Obama Leads Us to NEW DEPRESSION !

The Stock Market has dropped to an 11 year low. With very little chance for recovery. So what does the president do, announce he is going to raise taxes.

Unemployment rises everyday. Each day a new company announces more firings. What does our president do, announce the takeover of more banks.

The House and Senate pass a big spending bill loaded with more pork than Oscar Meyer and what does our president do, holds a Fiscal Irresponsibility Summit.

This administration has ladled on $1.45 Trillion in new debt to our grandchildren and what does our president do, announces he is going to cut the debt in half. What ?????? Couldn't we have just not spent the $1.45 Trillion ????

How is he going to cut the debt, well of course our nitwit of a so called president is going to raise taxes even more.

Yep, that is going to save the economy. Everyone should be able to see this man is a imbecile. But you still have some of the liberal communist sheep out there thinking he is actually going to buy them a house and a car and health care for free.

PT Barnum said that a sucker was born every minute. There were an awful lot of liberal suckers who voted for this moron. How is that working out for you ?

Times are worrying indeed. Here in Britain life is becoming more unpleasant and worrying by the day. This Depression has been coming for some time. It could have been softened a little bit had they allowed the failing institutions to collapse and then rebuilt from there - but they threw TRILLIONS at them thus causing national and public debt to rocket. Obama has DOUBLED U.S. debt in just a few months. The steep decline in the stockmarkets mirrors that of the Great Depression, in that both then and now the markets are down well over 50% in only about eighteen months.

I am very fearful for the future of this country. Obama may lead us into a corner that we can not get out of.

cayla99 wrote:

I am very fearful for the future of this country. Obama may lead us into a corner that we can not get out of.

Yeah just wait until China "calls" for their markers and wants their blingbling Clinton allowed to happen by giving China preferred nation trading status.

This guy just might be crazy enough to give them the deed to 1/3 of the US, unless they decide to take the US via military for nonpayment of debt owed.
The chinese debt scenerio is a dangerous situation for the US,........thank slick willie for that one.

maid in china wrote:

<quoted text>
Yeah just wait until China "calls" for their markers and wants their blingbling Clinton allowed to happen by giving China preferred nation trading status.
This guy just might be crazy enough to give them the deed to 1/3 of the US, unless they decide to take the US via military for nonpayment of debt owed.
The chinese debt scenerio is a dangerous situation for the US,........thank slick willie for that one.

I am sure you all heard about his unforgivable rude behavior to Britain and his hugging of the Taliban...we are in for a fun ride

The Dow is only up slightly today because of some false optimism based on a misleading set of figures.

The Dow is down a whopping 85 or so points tonight. It looks like Bernanke's propaganda is not working. Oh dear, he will have to tell the stockmarkets that Citigroup is still making a small profit due to bailouts and another false rally will be spurred. So Berwanke, who in their right mind is going to buy a house with prices plunging, record low interest rates which would make mortgage repayments soar in the future, job worries etc.? Who would take ANY credit now for that matter with historic levels of debt already?

Beware of the smoke screens that Obama/Soros is sending up. They will slip socialism in the back door. The banking business is a good start.

My brother the president is doing exactly what he told you he was going to do. He is sinking your country. He is going to impose sharia law. He is taking over the banks and insurance companies and the auto companies and the rest of your industries. He is taking all the wealth from the rich and giving it to the poor. While you all show your fake indignation.

He is a modern day Robin Hood in a turbin. You Americans will fall for anything, you are so stupid. We laugh at you infidels. All praise Allah and Muhammad Obama.

Aldue Yoo wrote:

Here comes the Obama Depression. Get ready for the out of control inflation, astronomical tax hikes, and unemployment that will leave you with your head in the crapper.
Yee haw you morons who vote for the muslim maniac.

Aside from the desire for evangelical republicans to believe in and bring out Armaggedon, what are you basing this most childish of all fears on?

