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January 22nd, 2008
02:14 PM ET

Economy woes?

 U.S. flags adorn the facade of the New York Stock Exchange early Tuesday morning, Jan. 22, 2008. U.S. stock futures seesawed Tuesday after the Federal Reserve, responding to a growing financial market crisis, slashed interest rates 0.75 percentage point..

U.S. flags adorn the facade of the New York Stock Exchange early Tuesday morning, Jan. 22, 2008. U.S. stock futures seesawed Tuesday after the Federal Reserve, responding to a growing financial market crisis, slashed interest rates 0.75 percentage point..

FROM CNN's Jack Cafferty:

A messy day on Wall Street today... although things could have been much worse.

The Dow, which was down more than 460 points in early trading, recovered to close about 128 points down.

That's because the Federal Reserve made an emergency three-quarter point cut in interest rates. The Fed said it made the move because of signs that a downturn in the housing market was getting worse, unemployment had started to rise and the overall economy was weakening. That would include things like the credit crunch, our rising debt and the continuing fall of the dollar.

But it's clear what's happening to our economy is reaching far beyond our borders. World markets plunged yesterday on fears that the U.S. may be in a recession. The global sell-off, which continued today, includes some of the worst market drops since 9/11, and represents a loss of more than $5 trillion in value from stock markets this year.

As investors at home and abroad panic, the U.S. is scrambling to come up with a solution. Suddenly Washington has noticed the economy is headed straight south. But whatever they come up with, it's likely to be too little too late. The signs of trouble - housing crisis, credit crunch, falling dollar, etc. - have been around for months.

But it must be serious. The two parties in Washington are actually talking about cooperating to try to find a solution. Nothing like the threat of a depression to remind them who they work for.

Here’s my question to you: How concerned are you about the U.S. economy?

Interested to know which ones made it on air?


Paul writes:
I won’t be concerned about the economy until food becomes scarce. Too many people living in too many McMansions driving too many Hummers making too much easy money. They're the ones who should be concerned with a serious lifestyle adjustment right around the corner.

Katie writes:
A recession might be final nail in the coffin that devours the Middle Class. With no savings, their 401Ks destroyed and rampant inflation, the middle class will disappear and all that will be left will be a large sector of poor people with no political power and a very small minority of wealthy with all the political power. Could a second American Revolution be in the future then?

Pat writes:
What's scarier than the tanking economy is that Bush is talking the same ole, same ole: give the breaks to businesses and it will all somehow miraculously trickle down to the rest of us. The only trickle down to the middle class is the bill.

Conor writes:
The problem with the economy is a fundamental one. We can't base our currency on nothing and we can't print it when we come up short. Until that changes, recessions will happen every 15 years or so. But I fear this one is going to be as bad as the Great Depression. Therefore I really do have a "Plan B" in my file cabinet. It has the details on my move to Canada.

Theresa from Petal, Mississippi writes:
The feds have been cutting interest rates for years to buck up the so called Bush economy and now the chickens are coming home to roost. Greenspan cut and ran months ago, which should have been the first sign that he couldn't even stomach his hypocrisy anymore. The first Bush had the S&L scam and now we have the sub-prime mortgage scam and it's deja vu all over again...save your confederate money boys cause the south's gonna rise again! Sheesh.


Filed under: Economy
soundoff (115 Responses)
  1. Sterling Greenwood

    When New York City was in financial turmoil in the seventies Ronald Reagan said that the only difference between New York and Washington DC was that Washington had a printing press and could print dollars to bale the U.S. out of financial difficulty. I worry now that we'll just keep on printing those dollars that some day we'll be taking laundry bags full of dollars to the grocery store for a loaf of bread.

    Sterling Greenwood
    Aspen

    January 22, 2008 at 2:23 pm |
  2. Jim Jensen

    I'm very concerned about the economy because I think we are spiraling down into a major recession. Due to Bush's poor management policies this is, in part, one of his many chickens that has come home to roost. On the other hand, it is the result of the wanton greed and, again, poor management practices of big business, which Bush also supports.

