Obama: Economy to get worse before it improves

[onehandle]

Source: AP

WASHINGTON – President-elect Barack Obama said the economy seems destined to get worse before it gets better and he pledged a recovery plan "that is equal to the task ahead."

Obama also said in an interview broadcast Sunday that the survival of the domestic car-making capacity is important, yet any bailout must be "conditioned on an auto industry emerging at the end of the process that actually works."

Less than six weeks before he takes office, Obama said that help for homeowners facing foreclosure is an option as part of his plan. He sidestepped a question about when he plans to raise taxes on wealthy Americans.

Obama's interview on NBC's "Meet the Press" was his most extensive since winning the White House more than a month ago.

Read more: http://news.yahoo.com/s/ap/20081207/ap_on_el_pr/obama

[Sarah Ibarruri]

1. We need to write CHANGE.GOV and make sure Obama keeps his promise

The promise to bring the taxes of the rich back to the level they NEED TO BE.

[still_one]

5. That is NOT the immediate problem. Right now they have to do everything they can

to create jobs and stop the forclosures

Tax increases will be dealt with later

[humbled_opinion]

8. Well I think

that taxing those that have overabundance is exactly the right measure and so does the electorate.

Everyone knew that Obama was going to increase the tax burden on those making over 250K, he campaigned on it, and guess what they (the rich) voted for Obama over McCain 2 to 1.

So whats the beef? They understand they are undertaxed and they understand that their good fortune should translate to better services for all. What is so hard to understand about this concept?

So yes he needs to TAX the rich, stop all this borrowing from the Chinese to increase our debt that potentially some future Repube can piss away on more Unnecessary war, or Unnecessary tax cuts for the super rich.

[still_one]

9. After the economy stabilizes, otherwise we WILL go into a depression

When times are good, you tax, when times are bad you spend

It is as simple as that

Also, instead of worrying about increased taxes now, getting our troops out of Iraq NOW would save us 10 billion a month, which can be used immediately

[humbled_opinion]

10. I voted for change.

Lets start with your assumptions.

[still_one]

16. They should NOT wait for two years to pull us out of Iraq either. 10 billion a month

is only one of the reasons why we should get out of their sooner

I voted for change also, but the three main priorities for me are the Supreme Court, national healthcare, and getting us out of Iraq

Of course most believe the economy is the most important today, but if it wasn't because of the Iraq war, just imagine what could be down with all that money going to that war?

[humbled_opinion]

20. That money going to That war

Doesn't even exist, it is all being borrowed from CHINA. So even without the idiots war of wasted TRILLIONS, there still wouldn't be any money left to do anything. You have to increase the revenue to the government.

[still_one]

25. Respectfully in my view you stop the bleeding first, literally in both cases

before increasing taxes. I guess we will agree to disagree

[JDPriestly]

31. I think that Obama will ask qualified economists to review

the facts and based on a range of assumptions run mathematical models to try to determine what the best course is with regard to taxes. Tax and spend are very general terms. Spending on the War in Iraq did not stimulate our economy. So that kind of spending does not work. Taxing can be beneficial or detrimental. Depends on what tax on what on whom.

[Zhade]

44. You have to tax to spend, and taxing the rich who created this fucking nightmare must be done.

NT!

[samplegirl]

51. Amen

Why wait till 2010!!! Bush started soon as he took office.

[pnwmom]

14. I think liberal economists like Paul Krugman, the Nobel prize winner,

understand what is needed now more than the electorate.

If they say to postpone the tax increases -- and they are -- then that's what we should do.

[humbled_opinion]

19. What?

So the people are WRONG? Millions of Americans voted for Obama based on his Campaign of Change.

During the campaign I never remember him saying that economic conditions may prevent him from Rolling back the Bush tax cuts on those making over 250K and ok if it has to be modified so be it, but you tell me that increasing taxes on those making 500K or more is going to hurt the economy?

It won't and in fact those rich people voted for Obama knowing he was going to pursue a different agenda then Bush.