HyperinflationProspect wrote:

The Dow is down a whopping 85 or so points tonight. It looks like Bernanke's propaganda is not working. Oh dear, he will have to tell the stockmarkets that Citigroup is still making a small profit due to bailouts and another false rally will be spurred. So Berwanke, who in their right mind is going to buy a house with prices plunging, record low interest rates which would make mortgage repayments soar in the future, job worries etc.? Who would take ANY credit now for that matter with historic levels of debt already?

Bush took care of Citibank...aka Citigroup

http://economistsview.typepad.com/economistsv...

Good Bank, Bad Bank, and F---ed Bank: Apparently Citibank and the U.S. government (i.e., we taxpayers) have reached a deal whereby we will backstop something like $300-billion in screwed assets on Citi's balance sheet.... Here is the gist:

* Citi will carve out $300-billion in troubled assets, which will remain on its balance sheet
o The first $37-$40-billion in losses on those assets will go to Citi
o The next $5-billion in losses will hit Treasury
o The next $10-billion in losses will go to the FDIC
o Any more losses will go to the Fed
* There will be no management changes at Citi, because, you know, they are all fine and upstanding people who have done nothing wrong
* There will be some compensation limitations, but those have not yet been made clear

To be clear, this is not a "bad bank" model. Assets are not, apparently, being taken off the Citi balance sheet and put into another entity walled off from the Citi biological host. Instead, they are being left on the Citi balance sheet, but tagged and bagged for eventual disposal via taxpayers....

I'll have more when there is more, and I know the equity futures markets like it -- it's admittedly less terrifying that letting Citi fail -- but so far I'm not impressed....

Yves Smith:

WSJ: US Agrees to Bail Out Citi (Updated):...Note key element of the deal is that the Federal government will guarantee $300 billion of Citi assets, a much bigger number than had been leaked earlier, with a rather convoluted loss-sharing arrangement, but the bottom line is that Citi is at risk for at most $40 billion. Citi also gets a $20 billion equity injection, on slightly more onerous terms than the initial TARP investments, but still more favorable than Warren Buffett's investment in Goldman. Oh, and it appears there will be NO management changes.

I do not see how GM can be denied a rescue now (not that that outcome is really in doubt, merely how much pain will be inflicted on management and the UAW)....

Update 12:50 AM: Bloomberg's story puts the bad asset program slightly higher, at $306 billion....

Calculated Risk has the Joint Statement by Treasury, Federal Reserve, and the FDIC on Citigroup, while James Kwak says the bailout is "Weak, Arbitrary, Incomprehensible." I think he has it right:

Citigroup Bailout: Weak, Arbitrary, Incomprehensible: According to the Wall Street Journal, the deal is done. Here are the terms. In short:(a) Citi gets another $27 billion on the same terms as the first $25 billion, except that the interest rate is now 8% instead of 5%, and there is a cap on dividends of $0.01 per share per quarter; and (b) the government (Treasury, FDIC, Fed) agrees to absorb 90% of losses above $29 billion on a $306 billion slice of Citi’s assets, made up of residential and commercial mortgage-backed securities.(If triggered, some of that guarantee will be provided as a loan from the Fed.) There is also a warrant to buy up to $2.7 billion worth of common stock (I presume) at a staggeringly silly price of $10.61 per share (Citi closed at $3.77 on Friday).

The government (should have) had two goals for this bailout. First, since everyone assumes Citi is too big to fail, the bailout had to be big enough that it would settle the matter once and for all. Second, it had to define a standard set of terms that other banks could rely on and, more importantly, the market could rely on being there for other banks. This plan fails on both counts.

The arithmetic on this deal doesn’t seem to work for me (feel free to help me out). Citi has over $2 trillion in assets and several hundred billions of dollars in off-balance sheet liabilities.$27 billion is a drop in the bucket. Friedman Billings Ramsey last week estimated that Citi needed $160 billion in new capital.(I’m not sure I agree with the exact number, but that’s the ballpark.) Yes, there is a guarantee on $306 billion in assets (which will not get triggered until that $27 billion is wiped out), but that leaves another $2 trillion in other assets, many of which are not looking particularly healthy. If I’m an investor, I’m thinking that Citi is going to have to come back again for more money.

