Renewed focus on economy as unemployment hits 5 year high
Terrible news from the labor department today.
The unemployment rate jumped to 6.1 percent in August, its highest level in five years, pushing the job troubles of American workers onto the political stage as the presidential campaign enters its final eight weeks.
So far, 605,000 jobs have disappeared since the start of the year, with employers slashing 84,000 jobs in August alone, the Labor Department reported on Friday. And even Americans who are still employed are facing tough times.
In a statement Friday, Mr. McCain said that “Washington has failed to act” to improve the poor economy. “Americans are hurting and we must act to create jobs,” he said. He vowed to enact a jobs program and help retrain workers for the changing market.
While Mr. McCain has tried to distance himself from President Bush, Senator Barack Obama, the Democratic candidate, tried again Friday to link the Republican candidate to the current administration. Mr. Obama argued that his opponent was “intent on continuing the economic policies that just this year have caused the American economy to lose 605,000 jobs.”
How can John McCain claim that "Washington has failed to act" and that he is the better choice for the economy when he has marched in lock-step with George W. Bush 90% of the time? The mind reels...

Then there's this.....
Has McCain ever held a job other than Navy jackass/pow and Senator?
McPOW is busy trying to paint himself as a Washington outsider and suddenly, an agent of "change". The sad thing is that there seems to be so many brain-dead people out there buying into this hogwash. How else can you account for him running almost even with Obama, even with taking the racists into account (who would never vote for Obama anyway)?
QG @ 1:
This would be coming from the party that doesn't believe government can do anything as well as the private sector? You know the same party that's outsourced the military, national security, etc. All the sudden the two largest mortgage lenders need to be taken over by that same government led by that party. My head is spinning, I'm woozy, up is down, love is hate..........arrrrgggghhhh.
“Americans are hurting and we must act to create jobs,” he said. He vowed to enact a jobs program and help retrain workers for the changing market.
This is republican code for more war to feed the economy.
That's a lot of folks but I think it is going to get a hell of a lot higher. The globe is approaching recession and stalling economies. Everyday more and more banks are reporting losses and more folks are loosing employment. England and Japan both reported in this week. . . I hate to think it but I think we are approaching a global depression that will make the 1929 crash look easy in comparison.
The experience question:
Do you know who has a lot of executive experience?.....and that too at the highest level?
George Bush. Do you want a third term for this guy with so much experience?
I will be all too happy if Obama 08 is referred to as Clinton's third term. Why is McCain afraid of calling McCain 08 as Bush's third?
Economy, foreign policy, health care approach and so forth are areas where McCain represents 4 more years of Bush. So, look for distractions from the Republicans. In 2004, October was spent arguing Kerry's service record in Vietnam, taking Iraq and the deficits off the table. Palin may be part of the distraction approach.
I don't see a lot of good things coming for this economy, because of excessive borrowing. We have mortgaged our futures for the temporary convenience of the present, as Reagan warned, and the bill is due, both individually as consumers and collectively due to the budget deficits. Print money to pay for it, and see inflation. Indeed, a lot tied into dollar devaluation is the recognition by the world community that the U.S. doesn't intend to exercise fiscal responsibility.
IdiotShrub @ 3:
It's the POW business. It seems that his tenure there gives him immunity from bad behavior, be it bombing innocent civilians to the Keating Five.
Keep repeating: "Here come the Republicans to save us from the Republicans."
Hindy_Jones @ 7:
Every time we hear the "experience" argument, we need to counter with the "judgment" argument. Which candidate has the best "judgment"? Experience is of no use unless accompanied by good judgment.
All I can say is Obama had best get a grip on the real economic issues and not this non-sense about growth and taxes. If he and McCain don't start to understand what a Kondratieff wave cycle is whoever wins will be a one term president when reality hits the country and world.
http://www.kwaves.com/kond_overview.htm
Republicans won't be happy until we are in a severe depression with millions incarcerated in debtor prisons.
