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Obama on the Economy: "Things Are Going to Get Worse Before They Get Better"

By Anne E. Kornblut
President-elect Barack Obama warned in an interview aired Sunday that "things are going to get worse before they get better" with the economy, but he continued to portray the crisis as an opportunity to rebuild the country, both structurally and culturally.

One day after announcing the largest public works program in decades, Obama said his new economic framework would also include stricter regulation on the financial industry. He cast the economic downturn in the language of emergency management. Saying his top priority is to create jobs within a sustainable framework, Obama waved aside concerns about the rising deficit ("We've got to provide a blood infusion to the patient right now") and about giving assistance to homeowners who made bad financial decisions ("If my neighbor's house is on fire, even if they were smoking in the bedroom or leaving the stove on, right now my main incentive is to put out that fire so that it doesn't spread to my house").

On the question of smoking, Obama also that he has had a few lapses since quitting. He promised not to violate White House no-smoking rules.

Six weeks before taking office, just three weeks before Christmas, there was little levity in his taped appearance on "Meet the Press." Yet Obama, prodded by anchor Tom Brokaw, sought to put the challenges in perspective. He said the situation today is not as gave as it was for President Franklin Delano Roosevelt decades earlier, before New Deal safety nets were in place; he also said that he and his wife, Michelle, have discussed opening up the White House to musicians, artists, scientists and poets.

"Historically, what has always brought us through hard times is that national character, that sense of optimism, that willingness to look forward, that sense that better days are ahead," Obama said. "I think that our art and our culture, our science, that's the essence of what makes America special. And we want to project that as much as possible in the White House."

By Patricia E. Gaston  |  December 7, 2008; 2:41 PM ET
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.... The pre-planned attack on Afghanistan, as we have seen, was meant to nullify the contract between the Taliban and the Bridas Corporation, to assure access to the Caspian Basin riches for American oil companies. It was a pure play of international energy policy.

It had nothing to do, as designed, with apprehending Osama bin Laden--a pure play of security policy.[...]On October 7, 2001 the carpet of bombs is unleashed over Afghanistan.

Hamid Karzai, the former Unocal/CHEVRON consultant, is installed as head of an interim government. Subsequently he is elected President of Afghanistan, and welcomes the first U.S. envoy--Mr. John J. Maresca, Vice President for International Relations of the Unocal Corporation, who had implored Congress three years previously to have the Taliban overthrown.

Mr. Maresca was succeeded by Mr. Zalmay Khalilzad--also a former Unocal/CHEVRON consultant. Mr. Khalilzad has since become Ambassador to Iraq. With the Taliban banished and the Bridas contract moot, Presidents Karzai of Afghanistan and Musharraf of Pakistan meet on February 8, 2002, sign an agreement for a new pipeline, and the way forward is open for Unocal/CHEVRON once more. [ Mr. Khalilzad has since become Ambassador to the United Nations.] replacing Bolton of JINSA/AEI fame...

search on PNAC JINSA Douglas Feith Perle and see who else is backing bush...

further on, read this closely...

it has to do with money and OIL PROFITEERING AS WELL AS USING THE UNITED STATES MILITARY FOR PERSONAL PROFIT.... Hamid Karzai, the former Unocal/CHEVRON consultant, is installed as head of an interim government. Subsequently he is elected President of Afghanistan, and welcomes the first U.S. envoy--Mr. John J. Maresca, Vice President for International Relations of the Unocal Corporation, who had implored Congress three years previously to have the Taliban overthrown. Mr. Maresca was succeeded by Mr. Zalmay Khalilzad--also a former Unocal consultant. Mr. Khalilzad has since become Ambassador to Iraq. UNOCAL IS CHEVRON... CHEVRON HAD CHENEY CUT THE PIPELINE DEAL A FEW MONTHS AGO W/IRAQ AND PAKISTAN, CONDO SLEAZY represents BIG OIL, IS A FORMER CHEVRON BOARD OF DIRECTORS for 10 years before joining

bushCO & CRONYs...

your team spending AMERICA's money on AMERICA's infrastructure takes a NOSE DIVE...

skin them alive, metaphorically of course...

your boy, george w

Posted by: tesser_actsoflove1 | December 7, 2008 7:30 PM | Report abuse

the republicans, don't need to be invited to the party...

and bush and company need to be sued into oblivion...

they made this mess.

they destroyed oversight and made up a bunch of baloney that we had to pay for/bailout

take everything they own from them, put it in the General Fund....

Nationalize war profiteering....sue them too.

.hyenas as the worlds' largest weasel, wolverines the largest weasel in the North American continent....

you don't share your peanut butter sandwich with them

because it's fair.

You pull out your .44 Magnum with Hollowpoint slugs in it and feed them with that....


don't invite the viper to warm up at your hearth...

if you're a frog, you don't give a scorpion a ride across the water....even if he promises not to sting you...


