The Economy Is In Real Trouble, I Think

Think of the Titanic……with Wile E. Coyote as the Captain.

I known of FDR’s statement, “The only thing we have to fear is “fear” itself,” but have only understood it in recent weeks as I see relatively wealthy, safely employed people stop spending. They talk about not going out to eat, having cut way back at Christmas, etc.

While there’s nothing wrong with being frugal, some of this dip is just changed behavior by those who don’t need to cut back — people who could buy 2 vacuum cleaners any day of the week but now think they’re not “supposed” to spend money.

Tell her not to worry Obama says he is going to get 4 million people working so on the morning of the 21st Jan 09, am going out side but naked and do my dance of freedom, everything is going to change, things will be better Obama is now POTUS.

We’ve had a lot of places go out, like Popeye’s, Boston Market, and even my travel agent is now working from home, but I haven’t had anyone break down in front of me over the lack of sales like that. It may just be I’m shopping in the wrong places to notice. I’ve been consciously trying, since I have a good job with no immediate threat of layoff, to make a point of spending a little more, going out to eat regularly, buying things at Target when I’m stuck window shopping. I’ve heard people at work who are in the know – I work in finance – complain that the media is creating a lot of unnecessary fear about the economy. I have also heard that some retail shops are keeping their inventories low because of the uncertainty about shoppers.

I recently wrote a series for the local paper about the effect of the economic downturn on the area. (I live in the Catskills.) I visited a half dozen food pantries, charities, Salvation Army’s, etc. for the story.

The news is grim. Food banks have lines of people. There’s a huge increase in applications for heating assistance. The Salvation Army is serving 2-3 times the number of meals it did last year and are seeing lots of young families with kids. People are being forced to choose between gas for their cars or food; meds or food, heat or food.

And it just keeps getting worse.

Folks, I live in Bethesda, Maryland. A large number of people work for the Federal Government.
*********
Montgomery Co. has median income >$92,000 and I suspect Bethesda is >$100,000. If people are buying there things are going to get very bad.

That is very upsetting. I heard Sears is getting ready to close a lot of their stores, maybe this woman is afraid her store is going to be one of them. My co-workers were amazed at how empty Macy’s flagship store in New York City has been all week. What really infuriates me is just how is it that not one Senator, not one Congressperson noticed the financial pothole we were headed for. No one saw a thing coming??? It’s a huge disgrace. Frankly I don’t know what to believe. They have been lying to us about one thing and then another for so long I would not be surprised to find they are lying again.

are=are not

My son who owns two stores was just telling us today that his Christmas sales were lighter this year, and that he thinks people have the money but they are afraid to spend it. However, I note that restaurants around here are still doing fairly well, and he also says that the upscale restuarants near him are packed. Maybe eating out is a priority.

I get the impression that all that bailout money really went somewhere else. The trillions of dollars being spent are not rescuing homeowners, or not helping business succeed. Do you realize that they are spending more than a $million dollar per American Citizen and we are not seeing any of it come towards the people. We have trusted the very people who got us in this mess to rip us off more.
I’ve got a strong hunch that a revolution is coming and it’s not going to be pretty.

The American people need to vote out every Republican and Every Democrat in the next election. That’s if we have an election.

Ahh and while Obama is spending 150,000,000 on his big affair Circuit City is having its final liquidation sale, guess all these problems can be put on hold for the time being we are in party mood now

I live in NH. We have a nice bar that I usually go to during the weekends, catchup with friends and drop down a beer. Usually it’s full on Saturdays and Fridays nights, mostly graduate students and young professionals. The last couple of months, the place is drying up. Last Friday, there were three people including the bar attender.

I live in an area where about 95 percent of the people are on welfare. They get 4 bedroom, three bath apartments for $35.00 per month (if they have children), they get food stamps, they get free medical coverage, including dental care and hearing aids, and then they get an SSI check each month, so they are all still living it up. Their kids wear two hundred dollar sneakers, they drive nice cars, and the people who are suffering are the people like me, white, and dumb enough to work to help support these leeches. Except for the disabled and extremely elderly, all welfare should be cut out. Then we would really see how many jobs Americans won’t do.

The Toyota dealership in our area usually sells 400 cars a month. Now, they are barely selling 200 cars/month. Therefore, the service department has to make up the difference.

Some restaurants in our area are busy while others have slowed down. I have to say BO’s “reinvestment” program are code words for redistribution of wealth or a welfare plan.

How can he create 3 to 4 million new jobs by giving rebates to businesses that fail and not reward those that succeed?

Except Obie, he spends like it’s going out of style. Too bad it may not be getting into the mainstream economy. Could be it’s a continuation of “pay to play” Washington-style.

We are doing our own cleaning, haven’t ate out in months and are not buying much except grocery. Not that we are stretched but we are cautious about how we spend for fear of the next four years and what they hold. My family live in CA and they were told refund checks will be IOUs this year. As my sister said, “that’s a sign we’re in a shit hole.” The story of the sales lady breaks my heart.

Colorado is doing much better than the rest of America but who really knows what the hell is going on.

I know Maryland well and you’re right there are many government jobs; if you have one, for the most part, you are financially secure….If you work for a company that contracts with the government, for the most part,you are also financially secure. As far as the private sector goes; it sucks for everyone doesn’t it? If you are lucky enough to have a full time job, the hours are long and the pay is low.

Troy MI – big malls seem to have stores. Strip malls are empty buildings.

Auto situation has lot of people pulling back. Lot of kids living home with the parents.

Not many people in the stores when I go. Lowes and Home Depot are probably depression prof but not recession prof.

Maybe instead of another round of stimulus checks they should send out consumer gift cards that become worthless if not redeemed for Made in the USA merchandize within 60 days…

I believe your story.

I live in an area where the same 70 year old’s work at the three local supermarket’s (as cashiers) where I live – no turnover here. They LOVE their jobs.. and walk to and fro.

Our newest addition (2 years ago) is a Home Depot, which is like a grave yard with inventory that is OLD OLD OLD. So, we travel 20 miles north or south for newer stuff.

You can thank your government and Paulson, for striking the panic bell, and creating this contrived economic meltdown.

The only good that will come of it, is people will save more of their money, under their mattresses.. just the way they did 50+ years ago.

The United Socialst Of America is on its way. Courtesy of the Obama-might.

People are definitely frightened and suspect the “worst is yet to come.” I had my hair cut last week and the beautician that I’ve seen over the last 10 years told me that she’s having a lot of cancellations, regular customers who say something to the effect:

“You know I think I can go an extra month or so before I get a trim”

or

“That color and cut I’d scheduled? I think I want to split them up into two appointments.”

It sounds insignificant but in the service industry these reluctant customers can have huge consequences: like will I [the service provider] have enough money to pay the bills at the end of the month?

It’s trickle down disaster.

The salon I frequent had a 10% drop in customer sales in December, usually a big month with all the holiday activity. Retailers are squeezed much worse than that and people are holding off on replacing equipment or cars or whatever because no one knows where this thing is going.

I don’t think any of us have been told the truth and nothing but the truth in this economic downturn. Probably to avoid public panic.

But anxiety is rising. And there are four more houses up for sale in my neighborhood with a good half-dozen that have been sitting on the market for over 9 months.

My husband’s industry, which considers itself fairly recession proof, is taking a beating in sales as more and more people turn from the brand products to generic selections.

It doesn’t look pretty.

And yet, a brand new Penny’s is opening a mile from here, presumably in March, a huge store. The whole thing is surreal.

We are seeing a permanent 30% reduction of industrial demand world wide.
The playing field is being decimated.
The good news is that America will be situated to become the manufacturing leader of the world again.

Yes. I am going to take 1/21 off so I can be home when my free stuff arrives! I was hoping that they were going to send you something to fill out, you know, so that you could specify what color, size, etc. of what you wanted, but silly me…of course Obama just knows, like that Santa guy. We now have better. We have Obama Claus!

What?

I live in Riverside County CA , there are numerous homes in my area that are for sale or already abandoned , uhauls showing up and families leaving , no jobs in the area , stores closing , savings accounts now emtpy and it’s getting worse every day, very scary

I think they did see it coming!

They wanted it! Now they will have people afraid and wanting the Government to take care of all of us so we will give them our money in hopes they provide all our necessities! Welcome to socialism, courtesy of the unDemocratic party!

We no longer have a Constitutional Republic in the USA. The country is being run by the Federal Reserve and corrupt bankers. Trillions of your $’s are being transferred offshore. Congress and the President (Bush and Obama) are only fronting for these wicked globalists. Wake up America; they don’t give a fig about you, the Constitution, or the USA. They are psychopaths and crave more and more money and control.

Well Larry,

I think the non-profit community is likely to be a major victim, just when we need them the most.

My salary ran out on Dec. 31, 2008. I run a wildlife rehabilitation/education program under the support of our local Audubon Chapter (for the last 8 years). I present live birds of prey no longer able to survive in the wild, to mostly school children in low-performing elementary schools in our area – based on grants and program fees for other community programs.

I’ve been madly writing grants for the past 3 months, but what I hear from the foundations I apply to, is that they have had to restrict their funding for now, as their own assets have taken a hit. Several of them have informed me that they would not accept applications in 2009/2010.

Within the chapter, I have to raise my own funds to cover my program’s expenses. It’s always a struggle, even before the economic disaster we’re facing right now. Environmental programs, although totally popular with schools, teachers, students and community members, are no longer considered “necessities”.

My salary (from grants that ended as of January 1, 2009, is gone. My chapter is really trying to help me, by extending my salary for two more months (January and February), but I really feel I and my program are a cooked goose.

http://www.santabarbaraaudubon.org/sbaseducation-history.html

I wish our webmaster had more current skills to update the page, but all of our board members are volunteers, and our chapter is doing major stuff here in Santa Barbara, as far as conservation, legislation, environmental impact reports, habitat restoration, snowy plover recovery, nestbox placements, etc. etc. Check out the main page if you wish.

I see many multi-families living together. It’s no longer Dad-Mom-21/2 kids.

Is this an aberration or a sign that the crisis is far more widespread and serious than we care to admit?

If what is happening right now is a aberration, someone please wake me the hell up. But seriously, in my opinion, it has been worse for some more than others. Especially those who are older who work who find these new *construction* jobs building roads and bridges PEBO is always talking about will not affect them. I just can’t see 55 year old women out digging ditches and working on roads. Nor do I see them working in fast food restauraunts part time for money IF they lose there jobs.

I wonder if the MSM would of stopped fluffing PEBO maybe just maybe someone could of got around to asking him questions about this. But then again, he did throw older people up under the same bus. But it’s too late now. I swear I literally can hear my teeth grinding when I hear how much frivolous money they are throwing towards the *Hip Hop Inauguration*. I swear if I hear how hope is now here or change blah blah blah come from another bots mouth I am going to scream!

This guy is so out of touch it’s ridiculous! People are struggling and doing without shit and all we get from them is what dress Michelle is going to wear and who designed it. Oh and Beyonce will be singing for them for there *first dance* as President & First Lady. This would be funny if it wasnt pathetic.

As for my own business manufacturing industrial packaging for those that produce products

Down 40%

Just got back from BC Canada,
Their business has turned off like a light switch.

I see fear everywhere!

“So, I’d like to know how things are going in your area?”

Well firstly, it’s very refreshing to hear someone actually ask a question, as you have done, instead of assume that they know it all. This by the way is one of my personal economic indicators – that the increase in people who fanatically think they know everything is inversely proportional to the health of the economy.

Locally, another reliable indicator is the number of destitute on the street – and also where they show up. I see an increase in median income areas, therefore it’s bad. Also, the folks looking for day work at Home Depot has increased.

Here’s another; my wife told me that there was an opening for a part time receptionist (at a real estate office of all places) nearby in Burbank CA, and they received over 300 applications in two days.

Oh yeah, and my brother is losing his house.

Troy MI – The other thing happening is that condominium buildings are sitting around half finished. Could be the commercial credit squeeze. Home sales down drastically. People are pulling houses off the market and renting to people

The article by LD about the ocean shipping drastically has to be the big effect. I think the continual bailout of the banks and AIG is a sign they were over leveraged. People just do not know what to believe, so they are drastically pulling back. No trust in the system.

Stores seem to have a lot of inventory on the shelves.

Being a bit curious last week, I went to a meeting in Bentonville Ark. and Toronto Canada with someone who’s company I have an investment in who has been supplying to both the retail and Club stores for several years a staple which has been exclusive to this company for years. The US growth for years, discounting new store openings has always been double digit growth per year averaging between 10 and 17% per year and the Toronto growth has been a growth per year averaging of 15 to 25%.

Expectations were the sales would be firm due to the discounting and the nature of the customers businesses, but shock in the US meetings were scary to say the least, commitments for 2009 were 22% below last years purchases on the high volume items and less than 70% on the rest. In Toronto, the commitments were par with 2008 purchases on most items and minor decreases on a few.

What is really disturbing is that this comes on the back of lower costs this year due to packaging cost decreases, transport declines, product material costs lowered and foreign exchanges allowing the US dollar some strength it was lacking this time last year.

What was a real interesting perspective was the differences in attitudes between the US buyers and Canadian buyers, with the US buyers estimating drops in sales will carry through all of 2009 and into 2010 at a minimum while the Canadian side estimates a minor downturn for a few months, but over all it will see a strong end to 2009.

When asked of the US buyer why all the doom and gloom, the answer was simple, “look at the US banking system, the surviving banks have bought failing ones without money to buy them, requiring billions of government injections to stay afloat, never in history has a business bought a failing one without the finances in place to do so from liquidity until now and Obama will keep feeding these bottomless pits with trillions, meanwhile Joe smuck will have the nooses tightened tighter and tighter on his credit abilities. The balance of Obama’s plan to rescue the economy is simply a twist on old failed attempts of the past.”