McCain's plan makes no sense. First, he wants to create a jobs program which is nothing more than creating another Government funded entity and then he wants to retrain the workers? Retrain them to do what exactly? Flip burgers at the the local McDonalds? The problem isn't with the workers. The problem is we are following failed Republican economic policies. They are the reason the U.S. is in the position it is in now.
Vote for Obama Online - AOL
Poll being taken online about Dem and Repub conventions and candidates -- so far McCain seems to be winning.
If you support Obama - go and vote for him:
Joe O. @ 14:
It's called "trickle down economics" and the hallmark of the McCain tax proposals is to grant the most tax relief (4.4% cut) to those making over $2.87 million, which McCain defines as "middle class". Meanwhile, a less than 1% decrease for those making under $66,354. Meanwhile, the economy stimulus packages have involved a "trickle up" approach, so as to cause cash starved consumers to spend more.
IdiotShrub @ 3:
And his entire staff are lobbyists. And I'm not talking former lobbyists either.
Haven't you heard? This election isn't about issues. It's about stories. Because we just LOOOVE stories!
It's the end of the American Century:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aBY8f3smq5k0&refer=home
God fucking damnit, dems think people will vote on issues and not on their emotions and a good story.
Go. On. The. Offense.
McSame. Repeat it ad nauseam. Distribute free McSame buttons.
Maverick? Hell no. Charlie Black Charlie Black Charlie Black K-street K-street K-street! Again, repeat it!
War hero? Hell no. Real heroes don't get shot down and captured. Real heroes accomplish missions without getting captured.
Stupid ass democrats. Attack, attack ATTACK!
McSongbird!
McSenile is so old he’s forgotten that he’s a Senator, in Washington, which makes him part of the problem.
JasonS @ 18:
I don't like bad stories. Is this going to be a bad story?
leftMonkey @ 19:
Yes it is and good riddance. Now we get to work on establishing some economic justice in the world. We'll be in a constant state of hostilities until the gap between the have's and the have not's is bridged. Not socialism per say, but a level playing field intended to ensure that those who work for it can have a decent life for themselves and their families. A worthy goal well worth pursuing.
the mcplain talking expresso.
You can blame the economy on Globalization. Companies like Walmart sell to Americans while using slave labour. Unless the rights of workers are equal the only people that Globalization serves are the ultra rich. The extremely poor are exploited and the middle class self exploit by supporting companies like Walmart.
RepugnantRepublicans @ 13:
...at which point another Republican presidential nominee will claim that he/she is the answer to all these woes.
..and probably win.
Again
Alerta alerta @ 24:
Yes, yes it is. And it's like one of those stories your old Uncle Charlie tells over and over and over because he suffers from dementia and can't remember he just told you it 5 minutes ago.
Less loans going out these days. The Federal Reserve is doing whatever they can to contract the money supply, and pull already printed money back into the reserve, so they can have a safety net for FDIC.
With a contraction of the money supply, there WILL be more unemployment, just as unemployment goes DOWN whenever the Fed INFLATES the money supply.
It's boom and BUST people... the two are inseparable. And it's ALL because of fractional reserve banking.
You've had the boom, and because your "brave and intrepid" politicians simply don't know how to say "no" to the people, the boom has went on for too long. The INEVITABLE bust must occur... if not now, then later, when the nation has MORE to lose!
During a boom cycle, the banks act as hero, delivering money (in the form of loans) to the growing enterprises. However, when the money contracts, and some people can't afford to pay back their loans, the banks foreclose, and the BANKS end up with already developed property...
... and all they had to do was write numbers down in a ledger... and hold one NINTH of the loan money in reserve.
Go to the Ron Paul web site, stop playing the rhetoric game, and start learning the facts.
Please.
The playbook for Obama to win this election should be as obvious as it is simple: Continue to underscore the 90% voting record of McSame with Bush - which equals ALL the failures the past 8 years in every single facet of American policy: unemployment, education costs for college, tax cuts for the wealthy, rising gas prices and zero alternatives, outrageous government spending, manipulating "intel" for the invasion of a soveriegn nation, allowing the torture of prisoners, illegally spying on U.S. citizens, corruption in the Justice Department, on and on and on.