.Clintons are cool....'pubs are afraid of payback....truth be told?

payback would be the cure for what ails America....take what they stole, and let them look for work with

_that_ resume....give them what they would give you....a ride out of town on a rail.


Posted by: tesser_actsoflove1 | December 7, 2008 7:04 PM | Report abuse

All the politicians don't want to admit, if they just cut taxes in half we would have more money to spend buying all the crap from china again! CUT ALL TAXES FOR ALL AMERICANS BY 50%

Posted by: writedave | December 7, 2008 6:53 PM | Report abuse

Zippyspeed - OH YEAH! That's it! It's all BILL CLINTON'S FAULT!
Ha ha ha ha ha ha.........
Try breathing through your nose, and keep your knuckles off the ground when you walk!

Posted by: TOMHERE | December 7, 2008 6:30 PM | Report abuse

HassanAliAl-Hadoodi - If that was my real name I damned sure wouldn't put it on here, especially with the kind of ignorant garbage you're spouting here. If you don't have anything good to say then you might just want to keep your mouth shut....

Posted by: TOMHERE | December 7, 2008 6:28 PM | Report abuse

For sure, Mister Al what-the -f, there will be no end of naysayers who are sure that Mister Obama is going to ruin everything and who will be beside themselves with joy at every negative bit of news so their toad-brained selves can cheer at anything bad that happens to the U.S. After all it's all about ME FIRST, MY PARTY SECOND, THE USA THIRD, and anything bad that happens to my neighbor is his problem and another chance for me to celebrate.
AMERICA - LOVE IT OR LEAVE IT (and the day may be coming when we'll be happy to ship your dumb a** right out of here... GOT THAT?

Posted by: TOMHERE | December 7, 2008 6:23 PM | Report abuse

For sure, the US voters have guaranteed a worsening economy through their overwhelming support for Mr Obama and the Far Left. On the other hand, no-one could say what might have happened had Sen. McCain won.

Posted by: HassanAliAl-Hadoodi | December 7, 2008 6:17 PM | Report abuse

Unless the FairTax is enacted, times will REMAIN poor. Until then, let's just make any work over 80 hours/2 weeks federally tax-free. No graduated tax bracket will spur more work and spending. I don't work overtime for this purpose only! What's the point. Tax-free overtime can only help the economy.

Posted by: FairMark | December 7, 2008 6:16 PM | Report abuse

At some point, there will need to be a monetary policy discussion in this country. The bank lobby doesn't want this, and politicians (either party) don't want this either, because they continue to benefit while the rest of us grind to a halt. But it has to happen. We need to back the dollar with something. Preferably both gold and silver, as a hedge against cornering markets and otherwise distorting the value of the metals. People may think this an antiquated notion, but look around you... has un-backed currency done anything except create excessive greed, corporatism and the boom/bust cycle? I think not. We have let private banks collect interest on money they create out of nothing, in the form of limitless credit, for far too long. And now regular people are actually having to pay for it. This must stop, and if things do indeed get worse before they get better, as Obama has said, then he should know better than to studiously avoid this obvious problem.

Posted by: patrick4 | December 7, 2008 6:12 PM | Report abuse

Unless the money to help home owners is ear marked as such they will never get it. Where is this bail out money to go? Businesses and home owners are continuing to go under. There are some lies being told. Take the money and run. The economic is going to collapse and it appears to be the projection.

Posted by: alwaysAlabama | December 7, 2008 5:41 PM | Report abuse

Sure, blame the Rethuglicans or whatever else your retarded analogizer spits out, even though it is a FACT that the Democrats under resident genius Bill Clinton set us all up for this financial disaster by forcing banks to lend money to people who couldn't afford it on normal lending terms (and many of which were in the country illegally). Because forcing the poor and minorities to meet the same standards as everyone else is racist, or something. Hell, the NY Times had a glowing series of articles in the late 1990s about how FCRA was going to turn cities into wondrous beacons of fairness. Instead, it gutted them, aided and abetted by the very Democrats you now want to save them. Good luck - who was it I saw constantly shooting down any efforts to reform Freddie and Fannie? Why notorious pervert-in-arms Barney Frank (D).

Bill Clinton ultimately is the root cause of not only the dot com fallout, but this banking industry collapse. Oh, and he gutted our military and spent the 1990s making us look like complete pansies so that terrorists were so emboldened they took the fight right into our cities. So keep blaming Big Oil and add another foil layer to your hat, while those of us out here in the real world continued to clean up after Democratic time bombs.

Posted by: zippyspeed | December 7, 2008 5:40 PM | Report abuse

Please don't call these people home owners, most of them are housing speculators who invested and profited from the housing boom. Now the market crashes and they ask the rest of us to bail them out???! As far as I know, very few real home owners who buy their only house on their savings and plan to LIVE there care a bit about the housing market. Those who walk away are those who should not buy at the first place, or those defaulting on their old home and buy a new (and better ) one at lower price make sense. You should not help either of these groups.

