It might have been the Clinton or the Bush (41& 43) administrations that got us in to this economic mess. And the policies of the Obama administration may be: correcting the problem; making things worse; simply applying a band-aid to a knife wound; or, all of the above. Your view of today’s economic news will probably depend on how you’re affected by it and your political affiliation. But one thing is true. Wall Street may be recovering but the average American is still maneuvering on a slippery slope.

Less than two months ago U.S. President Barack Obama stated that all signs indicated that the economy was starting to grow and financial markets were starting to work again. But while sending an encouraging message to Wall Street he did add the caveat that employment statistics did not indicate improvement and, in fact, could get worse over the next couple of months. This was the message that the President reiterated today.

No one should be surprised by today’s announcement that unemployment has reached 10.2 percent.

Columnist Lynn Sweet reported on details provided by the Department of Labor:

“In October, the number of unemployed persons increased by 558,000 to 15.7 
million. The unemployment rate rose by 0.4 percentage point to 10.2 percent, 
the highest rate since April 1983. Since the start of the recession in 
December 2007, the number of unemployed persons has risen by 8.2 million, 
and the unemployment rate has grown by 5.3 percentage points.

Among the major worker groups, the unemployment rates for adult men (10.7 per-
cent) and whites (9.5 percent) rose in October. The jobless rates for adult 
women (8.1 percent), teenagers (27.6 percent), blacks (15.7 percent), and
Hispanics (13.1 percent) were little changed over the month. The unemployment 
rate for Asians was 7.5 percent, not seasonally adjusted.

The number of long-term unemployed (those jobless for 27 weeks and over) was 
little changed over the month at 5.6 million. In October, 35.6 percent of 
unemployed persons were jobless for 27 weeks or more.

The civilian labor force participation rate was little changed over the month 
at 65.1 percent. The employment-population ratio continued to decline in 
October, falling to 58.5 percent.

The number of persons working part time for economic reasons (sometimes refer-
red to as involuntary part-time workers) was little changed in October at 9.3 
million. These individuals were working part time because their hours had been 
cut back or because they were unable to find a full-time job.

About 2.4 million persons were marginally attached to the labor force in October, 
reflecting an increase of 736,000 from a year earlier. (The data are not sea-
sonally adjusted.) These individuals were not in the labor force, wanted and 
were available for work, and had looked for a job sometime in the prior 12 months. 
They were not counted as unemployed because they had not searched for work in 
the 4 weeks preceding the survey.

Among the marginally attached, there were 808,000 discouraged workers in October, 
up from 484,000 a year earlier. (The data are not seasonally adjusted.) Dis-
couraged workers are persons not currently looking for work because they believe 
no jobs are available for them. The other 1.6 million persons marginally attached 
to the labor force in October had not searched for work in the 4 weeks preceding 
the survey for reasons such as school attendance or family responsibilities.”

Add to these numbers: the millions of workers who lost a job and replaced it with a lower paying one; the millions whose salaries have been frozen for a few years; the millions of retirees who lost a large portion of their retirement savings when the market crashed; the millions who lost a substantial amount of the equity in their homes: and, the Social Security recipients who will not get a cost of living adjustment (COLA) in 2010, and many Americans are still wondering when things will get better for them.

However, while many Americans are holding on by a life preserver the banking industry is preparing to throw them an anchor. Yes, the financial markets are definitely working again and working in the same old way.

Earlier today, Megan Woolhouse of The Boston Globe reported:

“Credit card companies are rushing to increase interest rates to historic highs of more than 30 percent, cut credit limits, and add new fees, even for customers who pay their bills on time.

Lenders are making the moves in advance of tougher federal regulations for credit cards scheduled to take effect on Feb. 22. The new rules will limit how companies can modify credit card agreements, specifically prohibiting them from retroactively raising interest rates and fees on existing balances.

US Representative Barney Frank, the Massachusetts Democrat who chairs the Financial Services Committee and is a leader in the effort to revamp credit card policies, said banks have ‘abused’’ the nine-month period granted them to re-tool their practices.