Forget about Palin or troopergate - McSame and his support of the Bush years is THE central issue.
One line: You want 4 more years like the past 8 ? Then pick McSame as your next president.
James @ 30:
Sorry dude, as a woman I cannot. Paul wants the same type of things for women as Palin and McSame. I refuse to let another wagging dick on the supreme court who wants to take away more of the rights we fought for.
QG @ 29:
I wouldn't be surprised that suddenly i have an Uncle Charlie and four more years of Repug rubbish. The horror.
How about ripping up the GATT, WTO, and NAFTA agreements.
Then we can gut the tax credits for oil companies, and if you want tax credits, give them to companies that hire Americans (oops, that's against WTO rules).
Oh, and while you're at it, how about investigating and punishing employers who actively hire illegal immigrants.
Rachel gives the repugs what they need - A SERIOUS DOSE OF TRUTH
SITEMONITOR: Please pass this on! It needs to be posted; maybe on your open thread later, but it must be seen and heard. you can unbold this too! I just needed your attention!
One Year Wonder @ 21:
I don't know why the Democrats just don't bring up McCains Education Records.
McCain Graduated from Navy "894 out of 899". Obama Graduated from Havard "magna cum laude" and taught Constitutional law at the University of Chicago Law School.
Palin Graduated from Idaho University with a BSc. in Communication studies. Biden is an Adjuct Professor of Constitutional law.
I think the fact that the constitution took a kicking from Bush and the fact that Obama and Biden know constitutional law is a big deal.
JasonS @ 18:
let me tell you one story....
"Once upon a time there used a Nation of whiners......
........"
James @ 30:
are we to learn the fact that you are a gop a$$ ?
10 to 12 billion dollars a month going the Iraq shithole, but, hey, "The Surge Is Working."
Every Iraq war dollar is a dollar not spent (and potentially creating jobs) in our economy (with, of course the exception of jobs within the Halliburton et al sector).
Barack, you fucking gotta get more seriously in the game, bro'. Time is short.
FRIDAY BAD NEW DAYS DUMP ITEM:
Taxpayer bailout of Freddie Mac and Fannie Mae nearing completion.
[IMG]http://i345.photobucket.com/albums/p361/lordkinboat/themousekateers.jpg[/IMG]
The fact that this race is as close as it is, is an indictment of the Democrats. While I respect Obama's discipline, I question his tactics. He coasted through the primaries and almost paid the price. He will not coast through the election. I do not know what the answer is, but I believe %100 that he needs to go on the offensive, and stay there with a short, clear message. Unfortunately, reason does not seem to work in this country. We are in a culture war and his message needs to reach people in their guts. not there heads. I watched his campaign today and he seems relaxed and to be speaking off the cuff. I think he needs, clear, short rhetoric. State the problem, place the blame and solve the problem. GET THE "FOLKS" TO BELIEVE HE UNDERSTANDS THEIR PROBLEMS.
lmab @ 42:
Barack let O'Reilly punk him on the "Surge."
http://bgladd.blogspot.com/2008/09/surge.html
Pissed.
including those who have fallen off the unemployment roster, unemployment is more like 10%. this was reported yesterday on channel 12 in NJ.
Socialism for Fat Cats.
Brother can you spare a Trillion.
BobbyG @ 40:
Chicken "Hussein" Little - Not! @ 4:
BobbyG @ 43:
And then there is this.
Bailout for the Big Three.
More Socialism for Fat Cats.
someguy @ 2:
Does "beer heiress p*ssy-licker" count?
CoIntelPro for Pronktastic Democratic Party Victory @ 46:
A nice review of how this should become part of the Democratic Party Campaign strategy.
