The Fundamentals of the economy are strong!!

Discussion in 'Current Events' started by The Other Side, Dec 1, 2008.

  1. The Other Side

    The Other Side Well-Known Troll Troll

    This has been the battle cry of GW BUSH and the republican talking heads for over a year now. Every idiot connected to BUSH has repeated the same over and over.

    BUSH stated after every quarter after the 3rd quarter in 07 that the economy was in strong shape and no recession was likely.:nono2:

    McCain repeated this lie over and over until it eventually cost him the election.:nono2:

    Neil Cavuto since January, claimed on the air every weekend, that the economy was strong and any talk of a downturn was nothing but liberal media hype.:slap:

    Hannity currently uses his airwave time to call this economy the "obama recession".:whatever:

    The facts are the facts, too bad the right wing doesnt get it. The rest of the country had it right, the republicans ran this country right into the ground.

    Dow plunges on news recession began in Dec. 2007
    Monday December 1, 11:12 pm ET
    By Jeannine Aversa and Martin Crutsinger, AP Economics Writers Dow sinks nearly 680 after group says US has been in a recession since December 2007

    WASHINGTON (AP) -- Most Americans sorely knew it already, but now it's official: The country is in a recession, and it's getting worse. Wall Street convulsed at the news -- and a fresh batch of bad economic reports -- tanking nearly 680 points. With the economic pain likely to stretch well into 2009, Federal Reserve Chairman Ben Bernanke said Monday he stands ready to lower interest rates yet again and to explore other rescue or revival measures.

    Rushing in reinforcements, Treasury Secretary Henry Paulson, who along with Bernanke has been leading the government's efforts to stem the worst financial crisis since the 1930s, pledged to take all the steps he can in the waning days of the Bush administration to provide relief. Specifically, Paulson is eyeing more ways to tap into a $700 billion financial bailout pool.
    On Capitol Hill, House Speaker Nancy Pelosi, D-Calif., vowed to have a massive economic stimulus package ready on Inauguration Day for President-elect Barack Obama's signature.
    That measure -- which could total a whopping $500 billion -- would bankroll big public works projects to generate jobs, provide aid to states to help with Medicaid costs and provide money toward renewable energy development. Crafting such a colossal recovery package would mark a Herculean feat: Congress convenes Jan. 6, giving lawmakers just two weeks to complete their work if it is to be signed on Jan. 20.
    President George W. Bush, in an interview with ABC's "World News," expressed remorse about lost jobs, cracked nest eggs and other damage wrought by the financial crisis. "I'm sorry it's happening, of course," said Bush. The president said he'd back more government intervention.
    None of the pledges for more action could comfort Wall Street investors. The Dow Jones industrials plunged 679.95 points, or 7.70 percent, to close at 8,149.09.
    It was another white-knuckle day, punctuated by grim economic reports. An index of manufacturing activity sank to a reading of 36.2 in November, a 26-year low, the Institute for Supply Management reported. Construction spending fell by a larger than expected 1.2 percent in October, the Commerce Department said.
    Adding to the gloom, the National Bureau of Economic Research, a group of academic economists, concluded Monday that the country has been suffering through a recession since December 2007.
    With NBER's decision, the United States has fallen into two recessions during Bush's eight years in office. The first one started in March 2001 and ended in November of that year.
    The economy jolted into reverse in the final three months of last year. After a short spring rebound, it contracted again in the summer. Economists say it is still shrinking and will continue to do so through at least the first quarter of next year.
    Unlike past recessions, consumers are bearing the brunt of this one. Clobbered by job losses, hard-to-get credit and hits to their wealth from sinking home values and plunging portfolio investments, consumers have cut back sharply on their spending, throwing the economy into chaos.
    Watching customers' appetites wane, employers have throttled back on hiring. The unemployment rate in October zoomed to 6.5 percent, a 14-year high. So far this year, 1.2 million positions have disappeared. The jobless rate is likely to climb to 8 percent or higher next year.
    Against that backdrop, many economists believe the current recession will be the worst since the 1981-82 downturn.
    To help ease the pain, Bernanke said additional interest-rate cuts are "certainly feasible," but he warned there are limits to how much such action would revive the economy, which is likely to stay mired in weakness well into next year.
    The Fed's key interest rate now stands at 1 percent, a level seen only once before in the past half-century, and many economists predict Bernanke and his colleagues will drop the rate again at their next meeting on Dec. 15-16.
    The Fed can lower its key rate only so far -- to zero -- and it's getting ever closer. Given that constraint, Bernanke said there are other ways to bolster economic activity.
    The Fed, for instance, could buy longer-term Treasury or agency securities on the open market in substantial quantities, he said. This might lower rates on these securities, "thus helping to spur aggregate demand," Bernanke said.
    Because the Fed can go only so low in reducing interest rates, the central bank over the past year has resorted to a flurry of other radical and often unprecedented actions with the hope of busting through credit jams and getting financial markets operating more normally.
    The bracing impact of the Fed's aggressive rate reductions, however, has been somewhat stymied by the credit and financial crises, Bernanke said. Despite lower borrowing costs, skittish banks have been reluctant to lend money to people and businesses, a vicious cycle that has seriously hobbled the U.S. economy.
    "Even if the functioning of financial markets continues to improve, economic conditions will probably remain weak for a time," Bernanke warned.
    Paulson, meanwhile, has been working closely with the incoming administration, including New York Fed President Timothy Geithner, Obama's pick to be the next treasury secretary, to pave the way for a smooth transition.
    "We are actively engaged in developing additional programs to strengthen our financial system so that lending flows into our economy," Paulson said, referring to tapping the $700 billion bailout fund. "When these programs are ready for implementation, we will discuss them with the Congress and the next administration," he added.
    Paulson did not provide specifics on what type of programs the administration was weighing other than to say that it was looking at ways to boost capital injections into financial institutions. Associated Press Writers Andrew Taylor and Deb Riechmann contributed to this report.
  2. Bad Gas!

