Obama: Economy to get worse before it improves

[Gunny]

By DAVID ESPO, AP Special Correspondent

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.

In the intervening weeks, the economy has showed clear signs of worsening. Employers said they eliminated more than 500,000 jobs in November alone and retailers reported disappointing holiday-season sales.

"The economy is going to get worse before it gets better," he said twice in the early moments of the interview, taped Saturday in Chicago.

more ... Obama: Economy to get worse before it improves - Yahoo! News

He's talking a good game. I'd say if any, this is one he better deliver on.

 

[Care4all]

He's talking a good game. I'd say if any, this is one he better deliver on.

i agree, and from your mouth to God's ears, may he be able to do something to help us....we will see, i suppose.

 

[Luissa]

He's talking a good game. I'd say if any, this is one he better deliver on.

He knows he has to warn people otherwise he will be another Van Buren or Herbert Hoover! Some people don't understand our economy isn't going to be a quick fix and that he doesn't have super powers.

 

[wihosa]

Anybody who has been paying attention knows that this is just the start of bad times. It's going to take time to clean up the mess left by a quarter century of failed economic theory.

 

[auditor0007]

Anybody who has been paying attention knows that this is just the start of bad times. It's going to take time to clean up the mess left by a quarter century of failed economic theory.

You say we have had a quarter century of failed economic theory. If our economic theory is failed, what theory do you suggest would be a good one?

The truth is that our economic theory is a good one; the best available. If there is a flaw, it comes from people themselves for not saving money. We have one of the lowest savings rates in the world. I'm no different. We spend what we make, which is great, but everyone needs to learn to save something.

Even with that, we would still have ecomonic ups and downs. But if people saved even a small percentage of their earnings, there would be a little bigger safety net for everyone.

 

[Steerpike]

The President does not generally have a great deal of impact on the economy.

 

[WillowTree]

unless it's Booooshh

 

[user_name_guest]

Why didn't they pass the amendment to force government to balance the budget or don't spend beyond its means. Then we wouldn't have budget deficits and whatever surpluses should be kept for future budgetary purposes.

 

[Skull Pilot]

I love how fearless leader to be, the purveyor of hope and change, the greatest orator of our generation can only say things are going to get worse rather than saying oh I don't know something like:

My fellow Americans, be assured in this difficult time that we are working tirelessly to bring our country through these trials. I am confident that, while we face challenges ahead, America and her people will, with the indomitable spirit and perseverance that we have always shown, come through these uncertain times better and stronger than ever.

You know something that inspires not dejects.

Or......

Could it be that fearless leader to be is trying to convince us all that things are so bad that we have no hope but to trust his grand schemes of a government that must grow to meet the needs of the people. He will swoop in on his winged white unicorn showering us with government programs and stimulus checks like manna from heaven. Oh hail Obama, hosanna.

hmmm

Inspire fear so that he can bring hope. Pretty slick huh?

 

[xsited1]

He's right. Congress has a bigger impact on the economy than the President. Expect no relief until at least 2011.

 

[Old Rocks]

Well, Skull, what you rather have, someone that says the fundementals of the economy are strong on the Sunday before Meltdown Monday, or someone that tells us what the reality really is? As for the rest of your silliness, I would rather have someone that is actively engaged with the issues, than someone that has shown the total disengagement with reality that we have seen for the last eight years.

 

[revolutionary]

I must agree with Obama here, I feel we've only seen the beginning of this crisis.

 

[Skull Pilot]

Well, Skull, what you rather have, someone that says the fundementals of the economy are strong on the Sunday before Meltdown Monday, or someone that tells us what the reality really is? As for the rest of your silliness, I would rather have someone that is actively engaged with the issues, than someone that has shown the total disengagement with reality that we have seen for the last eight years.

It is not disengagement to choose words that inspire while at the same time recognizing the gravity of the situation.

A leader is supposed to lead and to lead people through a hard time, that leader must inspire a fighting spirit by focusing on the goal or desired out come not by fostering despair.

And we all know what the "reality" is we see it 24/7 on the news. tell me before BHO said things are going to get worse, didn't you know that already? If you didn't, you'd be the only one.

There is really no reason for BHO to be spouting this stuff other than to scare people even more so he can foster a sense of need for his big government programs. You know soften us up so we drop our guard and don't see the knockout punch coming.

Or maybe he is not up to the task and he knows it. Maybe he has lost hope and can't seem to find those inspiring words that so hypnotized the voters into believing he was more than a mere politician; that he was the only hope that our nation could be great again. But, instead of continuing to inspire with lofty speeches, all he can say is it's going to get worse.

Pretty disappointing.

 

[editec]

You say we have had a quarter century of failed economic theory. If our economic theory is failed, what theory do you suggest would be a good one?

Dump the current structure of the FED and replace it with a publically owned and controlled FED, for one thing.

Start thinking in terms of the purpose of the economy is to assist the people of this nation instead of merely the finacial and investment community, for another.

Capitalism does not have ONE model, folks. We can change this model and still enjoy the positive benefits that capitalism generate.

The truth is that our economic theory is a good one; the best available.

Obviously I disagree.

If there is a flaw, it comes from people themselves for not saving money.

That will happen when on average the working class has been losing purchasing power for 40 years. In fact that is the inevitable outcome of allowing (in fact making) that to happen

We have one of the lowest savings rates in the world. I'm no different. We spend what we make, which is great, but everyone needs to learn to save something.

See above

Even with that, we would still have ecomonic ups and downs. But if people saved even a small percentage of their earnings, there would be a little bigger safety net for everyone.

Grand advice.

Take care of the working class and they will take care of the economy.

Abandon the working class and sooner or later the economy will fail.

Why did we forget that?

Greed of the master class, what else?

 

[RodISHI]

Dump the current structure of the FED and replace it with a publically owned and controlled FED, for one thing.

While dumping them do not forget to collect the money from the CEO's that have lined their pockets on false pretenses that they were making a profit. it is not that the evidence of what they have been doing is not readily available.

Start thinking in terms of the purpose of the economy is to assist the people of this nation instead of merely the finacial and investment community, for another.

Capitalism does not have ONE model, folks. We can change this model and still enjoy the positive benefits that capitalism generate.



Obviously I disagree.



That will happen when on average the working class has been losing purchasing power for 40 years. In fact that is the inevitable outcome of allowing (in fact making) that to happen



See above



Grand advice.

Take care of the working class and they will take care of the economy.

Abandon the working class and sooner or later the economy will fail.

Why did we forget that?

Greed of the master class, what else?

I agree.

 

[Old Rocks]

Skull, you quoted the first part of what Obama said, then failed to acknowledge the part where he did address the solutions, and state that we can get out of this in better shape than when we entered the downturn. Again, what you and the other Bush 'conservatives' on this board are afraid of is that Obama will demonstrate just how totally incompetantly this nation has been led for the last eight years.

 

[Skull Pilot]

Skull, you quoted the first part of what Obama said, then failed to acknowledge the part where he did address the solutions, and state that we can get out of this in better shape than when we entered the downturn. Again, what you and the other Bush 'conservatives' on this board are afraid of is that Obama will demonstrate just how totally incompetantly this nation has been led for the last eight years.

I'm not a Bush conservative since that term is an oxymoron. And yes Bush screwed the pooch but that does not automatically mean BHO won't screw the pooch either.

I am conservative, and a libertarian so you see, BHO and all his bigger government higher taxes schemes won't ever sit well with me.

More government is never the answer. But all BHO's "solutions" involve more government control, more government spending and more money taken out of our pockets.