‘I didn’t think they would be as blatant as they were about doing this,’ he said. ‘There’s no justification for raising rates retroactively. This is really just a way for them to make more money.’ “

And by the way, have you noticed that gasoline prices are inching up?

Ok, I’m not going to say, “I told you….”

No I’m not going to say it. If you’re reading this blog, I’d just be preaching to the choir.

Related posts:

Bill Moyers’ Interview with Bill Black and How They Got Away With It

Saying “No One Saw This Coming”, Just Doesn’t Ring True.

Why So Many American Want Wall Street & The Banks to Suffer
originally posted on Pam’s Coffee Conversation

Link:  Barack Obama’s “Closing Arguments” Speech

SEE FULL VIDEO OF THIS OBAMA SPEECH HERE

From The Associated Press…

From Wonkette…

So here are three major factors that contributed to our country’s world’s current financial misfortunes: prolonged periods of historically low interest rates (even negative real interest rates), the complete deregulation of such derivatives as credit default swaps, and encouragement from Washington that the inflated housing boom was nothing to worry about. It’s rare that you can pin so many large factors on one person, but, well, former Fed chief Alan Greenspan set the low interest rates, led the pressure on Congress to keep derivatives markets wholly deregulated, and was the voice from Washington that said everything was fine.

From Rachel Maddow…

I always felt like Allen Greenspan had some kind of “God Complex” when it came to the economy. I never understood why we gave one guy so much power over our economy (especially, for so long). It now seems obvious, that this was a bad idea.

What do you think? How much blame can be put on Greenspan for our economic crisis? Does he gets points for admitting he made a mistake? Let me know what you think in comments.

My thoughts on McCain’s performance…

• McCain hit a home-run with his base, especially the “anti-choice” crowd, and plumbers making over $250,000.
• McCain pulled a “Sarah Palin” in his avoidance of answering just about every question.
• In John McCain’s attempt to be “mavericky” – he came off as just plain rude.
• McCain doesn’t think the “health” of women is important, and has no idea of the true cost of health insurance.
• John McCain appears to be living within his own stump speech, and not actual reality.

My thoughts on Obama’s performance…

• Barack Obama started off weak, but ended strong.
• Obama actually answered the questions that were asked.
• I liked what Obama said about taxes, jobs, and women’s rights.

That’s what I thought.  Well, I have to admit, most of the time I was just thinking…

• This whole election can’t be over soon enough.
• How bad would I look, if I just pulled all of my hair out right now?
• Is a lobotomy covered in my health care plan?
• Why?  Why?  Why?  Why?

So, that’s me.  What did you think?

Yesterday, the McCain campaign put out another “economic recovery” plan, that appears to push policies that will not benefit the middle-class at all. In fact, in a deceptive move, McCain is slipping in a policy that the Republicans have been trying to pass for years with no success.  John McCain is claiming that capitol gains taxes need to be cut in half to help the economy.  What?  Maybe you think that’s no big deal, because most people haven’t made any capitol gains this year? Well, for one, if anyone did make capitol gains this year, they are the very rich (maybe even some of the same people that contributed to this mess). And, two, the economy will recover, and this is just another tax break for the rich, this will not help the middle-class one bit…Unless, you are still buying the whole trickle down thing.

Here is Rachel Maddow on the recent history of the McCain Economic Policy.

What about the Bailout?

From The Washington Post- Smaller Banks Resist Federal Cash Infusions…

Community banking executives around the country responded with anger yesterday to the Bush administration’s strategy of investing $250 billion in financial firms, saying they don’t need the money, resent the intrusion and feel it’s unfair to rescue companies from their own mistakes.

“But I’d urge Congress to pause for a minute, take a deep breath, and try to seriously rework the structure of the plan, making it a plan that addresses the real problem. . . . [I]f this plan goes through in anything like its current form, we’ll all be very sorry in the not-too-distant future.”

