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MONTHLY ARCHIVES
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Obama Warns Economy to Worsen
December 07, 2008 2:48 PM
ABC News' Matt Jaffe reports from Chicago:
President-elect Barack Obama, 44 days before he becomes the 44th president, warned that the nation’s economy -– currently mired in a recession –- will get worse before it gets better.
“If you look at the unemployment numbers that came out yesterday, if you think about almost 2 million jobs lost so far, if you think about the fragility of the financial system and the fact that it is now a global financial system, so that what happens in Thailand or Russia can have an impact here and obviously what happens on Wall Street has an impact worldwide,” he said in an interview with NBC’s Tom Brokaw taped Saturday and aired Sunday on “Meet the Press.”
“When you think about the structural problems that we already had in the economy before the financial crisis, this is a big problem, and it's going to get worse.”
“Things are going to get worse before they get better,” he then repeated for emphasis. With the financial crisis still worsening, Obama said his main goal is finding a remedy for the economic woes.
“That's why my number-one priority coming in is making sure that we've got an economic recovery plan that is equal to the task,” he noted.
STOP THE ECONOMIC BLEEDING
In recent weeks, as he has outlined a plan to save or create 2.5 million jobs in his first two years in office by emphasizing infrastructure projects, the president-elect has preached the need for a massive short-term stimulus package to jump-start the economy. Today he stated that if this means increasing the national debt, then so be it.
“We've got to provide a blood infusion to the patient right now to make sure that the patient is stabilized,” he said. “And that means that we can't worry short term about the deficit. We've got to make sure that the economic stimulus plan is large enough to get the economy moving.”
He expressed unhappiness that the Bush Administration had not done more to help homeowners struggling to pay their mortgages.
“I’m disappointed that we haven’t seen quicker movement on this issue by the administration,” Obama said.
One way to improve the country’s finances, Obama pointed out, is cutting down on Congressional spending.
“The days of just pork coming out of Congress as a strategy, those days are over,” warned the former Illinois senator to his old Capitol Hill colleagues.
Going forward, Obama said he would implement “a set of rules of the road” for the financial market, consisting of “regulations that prevent the kind of speculation and leveraging” seen in the past.
“We've got to have transparency, openness, fair dealing in our financial markets,” he said. “And that's an area where I think, over the last eight years, we've fallen short.”
Obama did not weigh in with a concrete answer on if he would repeal the Bush tax cuts or let them expire in 2010, while also suggesting that he would steer clear of any tax increases in the near future.
AUTO INDUSTRY BAILOUT
In the wide-ranging interview, Obama also touched on pressing foreign affairs issues such as the recent Mumbai attacks and diplomatic relations with Iran, but the focus was the economy, with the unresolved question of how to rescue Detroit’s “Big Three” automakers a key topic.
Obama criticized the automakers for their “repeated strategic mistakes”, such as not building small, fuel-efficient cars -– a “head in the sand” approach, he dubbed it -- but cautioned that, going forward, their industry cannot be allowed to collapse.
“The auto industry is the backbone of American manufacturing,” he said. “It is a huge employer across many states. Millions of people directly or indirectly are reliant on that industry. And so I don't think it's an option to simply allow it to collapse.”
Obama said the solution is to give them the money they need to survive, but with strings attached demanding reforms.
“What we have to do is to provide them with assistance, but that assistance is conditioned on them making significant adjustments,” he said. “They're going to have to restructure, and all their stakeholders are going to have to restructure, labor, management, shareholders, creditors.”
“Everybody is going to recognize that they have -- they do not have a sustainable business model right now. And if they expect taxpayers to help in that adjustment process, then they can't keep on putting off the kinds of changes that they, frankly, should have made 20 or 30 years ago.”
He emphasized the importance of keeping “the automakers' feet to the fire in making the changes that are necessary” –- ”Demand accountability, demand serious changes, but do so in a way that it allows them to keep the factory doors open.”
As the White House and Congress negotiate on a plan to help the Big Three, Obama noted that any money given to the automakers must result in an industry that works, not just tossing funds towards Detroit only to have them return months from now asking for more.