    January 22, 2008 at 2:27 pm |
  3. Brett Milam

    Very concerned. My parents work full time and we are barely getting by. My brother is in college. My sister and I will be graudating this year and heading to college. Something has to change Jack and it doesn't help when you have politicians acting like the economy isn't "that bad".

    January 22, 2008 at 2:33 pm |
  4. D Moore

    I am terrified about this economy. As anyone on a fixed income knows, there is no such thing, it is a steadily declining income under the best of circumstances. But considering that we have had a complete idiot who has long since squandered our last nickel over the last seven years like a drunken sailor on drugs and then proceeded to max out all our credit cards, I am not only afraid for myself, but what it will mean for my children and grandchildren who will have to underwrite this fiscal fool’s mistakes and disasters. And they will have to do it without any help from the raided social security fund.

    January 22, 2008 at 2:38 pm |
  5. George

    Jack,
    This is a question for the rich because if your middle class or poor you have been concerned about the economy for quite some time now. More and more jobs being outsourced that were once middle class jobs and illegal immigration has driven down wages of the middle class and poor. There are rising costs of food, housing, and enegry have been taking it's toll on the middle class and poor for a long time now. So the question should be if you were rich how concerned are you about the US economy.

    January 22, 2008 at 2:39 pm |
  6. Bennett

    Jack,
    What would happen if Americans invested the Billions from Bush's stimulus package and didn't spend a dime on retail? Woops! Maybe the goverment should give out gift cards instead of refund checks to guarantee, "The Bush Plan" is a success. Bush should put a 360 day expiration date on them so he will get the glory from this before he is finally gone. Please?

    January 22, 2008 at 2:40 pm |
  7. Richard Sternagel

    Jack, I am very concerned about the economy! Corporate America has helped ruin the Middle Class with jobs lost overseas,excessive profits for oil companies,the mortgage crisis, and a President who is out of touch with the average working person! Now I fear my pension is shaky! My dreams of retirement sadly have been curtailed !

    January 22, 2008 at 2:41 pm |
  8. Hannah

    If you aren't worried about the economy, you aren't paying enough attention.

    January 22, 2008 at 2:41 pm |
  9. Rich , McKinney Texas

    I am Ok with the economy. I invest wisely and produce a commodity that most consume on a daily basis. People have to eat and cattle feed them. The price of grain with all this flawed ethanol which costs more to produce then what it is worth is driving my grain price up at the feed store but I will pass those costs on to those that buy beef through the grocer. Overall I am very pleased with the economy and maybe all this high priced oil will make people think twice about going green and conservation. Sometimes it takes that to modify behavior and if you ask me that is long overdue. Conserve, recycle and save. Next time your light bulb burns out replace it with an LED bulb or a CFL bulb. You will save money over time and help the environment. Be part of the solution and not part of the problem and stop waiting for the government to solve all your problems because that will never happen.

    January 22, 2008 at 2:41 pm |
  10. Tina

    Jack,
    I have been worried since we were told after 9/11 just go shopping all will be well. Well once again we were lied too. Everyone acts like they are trying to outspend each other and the piper is coming to collect and there is nothing to collect. Americans must start putting money back or when it comes time for them to retire there will be nothing there and they will have to work until they are called to Glory. Bush has lied about the economy all along. I am not a mushroom and have not fallen for his lies.

    January 22, 2008 at 2:44 pm |
  11. Ed Reed

    Yes. Things are going to hell in a handbasket. Because of globalization and NAFTA, CAFTA, and SHAFTA, our standard of living is declining and we, including our government, have been borrowing to keep up. This increase in the supply of dollars reduces its value and makes things more expensive. And to forestall recession, the Fed is lowers interest rates, which just encourages more borrowing. It's a downward spiral.

    January 22, 2008 at 2:46 pm |
  12. KJ

    I failed Economics 101 so I don't understand how the economy works, I just know I should be concerned about it. Kinda like understanding the instructions on how to program your VCR. Apparently, I'm still living in the past.

    January 22, 2008 at 2:48 pm |
  13. Gerald Wittenberg

    Canadians too are very concerned about the present state of the U.S. economy.
    When the U.S. "sneezes", Canadians catch a "cold".