The day that column was published, the Dow was at 11,143. A little over two weeks later — after the original plan was enacted, and before it became clear that Bush was going to adopt the new one — the Dow had lost one fourth of its value.

From Dan Froomkin -White House Watch…

Here’s something to ponder: What would have happened if President Bush had listened to Paul Krugman three weeks ago instead of Henry Paulson?

Krugman — a Princeton economist, New York Times columnist and newly-minted Nobel Prize winner — was one of many financial experts who cast doubt on the original bailout plan that the Treasury secretary and his ostensible boss agitatedly insisted was the only way to avoid utter disaster.

How things have changed. Bush made it official this morning that his administration has now come around to the Krugman view — that a partial nationalization of the banking industry is actually the best approach.

Back on September 22, in a column headlined ” Cash for Trash,” Krugman wrote that Paulson’s bailout plan, “as far as I can see, doesn’t make sense.” Instead, he called for the government to provide capital to financial firms and get a share in ownership in return.

“Basically, after having spent a year and a half telling everyone that things were under control, the Bush administration says that the sky is falling, and that to save the world Americans have to do exactly what it says now now now,” Krugman wrote.
From The Huffington Post…

John McCain made good on his promise today to release his economic plan after recanting that pledge amidst Monday’s campaign chaos. The Obama campaign calls the plan, “a day late and 101 million middle-class families short.” Read below the excerpts about the plan for more reaction.

This is Barack Obama’s Economic Plan…

From Morra Aarons Mele at BlogHer…

I interviewed two leading economists to find out. On Tuesday, when the “partial nationalization” of some of our country’s largest banks was announced, Henry Paulson’s most widely circulated quote was “Government owning a stake in any private U.S. company is objectionable to most Americans – me included…” But the alternative, no credit in the market, is “totally unacceptable,” according to Paulson.

So what does this mean for us, American taxpayers? — see Morra’s full post at BlogHer

What do you think? Is the Obama economic plan better for America?  Or, do you like the McCain plan?

CNN Money…

House Democrats will propose a new stimulus package to “rebuild America” and “help the middle class,” Speaker Nancy Pelosi, a California Democrat, announced Monday.

The package will have some of the same features as one passed earlier by the House but rejected by the Senate, she said, including “aid to the states” on healthcare, food stamps and unemployment.

From The Washington Post…

Determined to keep the campaign spotlight on the economy, Sen. Barack Obama has added $60 billion in new tax breaks and other benefits to his economic stimulus plan, and will urge Congress to act quickly after the election to provide middle-class relief.

While his opponent, Sen. John McCain, has reportedly considered but not yet spelled out additional economic recovery steps, the Democratic nominee is expected to outline several new proposals at a speech here this afternoon. They include:

• A temporary tax credit for firms that create jobs in the U.S.
• Penalty-free 401(k) and IRA withdrawals through 2009, to allow struggling families to withdraw up to 15 percent of their savings, up to $10,000.
• A 90-day foreclosure moratorium for homeowners making “good-faith efforts” to keep up with their mortgage payments.
• Creating a new entity to lend to state and local governments, allowing for an effort similar to the liquidity assistance that the Federal Reserve recently extended to commercial banks.
• The temporary elimination of taxes on unemployment insurance benefits.

Obama also will raise the prospect of government aid to the automobile industry and more aggressive government action to help banks and free up consumer credit. He has already outlined benefits such as a middle-class tax break — delivered immediately in the form of a check — and small-business incentives that total about $115 billion over two years.

The Toledo speech coincides with a meeting of House Democratic leaders this morning to discuss action on a stimulus bill when the chamber reconvenes, as planned, after the election.

Also See:

What Is a Fiscal Conservative and Who Are They?

On the brighter side of the economy – Dow Takes A Giant Leap…

Last week’s gloom turned into euphoria as investors sent the Dow Jones Industrial Average up 11%, the biggest one-day gain since 1933. It was the fifth-largest percentage gain ever, and it came immediately after an 18% weekly decline, the worst such drop in the Dow’s 112-year history.

