Archive for the ‘economics’ Category

US Recession Could Last Up to 36 Months: Roubini

March 9, 2009

The man who predicted the current financial crisis said the US recession could drag on for years without drastic action.

Nouriel Roubini
CNBC.com
Nouriel Roubini

Among his solutions: fix the housing market by breaking “every mortgage contract.”

“We are in the 15th month of a recession,” said Nouriel Roubini, a professor at New York University’s Stern School of Business, told CNBC in a live interview. “Growth is going to be close to zero and unemployment rate well above 10 percent into next year.”

Echoing a speech he made earlier in the day, Roubini said he sees “no hope for the recession ending in 2009 and will more than likely last into 2010.”

Read the rest:
http://www.cnbc.com/id/29598949

Obama to Ignore European Effort; Push for Global Stimulus at G20

March 9, 2009

The U.S. will press world leaders to boost emergency government spending to lift the global economy, risking a rift with European nations more concerned with revamping financial regulation.

Wall Street Journal

In President Barack Obama’s first foray into economic diplomacy, Washington will urge the shift at a summit next month in London, U.S. officials say, as markets look for a unified plan of action from the world’s most economically powerful nations.

Washington’s focus is at odds with France, Germany and other European nations that want the Group of 20 summit on April 2 to focus on rewriting rules governing financial markets. These nations say lax regulation was a major cause of the financial crisis and want to tighten their grip on hedge funds and private-equity firms.

All sides are looking to avoid a breakdown at the summit that would roil markets…

Read the rest:

http://online.wsj.com/article/SB123
655587029066001.html

Related:
World Bank: Global Trade Drops Most in 80 Years; What’s it Mean For Obama?

NYT Urges Obama To “Bail Out” Third World Too

 Despite Global Economy Downturn, China Still Lending

 World Bank Says Global Economy Will Shrink in ’09

 Obama has little reason to fall in with the G20

http://conservativemeanderings.wordpress.com
/2009/03/09/the-left%E2%80%99s-new-talking
-point-the-327-trillion-stimulus-was-too-small/

Warren Buffett says economy fell off a cliff

March 9, 2009

Billionaire Warren Buffett said the economy has “fallen off a cliff” over the past six months and consumers have changed their habits in remarkable ways.

Buffett said Monday during a live appearance on CNBC that current economic turmoil has basically followed the worst-case scenario he envisioned.

By JOSH FUNK, AP Business Writer

In this May 21, 2008 file photo, U.S. billionaire investor Warren ...
In this May 21, 2008 file photo, U.S. billionaire investor Warren Buffett speaks during a news conference in Madrid. Buffett says the economic turmoil that contributed to a 62 percent profit drop last year at the holding company he controls is certain to continue in 2009, but the revered investor remains optimistic.(AP Photo/Paul White, File)

“It’s fallen off a cliff,” Buffett said. “Not only has the economy slowed down a lot, but people have really changed their habits like I haven’t seen.”

Buffett said the changes are reflected in the results of Berkshire Hathaway Inc.’s subsidiaries. He said Berkshire’s jewelry companies have suffered, but more people have been willing to switch to Geico to save money on car insurance.

He predicted that unemployment will likely climb a lot higher before the recession is done, but he also reiterated his optimistic long-term view: “Everything will be all right. We do have the greatest economic machine that’s ever been created.”

Fear and confusion have been driving consumer and investor behavior in recent months, Buffett said.

The nation’s leaders need to clear up the confusion before anyone will become more confident, and he said all 535 members of Congress should stop the partisan bickering about solutions.

Read the rest:
http://news.yahoo.com/s/ap/2009
0309/ap_on_bi_ge/buffett_economy

Office of Management and Budget Director Peter Orszag arrives ...
“Beware of geeks bearing models,” said Warren Buffett; which could be worrisome to people.  Office of Management and Budget Director Peter Orszag arrives to deliver testimony before the House Ways and Means Committee on Capitol Hill in Washington, March 4, 2009.REUTERS/Jonathan Ernst (UNITED STATES)

Recession on track to be longest in postwar period

March 8, 2009

Factory jobs disappeared. Inflation soared. Unemployment climbed to alarming levels. The hungry lined up at soup kitchens.

