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Is Obama REALLY driving the Country Into the Ground?

Original post made by Obama on Jul 29, 2009

"Obama is really making the recession worse" "We are loosing our freedoms" "his stimulus package has done NOTHING to help the recession and boost the economy" UG!

Washington Post Staff Writer
Wednesday, July 29, 2009; 3:42 PM

The economy's downward slide is slowing with more regions of the country showing signs of stabilization in recent weeks, according to a Federal Reserve report released Wednesday.

The Fed's Beige Book, a compilation of anecdotes collected from businesses across the country, offered new evidence that the worst recession of the post-World War II era is bottoming out. The report covers the six weeks after the release of the last report on June 10 and is prepared two weeks before the Federal Open Market Committee, the Fed's policy setting arm meets. The next meeting is scheduled to begin Aug. 11

The most recent installment of the Beige Book offered a mixed picture with reports from the 12 Federal Reserve Districts suggesting overall that the economy deteriorated in April and May. In June and July, by contrast, residential real estate markets in many areas improved modestly, fueling hopes the three-year old housing slump may be coming to an end. A report out earlier this week showed home prices in 20 metropolitan areas rose during the three months ending in May, the first such increase since 2006.

There were also signs that the severe downturn in manufacturing was easing. Fed Districts in the industrial Midwest reported that either manufacturing was picking up or its decline was slowing. This improved outlook came despite the troubles of the Big Three U.S. auto makers. General Motors and Chrysler each closed plants in June as part of their restructuring efforts.

Prices were largely stable, suggesting the threat of inflation remained in check. Inflation is increasingly a concern among economists and investors who worry the Fed's injection of hundreds of billions of dollars into the financial system may eventually drive up prices. A jump in inflation could eventually lead the Fed to tighten interest rates.


Upward pressure on wages, another potential contributor to inflation, was also weak with most district reporting "extremely soft" labor markets and the tendency among employers to reduce or freeze compensation in addition to job cuts.

The economy has so far shed more than 6 million jobs since the recession began in December 2007. As of June, the unemployment rate stood at 9.5 percent. Fed leaders have forecast unemployment to surpass 10 percent by year's end.

Job loss or the threat of it, combined with falling home prices, have made consumers curb spending. Most of the Federal Reserve districts reported sluggish retail sales including fewer purchases of big-ticket items. Auto sales were mixed and travel and tourism were down in a majority of the districts.

Separately, new data out Wednesday showed that orders for durable goods--appliances, construction equipment and other goods made to last at least three years--fell more than expected in June, driven mainly by a drop in demand for airplanes and autos. But there were also inklings of a slow recovery.

Orders excluding aircraft rose by a surprising 1.1 percent, the second straight monthly increase and a far larger one than in May. Orders for non-defense capital goods excluding aircraft, a closely watched barometer of business investment, also rose for the second consecutive month.

"Even taking into account the dip in June, durable goods orders are firmly in positive territory . . . which suggests a welcome momentum shift," Wells Fargo economist Tim Quinlan wrote in a note to clients.

Economists have been watching durable goods orders for signs of a rebound in manufacturing, which has shed 1.9 million jobs since the recession began in December 2007.

Analysts had been expecting durable goods orders for June to fall a bit due to the closure of auto plants earlier in the month. Orders were also pulled down by a drop in demand for commercial aircraft, which fell 39 percent after rising 60 percent in May.

But inventories of manufactured durable goods decreased in June by 0.9 percent, the sixth straight monthly decline. For production to pick up, the overhang of inventories should shrink.

Meanwhile, other data out Wednesday showed that Washington-area unemployment increased to 6.6 percent in July, up from 6.2 percent in May and 3.8 percent in June 2008. Washington has the second-lowest unemployment rate for a U.S. metropolitan area with more than 1 million people.

Comments (9)

Posted by Cholo, a resident of Livermore
on Jul 29, 2009 at 4:03 pm

gosh..I dunno...maybe you can start an investigation...bring in resident, sandy, myra...maybe C Street in Washington D. C....linda, amy, loyecee, don't count on me...I will subvert you group.

gosh...I dunno...maybe you can start up a party and then chase away all the street preachers...take a pill and go to sleep...pleaeeeeeeeeeese...


Posted by Pleasanton Parent, a resident of Pleasanton Meadows
on Jul 29, 2009 at 9:04 pm

Is Obama to blame for the recession we're in? No. Do I think he's focused on the right things to ease the effects of the recession? Nope.