Posted by: sgr_astar | December 7, 2008 5:40 PM | Report abuse

The Feds meet on Dec. 15-16 and it's said that they will drop the Fed Funds rate from the current 1.0%, to 0.5%, possibly 0.25%, or possibly even 0.0%, which will probably produce the 4.5% fixed rate that is being talked about. I think they will be extremely aggressive.

However, with the unemployment rates increasing, more people are going to be in trouble with their home loans. The problem is most of the people who really need the reduced rate loans, have loans that are underwater, relative to the value of their home, so they can't qualify for the lower loan rate. The banks aren't going to grant loans to anyone without good credit, and qualifications.

They are saying that most loans taken in the last five years, now exceed the value of the home; it would depend entirely on the area, but there are a lot of homes where this has happened.

The number of homes being foreclosed on, because of the subprime loans, is being compounded by layoffs (1.2 million layoffs in the last three months), which are likely to cause even more foreclosures in the future.

I heard that it would take 18 months to work through the subprime loan inventory, but I don't have any details on that, and with the present layoff situation, and the collapsing economy, this is a very fluid situation. If I were a betting man, I would be betting on lower home prices, many more layoffs, and many more home foreclosures. They say that as bad as 2009 looks, 2010 is highly likely to be even worse.

I pulled these numbers together:

In Foreclosure ----Percentage - Entering - Delinquent
2007 1st Qtr.----------1.28%-------0.58%-----4.84%
2007 2nd Qtr.----------1.40%-------0.65%-----5.12%
2007 3rd Qtr.----------1.69%-------0.78%-----5.59%
2007 4th Qtr.----------2.04%-------0.83%-----5.82%
2008 1st Qtr.----------2.43%-------0.99%-----6.35%
2008 2nd Qtr.--------- 2.75%-------1.08%-----6.41%
2008 3rd Qtr.----------2.97%-------1.07%-----6.99%
2008 4th Qtr.----------

If nothing else, every homeowner, whose home equity qualifies, will soon be able to refinance at 4.5%. In the event any of these people lose their jobs, they will have an easier time keeping their home. This has me wondering, since homes face the high probability of continuing to slide in value, what percentage of the home's present value, lenders will loan on???...... Any guesses??


Sept., 2008 - 403,000
Oct., 2008 - 320,000
Nov., 2008 - 533,000

Posted by: buzzm1 | December 7, 2008 5:36 PM | Report abuse

At least Obama is honest. All we would hear from the Republitards is "the fundamentals of the economy are strong" (I still want to know how they define 'fundamentals' in relation to the economy).

Obama will be 100 times better than Bush ever was and McCain could ever have hoped to be. After all, Obama had to fight tooth and nail to get where he's at (no silver spoon).

Republitards have no idea what it's like to go without.

Posted by: camera_eye_11 | December 7, 2008 5:31 PM | Report abuse






Illegals, using forged, and/or stolen identities, have illegally obtained up to 8.7 million jobs; these are jobs that Americans will do, jobs in food processing, jobs in manufacturing; these are jobs that rightfully belonged to American workers in the first place.


THE ALL-AMERICAN STIMULUS PLAN WILL SAVE AMERICAN TAXPAYERS 300 BILLION DOLLARS EACH, AND EVERY, YEAR (the estimated annual cost of illegal immigrants to American taxpayers)!!!



Posted by: buzzm1 | December 7, 2008 5:12 PM | Report abuse

Right on Tesser! The Rethuglicans are weasels, and they will try like hell to prevent any progress. They want to see ordinary Americans suffer in the hopes that politicians will keep even more money flowing to stinking rich people. After all, the rentier-class maggots are the only ones who can save us workers, right Republiscum? I like your analogy about the flu. No point in making allowances for the remaining viruses in the name of "bi-germanship" or something.

HEY REPUKELICKINS -- when you're ready to start working in the interest of the American people, let us know. But as long as you're doing the bidding of the top .1%, Big Oil and foreign corporations, STFU.

Posted by: Bukkonen | December 7, 2008 5:03 PM | Report abuse

sounds like good advice...

I got some advice for you Barack.

Don't relax and make friends with the people that you beat.

You don't offer the hyena a spot at the lion feast....until you're done eating...

after all a hyena is a weasel...

it's not going to become a vegetarian because you kicked it's azz...

keep kicking.

When you have a flu, a bug, and the doctor prescribes that you take the medicine for so many weeks...but you start to feel better and don't finish the prescription and the virus/bug/parasite

comes roaring back.

Afghanistan is a narco state that makes some bad CIA/Blackwater people a lot of off-the-books money....Pakistan is being set-up

to be picked by attention.

Let them kill each other, when the smoke settles decide what to do....Russia is trying to get you to act, test you.

With Russia, you may need to take out a few key people quickly but you need to do it decisively with Russian agents.

Look to the Ukraine, to pick up some turncoats.


Posted by: tesser_actsoflove1 | December 7, 2008 4:48 PM | Report abuse

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