It wasn’t the Great Depression. It was the 1981-82 recession, widely considered America’s worst since the depression.

By DEB RIECHMANN, Associated Press Writer

That painful time during Ronald Reagan’s presidency is a grim marker of how bad things can get. Yet the current recession could slice deeper into the U.S. economy.

If it lasts into April — as it almost surely will — this one will go on record as the longest in the postwar era. The 1981-82 and 1973-75 recessions each lasted 16 months.

Unemployment hasn’t reached 1982 levels and the gross domestic product hasn’t fallen quite as far. But the hurt from this recession is spread more widely and uncertainty about the country’s economic health is worse today than it was in 1982.

Back then, if someone asked if the nation was about to experience something as bad as the Great Depression, the answer was, “Quite clearly, `No,'” said Murray Weidenbaum, chairman of the Council of Economic Advisers in the Reagan White House.

“You don’t have that certainty today,” he said. “It’s not only that the downturn is sharp and widespread, but a lot of people worry that it’s going to be a long-lasting, substantial downturn.”

For months, headlines have compared this recession with the one that began in July 1981 and ended in November 1982.

-In January, reports showed 207,000 manufacturing jobs vanished in the largest one-month drop since October 1982.

Read the rest:
http://news.yahoo.com/s/ap/20090308/
ap_on_bi_ge/the_worst_recession

Obama’s First Weeks: Economic Disaster, Socialist Agenda, Congressional Pork, Limbaugh Attacked, and “We Won”

March 6, 2009

It seems such a long time ago that Barack Obama predicted an economic disaster.  He even used the word “catastrophe.”

In record time, it seems, President Obama has made the economy worse.  At least we can say for sure, he made it no better.

Dow’s Decline Is Fastest for a New President in Nearly a Century

Unemployment Highest Since 1983; Business Leaders Have No Confidence in Obama Economic Plan, Team

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

Obama’s Economic Strategy Akin To LBJ’s Vietnam Fiasco: “Pour In More”

And while grappling with an economic nightmare, the President of the United States insists this is the right time, the perfect time, the exact time to fund health care reform, education reform, a total re-engineering of the energy system in the U.S. and other social changes.

Obama Can’t Revive Economy With Socialism

Obama’s Radicalism Is Killing the Stock Market

The stimulus bill was a kind of Obama Blitzkrieg through Congress with a bill written by Nancy pelosi’s crowd in the house.

This effort was so successful that the gameplan is being used again to bring us health care reform.

And there are many other signs of trouble.

GM may fail despite billions in bailout.  Ditto AIG.

And just for fun the President of the United States and all his top men engaged in a public battle with a radio talk show host.

 Obama Calls Limbaugh Top Party Leader; Voters Don’t Buy It

Have we lost our way at the White House?  Where’s the hope?

Most medical students and doctors know the phrase primum non nocere.

First do no harm.

[Commentary]
Martin Kozlowski, WSJ

******

 

All this fun in the first few weeks of the Obama Administration and we still haven’t seen any trouble from Hamas, Hezbollah, terrorists, China, Russia, Israel, Iran, etc., etc……

Hillary: One-Time Health Care Failure Now American’s Chief Diplomat, Fouls Up First Time Out

 Russia Sees Obama, U.S., Others As “Weak,” “Naive”

Related:
http://michellemalkin.com/2009/0
3/06/jeri-thompson-roasts-the-rus
h-deranged/

Related:
 Households, Businesses Have Stopped Spending; Now It’s Congressional Responsibility Time

 American Workers, Businesses Cut Back; Obama Launches Spending Spree

Obama’s Brazen Deception: Why The Stock Market Won’t Recover Soon

http://nobamablog.wordpress.com/2009
/03/06/deception-at-core-of-obama-plans/

Incoming White House Chief of Staff Rahm Emanuel gestures prior ... 
Incoming White House Chief of Staff Rahm Emanuel gestures prior to the inauguration ceremony of Barack Obama as the 44th President of the United States, in Washington, January 20, 2009. Emanuel famously said, “Never let a good crisis go to waste.”(Jim Young – UNITED STATES/Reuters)

http://nobamablog.wordpress.com/2009/
03/06/deception-at-core-of-obama-plans/

Uh Oh, White House Seeks Economic Advice From Twitter

March 6, 2009

Twitter cofounder and CEO Ev Williams is headed to the White House today.