Rachel and Howard Fineman discuss
LibertyWatch @ 6:
Thanks to 25+ years of Republican economic policies, we are heading into the GD II. Will we respond with the Obama approach that focuses on people or the McCain/Bush approach of protecting the powerful? With McCain/Palin we also get a theocratic fascist dictatorship. Choices now are important. Nader is not an option.
BobbyG @ 49:
nevermind, I'm too tired of this self-immolation.
CoIntelPro for Pronktastic Democratic Party Victory @ 35:
Bravo. I am glad that you posted this. This should be required watching for everyone.
And this clip should really encourage the Dems to take the gloves off. We can't lie down and let McCain and Palin run on personality (especially when both "personalities" are narcisstic and lack empathy). They are attacking Mr. Obama's strengths. We've got to turn the tables when there is sixty days left to do it.
The economy impacts everyone. This is where the Dems have to start. And then with a flourish, piled on the problematic nature of Sen. Hockey Mom's scandals, one after the other.
Should read, "Gov. Hockey Mom." :(
CoIntelPro for Pronktastic Democratic Party Victory @ 46:
CoIntelPro for Pronktastic Democratic Party Victory @ 52:
Dude, I'm not giving up, but I do have to wonder whether I'm wasting my time. I am not a Democrat, but my wife and I worked our ASSES off for Kerry in 2004, right up 'til the polls closed. I have a rational concern that I am about to see a repeat. The know-it-all arrogance of Democratic operatives here in Nevada is a real pisser.
My own Senator Reid, I'd like to slap his Stockholm-Syndrome ass silly.
Barack needs to fucking step up. He let O'Reilly punk him on "The Surge." He caved on FISA. What else will he yield?
WTF? We just supposed to not say anything negative about the bumbling Democrats? Pretend that all is well?
Time draws short.
Yes, Washington must use the power of the free market as Senator McCain has recommended and advocated in his platform.
So...he should call for Congress to mandate that Americans work for free...this will provide the necessary stimulation to business to add jobs.
I heard fatman Rush Limbaugh today say that, and I'm paraphrasing, "I bet most of the 85,000 jobs lost last month were jobs in the mainstream media industry"
I swear to God.
I have NO CLUE what his fucking point was - just more rubbish to make his mindless followers go "DUH YEAH DUH THEY WERE ONLY JOBS FOR PEOPLE IN THE MAINSTREAM MEDIA DUH"
The numbers above only reflect the jobless still being counted. How would you like to be the jobless that have dropped from the radar?
If anyone needs an example of how a McCain economy will look like just take a look at the bank McCain's son headed. It went under today almost a month after McCain's son resigned as its director. From Bloomberg news:
Silver State of Nevada Is 11th Bank Failure This Year (Update2)
"In July, Silver State announced the resignation of Andrew McCain as a director of the bank. McCain, who had served on the audit committee and was a director for five months, is the son of Republican presidential nominee John McCain. A call to the campaign's press line wasn't immediately returned."
http://www.bloomberg.com/apps/news?pid=20601087&sid=adweqGJO2lNc&refer=home
Joe O. @ 60:
Next thing you know, McCain will be using his son as an example of the unemployed his proposed policies will help.
Jeanne @ 61:
The thing you'll hear from the Republicans is, that there is too much Federal regulation, and that the marketplace should control the economy. When there is a federal bailout, such as FDIC, or when a company is deemed too important to fail, such as Bear Stearns, requiring federal bailout, then federal regulation is always indicated to prevent such bailouts. Just a tip from a reality based, fact based observer (as opposed to a market-should-control ideologue).
I can't help but wonder what this terrible market would have done to all of our savings if dubya had gotten away with funneling our social security earnings over to his corporate buddies. I have no doubt that if they steal this election, we're finished. I'll be digging my underground bunker and storing food, water and ammo.
Maybe he figures that since he hasn't been around for any Senate votes this year, he's not "Washington."
NoBuddy @ 8:
Uh, I think that the Reagan revolution was what started /exacerbated the fiscal problems we see today by demanding tax cuts for the rish/corporations, free market/freetrade expansion, and corporate deregulation nad privatization. He was no hero for middle class Americans - but he sure was a good actor!!