“If taxpayer money is at stake -- which it appears may be the case -- we want to make sure that it is conditioned on an auto industry emerging at the end of the process that actually works, that actually functions,” he said. “The last thing I want to see happen is for the auto industry to disappear, but I'm also concerned that we don't put $10 billion or $20 billion or $30 billion or whatever billion dollars into an industry, and then, six months to a year later, they come back hat in hand and say, 'Give me more.'"
FOREIGN AFFAIRS: IRAN, AFGHANISTAN, PAKISTAN, INDIA & IRAQ
Just weeks after terrorists killed nearly 200 people in Mumbai, India, and wounded hundreds more, Obama spoke of the need for “a strategic partnership with all parties in the region” to stamp out terrorists.
As tensions between India and Pakistan - believed to have been the terrorists’ base -- have increased since the attacks, Obama said that Pakistani President Asif Ali Zardari “has sent the right signals” in recognizing that terrorism is not only a threat to the United States, but to his country as well.
The focus, he warned, cannot solely be on Afghanistan.
“We have to see it as a part of a regional problem that includes Pakistan, includes India, includes Kashmir, includes Iran,” he said. “And part of the kind of foreign policy I want to shape is one in which we have tough, direct diplomacy combined with more effective military operations, focused on what is the number-one threat against U.S. interests and U.S. lives, and that's Al Qaida and their various affiliates. And we are going to go after them fiercely in the years to come.”
Obama issued a clear warning to Iran, in particular.
“I think we need to ratchet up tough, but direct diplomacy with Iran, making very clear to them that their development of nuclear weapons would be unacceptable, that their funding of terrorist organizations, like Hamas and Hezbollah, their threats against Israel are contrary to everything that we believe in and what the international community should accept, and present a set of carrots and sticks in -- in changing their calculus about how they want to operate.”
“I think this democratically-elected government understands that threat,” he said.
Obama also spoke of the need to “reset US-Russian relations” as Moscow has become “increasingly assertive”, citing this summer’s invasion of neighboring Georgia.
“I think they have been acting in a way that is contrary to international norms,” he said.
“We want to cooperate with them…but we also have to send a clear message that they have to act in ways that are not bullying their neighbors.”
On Iraq, the President-elect did not stick to his stated promise to bring all combat troops home within 16 months, saying only that he intended to pull them out “as quickly as we can do to maintain stability” there.
When the troops do return, Obama announced that he had tapped former Gen. Eric Shinseki to become Secretary of Veterans Affairs – “exactly the right person who is going to be able to make sure that we honor our troops when they come home”.
ODDS & ENDS: CAROLINE KENNEDY, SMOKING, AND A CULTURAL WHITE HOUSE
On a lighter note, Brokaw asked Obama if he had stopped smoking.
“I have,” replied the President-elect, noting that ABC’s Barbara Walters asked him the same thing in their recent interview. “What I said was that there are times where I have fallen off the wagon.”
Brokaw pointed out that “that means you haven’t stopped.”
“Fair enough,” responded Obama as he prepares to inherit the no-smoking White House. “What I would say is that I have done a terrific job under the circumstances of making myself much healthier. You will not see any violations of these rules in the White House.”
Obama forecast that his White House would be full of cultural activities, so “once again we appreciate this incredible tapestry that is America.”
He did not weigh in on the prospect of Caroline Kennedy filling Secretary of State-nominee Hillary Clinton’s Senate seat.
“I’ve got enough trouble in terms of Illinois politics,” he quipped.
The show marked Brokaw’s final stint on “Meet the Press,” following Tim Russert’s death earlier this year. Brokaw’s successor, David Gregory, appeared in the studio to end the broadcast, expressing what an honor it was to follow in the footsteps of Brokaw and Russert.
- Matt Jaffe
December 7, 2008 | Permalink | Share | User Comments (40)
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Wow! Joan, you are certainly inspired. By something or the other.
Posted by: kat | Dec 9, 2008 1:18:21 AM
The biggest problem in American is the concept used by a majority of people, “let someone else do it, or “our government will find a way they always do, never taking any degree of responsibility ourselves. No wonder our country is in such a dilemma today. President Kennedy once said, “Ask not what your country can do for you, but what you can do for your country”.