The administration invited him to join a “young business leaders” summit to discuss the economic crises.

As Ev himself puts it — in a Twitter message, of course — “[this] must mean they’re *really* out of ideas.”

A reminder: With 6 million members and 700% plus growth, Twitter makes no money in the US. (It sells some ads in Japan).

–From Business Insider

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Related:
Dow’s Decline Is Fastest for a New President in Nearly a Century

Geithner’s Top Two Treasury Assistants Withdraw; 17 Unfilled Top Jobs At U.S. Treasury

Most Obama “Economic Advisors” Raised Money for Democrats

 Obama’s Economic Strategy Akin To LBJ’s Vietnam Fiasco: “Pour In More”

Dow’s Decline Is Fastest for a New President in Nearly a Century

March 6, 2009

The Dow Jones Industrial Average has fallen faster under President Obama than under any new president in at least 90 years, according to a review conducted by Bloomberg. 

Bloomberg reports that since Inauguration Day, the Dow has fallen 20 percent, leading at least one investor to dub this the “Obama bear market.” The Dow has also dropped 31 percent since Election Day. 

Despite a string of government bailout offers and Obama’s advice earlier this week that Americans should be buying stock while shares are low, the Dow has continued to freefall. 

Bloomberg reported that Obama is at risk of breaking a historical trend — in which the Dow soars an average of close to 10 percent in the first year after a Democrat wins the presidency. 

–Fox News

******

By Eric Martin

March 6 (Bloomberg) — President Barack Obama now has the distinction of presiding over his own bear market.

The Dow Jones Industrial Average has fallen 20 percent since Inauguration Day, the fastest drop under a newly elected president in at least 90 years, according to data compiled by Bloomberg. The gauge has lost 53 percent from its October 2007 record of 14,164.53, slipping 4.1 percent to 6,594.44 yesterday.

Read the rest:
http://www.bloomberg.com/apps/news?pid=206
01087&sid=a5o50mgg9hWA

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

Stimulus: “Buy American” Retained; Sure To Anger International Partners

February 14, 2009

Congress approved protectionist measures in a $789 billion stimulus bill Friday that U.S. trading partners have warned could spark a trade war.

Associated Press

The bill, however, left the Obama administration some room to maneuver to appease other countries who say it will benefit U.S. companies unfairly.

The stimulus bill was approved by the House Friday afternoon and by the Senate later in the evening. It now goes to President Barack Obama who is expected to sign into law quickly.

Major partners, including the European Union and Canada, say the legislation favoring U.S. steel, iron and manufactured goods for government projects could undermine pledges by the leaders of major economies not to resort to perfectionism during the world economic downturn.

Requirements known as “Buy American” were softened as the bill progressed through Congress and after strong criticism from abroad. Senate and House negotiators agreed to a version that would require the government not to violate trade agreements when implementing the law.

The bill also allows the Obama administration and state governments to waive requirements to favor U.S. companies if they deem it in the U.S. public interest and if they publish a justification.

The dispute has put Obama in a difficult position. While campaigning last year, he raised questions whether U.S. trade agreements contained sufficient protection for labor and environmental standards. He has warned recently, however, about antagonizing trading partners and has made clear that passage of the overall stimulus bill is needed urgently to mend the U.S. economy.

In several television interviews last week, he said the stimulus package should not include protectionist language that could trigger a trade war. But now that it does, he is likely to sign it anyway. The measures appear, however, to give the administration discretion about how to implement spending decisions, given the requirement of meeting trade obligations.

Read the rest:
http://www.foxnews.com/politics/elections/2009/
02/13/congress-approves-protectionist-measure-
spark-trade-war/

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President Obama visited the Caterpillar factory in East Peoria, Illinois this last week.