Everyone remember the Maytag jobs Obama assisted in moving to Mexico, while adding the Crown family to his donor base in the process, the net savings on Maytag manufacuring was less than 5% per unit cost being manufactured in Mexico, yet combine that with shotty manufacturing required repairs, the Maytag deal was a bust of almost 10% in product costing increases to Maytag per unit over all. But WTF, a few thousand people lost their jobs in the US and the Crown family capitalized on a fortune in share values when the deal was expected to be a boom for them, the friend of the new POTUS Obama!

That’s the popular sentiment,
However we are a 14 Trillion economy and we are going to borrow against ourselves to reinvent this country. Other countries will be unable to to do the same and will sink and crash. America is the engine..The world cannot survive without our success.

Out here in Los Angeles, I went to a popular restaurant for lunch. Hadn’t been there a while and I was sure we would have trouble getting a table during noon hour. It was 1/5 full – about what it usually is during off-peak hours.

For some time I have been concerned about the tone of Obama’s speeches. It is the exact opposite of FDR’s “nothing to fear but fear itself”. Obama’s fear speeches seem modelled on Bush’s fear speeches going into Iraq but are now aimed at getting the Obama agenda passed. I think the side effect has been to cause people to stop their spending dead – even ones that can afford it.

I hate to agree with George Bush but he briefly mentioned that he didn’t think you should go on about how bad things are without some positive words about the future. McCain got ridiculed for saying that the basic economy is sound, but unless Americans believe that the basic American economy is sound, this will become a self-fulfilling prophecy. That is what FDR knew.

Thank you, Larry, for continuing your life as usual. All citizens who normally lead a balanced life should continue with their lives. Think of the Londoners in WW2, carrying on during the blitz. (My British heritage showing). Stiff upper lip and carry on. We’ll get through this. Don’t panic.

And Obama – concentrate on making the banks get back to extending normal credit to normally credit-worthy companies. Unfortunately the banks are panicking too and everything comes full circle.

Portland, OR. Unemployment at 7.5% and heading for 10%+. The tech sector is crashing to a halt, strong rumor is that Microsoft will be shedding 10-17% of their workforce next week.

Not good – and the city reflects the problem. I see more stores shuttered and the “For Lease” signs going up. There are more street people than last year and they are leaner.

The yuppie stores are beginning to panic Whole Paycheck actually has lowered prices and even has some sale items.

I have little faith in BHO’s ability to understand and deal with this, I rather doubt he has any real interest, after all, he’s doing fine.

Hope I’m wrong but I see bad times ahead for the next 2-3 years at the minimum.

The good news is that America will be situated to become the manufacturing leader of the world again.

—————————————————–

With all due respect there is a little matter of having the ability to write a business plan, have the capital to get started and establish a distribution network.

Certainly individual trades will be easy to start, but lot of people are doing their own work now. Commercial entities are shut down.

In fairness to Obama, he’s not the only one out of touch. I think the DC political crowd and the media have been out of touch for many years now. I’m disgusted with all of them. It’s apparent to me that none of them have learned anything when it comes to this recession/depression. Here’s a fine example of this; Michael Geither doesn’t know how to pay his taxes and yet he’s going to be treasury secretary? Bwah ha ha! If this is the best and the brightest, then we’re doomed.

I was really hoping to hear which model of Kenmore vacuum you chose after your research. I am in the market for a cannister vacuum and that caught my eye. I went web shopping after seeing that and say they ranged in price roughly from $50 to $500. I think I’d be looking in the $150 range.

So which model did you think best, Larry?

Further down, you’ll see my message. By the time I got through posting it, I saw Mel’s and was struck by his observation of the difference in philosophy in Toronto:

What was a real interesting perspective was the differences in attitudes between the US buyers and Canadian buyers, with the US buyers estimating drops in sales will carry through all of 2009 and into 2010 at a minimum while the Canadian side estimates a minor downturn for a few months, but over all it will see a strong end to 2009.

I’m from Toronto. I think you’ll see it in my post.

If he was so interested in keeping the world “Green”, why not a “High Tech” Inauguration, everyone watches it on their Big Screen at home and keep the world a bit greener. As a car freak I’m just happy the Barrette-Jackson Scottsdale Auction has been on Speed TV since Tuesday. This covers me till 5 PM Sunday. After that I don’t know, even Fox is unwatchable. http://community.webshots.com/user/dhamstermd

GE Healthcare announced 5-10% headcount reduction in every department. First, open positions were eliminated and those duties absorbed by others, next, the people who had one foot out the door jumped ship (not technically layoffs), then, people close to retirement were offered nice packages and left. We’re waiting for the next round, which is the tough one–everyone is worried.

Meantime, no one has moved from their (relatively expensive) house, the restaurants are packed, and no local shops have closed (only a few national chains), so it’s an odd situation. We are in SE Wisconsin.

word. our “democracy” is just an illusion maintained to placate the masses, while the aristocracy that really runs this country robs us blind.

In April I lost my job with an advertising agency. At 51, no one wants to hire me with my 20+ years experience – they want people with 1 to 3 years experience. I am listed with a temporary help agency trying to get temporary clerical work – the problem is that while I can do the work – my experience is 15 years in the past. I am at the point of figuring out if we can live on just my husband’s if we pay off the two car loans we have and refinance our mortgage and equity loan. We made them fairly short term so that they would all be paid off quickly – but it took almost all of my salary – and unemployment runs out in July (even with the extension).

Off topic but of concern, I got this from Savage politics:

2. Will George W. Bush end up being the last true US President? Increasingly, it seems that he just may. As lawsuits against President-elect Barack Hussein Obama—questioning his US citizenship—continue to grow, he ever more adamantly continues his refusal to produce his real, viable and original birth certificate. CONTINUE TO SOURCE

The Canadians seemed to know a lot more of what we all are choosing to be ignorant about.

Time to check those calculator batteries.

If 750,000,000,000 were spent, divided by the population of 300,000,000 in the U.S. the result is roughly about $2500 per

i went to Whole Foods in Austin today and there were so many people i had to leave.

We went to a large Mall today in MA. It was fairly crowded. The food court appeared to be very busy. However I would say that people were not buying much in the stores.

Many people have over extended themselves with credit in recent years and the well has run dry. No bailout is going to solve that piece of it. It is going o take years for many people to pay down some of their debt. My family included.

if the media shut their mouth for 5 minutes and we had an fdr to talk about our worst issue being fear, we might proceed to something more positive.

fear, fear, fear and the spread of it is our biggest enemy!

the crisis is far more widespread and serious than we care to admit?

Great post Larry. You reflect what most Washington insiders think that it’s not that bad. It’s bad. Food stamp applications have risen so high they have had to hire several new crews to handle the work load. People simply don’t have the money. They are maxed out on credit cards and are struggling. This woman has 2 kids and a baby on the way. She gets minimum wage and rely’s on commissions of every sale to make up for her low wage. She has bills to pay and you prolly helped her put food on the table and pay a heat bill by purchasing the 2 vaccuums. Even in this thread, so few are able to admit how bad it really is. So few who are still doing OK even realize what’s going on.
I see homeless people that are women and kids sitting on sidewalks and crying while holding a sign for money for a room. The food banks are bare and the shelters are full. I could go on and on but the magnanimity of this is over many people’s head. It’s time to admit how bad it is.
Circuit City closes while Macy’s is in trouble and facing closure. People who had retail jobs cannot find other retail jobs because of all the closures. Long time Wicks furniture closed this fall as well as Linen’s and Things. When long time businesses go under, you have to see this as a definite sign that it is bad and people don’t understand just how bad.

Comment by CentralMass | 2009-01-17 21:13:41

We went to a large Mall today in MA. It was fairly crowded. The food court appeared to be very busy. However I would say that people were not buying much in the stores.

Many people have over extended themselves with credit in recent years and the well has run dry. No bailout is going to solve that piece of it. It is going o take years for many people to pay down some of their debt. My family included.

The Government should bail out all consumer credit cards.

Seriously.

Wipe the debt clean.

That will jump start the economy like nobodies business.

Hey if they can take the bad debt off the books of a bunch of self-absorbed wallstreet fat cats with multi million dollar second and thrid homes, they can take the average 6-10K credit card debt of the american consumer off the books.

Bang instant shopping spree for everyone and economic recovery.

As someone currently on the job market, I can say the situation is really tough. I am trying to change fields from very quantatative science to something else. I have 10 years of extensive and broad research and data analysis experience but because I don’t have the “right” kind of experience it doesn’t matter. I have programmed in several different languages and managed the myriad software packages for my previous group but because I haven’t used some very specific software package (that I could learn in a day or two) its tough to compete. Not even a fancy degree from the best program in the country in my area counts for much it seems.

its a horrible time to be looking for a job.

SJ, the money being spent on inaugural festivities reflects naught on Obama’s character. It reflects totally the enormous public enthusiasm for the man and the hope that people are investing in him.

Have you glanced at your television set today? Noticed the masses of people standing out in the freezing cold for a glimpse of the Obamas?

People need to celebrate this moment. It was the only thing most Americans could feel good about… until Capt. Sully saved all those people on the USAir flight.

Just think of how wrong those inaugural parties would seem if that ditched flight had turned disastrously fatal.

The hell does Circuit City have to do with it? If there were no big inaugural bashes, would Circuit City still be in business?

To your clueless self, the “hopey-changey” thing was just something to mock. To most of us, it’s the reason to keep on keeping on.

Larry–

It’s bad. The economy is all people talk about, and the fear is very real. The value of people’s IRA and 401K investments have been cut nearly 50% in less than 6 months, and even people who are more fortunate have been hit hard and are afraid to spend. There is enormous fear of the huge “stimulus” bills to come; people are afraid the deficits are going to get truly out of hand and be the final nail in the coffin. People believe that the Congress should be cutting back, and that printing money is simply going to wipe away any confidence in the dollar. The bail-out bills bring no reassurance. People don’t believe the economy is going to be bad for a year or two, they’re talking more like 5 or 10 years. Heard Suzie Orman say things should get back to normal by “2015 or 2016.”

Tell her not to worry. One of her State Senator say’s that even though Maryland is broke, it doesn’t matter since Obama is President

http://www.foxbaltimore.com/newsroom/top_stories/videos/wbff_vid_1847.shtml

Whose money is Obama spending?

We refinanced our home. The appraiser told us that the real estate market where we live actually was turning around, but he felt the media was generating a lot of fear. Then the newspaper said that median home prices had not changed since last year.

Great comments from everyone.

chad with all due respect suzie doesn’t impress me. she is about making money off others troubles. i can’t tell you the number of emails i get from so called helpers who have the right decision and formula for me. sigh!

also if the finanical situation remains dire in peoples’ eyes, ole suzie plans to sell more of her books, etc. she is making money on our pain.

Obama is still using Alinsky tactics. Get and keep the masses riled up and they will follow you anywhere and do anything you want.

nmk, that’s right! where i live the values have remained excellent and we were told by the nar economist that this areas would be one of the first to rebound.

fear, fear, fear! people are making money on your fear. these cuts?? for many of these corporations it is a good excuse to do what they have wanted to do for a long time. think about that!

It sad to hear about places like Sears possibly closing stores and Circuit City closing. But, let’s be honest these companies have been doing horrible for years. I could never understand why Sears would acquire K-Mart (which was on the verge of banruptcy at this point). I think this finanical crisis is going to be very telling of those companies that hvae been mis-managed for years.

Now if McDonalds Corp and Walmart ever announce that they are in trouble I know the world is coming to an end.

That never happens and it was Clinton that cut welfare (in many cases unfairly and more to placate the right about another one of their myths). He di dhowever cut welfare costs. Not exactly something Bushies can claim. (Either one).

$700 billion Corporate Welfare to the banks was a crime though. The banks should have been allowed to die or get sold on to whereever. Repug voters have no right to complain about socialism after this bail out.

The next big bail out should be a combination of getting real universal health care in the States, some decent infrastructure that doesn’t fall down (repairing the bridges) and giving people some of their own money to waste / spend / do whatever with. Why should the banks get another load?

Consumer Reports recommended the Kenmore Intuition 28014 canister vacuum as one of the best for both wood and floors.

Consumer Reports recommended the Kenmore Intuition 28014 canister vacuum as one of the best for both wood and rugs.

” Whose money is Obama spending?”
——————————————–
Don’t your remember the pantomine that Hillary gave, regarding hope and how manna was going to fall from the heavens.

Barack is spending chineese money (from the heavens), wonder how long that will keep going

I find it amazing that so many states are broke and so many governors are asking for a bailout. But, Governor Palin seems to be managing her state just fine.

actually many of these companies have wanted to cut back, trim, lower salaries, cut benefits for years. now is the best excuse they ever had to do it. i am a cynic.

China’s

linda, a lot of states should start cutting the pork and looking at wise spending. instead they want to get on the gravy train too. that’s easier than taking responsibility. california needs to balance their books. arnold is a failure and don’t get me started on the legistlature there. poor gov perry had to put aside his super highway through the middle of texas for mexican trucks. he was the only one who wanted it and the people of texas have had it with gov good hair.

Linda – I live about 5 miles from what used to be K-Mart headquarters which is now empty and to be torn down. K-Mart went bankrupt and the stock holders lost all. They came out of bankrupcy, sold a lot of Real Estate and then bought Sears. Sears did not buy K-Mart.

Crazy stuff has been going on

first of all housing needs to be stabalized. both mccain and obama say that and i agree. the problem began there and it will be fixed there.

I totally agree, I live in Missouri and work for a University. The state is currently facing significant revenue shortfalls and once again higher education is on the chopping block. I think if the state looked a little harder they could find enough pork to feed a small country.

Wow I agree!