We complain that our previous President didn’t get anything accomplished and just make things worse. He didn’t do it by himself. He had a lot of help from the Senate and House of Representatives as well. The power they hold is apparently not know by many people. It is essential that we, the people, become more involved in our government. We must establish some means of a check and balance system to assure us that congress is performing in a manner expected of them. Had this happened, when Obama and the Democratic Party failed to pass legislation regarding Fannie Mae and Freddie Max, as far back as 2005 and 2006, we may have been able to eliminate a portion or even all of what took place. Refusing to give into the President on additional controls needed, they took the hard nose approach and refused to budge creating the financial crisis we have today. Then afterwards blaming the whole situation on Bush and McCain indicates the additional type of deception we do not need in our government.
In addition, Obama, who I understand is a pro in the economic process has gone in the opposite direction. Oops! I forgot the economic picture is not as important when an individual wants to further their own political ambitions.
Obama obvious of the economic condition of our country weakened even further by the financial crisis, decides to change his mind and accept private funding in lieu of public funding as he had originally stated,increasing further the economic turmoil for the people and our country. The cost of campaign contributions must be absorbed by someone, the consumer, you and me. Do you still wonder why our health care, energy, gas, food, education, home ownership, automobiles, etc have constantly been rising. Obama fully understanding the effect to our economy he still kept pushing for more money to buy excessive advertising through the news media increasing further the impact to inflation.
What disturbs me the most is the willingness by the Democratic Party to pass full blame on to the Republican Party for the financial crisis in order to save face with the American people and to discredit McCain in the eyes of the voters since he was part of the Bush Administration!
Obama plus Dodd and Kerry being signaled out to received over $100,00 contributions each from Fannie Mae/Freddie Max should raise sufficient concerns that a cover up did take place and the national and international disaster it created should be sufficient grounds for severe punishment being levied against all those involved. The essence of Obama’s platform was that change was necessary since the Bush Administration together with McCain created, in particular, this financial disaster. I am dumbfounded that there are those that think their lies will not catch up with them and we should prove them wrong.
It is obvious that we can’t get rid of the entire Democratic Party. However, the individuals in charge of the Senate, House of Representatives, the Chairman of the House Committee on Financial Services plus all those receiving potential payoffs, especially including Obama who perpetrated the farce to gain political momentum in the Presidential election should lose their jobs, all their benefits and never be allowed to qualify for any other governmental office. The remaining Democratic members in Congress should have their automatic pay increases taking place in January rescinded. When no punishment is rendered, improper performance can be assured. Congress has been running wild for a while and it is unknown how much has really happened before. It usually takes a blow up to clear the air and this one was catastrophic.
Of all the great African Americans out there why couldn’t we find someone else more qualified without all the controversy surrounding Obama and now the concern for the lies being used to secure his vote for the Presidency.
I trust justice will be done and I truly believe the American voters will accept nothing less.
Posted by: Joanofarc | Dec 9, 2008 1:16:53 AM
The biggest problem in American is the concept used by a majority of people, “let someone else do it, or “our government will find a way they always do, never taking any degree of responsibility ourselves. No wonder our country is in such a dilemma today. President Kennedy once said, “Ask not what your country can do for you, but what you can do for your country”.
We complain that our previous President didn’t get anything accomplished and just make things worse. He didn’t do it by himself. He had a lot of help from the Senate and House of Representatives as well. The power they hold is apparently not know by many people. It is essential that we, the people, become more involved in our government. We must establish some means of a check and balance system to assure us that congress is performing in a manner expected of them. Had this happened, when Obama and the Democratic Party failed to pass legislation regarding Fannie Mae and Freddie Max, as far back as 2005 and 2006, we may have been able to eliminate a portion or even all of what took place. Refusing to give into the President on additional controls needed, they took the hard nose approach and refused to budge creating the financial crisis we have today. Then afterwards blaming the whole situation on Bush and McCain indicates the additional type of deception we do not need in our government.
In addition, Obama, who I understand is a pro in the economic process has gone in the opposite direction. Oops! I forgot the economic picture is not as important when an individual wants to further their own political ambitions.