Where is the focus on job creation? What has been done to ensure that companies that are determined to be "too big to fail" don't in the future? Why are we increasing transfer of payment programs instead of reducing or eliminating them? And why is the president even commenting on the issue of the cop and college professor when then economy and federal budget is so #@Q$#$#$!!!!!!!!!!


Posted by Well..., a resident of Another Pleasanton neighborhood
on Jul 29, 2009 at 11:49 pm

I agree that Obama is not to blame for the recession we're in, and as we can all (or those who have their eyes open) see, he's up to his elbows, digging in and trying to get us out of this mess that he was voted into. And yes, he shouldn't be allowing himself to get sidetracked by those thrusting false emergencies into his forum (such as the cop and the college professor), but do I think he's doing better than Bush ever did to tackle the big issues in an intelligent, forthright manner? Damn right, you bet I do.


Posted by Hmmm..., a resident of Another Pleasanton neighborhood
on Jul 29, 2009 at 11:55 pm

Hmmm...Let's see...George Bush left us a 1.3 Trillion deficit after TARP and then Obama DOUBLED IT and we are on the way to a 4 Trillion deficit.

Going back to the original poster's question I'd say...


YES!


Posted by Ken in South Pleasanton, a resident of Downtown
on Jul 30, 2009 at 8:34 am

Yep, I also agree tha Obama is driving it into the ground. Previous administrations helped build the vehicle he's driving, but he keeps putting high octane fool into the tank (not a typo), pushing the accelerator to the floor, and looking in the rearview mirror to see if he has run over any important campaign contributors. Recent articles in major newspapers have documented the job creation scam that many state and federal agencies are perpetuating...jobs that last 35 hours then disappear but are counted as new job creation through Obama's plan. How many of you could support a family on 35 hours a year?


Posted by Me, a resident of Downtown
on Jul 30, 2009 at 8:46 am

And Warren Buffet has commented with an unbiased view, on just how this administration has helped to curb the recession and thaqt we are starting to very slowly come out. He also staes that we were headed for a depression, as everyone knows.


Posted by I, a resident of Another Pleasanton neighborhood
on Jul 30, 2009 at 9:29 am

Saying Obama caused the giant recession we are in is like saying that GWB was responsible for 911. Neither is true. The recession was a result of greed by both parties. They both over a period of 12 years saw they could make more money on thier investments by deregulating. They put the chicken in charge of the hen house. This resulted in the (easily foreseable) credit house of cards. The circumstances were similar to 1929 (except in 29 thier was already 15 % unemployment). Obama kept GW's money men and have followed thier advice. Saying that Obama is driving the economy into the ground appears just to be partisian politics. Last week 8 of 10 economic indicators were positive. Most experts (bi-partisian) agree that the stimulas was necessary and is working. As to must protect businesses - I assume you mean the banks, regulation is being added. If you meant the auto industry, the business that ran best is thriving (in US that is Ford). That is what capitalism is meant to be. Chapter 11 was good for GM and Chrysler, they have a chance to reinvent. Hopefully they built more automated plants, better and more fuel efficient vehicles. Then they end up on top.

By the way have you noticed the banks have been returning thier stimulas dollars.


Posted by Aha, a resident of Canyon Oaks
on Jul 30, 2009 at 9:40 am

Some well needed clarity! Thanks!


Posted by Pleasanton Parent, a resident of Pleasanton Meadows
on Jul 30, 2009 at 11:07 am

Posted by I - Last week 8 of 10 economic indicators were positive. Most experts (bi-partisian) agree that the stimulas was necessary and is working. As to must protect businesses - I assume you mean the banks, regulation is being added. If you meant the auto industry, the business that ran best is thriving (in US that is Ford). That is what capitalism is meant to be. Chapter 11 was good for GM and Chrysler, they have a chance to reinvent. Hopefully they built more automated plants, better and more fuel efficient vehicles. Then they end up on top.

By the way have you noticed the banks have been returning thier stimulas dollars.



Positive, or just not as bad as the week before?

Yes, most economists agree that a stimulus is required, however within that group there is much discussion about whether or not the stimulus is enough (most believe it is not) and others argue over whether or not its focused on the right things (which I believe it is not).

Regarding the banks - regulation should have been added as part of the stimulus, not after the fact. One of the primary reasons banks are giving back the money as fast as possible is because they don't want increased regulation and its much easier to make a case against increased regulation when you don't owe uncle sam any money. Sh!t, REITs are beginning to be traded again under the same "rules" as before. Personally, I'm still not convinced the banks are in as good of shape as they claim. The suspension of the mark to market rule instantly made their balance sheets look better, but are they really?


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