It could have done that by allowing the banks to go bust. There would have been a redistribution of wealth from savers, but it would have been because of another broken promise (banks are secure places to leave your money), imagine what a redistribution there would have been if the collapse meant mortgage debts disappeared?

Now almost every major economy in the World is forcing taxpayers to pay money to banks to enable them to keep charging everyone a mortgage.

Something seems wrong.

isn’t it amazing what FEAR FEAR FEAR WILL DO. the media is an enemy of the american people.

Which is exactly the wrong thing to do. People who can afford to spend should do it. There are good bargains, too. People need to understand this or we will just keep tanking.
Funny with all the optimism about Obama (supposedly now a majority of Republicans have confidence in him) it isn’t translating into boosting the economy.

Oh please…..don’t hold back, try exaggurating a little.

Try this:

Smoke two joints before you smoke two joints, and then smoke two more.

Comment by stodgie | 2009-01-17 21:38:37

actually many of these companies have wanted to cut back, trim, lower salaries, cut benefits for years. now is the best excuse they ever had to do it. i am a cynic.
**********
That was the final stupidity that finished CC. Last year they fired all of the most experienced sales staff (read high salary) and then offered to re-hire at much reduced pay. They lost the people who were selling the big ticket items.

link please?

Well said!

We own a condo on the MD shore which we rent. Our 2009 assessed valuation was lowered over 20%, but I’m still thinking that the rate could go up. Cities, like people, seem to have a hard time lowering their budgets abruptly or by much.

Stores are going out of business like you would not believe in the south.

My husband is in the car business (not American cars) and it is terrible. Banks will not provide money for floor lines and will not lend to prospective buyers either—not that there are many out there. My husband says that the media continually reporting how dismal business is, discourages anyone from going out and buying anything–especially big purchases like cars. Many, many, many car dealerships are going out of business. Very sad and very scary.

oh Crap, I just turned 62 on the thirteenth of Jan.

Looks like I may be expendable due to age.

Reckon I should learn how to bake bread. Sliced bread costs more than two bucks a loaf.

Well, at least I still know how to knit and sew. I can start a fire better than a boy scout.

There are still some positive things in life.

Thanks for the correct info on K-Mart.

first shut down all the mba programs and tell the economic children on wall street to work on the farm for a year. hehehe! america’s cultural revolution! then we might see some real thinking.

I heard Barney Frank (yes, Barney Frank) warn about the coming mortgage meltdown on NPR a long time ago. Others, too. And contrary to what is being said by Republicans, it was not Fannie and Freddie or the Community Reinvestment Act that caused the problem, it was private lenders. I trust McClatchy’s reporting. After all they got the pre-war WMD story right.

http://www.mcclatchydc.com/251/story/53802.html

Comment by stodgie | 2009-01-17 21:44:31

first of all housing needs to be stabalized. both mccain and obama say that and i agree. the problem began there and it will be fixed there.

Theproblem is not the houisng market as such it is the banking market. This is a world wide BANKING recession. Standard economic theory assumes that all participants are willing. As of now the banks are not willing participants in the market. They are not lending because they ignored the savings to loan ratio for years and have now been exposed. This is not about sub prime, this is about banks not caring at all. All of this money that has gone in to “re-capitalise”, secures only current debt, not future debt. Without new loans, there are few homes bought, no cars sold, far fewer big screen tvs.

The sad fact is that noone can really say how big or how deep this recession will be because the standard economic tools will not work.

bernie, you could put tape over the talking heads’ mouths, the economy would start improving.

actually subprime is an issue. the banks are an issue! they have the money for the credit. now is the democrats would get off their asses and use their power, the credit markets just might open back up.

Just the other day, I saw an article about how to cut back, and one of the things mentioned was baking your own bread. I’d dust off my old breadmaker, but one of the reasons I stopped using it was that when I baked, we ate every morsel… while it was still warm! Bad for the waistline.

Yes,I watched on TV and it was embarassing. Even if you want to ignore the man is the great-great-great-grandson of Arab slave traders from Western Africa (check the history of the Luo tribe and the Obama family in Kenia), what is different between what we will be witnessing in the next 3 days and what we witnessed when the Ayatollah Khomeini returned to Iran? Look how well that worked out for them and for us…
It will be most embarassing while the world is watching: the Germans especially…echoes of another collective love and worship of one man,elevated to the status of symbol for a whole race.

the so called economists forgot to mention we were in recession long before it happened. now isn’t that just kinda strange. those with common sense point out there were a number of things that congress and bush could have done long before the rather drastic actions he took that would have cut down on the amount of chaos going on right now.

The biggest problem is the banks pulling in their lines of credit for business. Without bridge financing, they have to let people go and there’s no one to buy anything.

the cost of gas is going back up. let make this prediction. when the obama plan comes out the media will keel over in admiration all the while talking about how the one is reviving america. watch!

I’m guessing you meant “…if people are not buyin there”

Subprime was an excuse. Blame the poor so that tax $$s can go to Wall Street. A very strange example of Corporate Welfare.

SubPrime stil has over 90% repayment rates. The money was loaned out with no deposits to back it up.

Now the taxpayer must “create” these deposits.

Imagine what $1.7 trillion could really have brought?

Way back in the really old days, I remember my father saying the expression “greatest invention since sliced bread” .

He went through the 1929 depression and mentioned the problem belonged to the rich people. Then most folk lived a self sustaining life. Small farm, hunting, barter, baking their bread, tea etc etc.

No mortgage, you built your own home from scratch—small but adequate.

The only free americans are the homeless—no bills, no car, no mortgage, Food Stamps maybe.

canada has a “real” media and we don’t. that is one of the major issues.

That $150 million being spent on the inauguration could help Americans buy a lot of vacuums. The media had the nerve to go after Palin on spending a mere $150k on clothing that would later go to charity but I haven’t heard much criticism about the $150 million that will go down the drain never to be seen again after Inauguration Day.

I think that SHV meant to say that if people in Bethesda are not spending, like Larry’s experience at Sears, then things are bad. Especially in this town with so many people either working directly for the Federal Government or under Federal contract.

Im in Rehoboth Beach DE this weekend visiting family and the massive outlet shops here are packed with DC and Maryland cars – Mostly Federal workers looking for MLK day bargains- as they do every year. They are spending money here like crazy this weekend – All of the chain resturants have been overflowing all day long as well – waiting lines. But a lot of them own vacation homes here, which they actually live in maybe 3 weeks a year! So they are spending like crazy down here this weekend.

you make some excellent points, uk! any excuse will do. i still maintain this so called downturn came at such an “appropriate time”. if worked out so well for the dims. excuse me but i am a cynic. i don’t say that there aren’t real issues out there.

So good you suggested twice!

Thanks to Katrina, my husband and I have had an income well below the poverty level for the past two years. We moved from New Orleans to Central TX the year after Katrina because we couldn’t afford to stay in our own house any longer – we lost 2/3 of our income to the storm. I moved a large inventory of antique goods over here and am finally setting up my own shop – just in time for the Depression. Retailers in this area are really hurting, restaurants are nearly empty, and jobs are thin on the ground. I have to give this a try, though, because my husband has been looking for one for some time, with no luck. He was a firefighter for 26 years in NOLA, lost his health to the job, and now no one even wants to talk to him (and his pension really, really sucks). But it’s good to hear that Whole Foods just up the road in Austin is so busy (as noted by a poster below). I mean, as long as Barky’s fans are getting their daily dose of arugula… This is beyond depressing.

They might be hoarding in anticipation of riots at the inauguration. It only takes one instigator to get a mob going.

On the plus side, according to the web, there were no riots during the million man march. But politics brings out the meanness in people.

We will see.

Yes, I think the numbers from Christmas sales were low across the board, but I’ve seen the same as your son- restaurants filled. Shopping malls too. Its hard to figure out. Why does it seem like so many people are spending money when the numbers say otherwise?

the banks have sent out memos to their vendors to expect massive refinancing this year. actually that may be a good thing. the owner gets to skip a month and if they have any back taxes or equity, they can pay the taxes and take out equity for other purposes. maybe even buy a vacuum cleaner larry! in truth there is a shop where i live that buys older well built vacuum cleaners and redoes them for purchase. i play to buy my next one there. but i buy that way on a regular basis anyway. i am doing simple things like buying larger cans of food for my cats. by not buying the smaller ones i actually save 50%. that is a smart thing to do anyway. maybe some of the habits we pick up now will hold us in good stead.

“how things are going in your area? Is this an aberration”

Larry let’s put it this way:

We live in Los Angeles, the entertainment media capitol of the world; and my wife and I are sitting here in the back bedroom of our trailer (o.k. it’s a manufactured house) on a saturday night, sharing a fine bottle of wine (on sale half price) and posting snarky comments on your web site, by the light of a replica of the leg lamp – from the movie “Christmas Story”.

AAANNNDDD…loving it!!!

We have fun where we find it

And Hitler wasn’t even German. Funny how a population overlooks citizenship “details”…

With the economy on the fritz, I wonder if we will have the immegration issues this summer.

califorina is one of the hardest hit by the downturn in homes and the prices. also california has some of the highest prices and allows numerous liens. as i recall californa had a downturm in the 90s also.

Maybe the gubment should forgive all student loans.
Hey, they bailed out millionaires, why not everybody who’s paying that student loan debt?
Come on government, you say you care…
That would instantly free up a lot of currency. I don’t really think the government needs anymore of our money. They all seem to be quite plump on our tax dollar spoils.
Of COURSE, they’ll never do it. But it sure would be interesting if they did.

It doesn’t matter that the State of Maryland is broke now that Obama will be president,according to a Maryland State Senator. Does that go for California too? Can I quit my job?

The senator seems to be the twin sister of the woman who took her kids out of school to see Obama and is so happy she does not have to worry anymore about her mortgage or putting gas in her car.

Touching, but what’s the point of explaining that she’s latina, pregnant, attractive, and young?

I was born in 1931 and I can tell you that the Great Depression did not just impact the rich. We were often hungry and cold. Ordinary people didn’t own their homes, they rented. There were no food stamps, but there was welfare and the WPA. both of which were familiar to us. We did have a garden and grandparents who helped. Many hobos also visted the neighborhoods looking for something to eat. I remember my grandmother feeding them on the back porch while we ate within.
The upshot for me is that I save everything that might be useful sometime.

To your clueless self, the “hopey-changey” thing was just something to mock. To most of us, it’s the reason to keep on keeping on.

Since it’s the reason to keep on keeping on, we’ll let you pick up the whole tab for the rest of us taxpayers who have to pay for all the additional security. He (BO) is clueless!

To some extent the “fundamentals of the economy were sound”, except, as with home owners, the US (and also the UK economy) was built on debt. Republicans who thought you can spend without increasing taxes. Yeah that worked. Economists who argued trade and budget deficits meant nothing.

Once the simple understanding returned that money was needed to lend money, the World recognised the banking emperor had no clothes. That particular emperor was not a Democratic creation. You may want to look back at the Ginrich (!!!) “Compact with the Nation” for that one.

My cats refuse to eat the cat food in the larger cans. They want Fancy Feast all the time now. (These two cats were both strays that were taken in off the street). What is a mother to do?

What is your point? This is Larry’s blog. He can write whatever he wants.

smile, i don’t want to throw up so no i won’t look at it the (contract). the republicans have been such a diaster and were enabled by the democrats. i heard on cnbc some saying that the cost of housing needed to come down. there is a point there. the cost of fuel needed to moderate. it has come down but i see it going back up already.

the games played by wall street with no oversight is a SIN. i told all the repubs i know who thought that tax cut was great were dumb as bricks. “you will pay for it down the road” was my response.

I pointed this out earlier. Your $700 billion has helped to secure the no risk loans already being repaid. Anything with the slightest element of risk is being called toxic and taxpayers will need to fund these as well.

New loans are not being created in any way sufficient number, which is why house prices are crashing, car companies are on the verge of collapse and big ticket companies are posting losses. No new loans means no more money.

Why is that an issue?

And I forgot to say, I wonder if anyone will be renting this coming summer.

well! that’s a good question. i feed mine wellness now. they have had some issues in recent years so i try to find good products. fancy feast is addictive i think. you can get it at sam’s much cheaper than in the regular grocery stores by the way. i buy the larger cans and then use it up in one day. keep it in the fridge and don’t nuke it. let it get back to room temp. the point is i am told is to keep putting the same food down and they’ll eat it.

I suspected that retailers were keeping inventory low. Many in my family have complained of stores being out of regular items, and I think other items are being discontinued due to small companies going out of business.

The evil republicans lied about that nice man Barney Frank. Barney and his friends, all of whom are stellar citizens of mother earth, tried to warn all of us; but no! That Bush kept silent about it. The saviors in the Dem controlled congress, who care about the people, wanted to act to save the world—and that Bush stopped them at every turn. When they attacked Barney I cried a river of salty tears. It was because of the children and people eating innocent sea creatures that I openly wept to heal their wounds. I am a tolerant caring person who is against suffering and poverty. I also am against disease and mental disorders.

If it’ll make anybody feel a little better, years ago I worked as a cashier in a hardware store. EVERY January was ssslllooowwwwww. It was the longest, most boring month to work as a cashier. I bagged a LOT of screws, nuts, bolts, nails, and washers passing the time away.

Watch the home improvement and other stores with lawn and garden supplies available in the spring. That’ll give you some idea of how the economy is moving along. If people are fearful of losing their homes, they won’t be worried about their lawns/gardens. If they feel secure, they will.

Chin up, folks. Beauty is in the eyes of the beholder. What WE see is what we will get. Turn off the talking heads and all their gloom and doom and encourage others to do so as well.

I even quit reading gloomy health articles years ago and, lo and behold, my health improved. I am a firm believer in the power of suggestion.