In addition, the plan is arbitrary and cannot possibly set an expectation for future deals. In particular, by saying that the government will back some of Citi’s assets but not others, it doesn’t even establish a principle that can be followed in future bailouts. In effect, the message to the market was and has been:“We will protect some (unnamed) large banks from failing, but we won’t tell you how and we’ll decide at the last minute.)” As long as that’s the message, investors will continue to worry about all U.S. banks.

The third goal should have been getting a good deal for the U.S. taxpayer, but instead Citi got the same generous terms as the original recapitalization. 8% is still less than the 10% Buffett got from Goldman; a cap on dividends is a nice touch but shouldn’t affect the value of equity any. By refusing to ask for convertible shares, the government achieved its goal of not diluting shareholders and limiting its influence over the bank. And an exercise price of $10.61 for the warrants? It is justified as the average closing price for the preceding 20 days, but basically that amounts to substituting what people really would like to believe the stock is worth for what it really is worth ($3.77).

How does this kind of thing happen? A weekend is really just not that much time to work out a deal. Maybe next time Treasury and the Fed should have a plan before going into the weekend?

What, and ruin a perfect record? Robert Reich:

Citigroup Scores: If you had any doubt at all about the primacy of Wall Street over Main Street; the utter lack of transparency behind the biggest government giveaway in history to financial executives, and their shareholders, directors, and creditors; and the intimate connections the lie between Administrations -- both Republican and Democratic -- and the heavyweights on Wall Street, your doubts should be laid to rest. Today it was decided the government will guarantee more than $300 billion of troubled mortgages and other assets of Citigroup under a federal plan to stabilize the lender after its stock fell 60 percent last week. The company will also will get a $20 billion cash infusion from the Treasury Department, adding to the $25 billion the bank received last month under the Troubled Asset Relief Program.

This is not a particularly good deal for American taxpayers, but it is a marvelous deal for Citi. In return for all the cash and guarantees they are giving away, taxpayers will get only $27 billion of preferred shares paying an 8 percent dividend. No other strings are attached. The senior executives of Citi, including those who have served at the highest levels in the US government, have done their jobs exceedingly well. The American public, including the media, have not the slightest clue what just happened.

maid in china wrote:

<quoted text>
Yeah just wait until China "calls" for their markers and wants their blingbling Clinton allowed to happen by giving China preferred nation trading status.
This guy just might be crazy enough to give them the deed to 1/3 of the US, unless they decide to take the US via military for nonpayment of debt owed.
The chinese debt scenerio is a dangerous situation for the US,........thank slick willie for that one.

Bush got us into debt with China. You people are really totally clueless bout your government and who's on first, aren't you? THAT'S why our nation failed the last 8 years. THAT'S why our jobs left at a record pace and you fools voted them in again and again.

do this nation a favor. Figure out what you're talking about and make it based upon facts..then open mouth.

Ranae wrote:

<quoted text>
Aside from the desire for evangelical republicans to believe in and bring out Armaggedon, what are you basing this most childish of all fears on?

If you are smart, you can base it on history. England is warning us to not go the way they went, but we are ignoring them. We will pay for it, you can be sure.

Ranae wrote:

The third goal should have been getting a good deal for the U.S. taxpayer, but instead Citi got the same generous terms as the original recapitalization. 8% is still less than the 10% Buffett got from Goldman; a cap on dividends is a nice touch but shouldn’t affect the value of equity any. By refusing to ask for convertible shares, the government achieved its goal of not diluting shareholders and limiting its influence over the bank. And an exercise price of $10.61 for the warrants? It is justified as the average closing price for the preceding 20 days, but basically that amounts to substituting what people really would like to believe the stock is worth for what it really is worth ($3.77).
How does this kind of thing happen? A weekend is really just not that much time to work out a deal. Maybe next time Treasury and the Fed should have a plan before going into the weekend?
What, and ruin a perfect record? Robert Reich:
Citigroup Scores: If you had any doubt at all about the primacy of Wall Street over Main Street; the utter lack of transparency behind the biggest government giveaway in history to financial executives, and their shareholders, directors, and creditors; and the intimate connections the lie between Administrations -- both Republican and Democratic -- and the heavyweights on Wall Street, your doubts should be laid to rest. Today it was decided the government will guarantee more than $300 billion of troubled mortgages and other assets of Citigroup under a federal plan to stabilize the lender after its stock fell 60 percent last week. The company will also will get a $20 billion cash infusion from the Treasury Department, adding to the $25 billion the bank received last month under the Troubled Asset Relief Program.
This is not a particularly good deal for American taxpayers, but it is a marvelous deal for Citi. In return for all the cash and guarantees they are giving away, taxpayers will get only $27 billion of preferred shares paying an 8 percent dividend. No other strings are attached. The senior executives of Citi, including those who have served at the highest levels in the US government, have done their jobs exceedingly well. The American public, including the media, have not the slightest clue what just happened.

And what part did our illustrious do-nothing Dumbocrat controlled Congress play in this?

Ranae wrote:

<quoted text>
Bush got us into debt with China. You people are really totally clueless bout your government and who's on first, aren't you? THAT'S why our nation failed the last 8 years. THAT'S why our jobs left at a record pace and you fools voted them in again and again.
do this nation a favor. Figure out what you're talking about and make it based upon facts..then open mouth.

Ding-ding flash. The jobs left this country with NAFTA under Clinton's watch.

ANON wrote:

<quoted text>
If you are smart, you can base it on history. England is warning us to not go the way they went, but we are ignoring them. We will pay for it, you can be sure.

ROFLMAO!!! If you WERE smart, you would look up the evidence. We HAve NO frigging jobs in this nation which pay for our FORMER standard of living THANKS to the republicans.

ANON wrote:

<quoted text>
And what part did our illustrious do-nothing Dumbocrat controlled Congress play in this?

Any bill they attempted to get out form 2007 - 2008 was vetoed by Bush and NOT overridden by the majority control of republicans in the Senate, who NOW have fillibuster control as well to gum up the works on fixing this economy.

http://uspolitics.about.com/od/electionissues...

ANON wrote:

<quoted text>
Ding-ding flash. The jobs left this country with NAFTA under Clinton's watch.

Another idiot who slept with Bush in office.

http://www.workinglife.org/wiki/index.php... +(October+7%2C+2003)

With wages stagnant, job creation slow and unemployment swelling, it's clear that President Bush's trillion-dollar tax cuts still haven't produced the kind of economic recovery that will lift all workers and job seekers.

A new report by the Economic Policy Institute shows that the labor market is in worse shape now that when the most recent recession ended, in November 2001.

In "Labor Market Left Behind," senior economist Jared Bernstein and EPI President Lawrence Mishel give Bush and his team the dubious honor of presiding over the lousiest recovery, in terms of employment growth, since the Bureau of Labor Statistics began tracking employment in 1939.

Bush's first and perhaps last term in office will end with a net job loss, likely in the millions, making him the only commander-in-chief since Depression-era President Herbert Hoover to earn such a distinction.

"Since the recovery began, the unemployment rate has gone up by 0.6 percentage points," the authors note. The African-American jobless rate has risen by 1.3 percentage points. And though the downturn has crossed so many demographic lines, the slump in job opportunities has been worse for college graduates than for high-school dropouts, according to the report.

Private-sector payrolls are off by 1.2 million jobs, or 1.1%, since the end of the recession, "making this the weakest employment recovery on record," Bernstein and Mishel write. In all previous recoveries since World War II, even the sluggish one in the early 1990s, the economy has added jobs by this point in the cycle.

When the recovery began, unemployment stood at 5.6%, up from 4.2% at the beginning of the recession. It's been drifting higher ever since, booking a 6.1% rate in September, more than 20 months out from the end of the recession, and again unusual for post-WWII recoveries.

The 57,000-job gain in September was largely due to a 33,000 rise in temporary employment – the kind of jobs that don't offer benefits and don't stick around.