Caterpillar says it pays $100,000 in tariffs on each piece of heavy equipment it exports to Columbia, because the U.S. Congresss has failed to pass the free trade agreement….

Now with this “buy American” provision in the stimulus it is likely the U.S. will find trouble with other trading partners…

Related:
 Pastor Obama Continues With Holy Stimulus, But The Congregation Isn’t Buying

Why Europe No Longer In Obama Camp Over Stimulus
.
China’s leader Hu Jintao cautioned President Obama about the “buy American” provision in the economic stimulus plan during a phone conversation.

Related:
CNN:
http://edition.cnn.com/2009/POLITIC
S/02/05/senate.buy.american/index.html

 “Buy American” Sounds Good; Carries An Unbearable Down Side

Obama Caught Between World Leaders, Congress, U.S. Voters on “Buy American”

 Dallas Federal Reserve Chief, China, Germany All Call Protectionism “Death”

China announced that President Hu Jintao, seen here in 2008, ...
President Hu Jintao of China (AFP/File/Louisa Gouliamaki)

Made in china.jpg

Federal debt obligations exceed world GDP

February 14, 2009

As  the Obama administration pushes through Congress its $800 billion deficit-spending economic stimulus plan, the American public is largely unaware that the true deficit of the federal government already is measured in trillions of dollars, and in fact its $65.5 trillion in total obligations exceeds the gross domestic product of the world.

The total U.S. obligations, including Social Security and Medicare benefits to be paid in the future, effectively have placed the U.S. government in bankruptcy, even before new continuing social welfare obligation embedded in the massive spending plan are taken into account.

The real 2008 federal budget deficit was $5.1 trillion, not the $455 billion previously reported by the Congressional Budget Office, according to the “2008 Financial Report of the United States Government” as released by the U.S. Department of Treasury.

By Jerome R. Corsi
WorldNetDaily

The difference between the $455 billion “official” budget deficit numbers and the $5.1 trillion budget deficit cited by “2008 Financial Report of the United States Government” is that the official budget deficit is calculated on a cash basis, where all tax receipts, including Social Security tax receipts, are used to pay government liabilities as they occur.

Read the rest:
http://www.worldnetdaily.com/index.php?
fa=PAGE.view&pageId=88851

Related:
Stimulus: China Will Fund U.S. Debt But “We Hate You Guys”

A Chinese customer shows off a handfull of hundred-yuan notes ...

Obama Confirms: Nobody Listens To Joe Biden

February 10, 2009

Pity poor Joe Biden. His “there’s still a 30 percent chance we’re going to get it wrong” quote is put straight to President Barack Obama during the White House press conference just now and his boss seemed to want to say: “Vice-President Who?”

By Toby Harnden
Telegraph (UK)

As reporters started giggling, Obama came close to conceding that Biden was indeed a joke. “You know, I don’t remember exactly what Joe was referring to, not surprisingly.”

The President went on to say that “I think what Joe may have been suggesting, although I wouldn’t ascribe any numerical percentage to any of this, is that given the magnitude of the challenges that we have, any single thing that we do is going to be part of the solution, not all of the solution.”

Of course, Biden wasn’t saying anything of the sort – Obama knew that and all the rest of us did too. 

Biden’s exact quote, read out by Fox’s Major Garrett at the presser was: “If we do everything right, if we do it with absolute certainty, if we stand up there and we really make the tough decisions, there’s still a 30 percent chance we’re going to get it wrong.”

Clearly, Obama and his aides were unhappy about Biden’s loose lips. On Friday, top Obama adviser David Axelrod said on CNN: “I don’t know exactly about what that math was.”

We’re probably going to have to get used to Obama explaining “what Joe may have been suggesting”. And Biden must be wondering if he’s going to end up as a Dan Quayle figure.

Related:
 ‘Overwhelming’ expectations worry Biden

Obama’s New Vision for Vice President Joe Biden

US Vice President Joe Biden gestures while US President Barack ... 
US Vice President Joe Biden gestures while US President Barack Obama signs an Executive Order in the Eisenhower Executive Office Building January 21 in Washington, DC.(AFP/Getty Images/Brendan Smialowski)