Larry, maybe that saleslady has heard too much gloom and doom lately? I wish her well. Hate to hear of someone feeling that much fear. Going to keep thinking good thoughts for her.

Get them riled up enough and they’ll bring out the guillotine!

the one thing that i would like to mention here is this. educate yourselves. find some sources that you can trust. maybe some of our posters can recommend their favorites. take the time to read and think. relearn those critical thinking skills that i see all of you have on here. don’t let the media or the so called economists run your lives. think of ways to help yourself. go to the local farmer’s market. it is typically cheaper there. go for a walk in the park. buy some weights and use them at home. use the internet to read up on things. there are so decent shows on cnbc. of course the talking heads show there also. if it doesn’t sound right, don’t buy it. remember most of these people in the media actually know less than many of you.

don’t let our suckup media ruin your day!

winston, it took a minute for me to get the snark! smile

the money being spent on inaugural festivities reflects naught on Obama’s character.

And neither does Reverand Wright or Bill Ayers or anything. NOTHING reflects on Obama’s character. Why? Because it hath thouest been proclaimeth unto ye all Obots.

Second that.

And for UBM can I add, as was pointed out many times in the primary & GE, that pinning your hopes on someone else to fix your problems is a recipe for disaster. Using a political figure as a reason to go on is quite sad. What happens when he does not live up to his promises, what happens when the economy does not turn around 1.21.09?

sowsear, what goes up, comes down and vice versa. people need housing! in houston in the 80s there was a real depression in housing brought up by reagan’s wanting playing with oil prices to gig russia. many who bought then for rental purposes had a good deal later.

markets go up and come down. wall street is now more stable than it was. personally i always thought it was over valued.

Things are very depressed where i am in Fl..
My son is getting married at a resort where i am on the beach next week..this is a 4 1/2 star resort..the lady who has been in charge of his wedding was laid off last week..approx 1 week before our sons wedding..

This is a new resort, only opened 1 year..it was booked up for the Super Bowl before the hotel was complete.and now Corporations are dropping out like flies. Events for the game and pre and post are canceling left and right , by major sponsors. and corporations.

We have so many shops closed, it is terrifying..but we have been experiencing this longer than most places.

The for sale signs are everywhere..and I am on the beach..the only tourists I am seeing all through Xmas and New Years..and now..(and hearing their accents)..are British!

Our local news a couple weeks ago..predicted 1 million forclosures expected in Feb ..in Miami alone!!

Today i was in a large mall in Tampa..and it was crowded..but there were 70% & 80% off sales everywhere!!

Not looking good down here…Super Bowl may give a little boost..but from the Hotel people i have talked with .,.many corporations have canceled rooms and events..all over here!!

sowsear, think about this. people are not buying as much and need houses to live in. you might need to cut back some on the rental rate you tyically get, but then you can use that as a write off. maybe the renter might use some sweat equity and paint, etc. if you can overlook some credit dings, you can rent your property.

I know a lot of Republicans and none of them have confidence in Obama…sounds like a typical Obama “say it and it will be so” statements

well frankly the republicans aren’t going to like obama. why should they? but ask yourself this, did they have confidence in bush? enough said! by the way i don’t like obama but some of his choices let me rest my head a little easier at night.

Wouldn’t it be great if we could start some kind of POSITIVE wave via blogs/videos or something and TOTALLY counteract everything the media is feeding us?!

Using a political figure as a reason to go on is quite sad.

Wrong. The human response to inspirational and capable leadership is as old as civilization.

If times weren’t so bad, Obama might not’ve gotten elected.

california and florida have the greatest foreclosure rates. 1 million in miami? excuse my comment but that is pure bullxxx!

you aren’t getting news, you are getting hype for getting ratings sorry to say.

Yes, January is a slow month. Not to be a Pollyana, I know things are dire, but maybe the msm has pumped up the ‘fear factor’ a bit.

I live in Western PA. I have noticed how many old cars are on the road. They seem to be 20 years old. This seems to be a new phenomenon. Before it seemed like everybody had new cars. Now I wonder if they have lost their cars and have gotten a relative’s old car and got it up and running and now registered without insurance. things are going to get alot worse. and 0bama will replace Bush as the worst president ever.

well if we stop watching the pundits that would be a good start. i don’t watch them. the only time i watched cnn in the past year was the other day when the plane went down in the hudson river.

here is my prediction. when “the one” comes out with his great stimulus package the pundits will rave about how great it all is.

Um, maybe because…she was?

yeah right! obama was elected because the economy suddenly became MAJOR ISSUE. i am not buying that.

mimi, they have more than pumped it up. think brangelina, brittany, etc. that is what hyping the economy is to them.

first, I question the 90% repayment, I thought it was lower. Second, I agree the timing was convenient for the Dems, who also happen to have been in charge of the reg committees.

And uk, you have to realize the bailout is a child of Bush and the Dems. The repubs blocked it and many voted against the final version. First time I emailed a thanks to my repub congressman!

alibe, maybe you are just now noticing them. i am not trying to be rude with that. we are all starting to look around more. i drive an older car and it is paid for thank goodness. it is one of the more reliable ones also.

I quit watching them and reading their websites early in ’08 when I realized just exactly what they were REALLY up to. WHAT a relief it’s been, too, although I did watch one of their videos online yesterday.

You’re probably right. It’s all a setup to make somebody look good at just the right time. Pfft.

RebelCarol, you have as much feel for historical moments as a fruit fly. The inauguration of Barack Obama is a milestone in this nation’s civic life.

Millions of people want to be in Washington for it. The alternative for paying for additional security is what? Cancel the inauguration? Erect barriers to keep a million too many Americans out of the city?

Enjoy Tuesday with your head in the sand.

53,000 people were laid off yesterday, including 30, 000 from Circuit City, and another 800 scientists from Pfizer.

New York-based Pfizer plans to reduce its worldwide research staff of nearly 10,000 people by 5 to 8 percent this year, company spokeswoman Kristen Neese said yesterday.

It’s hitting everybody.

One story in the WAPO cited a woman who had her credit limit cut from 14,000 to 1,400 (simply as a result of the credit market tightening), certainly that impacts her ability to spend, as it does with every other consumer affected.

In my area, too, food banks are asking for increased donations, Christmas time saw a record demand, many of the office parks are emptyn as well, full city blocks left with vacancies.

ubm, you are a rude poster. put a sock in it! talk about head in the sand? pot calling the kettle black!

Carmel seems a mixed bag. There have been store closings downtown and there are numerous empty locations (mostly on the side streets). One of the downtown high end retailers sent out begging letters to his customers before the holidays but I don’t think it helped. However, he has always been mega overpriced. I heard he sold his business to a Chinese buyer. I haven’t had that confirmed. During the week, town is very quiet; plenty of parking places. Warm weather brought out people this weekend but mostly they use the beach and town for low cost entertainment. Two new restaurants just opened up but that means two older ones closed in those locations. Louis Vuitton and Bottega Venetta seem to be doing business but I have heard that Talbots and several others in the Plaza will be closing.

As for me, I was laid off from high end sales last Spring; added commission pay helped so didn’t file my unemployment right away. Guess my bene’s will last until summer. I see Reich is saying there should be more UI extensions. If so, I’d say this is not a bad time to be on unemployment. We were frugal for Christmas. I did take the family out for our traditional Christmas Eve dinner at our favorite restaurant which was my main gift. That’s their favorite thing to do…all of us together. Aside from that, we all cashed in our credit card “rewards” for gift cards that could be spent any place. Truth is none of us needs even one more thing. I’m using coupons, saving $$, just as my thrifty Mom did. You have to make a game of it.

Macy’s is closing 11 stores.

http://www.bizjournals.com/columbus/stories/2009/01/05/daily24.html

It depends on what you call sub prime and what is now being called sub prime. The reality is that sub prime repayment rates if they had not been repackaged to make even further profit could still be profitable at 1% repayment levels. There were no deposits to back up the loans.

The Senate Republicans were not responsible for the successes of Clinton, converesly the Senate Democrats are not responsible for the failures of Bush.

look this financial situatio took awhile to build. it really began in 2007 but our so called economists forgot to mention it. you are seeing the ripple across the lake so to speak. wall street is already more stable. and the banks are lending. sure there are more restrictions.

The past few months now, my supermarket is always out of whole wheat bread. I wonder if they’re not stocking because people are opting for the cheaper white bread and the whole wheat is going bad on the shelf. As a health nut, I’m conditioned only to eat whole grains (that’s just me) — so I’m gonna have to bake my own.

actually both democrats and repubs are responsible! they have enabled each other. the lack of oversight and lack of any real regulation since reagan added to this nightmare.

bake your own? hmm, you might actually enjoy it.

thats the problem the people who work inside the beltway are buying their own propaganda.larry as you know i run a small blind and shutter company here in phoenix.sales are down compared to last year however i have almost doubled what i did in december and the months not over yet.i am digging hard but the business is there as i just closed a 13500.00 shutter deal and have several nice blind quotes out that should come home to roost.there are a lot of people taking advantange of ridiculous prices on foreclosures, i mean 50 cents on the dollar to what they were a year and a half ago.those that do do ,those that wine about it lose.

This mess under Bush extends from Cheney’s insistence on supply side economics, in large part, a fairy tale of economic theory.

the mess includes reagan also. clinton had to clean that mess up before he could move forward. the repubs haven’t been financial stewards for many years. the democrats aren’t much better. they enabled, caved in, sucked up, etc.

“capable leadership” is the key word there. If he had proved himself to be a capable leader,there could be a cause for such adulation. As it is, he is still untested, unvetted and unprepared. A more somber, grounded in reality celebration would have been more in tune with the little he has to recommend him for (other then the color of his skin, of course).

don, i had the busiest month i ever had in july right before the media began playing this song. i also had a busy november and december. september and october were busy also. we were recovering from ike.

ROFL…let’s hope China doesn’t call in all loans

oh they probably can’t afford to do that now. i have read that china is going to be the leader in the recovery. i can see that!

yea i here you,for me its the higher end and low end flips that are keeping me busy.the middle not so much so.contrary to the doom and gloom crowd you can still get 3% down fha loans with fixed interest.

work smart! i work harder and travel further to do my job now. i choose to be grateful for it. i also get paid less for what i do. but i know again what goes down comes back up. all in good time!

I agree with you that wall st should not have/ did not deserve to be bailed out, but I have to disagree about credit cards. I say no bailouts (i know, the first already happened) But I see the problem as business, gov, & consumers just went on a 4-8 yr shopping spree like they had someone else’s credit card. If you wipe the slate clean then, IMO, they’ll fill it back up & we’ll be in this mess again, just a little down the road. Artificially propping up the banks & housing markets got us into this mess. It needs to normalize.

i think that has been out for about a week. again many companies are using this period to trim back those stores, etc they had been wanting to eliminate.

We rent it, but we don’t claim expenses or income, just the taxes.

What was done to the name of Rev Wright during the Primaries was a disgrace. Thankfully Fox over egged it in the Primaries, which meant t was ineffective in the General. As a result there was no third Republican term.

I don’t think redistribution from savers is a good idea. Savers are the only ones who still are OK in this economy. & How would doing away with mortgage debt redistribute wealth? I am pretty sure many of the fat cats we not paying cash for their multiple homes. Again, they were on the spending spree as well. So everyone who did it wrong gets a free pass, and those that did it right get punished- how will that play out in the longterm?

I live in upscale Southern California community.
Many home foreclosures,retail stores closing up shop, people are increasingly giving up hiring others to mow their lawns, clean their homes. Crime rate has increased too-more robberies.

People traveling more locally and giving up overseas trips.

I know at least nine individuals who have lost their jobs this past year and 2 of them had their homes foreclosed. These people worked in investment banking, auto sales, pharmaceutical sales.

Restaurants are crowded and yet so are local Goodwill Stores, 99 cents or less stores.

My family has had to scale back tremendously but no one is complaining because we see how much worse off many of our neighbors are. My parents-who came to US from Europe during WW11, had always warned me as I was growing up -to focus on what is REALLY important in life. This was family, health, spiritual development, and formal education (not necessarily in that order).

They taught me to work hard and to save my money. My father always warned me that many Americans take their life style for granted and dont realize how lucky they are and that should tough times hit this country-most Americans will be unprepared to deal with it.

My parents were dirt poor when they came here. I grew up in very rough neighborhoods- a lot of crime, drugs, schools with no heat in winter, metal detectors, overflowing toilets. My teachers were too busy maintaining peace and order in classroom so they had little time left over to teach us.

I got out thanks to my parents’ teaching me the hard work ethic and…thanks to my faith which helped me get through some really rough times.

Now, my family and I are helping out several other relatives who have lost their jobs. My cousin and his wife have moved in with us temporarily. He lost his job and lost money he had invested in stocks. They have minimal savings. They could barely afford their rent. They are living with us until things improve for them.

Times here in CA are very tough for many people.
I M O, our governor (Schwarzenegger) is a joke. He is the worst thing that happened to our state. He is clueless – absolutely clueless. His actions are only exacerbating the negative repurcussions of what is going on nationally. Many people here want him recalled.

owning rental property is not a minus now. people need houses and are afraid of mortgages at least for awhile.

Does anything smell better than baking bread? I also did a lot of baking during Christmas. Usually, I’m too busy working but this year the grandsons wanted my Grandmother’s Southern Pecan Pie for Thanksgiving and Christmas desserts and loafs of Banana Bread for breakfast treats. I enjoyed baking again but most of all their appreciation.

i had a friend who did a portrait of one of cats for christmas this year. i enjoyed it very much.

eh…loaves.

I do hope one thing we gain from all of this…whether it’s real or scare tactics…is a return to more simple, meaningful pleasures.

smile! the first time i ever baked bread, my roomate ate the whole thing when i was out one night. i suppose it is the best compliment you can get.

do you remember making our own valentines in grade school???

