Obama, Clinton: 'Recession' or 'pain people feeling': The Swamp
 
The Swamp
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Posted March 27, 2008 2:00 PM
The Swamp

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Barack Obama at Cooper Union today: "Our economy is in a recession.'' AP photo by Alex Brandon.

by Mark Silva

Americans are suffering an “economic slowdown,’’ the White House says.

“A rough patch.’’

“Our economy is in a recession,’’ Sen. Barack Obama said today.

Sen. Hillary Clinton stops short of embracing the term, which carries a strict definition in economics, but her campaign suggests that people know a problem when they see it.

“Obviously, in terms of the economic pain that people are feeling, the technical term is not important,’’ Howard Wolfson, Clinton’s communications director, said today.

Obama (D-Ill.) made it clear in his speech about the economy today at Cooper Union in New York that he believes the United States already has entered those two successive quarters of a declining economy that define a recession – and three-quarters of the economic experts surveyed by the Wall Street Journal recently said that’s right.

“Now, as most experts agree, our economy is in a recession,’’ Obama said today. “To renew our economy – and to ensure that we are not doomed to repeat a cycle of bubble and bust again and again – we need to address not only the immediate crisis in the housing market. We also need to create a 21st Century regulatory framework, and pursue a bold opportunity agenda for the American people. ‘’

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Sen. Hillary Clinton at Wake Forest Technical today: Stops short of recession talk, but "in terms of the economic pain that people are feeling, the technical term is not important,'' a spokesman says. AP photo by Charles Dharapak.

The Clinton campaign says it is leaving definitions to experts.

“Of course, economists have a technical defintion of recession, which is two consecutive periods’’ of slowdown, notes Brian Deese, a Clinton campaign issue expert. “It certainly appears that there are some regions or parts of the country that are in a recessionary environment.

Clinton “is concerned… that we could be sliding into a painful and deep recession if we don’t take necessary actions,’’ he notes, but “she is going to leave the technical definition of a recession to the experts who do the forecasting.’’

Ohio Gov. Gov. Ted Strickland, a Clinton backer, has said that his state is not in a recession, and he blames Bush for promoting the perception of one and urges residents to "hang tough."

Strickland, a first-term Democrat, blames rising fuel costs and the price tag for the ongoing war in Iraq for current economic concerns – and suggests that pessimism might breed recession.

“"We continue to have modest growth in our economy," Strickland told WCMH-TV in Columbus last week. “It's not as robust as it should be. It's not as evenly spread across the state as we would like it to be. But in a traditional, statistical sense, we are not in a recession."

“This can be a self-fulfilling prophecy," Strickland said. "We can talk ourselves into a recession."

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Comments

The facts are exactly the opposite to Obama's claims of recession.

"Recession" is defined as two consecutive quarters of economic downturn. We haven't even had ONE quarter of economic downturn, let alone two. The economy is fact grew the last quarter we have statistics for.

Given this obvious error, maybe Rev. Jeremiah Wright is Obama's economic, as well as spiritual and race-relations, mentor.


Given this obvious error, maybe Rev. Jeremiah Wright is Obama's economic, as well as spiritual and race-relations, mentor.

Posted by: Alice Palmer | March 27, 2008 2:16 PM


Go stick your head back in the sand, nutty Alice!


McCain laid out his "bold, bold" plan to deal with the mortgage crisis and the economy yesterday:

SANTA ANA -- - Sen. John McCain addressed the mortgage foreclosure crisis and the weakening economy in a speech in Santa Ana today but offered no major prescriptions for quelling turbulence -- instead calling for two panels to look at the problems.


Wow! No major prescriptions! Convening two panels! Can the electorate bear such vigorous and inspirational leadership? Such decisive, hard-nosed specifics issuing from the bowels of a proposed third Bush term?

Of course, for more than four years, McCain has had an opportunity as a senator to address the shaky underpinnings of the loan industry's effect on the economy and has refused to do so. Via Think Progress's new Wonk Room, check out the facts and weep:

– McCain voted against discouraging predatory lending practices. In 2005, McCain voted against an amendment prohibiting law-breaking high-cost predatory mortgage lenders from collecting funds from homeowners who are forced into bankruptcy court. [S. 256, 3/03/05]

– McCain failed to vote on bill to overhaul mortgage lending practices of FHA.In 2007, McCain failed to vote on passage of a bill that would overhaul the mortgage lending practices of the Federal Housing Administration (FHA). The bill would reduce the required minimum down payment for an FHA-insured loan and simplify its calculation, requiring a flat 1.5 percent of the appraised value of the home. [S. 2338, 12/14/07]