    Bad Gas! Active Member

    Blah Blah Blah....Obama will fix everything. Just ask his nutty supporters..LOL..And Obama will get a gut reality check on global terror which comes ahead of the economy..
  3. over9five

    over9five Senior Member Staff Member

    TOS, why do you enlarge, bolden, and color half your posts? It does not make them truer or more believable.

    But it does make it look like your TRYING to make them truer and believable!
  4. Baba gounj

    Baba gounj pensioner

    Let's see a media report released on Monday said that we are already into 12 months of this recession. So it began on about Nov. 2007, wasn't that about the same time that Congress switched over to Democratic control.
  5. 1989

    1989 Well-Known Member

    That should be bullish for the market...More than a year into a recession...Probably turned out of it by now.
  6. tieguy

    tieguy Banned

    Inflection. Anything written in font size 5 or larger automatically becomes law.
  7. stringerman85

    stringerman85 New Member

    Big colorful fonts - Reminds me of the scam websites that try to sell you their scam products :happy-very:
  8. chev

    chev Nightcrawler

  9. tieguy

    tieguy Banned

    hope the economy turns around quickly O is lining up some major programs. He may end up making fdr and lbj look like amateurs.:peaceful:
  10. wkmac

    wkmac Well-Known Member


    Sorry Tie but I had to take a chance in that it might just work!

    Oh, and a couple of joints of that 2700 year old Chinese reefer would be good too!

    Might as well push my luck!
  11. LiL"Comet"

    LiL"Comet" New Member

    Alright free beer & budlight!!!! when, where I'm there !!! any takers?
  12. diesel96

    diesel96 New Member

    Global Terror comes ahead of our economy ? :rofl:

    I don't see anybody disputing the post subject, just the poster's handwriting......

    Lets play along with this thought process, since taking over from an already low reguarded Rep Congress, the Majority Dem 110th Congress lost confidence by caving in and passing more Republican legislation. Not exactly what they were elected to accomplish. Please, feel free to elaborate how Bush Sr, Bush Jr, Clinton and the previous 109th and 108th Congress get a free pass and how 110th Congress is solely responsible for our recession woes in a Capitalistic dominating society. I'll get the popcorn, but I not sharing, maybe I'll leave you a few kernals cause I feel generous, It's Christmas time. I'm a greedy bastard, aren't I....Hint Hint... wink:wink2: wink:wink2:
  13. Baba gounj

    Baba gounj pensioner

    Lets see who said that letting Freddie & Frannie run free was bad, Bush 17 or 18 times & before him some guy named Clinton.
    And what has been the outcome of this " free run " why a worldwide
    Letting everyone own their own home has price and today we are paying for that lack of commonsense.
    Giving people who couldnot/wouldnot repay the mortgages that they were given has lead to this mess. And the financial houses that kept reselling all these bad loans , because Frannie & Freddie said that they would back these loans. Only shows that "our elected leaders " are have no linkage to their own taxpayers, especially since most elected persons are in fact lawyers.
  14. tieguy

    tieguy Banned

  15. diesel96

    diesel96 New Member
    But Fannie and Freddie aren't lenders, to minorities or anyone else. They purchase loans from private lenders who actually underwrite the loans. In an effort to promote affordable home ownership for minorities and rural whites, the Department of Housing and Urban Development (HUD) set targets for Fannie and Freddie in 1992 to purchase low-income loans for sale into the secondary market that eventually reached 52 percent of loans given to low-to moderate-income families.
    But these loans, and those to low- and moderate-income families, represent a small proportion of overall lending. Between 2004 and 2006, [prior to the Democratic majority Congress] when subprime lending was exploding, Fannie and Freddie went from holding 48 percent of the subprime loans to holding about 24 percent. Among the reasons is that Fannie and Freddie were supervised by far more robust standards than most of the unregulated players in the private sector. Most of these unregulated players have now gone bankrupt or are in serious legal trouble.
    During the same three-year period, these same unregulated private investment banks dominated the mortgage loans that were packaged and sold into the secondary mortgage market. According to McClatchy News Service, in 2005 and 2006, the private sector securitised almost two-thirds of all U.S. mortgages, supplanting Fannie and Freddie.

  16. Baba gounj

    Baba gounj pensioner

    Did you see the report that states .......those that received new loans to help them avoid foreclosure , have again within 6 months re-defaulted.
  17. tieguy

    tieguy Banned

  18. Baba gounj

    Baba gounj pensioner

  19. diesel96

    diesel96 New Member

  20. Baba gounj

    Baba gounj pensioner

    Accountability.....funny you mention that Baba, something Bush, Cheney, Rumsfeld and Rove are stilling running from and will continue to do so. There are outside independent legal teams assembling evidense to persue these criminals even after their terms are up....[/quote]
    How about that ?
    You want to waste taxpayers funds to follow a dream, so be it.