Obama obvious of the economic condition of our country weakened even further by the financial crisis, decides to change his mind and accept private funding in lieu of public funding as he had originally stated,increasing further the economic turmoil for the people and our country. The cost of campaign contributions must be absorbed by someone, the consumer, you and me. Do you still wonder why our health care, energy, gas, food, education, home ownership, automobiles, etc have constantly been rising. Obama fully understanding the effect to our economy he still kept pushing for more money to buy excessive advertising through the news media increasing further the impact to inflation.
What disturbs me the most is the willingness by the Democratic Party to pass full blame on to the Republican Party for the financial crisis in order to save face with the American people and to discredit McCain in the eyes of the voters since he was part of the Bush Administration!
Obama plus Dodd and Kerry being signaled out to received over $100,00 contributions each from Fannie Mae/Freddie Max should raise sufficient concerns that a cover up did take place and the national and international disaster it created should be sufficient grounds for severe punishment being levied against all those involved. The essence of Obama’s platform was that change was necessary since the Bush Administration together with McCain created, in particular, this financial disaster. I am dumbfounded that there are those that think their lies will not catch up with them and we should prove them wrong.
It is obvious that we can’t get rid of the entire Democratic Party. However, the individuals in charge of the Senate, House of Representatives, the Chairman of the House Committee on Financial Services plus all those receiving potential payoffs, especially including Obama who perpetrated the farce to gain political momentum in the Presidential election should lose their jobs, all their benefits and never be allowed to qualify for any other governmental office. The remaining Democratic members in Congress should have their automatic pay increases taking place in January rescinded. When no punishment is rendered, improper performance can be assured. Congress has been running wild for a while and it is unknown how much has really happened before. It usually takes a blow up to clear the air and this one was catastrophic.
Of all the great African Americans out there why couldn’t we find someone else more qualified without all the controversy surrounding Obama and now the concern for the lies being used to secure his vote for the Presidency.
I trust justice will be done and I truly believe the American voters will accept nothing less.
Posted by: Joanofarc | Dec 9, 2008 1:13:22 AM
THE POTENTIAL DOWNFALL OF AMERICA
I am proud that I took a stand and selected the candidate best supportive of the values of an American President as defined in our Constitution which was formed over 200 years ago. Even though we were out voted, this election which took place in 2008 will go down in history as one of the most corrupt and defiant of any throughout the history of the United States of America due to a certain race of people and the naïve young voters selecting a Presidential Candidate on blind faith thus allowing themselves to be brain washed into committing three of the worse sins of humanity, that of ignorance, power and greed by selecting a Presidential Candidate.
The ignorance is not based on lack of education but lack or concern or desire to know the difference between honesty and deceit and even when confronted by doubt looked the other way due to promises of prosperity (greed) by members of the same faith but not of the entire population, and the corruption for power by circumventing and rewriting of the constitution to suit the needs of some over the needs of many.
The downfall of American attributed to and by the careless regard for collection of the following:
(a) a certified copy of "vault" (original long version) birth certificate;
(b) certified copies of all reissued and sealed birth certificates in the names Barack Hussein Obama, Barry Soetoro, Barry Obama, Barack Dunham and Barry Dunham;
(c) a certified copy Certification of Citizenship;
(d) a certified copy Oath of Allegiance taken upon age of maturity;
(e) certified copies of admission forms for Occidental College, Columbia University and Harvard Law School; and
(f) certified copies of any court orders or legal documents changing his name from Barry Soetoro.
(g) National security clearance certificate
All of the above essential to avoid
infiltration of foreign (potential enemies) from gaining power within the confines of any high governmental office or allowing influence by association with foreign or radical groups.
Since the collection of these important documents were not provided up front when requested, it should be deemed too late to submit after the election process has taken place. Acceptance after the fact would only assure the potential for collusion of individual/s in preparation of the required document.
If the opposing political party and candidate do not take action against this disruption and direct disregard of our governmental process, they should be held just as accountable as the political party and candidate that perpetrated it.
While the need for enhanced security was demanded by the American people after the 9/11 attack, this need (identified above) was so quickly abolished when in opposition to the selection and final election of the favorite (not fully qualified) Presidential Candidate.
