/

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World Bank Says Global Economy Will Shrink in ’09

March 8, 2009

The economic crisis that started with junk mortgages in the United States is causing havoc for poorer countries around the world, not only stifling their growth but choking off their access to credit as well, the World Bank said on Sunday.

By Edmund Andrews
The New York times

In a bleaker assessment than those of most private forecasters, the World Bank also predicted that the global economy would shrink in 2009 for the first time since World War II. The bank did not provide a specific estimate, but bank officials said its economists would be publishing one in the next several weeks.

Until now, even extremely pessimistic forecasters have predicted that the global economy would eke out a tiny expansion but had warned that even a growth rate of 5 percent in China would be a disastrous slowdown, given the enormous pressure there to create jobs for its rural population.

The World Bank also warned that global trade would shrink for the first time since 1982, and that the decline would be the biggest since the 1930s.

The report, released on Sunday, was prepared for a meeting next week of finance ministers from the 20 industrialized and large developing countries. It warned that the financial disruptions are all but certain to overwhelm the ability of institutions like itself and the International Monetary Fund to provide a buffer.

The bank, which provides low-cost lending for economic development projects in poorer countries, pleaded for wealthy governments to create a “vulnerability fund” and set aside a fraction of what they spend on stimulating their own economies for assisting other countries.

“This global crisis needs a global solution and preventing an economic catastrophe in developing countries is important for global efforts to overcome this crisis,” said Robert B. Zoellick, the World Bank’s president. “We need investments in safety nets, infrastructure, and small and medium size companies to create jobs and to avoid social and political unrest.”

The bank said that developing countries, many of which had been growing rapidly in recent years, are being devastated by plunging exports, falling commodity prices, declining foreign investment and vanishing credit.

Read the rest:
http://www.nytimes.com/2009/03/
09/business/09bank.html?_r=1&hp

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Vietnam beomes more poor:
http://ph.news.yahoo.com/afp/20090308/tbs-
finance-economy-vietnam-poverty-a179076.html

Related:
Stimulus Too Late, Wasteful, Reckless; Toxic Assets and Banks Still Unaddressed

NYT Interviews Obama; No Economic Recovery This Year

 NYT: After March 6 Economic News, “2009 is Probably a Lost Cause”

Economy Shrinking: Expects More Gloomy Retail, Inventory Data

December 12, 2008

The government is expected to provide fresh evidence Friday that retailers are taking a hit as consumers continue to pull back amid what appears to be a deepening recession.

By CHRISTOPHER S. RUGABER, AP Economics Writer

Wall Street economists expect retail sales in November fell 1.9 percent, according to a survey by Thomson Reuters.

That would be an improvement over October’s record 2.8 percent drop, but still the fifth straight monthly decline reported by the Commerce Department.

The report comes a day after the Labor Department said initial jobless claims rose to the highest level in 26 years, though the work force has grown by about half over that time.

Read the rest:
http://news.yahoo.com/s/ap/20081212/ap_on_bi_ge/financial_m
eltdown;_ylt=AvwGdvV5Q365QBdEoTuZhHSs0NUE