– McCain failed to sign on to the Predatory Lending Consumer Protection Act. In 2003, McCain failed to add his name to this legislation, which was intended to "protect consumers against predatory practices." The bill, which was endorsed by a host of civil rights and housing advocates, including the U.S. Conference of Mayors, ACORN, and the Consumer Federation of America. [S. 1928, 11/21/03]

– McCain failed to sign on to Truth in Lending Act. Less than four months ago, McCain failed to sign on to this bipartisan initiative providing protection to consumers taking out home mortgage loans. Among other measures, it was designed to "establish new lending standards to ensure that loans are affordable and fair." McCain also refused to co-sponsor this legislation in the 107th Congress as well. [S. 2452, 12/12/2007]

Obama campaign spokesman Bill Burton was singularly unimpressed with McCain's "solutions":

It's deeply troubling that John McCain is suggesting that the best way to address the housing crisis is to sit back and watch it happen – which is just further evidence that he would continue President Bush's failed economic policies. Barack Obama believes that the job of a president is to lead—and that's why he'll work to help struggling homeowners and lenders rework existing subprime loans into affordable long-term fixed loans, create a foreclosure prevention fund to help keep Americans in their homes, close the bankruptcy loophole for mortgage companies, provide a tax credit for the interest on new mortgages, fight mortgage fraud at every level, and require that borrowers have access to accurate information about their mortgage options.

And lest we forget ... McCain has a long and sordid history of worrying more about the financial welfare of the savings and loan institutions at the expense of the depositors. Democrats should school themselves to remind the public of this every time McCain, the economy, regulation and the mortgage crisis is brought up in the months ahead.

http://redding.com/news/2008/mar/04/keating-scandal-will-dog-john-mccain/


"BUSH SPEAKS"

"THE AMERICAN ECONOMY IS THE ENVY OF THE WORLD, AND WE NEED TO KEEP IT THAT WAY"

"THE FUNDAMENTALS OF OUR ECONOMY ARE STRONG....JOB CREATION IS STRONG. REAL AFTER-TAX WAGES ARE ON THE RISE...INFLATION IS LOW."
(SWAMP 8/07 MARK SILVA)

"ARCHIVES DON'T LIE"

"THE PROBLEM IN CONGRESS IS THEY HAVE TROUBLE FOCUSSING ON PRIORITIES"

"THE PROOF IS ON EBAY"

EIGHT (8) MONTHS LATER, AND NOW A RECESSION, DEPRESSION AND OUTRIGHT CHAOS.

IT'S NOW "JOHN MCCAIN" THE FIRST PRESIDENTIAL ELECT TO TAKE "PUBLIC FINANCING" TO GET THROUGH THE PRIMARIES.

"WHERE'S THE TEETH JOHN"
DEFINITELY NOT IN YESTERDAYS "TELEPROMPT" ECONOMIC RHETORICAL DISASTER IN FRONT OF THE MEDICAID AND THE MEDICARED!


McCain is correct on the home mortgage situation.
This is one statement of why he is right:
"In our effort to help deserving homeowners, no assistance should be given to speculators. Any assistance for borrowers should be focused solely on homeowners, not people who bought houses for speculative purposes, to rent or as second homes. Any assistance must be temporary and must not reward people who were irresponsible at the expense of those who weren't"

By and large most homes are bought by responsible purchasers. Among them some who have continued to make the choice to give up the extras to keep payments up, those who made a purchase after carefully, considering their options for home and the loan. That is what a responsible citizen does, owning your own home is not a given in our society, it is a prize for those who are willing to go through the effort to meet the requirements for a loan. A mortgage should always careful consideration, and so should buying a home.

Another is this:

"First, it is time to convene a meeting of the nation's accounting professionals to discuss the current mark to market accounting systems. We are witnessing an unprecedented situation as banks and investors try to determine the appropriate value of the assets they are holding and there is widespread concern that this approach is exacerbating the credit crunch."

Accountants are just who should be determining the appropriate value of the assets. That is part of the science of Accounting, I can't think of another group better equipped to determine the value of assets.

"We should also convene a meeting of the nation's top mortgage lenders. Working together, they should pledge to provide maximum support and help to their cash-strapped, but credit worthy customers. They should pledge to do everything possible to keep families in their homes and businesses growing.Recall that immediately after September 11, 2001 General Motors stepped in to provide 0 percent financing as part of keeping the economy growing. We need a similar response by the mortgage lenders. They've been asking the government to help them out. I'm now calling upon them to help their customers, and their nation out. It's time to help American families."


He expects business to help America and the citizens of America too.


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