It just makes me mad thinking how this would all be different if we had just elected Hillary.

And, Larry, I thank you. You are a man of convictions. You suck, and you go out of your way to support the suck industry. Thank you, Larry, Thank you …

Yes, once you have that fresh baked bread wafting through the house…can’t do with just one slice.

That’s so f*ing sad…

maybe some of the habits we pick up now will hold us in good stead.

I like that attitude. In my quest to be positive, I worry about the length and depth that we must go thru in this crisis,but I hope that when we come out on the other side, we as a nation are different. IMHO, our values have been too materialistic and frankly unattainable for too long. Not everyone can look like those on MTV, GQ, Wisteria Ln, take your pick. Advertising was targeting mid income people to buy “affordable” luxury, but has now changed to a focus on saving. I think that is a good thing, but unfortunately it is taking a crisis to prompt it.

well sad to say i had wanted to impress my then boyfriend and was telling him about the bread. the empty plate was sad to see but it is a pricless memory.

Beautiful point!

well now that you mention it your attiude is rather sad!

Actually most car dealerships are selling just below the number of cars they used to sell; they’re just selling a lot more used cars now. Part of the auto story is that all cars are built better and just plain last longer. In the 60′s and 70′s you always traded your car in after 60,000 – 80,000 miles. Now they last 150,000 + easy. Political leaders are weak; they bend to the winds. Even if Obama is tossed over being born in Kenya I don’t have confidence that Biden will be any better. Our shot was with Hillary. Jeez, I’m going to go grab a beer.

The human response to lies and manipulation is just as old, and considerably more relevant in this case.

You mean, the same Representative Frank, D, MA, who, before he became the Chair of the Financial Services Committee, funneled taxpayer money to Fannie Mae as a member of that Committee, at the same time Herb Moses, the man he introduced as his spouse, was a senor executive for this GSE? If he was so unethical then, surely the House Ethics Committee would have investigated; and Speaker Pelosi would never have elevated him to Chair!

pelosi! when i hear that name it is like hearing nails on glass.

Rev Wright is a disgrace

I live in Southern California- I posted above however I forgot to mention about this new trend that I ran across a few weeks ago that made me raise an eyebrow with regards to the real estate market in California:

Financial Times article on Chinese Buyers of US Homes-esp in LA & San Fran

http://www.ft.com/cms/s/0/582d470c-c307-11dd-a5ae-000077b07658.html

http://www.latimes.com/news/la-fi-chinahomes7-2008dec07,0,7961924.story?track=ntothtml

From the Los Angeles Times

Chinese tour groups go house-hunting in U.S.
The cash-rich visitors are looking for bargains in the plunging market. The trips are part of a broader trend of individuals and businesses in China seeking greater investment opportunities abroad.

By Don Lee and David Pierson

December 7, 2008

EXCERPT:
Reporting from Shanghai — Caravans of cash-rich Chinese in Hummers and Lincoln Navigators have been weaving through American neighborhoods in recent months, looking for foreclosures and other bargain properties to buy.

With housing prices crashing in the U.S., home-buying trips to America are becoming one of the more popular tour group packages in China. New U.S. visa rules for Chinese tourists and a loosening of foreign investment policies by China have made it easier for people such as Zhao Hongjun of Beijing to go house hunting across the Pacific.

The 48-year-old owner of a media company went on a two-week road trip through the U.S. last fall, visiting scenic sites and checking out properties from Los Angeles to New York. He’s been following the swoon in prices ever since, and next month he’s considering joining another prospecting group that is heading for San Francisco, Los Angeles and Las Vegas, three of the hardest-hit housing markets in the U.S.

Zhao’s budget: $1 million.

Read the rest of this article concerning this new trend…

Actually it was the Republican Congress working with Clinton that did balance the budget. & I was speaking about the bailouts, where the Democratic Congress sided with Bush, went on air with the FEAR, saying we have to pass this now, at first wanting no transparency. As I have learned in this election, we won’t/ America won’t get better until people ditch the dogma and hold all people accountable. You can’t tell me Frank, Dodd, Pelosi, Reid are innocent here. & BTW, Bill Clinton in an interview put the blame for this on Democrats as well as Republicans

lynn, i agree with you. but the repubs did under reagan made some bad financial and regulatory decisions. i felt it myself and know full well how bad it was. neither side is free of fault.

I live in Western PA too, more old cars on the road may have to do with it being winter and all this snow.

The hubby went to Costco today. He had to wait in line to get in, had to circle the bananas three times before he could catch a break to grab a bunch and there were so many other shoppers it took him 45 minutes to check out. Now taking into consideration our weather has been horrid, it was Saturday morning and it was “eat around Costco” day, I’d say things are normal.

I also live in an area where Westinghouse is building a huge complex. They are bringing 3000 existing jobs, with another 1000 more. A friend who works there said things are growing like crazy. There hasn’t been a nuclear power plant built in years and now they have thirty in the works.

I am sick and tired of hearing this crap about millions want to get into the action and see Obama, millions in the world waiting in front of their TV set to see him take the oath of office.

Now how the hell does anyone know this , was their some kind of special poll done world wide for people to indicate their interest in seeing Obama’s inauguration?

My God some of you need to get over yourselves,and stop building this event up as the first wonder of the world or the second coming of the Christ.

I only hope the next election a American Indian does not win because I would hate to think what kind of celebration the native Americans may think they need to celebrate that win.

I’m going to call him “President-Fraudulently Elected Training Pants” starting 01.21.09. I hope that he falls flat on his face from failure often starting 01.21.09. He deserves it. He is a liar and charlatan. I also plan on wearing black clothes on 01.21.09. The fact that a person who does not have to prove his citizenship to be POTUS will be sworn in as POTUS on 01.21.09 is worthy of mourning. Our Country has reached a new low: a Constitutional crisis has occurred and the MSM refuses to investigate the stolen election.

Actually, this is no surprise to me at all. Being poor I can tell you, that the rise in food costs when gas prices were sky high did NOT lead to a fall back to normal prices now that gas prices have dropped. It is often cheaper to eat out, than it is to eat at home. I can go to Little Caesars and pick up 3 medium pizza’s for $15 and feed my family of 6 with no effort. Or I could take that $15 to the grocery store and squeeze a meal out of it. Either way, it will cost me the same, but ordering pizza…I don’t have to spend an hour or so cooking, and have no dishes to clean up after wards.

Bernie, my son owns a publicly trading company and he is cutting back on expenses as much as he can to avoid any large layoffs. His clients are paying as fast as they should and some aren’t paying at all. My cousin owns her own business and her income is half of what it was two years ago. Her son is an engineer. He was layed off six months ago and can’t find another job. I have a niece living in Texas and her son-in-law was layed off last year, couldn’t find a job so now he’s working out of his home. My sister-in-law and her husband said they wanted handkerchiefs for Christmas to wipe their tears because they lost so much in stock investments. My husband and I also lost money in mutual funds and we have a money market account which is paying us nothing right now. When someone says I need to go shopping to save the economy, I want to break something. I don’t even trust the money market since the dollar is not what it used to be and if I could find a safer investment in another country, I would do so. We bought a car this week after agonizing over the decision for a month and Larry Johnson is right about good deals. Out indecision saved us some money because the dealership is hurting. The food banks here were hurting over Christmas and still are. The only people in our family who haven’t been hurt by this crisis are my in-laws and their money has been invested in the same T bills for ten years. Those will mature this year and what are they going to do? Even the bond market is paying next to nothing right now. My congratulations to anyone who hasn’t been hurt, but don’t tell me to spend my savings.

Correction: “His clients AREN’T paying..”

I live in the W. San Fernando Valley, is So. Ca. our local mall which was just recently expanded is slowly dying. Very, very few people in the mall carrying very few shopping bags. I also noticed that while at the mall many stores closing like Mrs. Fields, plus many others.

Recently at our consumer discount shopping warehouse, I noticed several aisles that had once been covered to the rafters with food cases were now empty.

fiscalliberal:

Eugene, Oregon–what you described in Troy, MI is consistent with what I see here in Eugene. Unfinished commercial and residential buildings, recent finished construction sitting on the market unsold. Private residences on the market for months and months and months. In the stores many fewer shoppers, less inventory in the stores and what inventory there is is not moving off the shelves much. The restaurants are not as full of diners (I have only dined out twice in the past three months). Oregon has a higher unemployment rate than most of the other 49.

UBM, it is obscene to spend a fortune on Inaugural festivities when so many people are suffering. I don’t like Obama, but I would have had more confidence in his common sense and more respect for his gravitas if he had made a public statement to the effect this isn’t a time for extravagance.

As far as the historic significance of this election, he is a man like any other and I don’t have to prove I am liberal by loving him because of the color of his skin.

Something I have never seen before here in Seattle.
A few months ago I noticed cargo ships parking themselves in Elliott bay. I found this a curiosity and was not alarmed. Now there is 10 cargo ships docked in the middle of the bay with additional cargo ships docked at the marinas blocking waterfront views from the hotels.
Why do I get this feeling that business has stopped?

I’m not even sure 0-zero was “elected” — I’m no longer sure votes are even counted.

What I do know is that 0-zero cheated his way through the primary and didn’t even win there — he had to be carried by DEAN and the DNC, across the finish line by depriving a whole lot of voters.

We do know that a whole lot of powerful people gave 0-zero an unlimited budget — and evidently a whole lot of people can be bought.

But the trolls are not happy — like the small penis guy UB-whatever -

SHAME on you — your guy is having an orgy while a whole lot of people are suffering and he WILL make it worse because your 0 is backed by the Chicago school of economics who what to bankrupt the US Government even worse than it is already. Then these rich guys what to swoop in an buy up any and all assets OWNED by we the people.

You ghoulish trolls are enabling this sexist pig monster — and you creeps keep returning to harass us — why? BECAUSE you idiots KNOW we are right about your messiah — your master — the cult leader of idiots.

Recently at our consumer discount shopping warehouse, I noticed several aisles that had once been covered to the rafters with food cases were now empty.

I’m now stockpiling canned food. Every week I go to Costco and buy essentials.
What is not realized yet is that we have had announcements throughout the last six months of collapse, but we still have not seen the full consequences of this calamity.

The video link may give you an idea of what’s next.

http://theiceblog.wordpress.com/2008/11/13/america-the-first-undeveloped-country/

Find another supermarket. Go to a WHOLE FOODS or a health food store and buy EZEKIEL bread–it’s in the freezer and has no preservatives. Good stuff.

Oh Moss, sad huh?

NYC. It’s slooooow. Friday evening, Rockefeller Center looked like a ghost town. I’ve only seen it that uninhabited when it snowed really hard and even then only much, much later.

Construction has slowed to a crawl. Many buildings have stopped construction altogether. Note that this means the owners are still paying property taxes, additional interest on loans, and will have to pay more to get it restarted should things improve. They are that pessimistic.

Local stores in Brooklyn are hurting.

Lots of scary rumors. Wall Street types are buying guns and canned food, expecting bank runs, riots, and looting (one assumes).

However, I think it’s 99.5% psychological and, sometimes, people who are close to a problem, can’t see that it’s not the Apocalypse. It’s trust in the system that makes it work. That needs to be restored as much as it can be.

Three things need to happen:

1) Some people have to go to jail. This not only is the right thing to do to criminals, but it helps to restore faith in the system. (This could be applied not only to the financial system but the political one as well).

2) We need… well… hope. There has to be something constructive to focus on, and I’m not convinced that highways and bridges will cut it. How about alternative energy, dagnabit?

3) People need to spend a little. Your post, Larry, really points it out: some people still have money, they’re just not spending it. I think the statistics I heard were something like a year ago we were spending 120% of our income, now we’re spending 20%. Psychological, see? They’re worried that they’re going to need it for some emergency and despite not having lived through the Great Depression and contrary to popular opinion, people apparently do learn a little from the past. However, it is in some ways only exacerbating the problem.

Very sad indeed..But it is my job to find a silver lining
The only one I can see is that if all countries fall the United states still has the infrastructure and the ability to reinvent itself.
How can we have an economic system where capitalist countries compete for jobs and services with former communist countries with a standard of living the same as Albania. That is ending now.
My view is that the world playing field is being decimated. Not just us..Everybody!
The United States through federal involvement may start the process of gearing up manufacturing and selling to ourselves again. This may particularly true if the dollar loses 90% of it’s value.
Hold on..It’s going to be bad for awhile!

mba=masterbators of america

Two words for Congress: Term Limits

Hillary warned of it may times, starting in the beginning of 2007. She mentioned bad economy and housing foreclosures going to start. I think that’s why her eyes misted in New Hampshire when she said she sees what’s coming and doesn’t want it to get worse.

The states he is riding his train through already have deficit government spending. Now they are obligated to provide thousands of dollars to provide security for this trainride that is BO’s idea.

BO. The guy who wants to compare himself to every historical hardworking hero. Other people work hard and try to be he best they can be, and afterwards, society proclaims them a hero. Obama is trying to be something/someone he is not, he’s trying to tell society that he is a hero, right out of the gate. That little detail about accomplishing anything…? Nah! Competence and public service don’t matter anymore. Just American Idol meets affirmative action.

I’m going to wear my Hillary t-shirt.

Well, since people tend to pop out babies even if they can’t afford them, even if they got rid of welfare, they would have to enact some national type of lowcost childcare – childcare is very expensive, and for low-skilled workers, it’s cheaper to stay home with the kids themselves – but then they can’t work.

Yep, Austria’s best kept secret.