It seems like the D.C. beltway crowd is getting in his ear now and whispering things like "if you roll back Bush tax cuts and the economy gets worse you will get the blame"

I say to hell with them. Obama knows what needs to be done. With all the trillions in bailout money that we are on the hook for now, we simply cannot keep borrowing to pay for programs we must start to increase the govt revenue and the only way you can do it is to tax people.

So exactly how much of his Campaign are we willing to forego for Political Expedience?

[pnwmom]

22. I remember Obama leaving the question more open-ended, as to whether

he'd immediately eliminate the tax cuts, or allow them to expire. Do you have a link by any chance?

I'm one of the people who voted for Obama, but it was based on his total candidacy, not just one issue. And I think there are millions more like me.

[still_one]

21. I happen to agree with Krugman, however the logic that "they" understand what is needed

now more than the electorate", doesn't cut it with me.

That is what we were told by "experts" about why we needed to be in Viet Nam and Iraq, in addition to those CEO's who told us they knew what was right, and the administration, and many in both political parties who said regulation was NOT necessary

What I am nit picking about is that any side to an argument must provide a good reason for that approach. It should NOT be taken on face value just because we admire someone, they need to justify it

What paulson pulled off, and the Congress let happen was that lack of justification and accountability

[humbled_opinion]

24. Exactly n/t

[dothemath]

30. thinking for ourselves allowed ............

still_one makes some good points. I am a firm believer in relying on those things that worked for me over the years and that is why I am retired and living in a house that is worth 6 times what I owe on it.

Yet, I recently asked the bank that held a loan on the remaining one-sixth to renew that loan for just 5 years. My FICO score is 850 and I do not owe a dime to anyone in the world. The bank refused.

We are living in a bizarro world, my fellow prisoners, and the answers to questions regarding our very survival will not be found in a "ask your doctor about .....", or "and now an American Idol Special", or a 10 second snippet on your favorite faux news show. You better start thinking some for yourself or shut up and get out of the way. Who knows? Maybe Warren Buffet or the hedge fund manager who made 4 billion dollars last year will allow a 'trickle' of sustenance to flow to you.

Yeah, right.

[depakid]

32. Bush's tax cuts sunset out in 2010

So the matter is going to be dealt with one way or another.

[Zhade]

46. Arguments from authority are logical fallacies.

Milton Friedman's an "authority", and look how much damage his insane economic worldview has caused!

[pnwmom]

50. Arguments that insinuate the electorate is always right are logical fallacies. n/t

[acmavm]

18. The fed has been running on empty for toooooo long. We have to find

some revenue. It is damn foolish not to understand that fact from the start. And this WAS part of Obama's campaign pledge to his supporters.

He also needs to start collecting oil and gas and mineral revenues from rich greedy corrupt corporate America. I won't be holding my breath on that one either.

[Sarah Ibarruri]

35. Creating jobs is fine, but we are in the aftermath of Repukes having redistributed money TO the rich

That is a HUGE reason why our economy is in the dumps and why ordinary people have nothing. The wealth is up there and meanwhile, they're still getting a free ride. We've had PLENTY of mega-wealthy explain that the rich do NOT need to be getting all the tax breaks they are. Bill Clinton was one of them. Others are George Soros, Warren Buffet, Bill Gates' dad, and many more.

There's absolutely NO reason we need our money hemorraging out of our pockets and into the Swiss banks of the rich.

[pnwmom]

11. Why? The most important thing now is passing the stimulus package,

and raising the taxes on anyone won't help with that.

Even if Obama does nothing, these taxes will automatically go up when the cuts expire.

[Sarah Ibarruri]

36. The stimulus package is a bandaid....

What's needed is to bring the jobs back and to stop the hemorraging of our money into the swiss banks of the rich, which is a HUGE reason why our economy is in the dumps and why ordinary people have nothing. The wealth is *UP there,* and they're still getting the free ride, which is inconceivable.

We've even had PLENTY of mega-wealthy explain online and on TV, that the rich do NOT need to be getting all the tax breaks they are. Bill Clinton was one of them. Others are George Soros, Warren Buffet, Bill Gates' dad, and many more.