If we are fortunate to survive without total annihilation of our ideals, freedom of speech, freedom to think and freedom to choose (even if confined) we should consider ourselves lucky, or will we?
The potential for corruption of foreign powers to take over one of the most important countries in the world cannot be adequately stressed! Those responsible should be identified as traitors to the American people and our country and should be identified in history as such.
It doesn’t take much to tear down a country when you have people who are never satisfied with what they have, when they choose not to better themselves by obtaining a better education (a high school degree or better), do not want to work for what they could have, and then blame others for everything that goes wrong with their life can never be appeased. These people will cause disruption and dissension where ever they go and throughout history they have become known as the ones solely responsible for the down fall of most civilizations.
Should we be fortunate to take action against those that perpetrated this fiasco, they should be removed from any office they hold within the government, their benefits forfeited as a result and should never be permitted to run for any other office within the government. If there is no punishment given, the potential for anyone else accomplishing can be assured.
Posted by: Joanofarc | Dec 9, 2008 12:18:54 AM
Get Real- I may not be a historian as you claim, but come on, are we supposed to really believe that WWII was responsible for ending the Great Depression? I think any historian with credibility doesn't go around pronouncing a singular cause for its ending. In spite of your ideologue bullying to a woman, I remain firm in my believe that history is an a play of various influences and most things of historical note can't be reduced to a singular cause. BTW, some historical timelines put the end of the depression at 1939.
Are you saying that it's coincidental that the depression came on the heels of major banking and stock market malfeasance of the 1920's? It was no more coincidental than our present recession coming after deregulation fiascos that led to such debacles as the Enron loophole and the credit default swaps. Your assertion that the depression ended as result of World War II reads like an obfuscation of the sound help given by the FDR initiatives, which a large number of economists and historians do credit for easing the depression.
Do you like to read tea leaves? On the basis of some media fluff, you're predicting who would appear at a White House renaissance. Besides, do you think Bush's personal like and preference for Streisand landed her at the Kennedy Center gala this week with him? I have to note that as a professed historian, you have little sense of major cultural influences - like the writings of Maya Angelou and also Desmund Tutu. Let's not forget about other rich African American influences, like the Harlem Ballet. Fortunately, those who call themselves historians rarely come across as narrow minded individuals with political agendas like yourself.
Posted by: kat | Dec 8, 2008 6:03:02 PM
what the president can do to help us is to whip out the erasser and clean all of our credit det and let us start that would be great
Posted by: barmcclain | Dec 8, 2008 12:30:25 PM
Where are all of those Obamabots defending their Messiah now that he is backing out of all of his campaign promises ? Troops home in 16 mos-did you ever believe that ? Tax the rich-not gonna happen; he is staying with the Bush tax cuts. There's a change we can't believe in. His cabinet looks like the Clinton administration is alive and well..except for the one he is keeping from the Bush administration. So far, he looks like another politician who said anything to get elected. His followers swallowed it hook, line and sinker. The skeptics were just racists and old ladies who liked Hillary. Well, now we got him and you folks who elected him better hope he does something in his first term besides saying it will take him a second term to get us out of this mess.
Posted by: KC_1971 | Dec 8, 2008 12:28:06 PM
Right Barb.. Obama played no part in it. It's not like he opposed cleaning up fannie and freddie or anything..
Much better to mindlessly blame Bush for everything, including hurricanes.
Posted by: howwouldiknow | Dec 8, 2008 12:12:26 PM
You can complain all you want about Obama but HE WAS NOT THE ONE WHO GOT US INTO THIS MESS! Bozo and company who are in charge now did! Got us into a war, Katrina, I could go on and on...look at the mess. Obama said he can't straighten this out overnight, he is intelligent and has good ideas and looks to others for ideas. And at least you can understand what he is saying when he speaks! A breathe of fresh air from what we have. We all have to tighten our belts and stop being so spoiled. If you make $30,000 a year do not try and take a mortgage out on a million dollar home! None of this should have been allowed and no one was watching the store.
same with credit cards. If you can't afford it, don't buy it...A lot of this is our fault too.