The headline in my local paper today was that “state shortage could grow to $1 billion.” Yesterday’s headline was that we were in the number of unemployed put us in the top two states hardes hit by unemployment because of timber revenue – loss thereof (I live in Oregon). In my city, a university town, restaurants are closing left and right, and lots of open store fronts. And I think worse is yet to come with an inexperienced pilot at the helm. I’m in the stocking up mode.

well, i guess we can be thankful that it’s Beyonce providing the music, and not Ludacris. wouldn’t be surprised if Ludacris was in there somewhere, though. it’s an historic moment, indeed.

i agree that the job situation is equally as troubling as business income being down, but of course the two go hand in hand. i have been looking for a better job for at least the last two years, and it seems like the help-wanted ads have really dried up in the last several months. i think that employers are going to be in a position to exact wage/benefit cuts from employees, and this will further reduce people’s buying power, and deepen the recession.

i also just sense a lot more anxiety among my fellow low-wage workers; we know that our options are limited, and the prices of the bare necessities that we need to buy continue to rise, year after year, while our pay remains stagnant.

Yes, the wonderful inauguration of the man who stole the election – Chicago style. I’m not buying into this crap, try you ever so hard, Mr. Bot. I’ll be watching Iron Jaw Angels on Tuesday to keep my perspective positive. Given how much money That One is continually spending, it does not bode well for our nation’s future.

UK, do you live in the states, or are you really a citizen of the UK? If you can’t vote here, frankly, I’m not interested in your point of view because you sound like Mr. Bot above. Fix your own country and write your own MP rather than telling us what we need to do with ours.

people will not be able to pay off their debt if their income barely covers their living expenses. this is the root of the problem, IMO; those at the top of the income pyramid continue to take a greater and greater share of the wealth generated by those at the lower levels.

then, in order to maintain any reasonable standard of living, people start living on credit, and of course corporations (and credit companies) are supportive of this, because they want people to keep buying their products, and the credit companies want the interest payments from making loans, but clearly, this cycle can not continue. at some point if income does not cover expenses, someone is going to take a loss. that is where we are at now.

but in order for there to be a real solution, workers must start receiving a salary which will allow them a reasonable standard of living without going massively into debt. CEO/management pay/stockholder payments, etc. are going to have to come down so that worker pay con go up. some how i don’t see that happening any time soon.

i don’t know about that. i am sensing some reality to the current situation. 40-50 years ago, the average CEO made something like 40 times the average worker’s salary; now they make 400-500 times the pay of the average worker. that is where our salaries are going. what are average people supposed to live on when all the wealth we generate goes to the aristocracy at the top? how long can this trend continue?

Your comment has logic in a sea of panic. While it is bad I seen it like this in the 80′s.

I live in Indiana, the job market is bad here. Retail and restaurant business is down as well as car sales. Greed and corruption can only go on so long before the bottom falls out. I believe that is what has happened.

Leaders wouldn’t do anything about illegal immigration which is a huge drain on our society. But now illegals are going back home on their own because there is no work.

Businesses that thought it was ok to pay extravagant bonuses to execs are going out of business.

Consumers have been getting fleeced for quite some time now, w goods of all types being overpriced, why? Plain and simple greed.

There can’t be all taking and no giving. It’s unbalanced.

I think it’s going to be rough for awhile, but not a depression. Alot of society is pampered and selfish and have no idea the pain and suffering of the past, what has made this country what it is or worked a hard day in their life or sacrificed anything. It’s about time they learned.

Wodiej,
My family also lived through hard times in the 80′s. My father supplied the oil industry the valves and pipes to build refineries. This was here in the US and around the world.
When oil prices collapsed and it was decided not to build anymore refineries my fathers career was over. On top of that the housing values in Houston where we lived at the time crashed 20-30% not recovering for years. My father lost the equity he had built up.
Today we see this on a world scale. The difference is that the ability to make money with assets has been severely compromised.
We have seen 30 trillion in equity vanish from peoples investments whether they be in properties houses or markets. That is no small amount!
This is not the 80′s!!

Add the economic difficulties to a community hit with a coal ash breach; our local community has taken a hit, twice as hard as most; further Alcoa will be closing their doors forever in March (the largest producer of aluminum in the U.S) We lost, approx. 5000 jobs in the local area, in just the past month.
The upside (it is a stretch) the people are good to one another, trying to help, and keep each other afloat; that may or may not work, but it sure beats being at each other’s throats.

Katmoon,
All we have heard for the past year is announcements. But we really haven’t seen the consequences yet of what happens when the world loses 30 trillion in value.
After awhile it starts adding up.
My business is the canary in the coal mine. Manufacturers, producers, and shippers of all types depend on my industrial packaging for their finished goods. When I see a 40% drop in my business that tells me that the thousand companies I work with are severely cutting back or are closing operations.

I’m sorry Seattle Moss the impact is already hitting you. What is difficult here, these are very small communities; some are losing the only means there is locally to make a living. Real estate of course is in the toilet; the house across the street from me sold for 5,000; now this is a 110 year old house in a heritage district that had roof damage, and a great deal of work to be done inside, but $5,000? The house went to a young family, the father a contractor.
Alcoa, is not able to sell to make a profit, that in and of itself is frightening. The local area is Harriman, Kingston Roane County, TN. Alcoa is in the Maryville-Knoxville area; both areas are equally effected, but it seems the smaller communities have been at this a little longer, and maybe (IMHO) functioning a little bit friendlier than the larger. Also, the schools are getting nailed with budget cuts, as predicted largely due to the failure of Freddie and Fannie, students loans are the next and largest hit.
My thoughts run toward, if there is no industry, and there is no way to afford an education, the hospitals close down and move staff 30 miles away, what does happen to these small communities?
Regarding the spill, although, it is in one contained area, it has affected the entire county. Worse, the legal vultures, from out of state have ascended trying to push early lawsuits and settlements against TVA; the problem is, there are honest efforts to make right the disgusting situation of the ash breach, for those families, there is no measurement for how it will effect those downstream, but has started killing the fish in the area of the spill. If we are to survive, prosecution needs to remain local, and not quite so early. It’s interesting reading opinions of those living out of state, compared to the locals willing to give TVA the chance to do the right thing.
Also worth mentioning, we are in a valley that resides between Chatanooga, Nashville and Knoxville( Sevierville, Great Smokies-tourism), probably a 1-2 hour drive from each. We see no benefit from any of these areas, as in income coming in, however the donation machine chugs out a few dollars to help keep people from freezing, and some coats for children and food for those who don’t have any. I guess what I am trying to say is, we do rely on the kindness of each other, knowing this area has been poor for more than 80 years, poor only in cash, but not in spirit, and still there is hope, we can make it through what is coming next. I would rather see a house well worth restoring sold for 5,000, than see it torn down, gone forever, an empty lot with weeds. I would rather see some time pass to allow a honest clean up effort and retribution take place for a serious lack of judgement on one of our largest employers, TVA, and more than anything I hope we are able to keep our positive spirit going, able to reach out to one another here, in small town America.

This comment – “It reflects totally the enormous public enthusiasm for the man and the hope that people are investing in him” – UBM reflects your total and complete lack of understanding of reality.

The obscene amount of money being spent on this inaguration reflects the happiness of the rich financiers who will have a continuation of Bush policies that favor the rich at the expense of the poor and the middle class under this new President. This is just the rich celebrating helping the rich stay rich and get richer at everyone else’s expense.

Meanwhile, we are still paying these people; in fact, some of us re-elected them, despite the writing was already on the wall. (Their vacuousness was emphasized after the election, when they tried to allay constituent concerns by assuring them, BO is a NBC because (his former employer, Annenberg (qua Annenberg Political FactCheck)says he is.

Read the military Complaint. It’s in there.
http://jbjd.wordpress.com/

So, I still tell my ‘employees’ what I want them to do; until I can fire them.

Were this crisis to get better or were it to get worse, there would be anecdotes all along the way. Of course national policies (or even family finances) should not be determined by personal accounts of incidents experienced, however moving they may be, or however telling they may be as reflecting and reinforcing one’s opinions.

That said, I find your experience, Larry, and your skill in recounting it, both moving and reinforcing of my views – we are facing Real Trouble.

My views on this economic and financial crisis are not based on following the “news” or the pundits, which I have pretty much avoided, as far as cartel media are concerned for well over a decade. And they aren’t much based on my experiences out and about (since I reside in provincial Thailand). They are based on considering history:

* a whole economic system CAN collapse and bring horrific death and suffering
* popular opinion is not infrequently rather insane
* there are forces (financier cartels, however amorphous, pretentious inheritors of wealth and privilege, conspiracies… whatever) that can, and do, run roughshod over the interests of the Common Good or the General Welfare. They manipulate national policies. They trample nations or manipulate them into trampling each other. They exert illegal influence, they bribe and they practice extortion. They sway and influence public opinion and policy using cults, propaganda and “public relations.”

So here we are.

We’d best make a strong distinction between the real economy – food, shelter, and the necessities of civilization, schools, hospitals, power grids, mass transportation, etc. – and a monetary system, which is but a necessary means of exchange used within the system.

We’d best stop trying to bail out the Titanic, and have a new Pecora Investigation, and expose how we got into this mess, along with going after the top dogs (not just scapegoats, like with Enron and so many other investigations.)

We’d best protect families in their homes. STOP foreclosures – and protect necessary banking functions by separating them from rampant speculative functions which amount to nothing but gambling, usually with other people’s money.

We’d best get the U.S.A., China, Russia and India (for starters) together and declare this already dead IMF system dead, and design a new one based on state credit (not “money”) and long-term international treaties, getting back to the vision of Franklin Delano Roosevelt or Alexander Hamilton. A two-tier system, with long-term low-interest credit for needed infrastructure and science-driver programs. Higher interest for the stuff we “want” but may not need.

We’d best stop this “post-industrial” nonsense and get back to producing stuff.

We’d best depend more on the principle of human creativity and less on computer-modeling to envisage our future and that of our children and grandchildren.

We’d best realize that not only is every human being special, with a unique mission, but also that the United States of America (as a nation among nations) is special and has a mission.

… or the anecdotes we share are going to become increasingly horrific.

It seems its just mainly the workers of the country in trouble really. I mean there are many wealthy people where I live in South Florida. Yea, they are complaining and tightening their belts too. Some are even cutting things out like their gardeners, the daily maid, etc. But they are still driving their BMWs and traveling and shopping at pricey stores. They have a need to continue the lifestyles they’ve enjoyed, but they need to pay their workers less or do without them entirely if they are to maintain that lifestyle.

When Henry Ford started the assembly line, he knew his workers needed to also be his customers. We let manufacturing be sent overseas, and to compensate, workers have maintained lifestyle on credit. As you said, at some point someone is going to have to take a loss.

Not only did borrowers overextend, but the lenders were completely reckless because they are “too big to fail” and thus wouldn’t be stuck with the loss. These privileged creatures are now receiving the “no bailout too big” while the consumer class is left with bills but no jobs.

The scariest thing about this depression is that it started in earnest fall of 2007 out here in the colonies. By now we should have seen housing prices plummet and start to recover. Instead, prices haven’t come down much and empty overpriced inventory is just sitting on the market. Yet, the proposed solution is to try and revive mortgages without letting prices re-adjust, which will result in an anemic recovery at best. Job losses are starting to snowball, and no one sees what is going to provide recovery for us out here. Paving contracts in Chicago will only take us so far.

I stopped reading newspapers a long time ago, but yesterday, while walking, I saw one of the local paper’s headlines–the SF Chronicle or Oakland Tribune–in bold big font- IOU!. Enough said.

Were this crisis to get better or were it to get worse, there would be anecdotes all along the way. Of course national policies (or even family finances) should not be determined by personal accounts of incidents experienced, however moving they may be, or however telling they may be as reflecting and reinforcing one’s opinions.

That said, I find your experience, Larry, and your skill in recounting it, both moving and reinforcing of my views – we are facing Real Trouble.

My views on this economic and financial crisis are not based on following the “news” or the pundits, which I have pretty much avoided, as far as cartel media are concerned for well over a decade. And they aren’t much based on my experiences out and about (since I reside in provincial Thailand). They are based on considering history:

- a whole economic system CAN collapse and bring horrific death and suffering
- popular opinion is not infrequently rather insane
- there are forces (financier cartels, however amorphous, pretentious inheritors of wealth and privilege, conspiracies… whatever) that can, and do, run roughshod over the interests of the Common Good or the General Welfare. They manipulate national policies. They trample nations or manipulate them into trampling each other. They exert illegal influence, they bribe and they practice extortion. They sway and influence public opinion and policy using cults, propaganda and “public relations.”

So here we are.

We’d best make a strong distinction between the real economy – food, shelter, and the necessities of civilization, schools, hospitals, power grids, mass transportation, etc. – and a monetary system, which is but a necessary means of exchange used within the system.

We’d best stop trying to bail out the Titanic, and have a new Pecora Investigation, and expose how we got into this mess, along with going after the top dogs (not just scapegoats, like with Enron and so many other investigations.)

We’d best protect families in their homes. STOP foreclosures – and protect necessary banking functions by separating them from rampant speculative functions which amount to nothing but gambling, usually with other people’s money.

We’d best get the U.S.A., China, Russia and India (for starters) together and declare this already dead IMF system dead, and design a new one based on state credit (not “money”) and long-term international treaties, getting back to the vision of Franklin Delano Roosevelt or Alexander Hamilton. A two-tier system, with long-term low-interest credit for needed infrastructure and science-driver programs.

We’d best stop this “post-industrial” nonsense and get back to producing stuff.

We’d best depend more on the principle of human creativity and less on computer-modeling to envisage our future and that of our children and grandchildren.

We’d best realize that not only is every human being special, with a unique mission, but also that the United States of America (as a nation among nations) is special and has a mission.

Or the anecdotes we share are going to become increasingly horrific.

Same here. A lot of restaurants are busy. I do a lot of take out. I’m about 2 miles from a Target and a brand new Wal Mart (just opened last week). the parking lots are full.