The head-snapping shift in sentiment, spurred by global plans for governments to rescue banks through direct capital injections, left investors debating whether this marked the end of the past year’s frightening bear market, or just a temporary respite.

So.  What do you think?  Do we need another economic stimulus plan?  Is this plan going to be good enough?  Let me know what you think in comments.

This post will take a look at what to expect at tonight’s debate, the latest attempt to turn the election away from the economy, and links that can help you find out what candidate agrees with you on the issues.

From TPM…

Here, courtesy of the new NBC/WSJ poll’s internals, are some key numbers to chew over as we head into tonight’s debate:

• Thirty-four percent feel more reassured by Obama’s approach to dealing with the current financial crisis, versus 25% for McCain. Meanwhile, only 29% feel less reassured by Obama, versus 38% for McCain.
• Obama-Biden slaughtered McCain-Palin in the last two debates, with 50% saying Obama-Biden did a better job, versus only 29% for McCain-Palin.
• Obama’s advantage on the economy in general is formidable: 46% say Obama would be better on that issue, versus 29% for McCain.
• Obama holds a sizable edge on other domestic issues polled here, including the mortgage and housing crisis, and energy and the cost of gas.

The upshot: As many others have observed, the pressure on McCain tonight to do something to jolt the electorate into seeing this race in a new way is now enormous. The race’s dynamic is hardening by the hour: The public has gotten a close look at the candidates in debate settings, and feel more reassured by Obama-Biden on the issues that matter to them.

The problem for McCain is that he needs to go hard-negative in a dramatic, confrontational, attention-grabbing fashion, most likely on Obama’s associations, which of course risks looking desperate and allows Obama to remind voters that McCain’s own senior adviser said the McCain team doesn’t want to talk about the economic crisis.

McCain campaign will try to turn the page on the economy, fearing it is the only way they can win the election…

If scandal is how the McCain campaign wants to play it, I think Obama can counter McCain’s non-relevant claims, with something that effects every US citizen…the economy.

Here is a 13 minute documentary on the truth about “Keating Economics: the Making of a Financial Crisis” this is a documentary that shows why John McCain’s failed philosophy and poor judgment are a recipe for deepening the economic crisis. This is not a smear campaign, this is simply the truth about something that happened a long time ago, but has a direct affect on our current economy crisis.

This is a shocking documentary, I don’t even know how to respond to it. But, if anyone was questioning McCain’s ability to save our economy, I think this documentary says it all.

Get the most from the debate and your vote. Know how the candidates feel about the issues that are important to you.

Here are a few sites and tools that I have found to be both honest and informative…

Here is a great widget that allows you to compare Obama and McCain policies, by the issues that are most important to you.

http://politicsanew.com/2008/09/26/interactive-widget-comapring-candidates-on-issues/

I love, love, love, expert voter.  Because, this site allows you to compare the candidates on the issues, but the answers are all in video responses by the candidates.  It’s kinda like getting the news just on the issues that are important to you…

http://www.expertvoter.org/

Another great one is – Vote by the Issue Quiz…

This quiz features some of the issues that have gained traction this campaign season. Your job is to simply select positions that correspond with your own views.

The responses are quotes from all presidential candidates that have been collected from the campaigns or
culled from public speeches, interviews or statements.

Another informative site is…

OnTheIssues.org

How are the Obama and McCain ticket different?On Taxes – http://stephencrosehome.blogspot.com/2008/10/barack-obamas-seven-october-surprises.html 

I hope you find some of this information helpful.  Let me know what you think in comments.

WOW.

Congress heard Monday, that Lehman Brothers, only days away from becoming the largest bankruptcy in U.S. history, was pleading for a U.S. rescue on one hand while steering millions of dollars to departing executives on the other.

Lehman, in the days before it filed for bankruptcy, sought board approval to pay three departing executives more than $20 million, according to Waxman.

What did Richard Flud of Lehman Brothers know about sinking ship?

CSPAN – Angry Americans speak out at Lehman hearing

Does this make you sick?