Count my friend as one of those who lost his job, but I'm not sure it's in the numbers yet. His mom died last Wednesday and he went home to Illinois for the funeral. When he got back on Monday, he learned that he'd lost his job, as well.
Joe O. @ 60:
Is that the same bank Neil Bush screwed up??
Hey, maybe some more stimulus packages are in order? Or perhaps we didn't give enough tax cuts for the richest 1% to create new jobs? I mean, they worked so well before...right?
Amitola @ 65:
I would agree with that. Reagan was the last Republican candidate to pledge balanced budgets, and he failed miserably at that. He ran huge deficits. Only president to balance the budget in recent times was Bill Clinton. However, what Reagan SAID would happen through failure to balance the budget, is happening, because of George W. Bush's fiscal policies. We're being faced with dollar devaluation because the market recognizes that the deficits can only be met with the printing of currency.
Does anyone remember that during Clinton years, those still unemployed but whose unemployment benefits had run out were still counted for Unemployed stats but when Bush took office, his accounting rejected this calculation method so his numbers would look better. We will never know how % unemployed numbers compare because they have been statistically skewed from the beginning of his administration, and the numbers of Inconveniently (for Bush legacy) Still Unemployed isn't known...making this new information even more stunning.
BobbyG @ 56:
I understand and I also am frustrated.
We have 60 days.
I also am trying not to explode.
We have that in common.
Repugs stand together.
We do not.
I am done attacking Democrats, save for Harry reed, nancy, LIEberman and a few others.
The Dems need to be hammering on the economic mismanagement of the Rethuglicans that has left more Americans in poverty, more without jobs, more without healthcare, more without pensions, and more falling out of the middle class.
GM, Ford, and Chrysler can beg for bailouts, but the fact remains their cash burn is so high that it will only prolong the inevitable. GM has to file Ch 11, drop divisions, and reorganize. Regrettably, that means a lot of retirement benefits and pensions will disappear or be severely curtailed. Ford might make it if they get an infusion of cash. Might. Chrysler is dead and I f***ing refuse to bail out Cerebrus. No way. Their spin offs, like Delphi, are going to go belly up.
Of course, this too is a consquence of two things. Bad management by people making millions per year (of course) and bad government policies. Government rules and regs allowed the Big 3 to skirt tax rules that applied to cars, steering them toward cranking out low mileage, high profit SUVs. The car companies themselves turned their backs economy, didn't bother planning for higher gas prices, and got caught high and dry.
All of a sudden the republicans are different. Even the ones that were at the convention that shamelessly expoited everything from the deaths of the 911 victims, fear of anything with a turban, children for political opportunism, outright lies, and finally when it had been pointed out that most of the rabid faces where white old farts, sign bearers touting Hispanic support.
We have nothing to worry about. The new republicans, having had something akin to a rebirth (an evangelical self-hypnotical trick) will all of a sudden save us from this mess.
Pretty scary shit for rational people!
I am sooooooo happy someone finally said this One Year Wonder @ 21:
I have been saying it for years!!! I know too many Vietnam vets who actually saved lives and didn't get captured by the enemy. Yet this guy is touted as a hero? Hero for what? Crashing his 5th plane and getting CAUGHT?! WTH?!
cmw @ 75:
Agreed. Unfortunately, so many people, IMO, have guilt for not having served that they refuse to say anything negative--even if deserved--against anyone who has served in any capacity. And, of course, Rethug-controlled media (Limballs, Clannity, O'Racist--who, of course, haven't served either...) will crucify anyone who critiques the service of "war-hero?" McCane.
In a statement Friday, Mr. McCain said that “Washington has failed to act” to improve the poor economy. “Americans are hurting and we must act to create jobs,” he said. He vowed to enact a jobs program and help retrain workers for the changing market.
Sounds like socialism, Johnny. Not gonna endear you to the base.
Daingel @ 32:
... and one man is going to strip the rights of all women away?