How strange. Tried to post comment in this thread over 30 minutes ago and it wisked off to digital never-never land.

Posted something else in another thread, no problem.

Tried the comment (which I’d saved) here again, and AGAIN into never never land. Will THIS post?

Artificially propping up the banks & housing markets got us into this mess. It needs to normalize.

Exactly. The Federal Reserve has been at this for years. We’ve had crisis after crisis and the only thing different this time is that hitting the monetary gas pedal didn’t work. The banking system has dug itself a black hole, and they’ve taken the economy at large and the consumers (formally known as citizens) along with them.

It is going to “normalize” now. What goes up must come down, even if the Fed thought they had repealed the laws of nature. The only question now is “who gets protected?” Right now the answer is that those most responsible and who profited the most are being protected, while those who benefited the least and had the least influence are being hurt.

Bailing out excess is not the answer. But Washington won’t even consider the most obvious solution: CUT PAYROLL TAXES. Sen. Conrad sez that won’t work. Bull. Make the cuts real, make them permanent, and do it while we still have people employed! Sen. Conrad complains that too many people saved the money they got. For one thing, the stimulus checks were a one-off windfall which people handled differently than an increase in their take home. Also, if people pay off debt it helps the credit card companies, banks, etc. It’s a way to get money into the economy in a systemic way that won’t involve an inefficient program that is mostly directed to campaign donors…oh, that’s the problem.

There’s blame on both sides. A lot of these private lenders were threatened with lawsuits if they didn’t comply. Can anyone say ACORN?

80% of americans think of this way!! sad but true

Part 1

Were this crisis to get better or were it to get worse, there would be anecdotes all along the way. Of course national policies (or even family finances) should not be determined by personal accounts of incidents experienced, however moving they may be, or however telling they may be as reflecting and reinforcing one’s opinions.

That said, I find your experience, Larry, and your skill in recounting it, both moving and reinforcing of my views – we are facing Real Trouble.

Another good idea. But do you have a lobbyist or two or three? Can you get Sen. Schmuck on the phone? Where’s the payoff in that?

Since Beyounce is married to Jay-z,I can’t imagine the whole hip hop, rap crew not being there.

I’d forgotten about the train trip-Lincoln style until I turned to a radio news station for weather report. I have avoided it all and will continue through the end of this madness. I’ve long since given up TV news, newspapers, radio talk except Coast to Coast. I check blogs and listen to jazz radio KCSM–it’s on 24/7, no news or ads. This is one non-profit I gladly support in $$$.

During the OJ Simpson trial, I recall hearing someone comment that she wasn’t following the trial and didn’t know what was going on. I couldn’t see how that was possible, but now I do.

Part 3

We’d best make a strong distinction between the real economy – food, shelter, and the necessities of civilization, schools, hospitals, power grids, mass transportation, etc. – and a monetary system, which is but a necessary means of exchange used within the system.

We’d best stop trying to bail out the Titanic, and have a new Pecora Investigation, and expose how we got into this mess, along with going after the top dogs (not just scapegoats, like with Enron and so many other investigations.)

We’d best protect families in their homes. STOP foreclosures – and protect necessary banking functions by separating them from rampant speculative functions which amount to nothing but gambling, usually with other people’s money.

We’d best get the U.S.A., China, Russia and India (for starters) together and declare this already dead IMF system dead, and design a new one based on state credit (not “money”) and long-term international treaties, getting back to the vision of Franklin Delano Roosevelt or Alexander Hamilton. A two-tier system, with long-term low-interest credit for needed infrastructure and science-driver programs.

We’d best stop this “post-industrial” nonsense and get back to producing stuff.

We’d best depend more on the principle of human creativity and less on computer-modeling to envisage our future and that of our children and grandchildren.

We’d best realize that not only is every human being special, with a unique mission, but also that the United States of America (as a nation among nations) is special and has a mission.

Or the anecdotes we share are going to become increasingly horrific.

While I agree that the media has played up fears, which is a little odd because in the past they were happy to tell people who lost their jobs to China to suck it up, the underlying economic problem is quite real. Obama is also doing exactly what Bush did when he took office. Bush talked the economy down to emphasize that the recession had started under Clinton and wasn’t his fault. Also, they want to get the recession over with so that the economy is in recovery when they run for re-election. So Obama is talking it down, too. (Also, he wants to spend billions with no questions asked.) But the bursting of the liquidity bubble is real. The downturn in the economy is real. People aren’t faking unemployment and foreclosure.

“the “hopey-changey” thing was just something to mock. To most of us, it’s the reason to keep on keeping on”

You are pathetic undercover black man. And a completely stupid

“the “hopey-changey” thing was just something to mock. To most of us, it’s the reason to keep on keeping on”

You are pathetic undercover black man. And a complete stupid

Seattle Moss, your business is indeed the canary in the coal mine, and my beloved spouse is in a transportation industry that is also a “canary in the coal mine.” I think you are right that this is not the 80s [as bad as that was, this will be much worse].

This will sound naive, but just think about it: 70% of our GDP is consumer purchasing.

That is an astonishing thing, if I understand it correctly, because it means if consumers don’t, or can’t buy, the country goes bankrupt. We aren’t about producing anything anymore in this country. We are a “consumption-based economy.”

Credit is the only thing we produce.

For someone as average in knowledge about economics as myself, that is one breathtaking fact to consider. It opens your eyes to a great many possibilities, most of them bad.

I have learned much about economics over the past 4 years, I can tell you. Thankfully, I started paying attention after the tech bubble burst, and we lost a great deal of money from our retirement savings, had to start all over, and so we were determined that wouldn’t happen to us again. We just watched CNN, CNBC, trusted what the government and analysts were telling us, busy with our own lives, and thinking we were secure. Not.

I started reading econ blogs so I could understand, whereas before [and still now sometimes] my eyes glazed over anytime finances or economics came up. We prepared for the worst possible scenario, because we were reading the warnings and heeding them. We are about as secure as one could be right now, but our lives will inevitably be changed for the worse, just as everyone else’s will be changed profoundly for the worse.

This country is in for a very rocky ride, probably for the next 1-2 years, and into the next decade. I suggest that in addition to LD, people start reading economic bloggers, so they can prepare themselves. Sitting and waiting is not an option.

Aww, I hate it when that happens. Should have said “Debt is the only thing we produce.” Mea culpa.

BTW, UBM, your conflating of Capt Sullenberger & Obama did not go unnoticed. the difference is that Sullenberger has an entire career behind him which prepared him to put that plane down as he did, while your hero has spent his entire career running for the next office up the ladder, and precious little time actually DOING any of these jobs.

Experience DOES count – why do you think he appointed some of the people he did? Now we all must pay whatever price there will be for your fantasies.

I’ll be very happy to be proven wrong – this country’s future depends on his success – but what I’ve seen so far comforts me not at all.

Speaking of bread, my grandmother would save the stale bread in the freezer and use it for bread pudding. That was the best dessert. Those were the days when you’d walk into the kitchen and there was always a full cookie jar and cake safe. If there was week-old cake, that would go in the freezer too for bread pudding. Ummmmmmm!

Beyonce is more of the same, she’s ludacris, jay-z and friends. more trash

franklly moutainaires many economic bloggers are full of it. just look at the talking heads on cnbc. i turn them off when they start yelling at each other like they do on the pundit shows. having said that maybe some of our posters can tell us some of their favorite and realible sites to visit.

it is time americans started informing themselves instead of waiting for the media to lie to them. i would also add the only thing we really need to fear is fear itself. that is the thing the media is using to pull poor joe sixpack in to scare him to death so they look better in the sweeps.

fear has been one of the main things that is the problem. yes, we have a number of other problems that need to be addressed.

i would mention for those who are 62 and older there is the reverse mortgage. you can get 50% of your equity in a lump sum or monthly. you can have it as a credit line. you don’t have to pay re taxes if you don’t want to do so. there are no mortgage payments. you need to pay upkeep and insurance. also be sure you live in it at least six months out of the year. there is no credit check either. i think for many it would be a helpful thing to consider.these are the types of things you can learn on line and the media won’t both to tell you. they are too busy trying to scare you to death. go to sites like the national association of realtors and read their studies. don’t trust the people trying to sell you something. they want to profit on your fear.

I also live in CA – isn’t it ironic that the projected deficit is now EXACTLY the same as when the recall against Gray Davis began; and we got real refunds that year, not IOUs. Yeah, Ahnold’s a fricken’ genius!

sign, she has modest talent. i don’t see the real talent there like say a billy holliday. naw!

think lie detector test also.

I don’t know about that. China is having massive problems of its own. with no American debtors to buy all its cheap plastic crap. many, many people are being laid off with noplace to go. They may have an even worse situation on their hands than we do in the medium-term.

What is it exactly that you are hoping for? Everyone keeps talking about hope and change, but no one has yet defined what exactly that is. I voted for Hillary Clinton, she was inspirational and she actually did define what she hoped to do. She was calling for a moratorium on home foreclosures long before this crises hit the evening news. She had plans, she had policies, she had the whole visionary thing down along with how to pay for her plans, and all Obama could say, was change. He never defined that change. And as for hope, anything with the Clinton name attached to it automatically inspires the concept of “hope”. Specifically hope that we could return back to the good old days of the 90′s when people had jobs and money was flowing. So just what is this change that Obama keeps promising? Define it.

We’ve already had an American Indian vice president, SJ.

In our area, some schools have as many as 50% of children who qualify for free breakfast and lunch, even in good times.
Two days ago, our hospitals announced staff cuts.
We are in serious trouble, ranging far beyond investment losses, in my opinion.

I think it’s also because that lady works on base (less than minimum wage) plus commission. My husband once had that exact job at Sears. He just got laid off by Restoration Hard ware – closing their original store here in Eureka, CA. Things are BAD out here. Om the bright side, since he is getting the ax now, he will have several months’ severance pay. The long term prospects for Resto don’t look good though, and when they ultimately go belly-up, there will be no severance money. I believe many compnies are in this position.

I have wondered why anyone hasn’t really clued in on what he has said about jobs. What I have heard him say is that he create or save [insert random number here] jobs. Does that mean that if there are 2, 3, or 4 million jobs left after he’s done that he will have kept his promise?

And costs HOW much? You’re obviously forgetting tha most folks can’t really afford to shop at Whole Foods – even if they have one (which we don’t). I’m happy for you that you can, though.

Is anything worse than Springsteen singing Born in the USA at the PEBO gala? Really? How ironic is that?

Its not just the DC crowd that is out of the loop of reality. Those who are employed here in my area really have no idea what those of us who aren’t are facing. I read several posts to our local newspaper on how lucky we were to live in this area with our stable economy and growing community. I live in Southwest Virginia and we are a college town. Those who work for the uiveristy are lucky, they have stable jobs, but those who work in the local community are not doing well at all. Its all in where you look and what you want to see. We’ve had one restaurant and one car dealership close in the last month. We have a hiring freeze on now at the colleges and universities, so if you are looking for a job, don’t look at any state or state supported agency. Our free clinic is under siege and turning people away which is why they are flooding the emergency rooms of our local hospitals. Seriously, who can afford to pay Cobra rates out of their unemployment? That is a joke. The only businesses I see here that are succeeding are WalMart, and the local supermarkets, (Krogers and Food Lion). The food pantries are shutting down 2 and 3 days a week because they don’t have enough food for the people, and people aren’t donating either. I haven’t seen this happening here since the days of Ronald Reagan, but it is just as bad here now as it was then.

Amen to that.

Sassy, it is bad, our only hospital within 35 miles will be closing unless they get some kind of emergency funding, or build a new one it’s been there close to 80 years. Most of the children get free breakfast, and many free lunch. Although I am not big on church involvement with schools, I have to say if it wasn’t for the churches in the area, many would go without food or heat, or warm clothing and bedding this winter. The churches just give, and help, and do not expect attendance, or anything in return. The great thing is the people seem to volunteer naturally, in the old fashioned style, of neighbor to neighbor, and looking out for one another. Sharing if you have more than you need.
We had to have an ancient grandfather maple cut down last week, dying and over 100 years old; that wood will heat about 12 homes. The tree cutters give it away to those they know need the wood.

I don’t completely agree with the Austin poster above. I, too, live in central-Austin, so we are in basically the same area, and what I have mostly noticed is less inventory in grocery stores and discount clothing stores. I have to make a trip to Best Buy shortly to use a gift certificate…I’m curious what I will find there.

As far as I can see: restaurants aren’t as full as they used to be, but, truthfully, the wait times in Austin restaurants used to border on the insane; they are still busy.

I have noticed, however, a definite difference in mood around here. You could always count on the citizens of Austin to be upbeat and pretty much *fiddling while Rome burned*…not so much these days.

Personally, having grown up in Austin, I see this as a much-needed sign of maturity for our city.

Larry:

I meant to thank you for your post in my posting above. Very touching. I can imagine that the sales attendant who waited on you got emotional because she is in fear of losing her job if sales don’t pick up. Perhaps you were shining a slight ray of hope on what is clearly a difficult time for those who work in service industries.

It must have been sobering to witness the emotion two vacuum cleaners could raise…and the importance they represented to that young woman.

Twice in the last 8 days, my husband and I went to Office Depot to buy an office desk. Both times we were there, no one would wait on us. There were exactly four shoppers and two salespeople in this giant box store. The desk is one that has to be ordered by the salesperson…no more stock on large items. A long time ago here, office supplies were sold by a single family in a nice small business setting. We got great service and products, from machines to furniture to supplies. The big boxes put them out of business. If Office Depot survives the way it is operating, cutting costs by cutting inventory and salespeople, I will be amazed. I know the economy doesn’t live or die on my unpurchased desk, but if this is multiplied by million, this place is going the way of Circuit City.