Posted by: Barb | Dec 8, 2008 11:50:27 AM
Concerned in OH -
There's plenty of blame to go around for the condition of the Big Three. The UAW's has made concessions and said to the Senate and House Committees last week that it is willing to make further concessions.
The UAW, however, is not responsible for the Big Three's fundamentally flawed business plans which have battled fuel efficiency standards for years and produced gas guzzling behemoths that no one wants to buy.
Blaming the bottom of the pyramid for stupid, short-sighted business decisions from the top is not going to solve this problem.
Posted by: Brooklyn Democrat | Dec 8, 2008 9:25:48 AM
Yeah, it doesn't make a whole lot of sense how stuff disappears around here.
Posted by: charlie brown | Dec 8, 2008 4:22:19 AM
I know, it's rough being a persona non gratis.
Posted by: charlie brown | Dec 8, 2008 4:17:56 AM
John L.
if the car companies hadn't ignored and lobbied against all the needed improvements that were demanded over the last 30 years, they would be in better shape with the domestic market.....
If they hadn't made such dismal products, they wouldn't be in the current situation..
if the CEO's weren't getting multi-million dollar plus stock and bonus incentives for running their respective companies into the ground, maybe they would be more competive...
if the companies were making enough money to pay failed CEO's exorbitant salaries and their luxurious retirement packages, why shouldn't the workers get a fair share?
The alleged $72- an hour worker pay is a lie.
The unions have made many concessions re: benefits and pay scale. Blaming the workers for the failed policies of the corporate heads
is sheer stupidity.
One only needs to review how employers mistreated their workers before unions to see what would happen without them.
Posted by: Blue | Dec 8, 2008 2:33:03 AM
I know. It's been Bonzo goes to Washington for the last eight years.
Posted by: charlie brown | Dec 8, 2008 2:20:21 AM
hey kat...
they should rephrase it as georgia INVADED. s. ossentia, and russia rightfully retaliated after being PROVOKED.
for someone who didn't know any better is sounds pretty one sided. they are wording it as if russia is the big bad enemy running around INVADING countries for now reason!
Posted by: bhudda | Dec 8, 2008 1:58:24 AM
ok... why are they still lying saying that russia invaded georgia? that lie was already brought to the light months ago!! i don't believe anything obama says at this point. his job is to calm the sheep before they are led off the cliff so they'll go quietly!!
Posted by: bhudda | Dec 8, 2008 1:45:13 AM
He isn't even in office yet. Why not save it for the state of the union. Yes, with Iran, Hammas, Hezbollah, Pakistan, The Russians will face "tough" negotiations. If that doesn't fall off the wagon too.
Posted by: twain2008 | Dec 7, 2008 11:41:14 PM
Want to have a good start on fixing the economy, get rid of the unions in the auto industry. They are killing the companies.
Now if the current employees won't work for a fraction of what they are overpaid now, good, there are plenty of unemployeed people that would love to work indoors.
The costs of producing a vehicle would come down resulting in lower prices to buy. Then more of us can afford to buy vehicles and have enough money left over to buy other goods and services, helping the economy even more.
I see it as a win/win situation. Unless you are that overpaid union worker that is about to go the way of the dinosaurs. Too bad.
Posted by: John L. | Dec 7, 2008 11:33:22 PM
Don't go feeling too "didactic," Kat. I am an historian and I can tell you that when it comes to the Great Depression and FDR there is certainly NOT a consensus that "HIstorians think Public Works was instrumental in the process." There is instead a lot of debate about it. Now World War II, we agree, did bring us out of it. That does not mean I am anxious for Obama or anyone else to launch WWIII. YOu are also offbase when you say our current recession is brought on by a lack of banking and stock regulations. And do not hold your breathe waiting for that renaissance you think Obama will launch from the White House. The sort of tastes for popular culture icons he has shown-- Oprah, BOb Dylan, Ludacris-- is pretty conventional. At least he does appreciate jazz. That's a start.
Posted by: GetReal | Dec 7, 2008 11:04:59 PM
Obama is a continuation of a disaster where people think governement is the answer.
Posted by: Kitty | Dec 7, 2008 9:14:05 PM
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