You're trying to get one person to "change" what your government is doing... The problem is, the President is only supposed to implement and execute the LAW... and the law doesn't give the President domain over life and death... or at least, it's not supposed to. And the law doesn't give YOU domain over life and death either.
The Fifth Amendment is clear: NO ONE shall be deprived of life without due process of law. That means, as SOON as that fetus growing in your belly is alive, YOU CAN'T KILL IT! No matter how much you may WANT to.
That only seems fair, since the baby can't defend itself yet.
However, it has been determined by the law, that life begins in the third trimester. At that point you just have to tough it out for another couple of months.
But I suppose that puts a dent in your party plans? Can't make that NEXT abortion, if your dress doesn't fit, right?
REDUCING the size of the federal government gets it out of your way. And then, maybe your STATE can make some good legislation concerning your wedge issues.
It's not the job of the federal government.
But no, keep on thinking that it's going to come up with decent solutions to your problems, despite the fact that there really isn't much history PROVING that.
James @ 78:
Study your internal contradictions and get back to us, Jimmy.
Things are indeed tough out here in the real world. As we all try to figure out a way to get the politicians to (a) REALIZE that most of the country is circling the financial drain and (b) TRY to do something about the situation, I urge everyone to check out this important video: "Money As Debt" A simple google search will lead you to the 47 minute animated film that, I submit, does a lot to explain where we are economically, how we got there, and what we can do to fix things before another depression wipes most of us out. One positive note remains though... when you are already at the bottom, you don't have far to fall... we just have to make sure we don't serve as cushions for the wealthy.
If you understand how the money system functions, you can be a lot more effective when you attempt repairs.
from the chi trib:
And that employment stat does NOT include these groups...
1) people who have given up the job search
2) people who want jobs but have not looked for work within the last 4 weeks
3) people who have accepted part time work because they could not find full time positions
In the opinion of some....that puts the unemployment rate at 10+%
I'm so fed of this.....I was Republican but voting Democrat this time around......2 reasons for that......you expect a 72 year-old to...."Change"????.....if anyone has a dad out there in their 70's tell me honestly...how much are they likely to change?....if they are anything like my dad chances for are as close to zero as you can get.......After 8 years of this crap......the economy being pathetic......people loosing their homes.....their jobs....not able to fall sick because they can't afford healthcare...taxpayers money going to Iraq who has loads of money in the bank......war....war....war.....more Rove crap....more kids dropping out high school.......rising costs of college education with little help from our government......more......viva oil.....drill.....drill......drill....and better yet....now it's coming from the Pitbull from "ALASKA"....where she can insult and lie as she wants but hides behind sexism.....won't do interviews....give me a break shit.....where I come from there's a saying......if you run away from something it means you got something to hide.......I don't give a shit anymore what color Obama is.......he could be green for all I care......he now has earned my vote and my families vote!!!
What makes some of you commentators/bloggers experts [Deleted. And what makes you any kind of an expert on the people here? A lot of us are professionals, and read copiously, which does make some of us experts on some things, upon which we comment. I fixed your name BTW. I'm an expert at that-Sitemonitor]
Mr. McCain said that “Washington has failed to act”
Hey Grandpa, hold up your ear horn and listen closely...
YOU ARE WASHINGTON!!!
The social safety net that Republicans have been trying to destroy for the past 30 years will not be there for those in need with the coming economic collapse. Unless, of course, you are one of the "chosen few" on Wall Street. Trickle-down Reagonomics has always been nothing but a lie designed to encourage that portion of the "masses" still clinging to a dream to grab that "brass ring".
The unemployment rate, the cost of living, the "tax rate" for corporations: -- are all lies based upon the (political) science of statistics. Given the ability to carefully select the pool from which data is drawn, a statistician can support any side of an argument.