There's absolutely NO reason we need our money hemorraging out of our pockets and into the Swiss banks of the rich.

Also, can only one thing be done at a time? That's like saying that if I buy spinach today, I can't buy broccoli till next year. ? :(

[OhioChick]

12. That, as well as stopping the hemorrhaging of jobs going overseas. n/t

[Sarah Ibarruri]

34. ABSOLUTELY! nt

[hack89]

37. I don't see a fix for that

at least with manufacturing - I don't see how you can pay factory workers $40K to $60K (a good middle class income)with benefits and keep prices of goods from rising significantly.

[jaybeat]

39. Simple. Tax profits that go to the rich at higher rates.

Profits that are reinvested into more domestic, well-paying jobs, you don't tax. Profits shared with workers, you don't tax. Profits that go overseas? Confiscate them. ALL of them. And then some more.

Corporations that fight workers' rights, union, health, safety and environmental standards? Tax 'em to death. Or better yet, take 'em over. Companies that pay a living wage, share the wealth with those who created it, and leave the world a better place than when they found it? Roll out the red carpet and pave it w/gold.

Corporations exist at the pleasure of We the People. If they don't act in OUR interest, WE should buy 'em, or sell 'em at fire-sale prices to someone who will.

It's just like we try to tell our school-age kids: You're smart. You KNOW what's right and what's wrong. You don't need US to tell you every stinkin' little rule. Just do the right thing. Or else!

[hack89]

42. What about shareholders?

sounds like a plan to destroy my 401K. As one of the People my interest is in keeping share values high so that I can send my kids to college and retire in dignity.

[jaybeat]

43. Sorry to break it to you, but your 401k and your 539 are toast, or soon will be.

If the stock market crash doesn't clear them out, most people will have to cash them in to handle unemployment, health care costs, etc. (We had to do that years ago. No stocks, no worries!)

But for the rest of shareholders, they'd better vote with their shares to support companies that support the public interest; if they don't, their shares ain't gonna be worth much, and we'll seize their dividends. Plus a blood-sucker penalty tax.

Hey, it may be rough, but mass starvation and abject poverty while the top 1/2 of 1% eat very expensive cake will be much, much, worse.

[hack89]

45. Sounds like you enjoy being part of the mob

"we'll seize their dividends". OK - enjoy your power fantasy.

[Zhade]

47. Your screen name fits you.

NT!

[hack89]

Proof positive that we're wading in the shallow end here

when the conversation turns to grade school insults so quickly. Are you part of the mob too?

[jaybeat]

49. Exactly the opposite. If we don't do it by law, we'll have anarchy.

Now is the key moment, just like for FDR in 1933. If we don't strike boldly, and chart a completely new direction for this country before the worst hits, we'll have no hope of holding things together.

Would you rather have the People legally and through due process retrieve what has been stolen from us by the extreme-wealthy and the corporations that do their bidding, or would you rather see Wall Street (and much of Main Street), up in flames, whatever is left looted by the mob.

You and I both, I expect, would like there to BE colleges for our kids to go to. If the Public Interest does not prevail against Private Greed, and soon, we can kiss all of that goodbye.

[OhioChick]

40. Tariffs would be a start. n/t

[hack89]

41. Wouldn't that raises prices of everything too?

cheap goods are not a bad thing - if everything is more expensive than people will buy less.

[XanaDUer]

2. Thank god sane people are in charge again

BO is right, it is going to suck and be hard as hell, but at least people who are not cronies/sycophants/asshole republicans are not going to have so much power.

[still_one]

6. At least it is honest, instead of the bull we have been receiving from the media

and the republicans for the last 8 years

It was only recently that the republicans had to admit that the economy was in a major downturn

During the republican debates in Michigan during the primaries, EVERY republican candidate EXCEPT ron paul was trying to say the the economy was sound

That shows how out of touch they are with reality, and in some respects also reflects how out of touch with reality we the people are, since they elected bush twice

[bulloney]

3. How much worse and how sustained the bad conditions will depend

on how much Obama keeps the status quo on tax structure, trade policy, access to lobbyists and other factors.