Yeah, people do need to celebrate something. But in another week, they’ll be back to the same struggles. I don’t begrudge their current celebration; I just think their joy now will soon be tempered by the recognition that their hero could end up being a Nero instead.

The Economy is in a Depression

http://www.globalpolitician.com/25390-economics

English as a second language, huh? Good luck with that.

“That is an astonishing thing, if I understand it correctly, because it means if consumers don’t, or can’t buy, the country goes bankrupt. We aren’t about producing anything anymore in this country. We are a “consumption-based economy.”

I agree with Mountaires above.

Many big stores are out of biz and empty — my town is like Carmel. Locals like it quiet like this, but…
Very sad overall, for all concerned.

Good to see you back, Jeremiah God Damn Barack Abraham Lincoln Omerica. I have missed your caustic wit and biting satire.

Ferd

Yes, I think we’re in real trouble. I don’t think most Americans even realize it yet. But the signs are unmistakeable, and of course it is a combination of psychology and economy. The calls to report “good news” [Kudlowites] as if that will turn things around are really pathetic in my view. And Jim Cramer is getting ridiculous with his “barnum and bailey” circus act, setting the date it will all be over–oh, some date in June, 2009. I notice he’s not mentioning that so much any more.

Things are going to be very bad–rainy day funds are depleted; California’s not sending out welfare checks or tax refund checks. That’s ominous. As usual, the poorer one is, the more one will suffer when safety networks break down for lack of funds. I hadn’t really taken it much seriously until recently, but I do have friends who are stocking up on dry goods and canned goods in my own area, which is even economically secure. The fears have spread to upper-income [comparatively] earners these days. I don’t mean wealthy, just upper-middle class, even retirees.

I really think this will become recognized this year as a depression, not a recession….but then, I’m a pessimistic old bear. And, I’m Irish. We love our gloom and doom, dontcha know?

“A Good Man is Hard to FInd”;(Flannery O’conner my apologies, could have pegged this election as we all should be wary what stranger we have invited into our car, our house.) be careful what was wished for, as the one is not going be able to pull anything out of his hat except for a hungry rabbit. Love the irish doom and gloom, it’s realistic and as a certain sad beauty to it.

Stodgie,

Most of the economic bloggers I read are not on CNBC. CNBC is basically propaganda, if you ask me. I watch it and know who is and who isn’t telling the truth.

You recommend going to NAR. That is definitely a source to avoid. [not a criticism of you personally, but a sincere warning]. Maybe NAR studies are helpful; but NAR spokesmen and public statements are not helpful in the least. They are one of the worst offenders for obfuscating the truth about this economy, particularly the housing meltdown, and have been since the beginning. I personally never believe anything out of the NAR.

“David Lereah is a Jackass”

http://www.ritholtz.com/blog/2009/01/david-lereah-jackass/

Also, I’m not sure a reverse mortgage is a good idea, either, these days, since they’re owned by insurance companies, which are just as vulnerable financially as banks. Indeed, insurance companies are starting to base people’s insurance pricing on credit scores now. Reverse mortgages will likely do the same in the near future, as insurance corporations try to capitalize. So, caution would be in order…

So readers could identify and empathize with her? So they could understand and empathize with her reaction to his purchase? So readers might understand that she’s young, pregnant, and working on commission at Sears? Just a thought…

ha…

Katmoon, you should be a writer. Are you? Because this morning, you’ve just written so beautifully in response to Old Grumpy Guy’s post: “what fills my soul instead of what breaks my heart…”

What a beautiful description. I admired that so much. Maybe it’s the Irish in me–we love language as well as music–and when I read something particularly stunning, I always say, “Wow wish I’d said that.”

Thanks for the Flannery O’Connor reference, too, one of my favorites.

With Yosemite Sam as the First Mate.

Thank you, Mountainaires; I wouldn’t say I am a writer, no more than anyone else, but when I feel something it comes out well. I attribute that to being led by a wonderful father who had me read and listen to classical music and Opera, study paintings and dance, and enjoy all the arts had to offer. He was also an advocate of keeping your brain active, so we had to study in the summer while out of school. Each year he would assign a part of the Constitution, or a historical component of our history. He was the first generation born off of a reservation, and a border jumper from Canada; I have to laugh when I think of it.
Flannery O’Conner, was stunning to me when I read what few things she wrote, and I am a fan of the short story, as I consider it a more difficult piece to write, so much has to be tightly woven in less space and time.
My comment about what fills my soul is truly what I feel for music, I would not have a baseline for joy if I had never heard music, it is something I truly love.
Thank you again for your beautiful compliments, and yes, I have been published, but by a not so popular author who collected our letters about our loved ones at war, and also published for school.

Boston here. Went to the mall last week with my daughter and it was slow even though most stores had tremendous sales. Especially hurting seemed to be the jewelry stores (with steep discounts).

and another 800 scientists from Pfizer.

New York-based Pfizer plans to reduce its worldwide research staff of nearly 10,000 people by 5 to 8 percent this year, company spokeswoman Kristen Neese said yesterday.

So why don’t they cut their commercial advertizing? Advertizers don’t do the research necessary to bring new drugs to the marketplace.

Once again, idiot multi-national corporations not only shoot themselves in the foot but in the head as well. These companies are run by morons.

With a shipload of products from “Acme” to help the economy.

New York-based Pfizer plans to reduce its worldwide research staff of nearly 10,000 people by 5 to 8 percent this year, company spokeswoman Kristen Neese said yesterday.

They should stop advertising and keep the researchers who actually make something that Pfizer can sell.

The idiots running multi-national corporations should be fired for cause.

I get an email advertising Sears every day–I figured they must be in big trouble.

Too many friends are laid off here. It’s really sad. And we are putting a rookie in charge.

The big problem I see right now is that Obama is spending the taxpayers money like there is no tomorrow, while telling us to tighten our belts.
So far Obama has made several records in the money department and I have a feeling he will make many more.
With all the layoffs, companies going bankrupt, families losing homes; this is not the time for a president to be overspending on ceremonies.

State of the States:

JANUARY 16, 2009, 8:52 P.M. ET

State Tax Revenues Fall as Recession Bears Down

Arizona’s state treasurer said this month that the state could soon be out of money by February, which would force the state to borrow money to pay its bills.

http://online.wsj.com/article/SB123215579593492397.html

It seems to me that even in a “Federal EE” town like Bethesda – and maybe particularly there – people are waiting to see what Obama cuts out and throws away before they jump off the pier and begin to spend again. I think it is utterly unknown as to what he has in mind – and perhaps even worse he has nothing in mind yet. I would think that those in Bethesda may suffer more from Obama’s bad mental health than those of us hiding out in the desert south of Albuquerque. We just have to deal with the stupidity of “Judas” (Richardson) who refunded all of our surplus last winter to look better and now has no cushion in the downfall.

Larry, I am finding real solace in being older at this moment… this will be my second Bush recession/depression and nothing much surprises me whereas your young sales clerrk probably has little history to put what she sees into prospective. And we came out of Daddy Bush’s recession with a new business that has been very very satisfying for many years. This will be transformative times (and not because of O at all) but perhaps not transformative in ways people had in mind. and I don’t beclive the “media” is misleading you – just that you have to only listen to people who have a very broad and highly experienced perspective… 20 something’s ain’t going to cut it right now. They don’t know much more than what they read in text books a fwew years ago. Stick to seasoned commentators.

It is very bad out there but everything moves in CYCLES. Always has and always will. You mjust have to know enough history to sense this. But Larry, thank you and I’d love to see a thread now and again just devoted to sharing these kinds of things because personal flavor from around the country is invaluable for all of us to be well informed and many things will be moving so fast that it will be hard to keep up. Thanks for that.

Eat cake

stodgie,
& I agree with you too. My post was directed to UK, who seems to want to only blame repubs. I am saying hold both sides responsible for the part each played- no partisan free passes by me.

the bailout money was not intented to help consumers. It was just to fill the banks with capital. There was never any requirement for banks to lend that money again.

There was never any requirement for banks to lend that money again.

But that was implied by the proponents of the bailout-put more money into the system so loans could be made. You’re parsing this a bit too fine.

What this amounts to is corporate welfare. The Welfare Queens Reagan spoke of in the 80s were pikers compared to these bozos.

the market was overvalued to begin with….so did people actually lose that much? I don’t believe so. Many people also gambled by investing in high return but risky stock. If you want the high returns, you have to accept the risk you will lose it also. JMO

I worked in vacuums part time at Sears a few years ago. Unless things have changed since KMart bought Sears, vacuum salespeople are commissioned. If you don’t sell enough to make minimum wage, you take a “draw” on future earnings to make up the difference. If the commission rates are still the same, your purchase probably earned the salesperson $150 to $200, depending on the model. It must be a very scary time to try to live off a commission, especially if you have children to support.

In my area, my brother-in-law has lost his job because it was phased out to cut costs. He has been searching for three months in different states, is well-qualified, and has found nothing. They will lose their house and retirement investments if he can’t get a job.

For my husband and me, our investment property for a nest egg is now worth half what it was and we have to keep working. I get upset because now I can’t have the house I wanted in the town near my kids and won’t be able to do the things we talked about for years, but I remind myself that we are in no danger of losing our home or our pensions and we live fairly well so I’m thankful for that. So many people are losing everything.

We noticed in the in Disney World in Dec. and Jan. It’s nearly impossible to get a reservation at any of the restaurants and the parks are packed. Maybe people flock to escapism through fantasy in hard times. Still, it’s pretty expensive to go to Disney World.

I believe it’s important to have a black president, but I believe there would have been even huger crowds to see Hillary, the first woman president. When I see Obama lapping up the celebrity, I just can’t help thinking that he never won the nomination, and he was behind in double digits until the economy melted. Hillary could have won the WH on her own merit, the way Bill did.

And Obama still could have been president 8 years later when he got some real experience.

Have you glanced at your television set today? Noticed the masses of people standing out in the freezing cold for a glimpse of the Obamas?

So if these same people were standing in the cold for a taste of Obama-endorsed eating of feces, you would use that to justify such eating?

Your ad pupulum argument is as flimsy as your pretend POTUS-to-be.

That people are going, irrespective of numbers, doesn’t qualify it as a good thing, logically, just in case you misunderstood, Undercover BM.

Quit while you’re ahead not-so-far behind, troll.

English as a second language, huh? Good luck with that.

This coming from a bot who uses the English language as a punching bag.

Your knowledge of the language could be placed, along with the resume of That One, on the back of a matchbook, leaving plenty of room for a Lucky Strike advertisement and the obligatory warning about smoking AND about oratorical gibberish from trolls like you.

What was done “to” his name?

Hahahahaha

He did it to himself, you silly snip of an obamabot. You pommies are so dull.

UBM has:

No concern for the sexist tone of his campaign,
No concern for the lack of transparency,
No concern for his inexperience,
No concern about his divisiveness,
No concern about the reneging on campaign promises,
No concern about his movement towards continuing failed Bush policies,
No concern about his abominable judgment in personal associations,
No concern about his narcissistic tendencies,
No concern about his background,
No concern about the good for all and not just the AAs, and

No concern about anything but his skin color.

But I’m sure he had at least one other reason for voting for That One, but I can’t think of a valid one.

Iorac

You’re right! Hillary knew about the really bad times on the way. And she wrote about it in editorials in the Wall Street Journal in 2007 when she recommended some relief for home owners THEN and had some tough-love recommendations sthat no one took seriously, including her Home ownership loan plan that was praised by Krugman and by Galbraith!!!the woman was ahead of times!

i found the site you gave as a reference above quite interesting.

This is and is going to be the worst downturn since the great depression. On the way to potentially 10% unemployment. Imagine that 1 in 10 people out of work. Add in the underemployed and it is a real disaster that is going to take a while to get through. Foreclosures at crazy records and we are about to see a wave of bankrupcies like no other.

You guys can knit-pick abour Rezko, your Blago, and your birth certificates, but all that means nothing.

Hey Buddy,
I’m in Germantown and Hubs works in Leesburg. For several months now Hubs (working off 100% commission) has OWED his job…for health insurance. Yes, we have had to write a check to his employer to pay for the health issurance. We have been living off of savings and are refinancing the house this month in hopes to get through the next few months and things turn around. Seriously, I don’t think it’s gonna turn around for quite some time. I’m not even gonna tell about our 401k’s. Sad.

But I’m sure he had at least one other reason for voting for That One, but I can’t think of a valid one.

I had the best reason of all: Clinton fatigue.

I just couldn’t handle another tawdry sex scandal. And you know Bill would’ve delivered.

Well, UWM, what is it you don’t understand about a 65% approval rating? That was Bill Clinton when he and Hillary left the White House. During the Impeachment trial, it was even higher. Hillary received more actual votes than Obama or any other candidate during a primary. I guess not every one is fatigued by prosperity and peace. And most respect experience and a proven record in their leaders. Your comments are always superficial, but if this is all you can do, just take out your white hanky and wave.

Today, I traveled to Santa Barbara for the day. It was lovely and I walked on State Street, which is the main business and social street in Santa Barbara. We counted twenty seven for lease buildings.

It has been two years since we were last there. But, we both agreed that this was a major change. We had dinner in a small cafe. Great food, but few customers, for a restaurant which served that excellent food.

In fall of 2007, Hillary talked about the mortgage crisis; dunno how long previous she had been predicting it.

Look at the polls before and after the bailout crisis. McCain was gaining fast.

Third-hand report — that Mexicans in the US illegally are returning to Mexico because their US jobs are drying up.

Thanks, Susan, if you resuscitated this comment. You are a precious gem. The timestamp is an artifact of the untrustworthiness of digital reality, though. Pity any poor reader trying to figure this out. I can only presume the center section (part 2, had it been post-able below) contains a no-no of some sort.