For instance, the unemployment rate in the USA is based upon the notion that the jobless are only unemployed while collecting their 6 or 9 months worth of unemployment insurance. Apparently, if you are jobless for more than 9 months, you fall into a different category -- retired! (I can't wait to see what the "official" unemployment rate becomes when the USA is no longer occupying Iraq -- all those over-paid contractors gone, and all the National Guard returning to their non-existent jobs.)
… The problem isn’t with the workers. The problem is we are following failed Republican economic policies. They are the reason the U.S. is in the position it is in now. …
It’s called “trickle down economics” and the hallmark of the McCain tax proposals is to grant the most tax relief (4.4% cut) to those making over $2.87 million, which McCain defines as “middle class”. Meanwhile, a less than 1% decrease for those making under $66,354. Meanwhile, the economy stimulus packages have involved a “trickle up” approach, so as to cause cash starved consumers to spend more.
------------
It is called the disinflation/deflation phase of the inflation/deflation cycle.
As debt becomes cheaper, people consume more of it. The 1982 recession ended when Volker dropped the rate from 20%. The housing bubble occured with the rate at 1%.
Just like any other cycle, tax rates go up and down. As a result of The Great Depression and WW2, tax rates had reached 90%. Every cycle peaks and has a trough.
The republicans are gaming the public. So are the democrats. There is no having your cake and eating it, too.
Cycles cannot be prevented. The price of oil does not only go up or down. The price of houses do not only go up or down. The price of stocks do not go only up or down. Wages do not only go up or down. Prices do not go only up or down.
The standard of living does not only go up.
From 1930, we have come full circle. One can talk about all the fraud, corruption, tax cuts or whatever details one wants to, but the cycle has completed itself, as human nature never changes.
Deflation brought Roosevelt into office and high inflation brought Reagan into office.
In a statement Friday, Mr. McCain said that “Washington has failed to act” to improve the poor economy. “Americans are hurting and we must act to create jobs,” he said. He vowed to enact a jobs program and help retrain workers for the changing market.
----------
The economy is self correcting. The polititians interfere with that and distort the economy, along with the Federal REserve.
Americans are hurting because a debt fueled boom is going bust. The bust has to run its course. Of coarse people don't want to hear that, but it will run its course, no matter how much the polititians distort the course of the bust.
The Great Depression lasted the decade of the 1930's. Both McCain and Obama can talk all they want about creating new jobs, but the reality is quite different.
Once a bubble has burst, that which built it up, no longer works.
Greenspan cut the rate to 4.75 and drove the Nasdaq to 5,000. Dropping the rate to 1% did not get the Nasdaq back up to 5,000.
The housing bubble brought lending standards to zero. Even if standards were borought back to zero, lenders would now be afraid to lend, thus the housing bubble would continue to deflate.
The government is trying to make itself the lender of last resort, but the government is making itself into a moral hazard in the process.
In 1931, the bond market crashed, as yields jumped. The government is leaving itself open to paying higher interest on all the debt it is taking on. Higher interest payments crashed the housing market. They can also crash the government.
David762 @ 86:
Apparently, you don't know anyone on Wall Street. Wall Street is experiencing layoffs unseen in the last 20-30 years.
STORE CLOSINGS AND LAYOFFS
Ann Taylor
Eddie Bauer
Cache
Lane Bryant
Talbots, J. Jill
Gap Inc.
Foot Locker
Wickes
Levitz / BOMBAY
Zales, Piercing Pagoda
Disney Store
Home Depot
CompUSA (CLOSED)
Macy's
Movie Gallery
Pacific Sunwear
Pep Boys
Sprint Nextel
J. C. Penney, Lowe's and Office Depot are scaling back
Ethan Allen Interiors
Wilsons the Leather Experts
Pacific Sunwear
Sharper Image
Bombay Company
KB Toys
Dillard's
THANK YOU MR. BUSH AND THE ENTIRE REPUBLICAN PARTY.
WE ALL HOPE THE 16 TRILLION DOLLARS SPENT IN IRAQ WAS WORTH IT!
OUR ENEMYS SUPPORT YOUR EFFORTS..
Ron.j @ 87:
that was pretty convoluted.
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