[pnwmom]

15. Are you an economist? From what I read, the most important factors

will be how big the stimulus package is and how it is invested.

[Mari333]

4. as long as the wars continue, expect the economy to sink

FOR 2007;
Iraq $53.0 $75.9 $84.6 $101.9 $133.2 $448.6
Afghanistan 20.8 14.7 14.5 20.9 19.1 36.8 126.8
Enhanced security 13.0 8.0 3.7 2.1 0.8 0.4 28.0 BILLIONS
Unable to allocate 5.5 5.5
Totals $33.8 $81.1 $94.1 $107.6 $121.8 $170.4 $608.8





http://www.infoplease.com/ipa/A0933935.html

[davsand]

7. Well, yeah, there IS that little financial sinkhole.

Amazing how much an occupation costs, isn't it?

Always has amazed hell out of me that the people here in the US were willing to let our country swirl down the tubes while we were pouring so much money into occupying Iraq. Seemed contrary to the stated goals of conservatives to not spend money frivolously.

This just in! These were not even real conservatives that got us into this mess! They were profiteers and war criminals. I can only hope that one day they are fully credited for exactly what they have done to our country and in the Middle East.



Laura

[humbled_opinion]

13. COST?

History proves that occupation causes the financial demise of the occupier. Most recently the collapse of the USSR at the expense of its unwinnable war in Afghanistan.

[OhioChick]

17. I was just thinking about that the other day....

Regarding the collapse of the USSR after being in Afghanistan for so long.

[bdamomma]

28. yes, these stupid invasions have been draining us financially.

we don't need the warnings of a terrorist attack, the bush regime has done very well by bankrupting the US treasury.

[Mari333]

27. yep. both occupations need to END. n/t

[ohio2007]

23. Electric Car Sales in Free fall; Industry Risks Collapse ( hello ! Nancy !! )

Electric Cars at a dealership in Los Angeles (Source: LA Times)A bright star just months ago, electric car industry goes into dramatic reverse.


In what many will find a surprising turn of events, electric car sales have plummeted this year, plunging the fledgling industry into financial turmoil. Many manufacturers and dealers are cutting back operations; some have shut down entirely. Others are calling for government action to prevent the industry from wholesale collapse.

http://www.dailytech.com/Electric%20Car%20Sales%20in%20Freefall%20Industry%20Risks%20Collapse/article13601.htm

this obviously isn't a Detroit troubled manufacturer :eyes: so nothing to see here

Obama: Economy to get worse before it improves


Best to hide the embarrasment before the finger pointing begins ;
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=141&topic_id=32841&mesg_id=32841

[humbled_opinion]

26. Picture Proof.

Pictures are worth a thousand words.

Lines of Unsold alternative energy (Green) vehicles, the collapse of that fledgling industry for lack of a market. No support from our government or the people.

As if on queue, Gas prices plummet, enticing people back to bad habits of buying their gas guzzelers.

Silence from the government as the Rich Oil Barons lie in wait like hungary hyenas ready to pounce on the hapless victims, by driving the price of gasoline out of reach of the slaves that have fallen victim again to this ruthless game.

What fools are we?

[progressivebydesign]

29. That was an AWFUL soundbite to give the press. what was he thinking?

the last thing that Americans and companies need to hear right now is that things will get worse. I wish he and his staff would read up on consumer confidence.

[BumRushDaShow]

33. Remember he's not the President yet...

He's priming the public to think in the long term. When he's officially President, he'll switch rhetoric, but probably not to the fantasy-world sound-bite happy-days-are-here-again type that Raygun and Shrub used. I expect he'll go more with asking "everyone" to dig in and help to save America along with him.

[EFerrari]

38. This is called managing expectation. n/t

[Zhade]

48. Yeah, since when did the American people want honesty from their leaders?

It's not like they voted for that on 11/04.

Oh, wait...