    January 22, 2008 at 2:48 pm |
  14. Tammy

    Very concerned, Jack. We're entering a recession; we may even already be in one. The housing, the over-inflated dollar... these are all symptoms. America needs a doctor. And i hope that people are smart enough to support Ron Paul all the way to the whitehouse.

    January 22, 2008 at 2:48 pm |
  15. Ralph

    The Great Depression came about because you could buy stock for 10% down and the rest on call. As long as the market went up, all was well, than it crashed. Bush deregulated the mortgage market in 2003 and the speculation in housing began with little down and variable mortgages.....like 1920's stock. You are seeing "disinflation" in home values, rare, even in a recession (economic slowdown, but items don't usually lose value). This is a mess, the result of economic mismangement. Even worse is talk of cutting government spending.....that would FED a recession. You never raise taxes, raise interest rates, or cut federal government spending during a recession. You cut spending when times are good and when there is inflation caused by excessive consumer demand. McCain scares me with his talk of cutting spending (doesn't know what he is talking about).

    January 22, 2008 at 2:49 pm |
  16. Terry

    Jack
    Very concerned. Americans are using their credit cards if there not maxed out, to pay their bills and purchase prescription drugs. Homeowners cant pay their mortgages and cant afford to put gas in their cars. At this point the economy has to be the most important issue in the presidential campaign.

    January 22, 2008 at 2:51 pm |
  17. Mel Cota

    Certainly not a guru, but I did do my graduate work in economics and have stayed current over the years on both domestic and international economics.
    The problem with the economy is all fixable given a time period for adjustments and programs to be implemented aimed at supporting this failing economy.
    The war in Iraq is the primary cause of this disruption. Not only have we spent trillions of dollars in a wasted effort to democratize the area but have actually contributed to the rise of oil prices beyond the effect by global demand for oil by pissing off several countries in the region that control the price of oil.
    The major problem for Americans in general is that they are not in control of their future resources needed to live and then retire. The internal problems of health care, decent jobs, the decline of real income, along with inflation, are going to put many, many people in serious financial trouble during this adjustment period. Micky Mouse rebates of $600 will not solve the problem.
    I have a plan but nobody would listen.

    January 22, 2008 at 2:54 pm |
  18. bacalove

    Yesterday, at debate Barack Obama accurately predicted that the stock market may have a problem tomorrow due to some other country's stock market having low numbers and Wolf shot back, no one knows what will happen on the Stock Market tomorrow. Well, apparently, Obama DID and was able to have the foresight to connect the dots and prove that he is encomically astute!

    January 22, 2008 at 3:01 pm |
  19. Josh

    Very, Because the reason the economy is a direct result of George W. Bush's incompetence and inability to hold company and the executives who run them responsible for outsourcing. Now is not the time to cozy up to Big Business. Instead we must hold these executives accountable. Make outsourcing against the law and throw the CEO's in jail. Bush has screwed up the economy royally and we will have an heck of an job of fixing it.

    January 22, 2008 at 3:07 pm |
  20. Ron from VA

    It's the beginning of the end, Jack. If historians write anything it will be this Fed Bank crap! Why do we have one, it's corrupt, it prints money so we will go in debt! Dreamt up by Republicans for a way of controlling the people and making themselves rich by loaning the Government money it doesn't have! You would think the Catholic church was in on it, Our whole economy based on speculation?????
    A true Bush program and we're still spending hand over fist in Iraq for NOTHING! We are lemmings!

    January 22, 2008 at 3:08 pm |
  21. Joe in DE

    A rebate is good but too little & too late.

    For the long term, we need a permanent cut in the tax on income of $15000 or less – say 5%. Also reform Corporation taxes – allow 30% R & D, & 20% business reinvestment; remainder to be treatd as a pss-thru (no dividends).. Give Corp credit for employeers with workforce of US citioxens greater than 50% startin at 2% reduction for 50% workforce and increaseing to 20% for 1000% US workforce..

    January 22, 2008 at 3:09 pm |
  22. peter benton

    Jack,
    Any one who has a half ounce of brains and has been keeping up with the current state of the world economy is worried. Our own economy is nothing but air and funny money . I'm not sure where the bottom is for the market, but just lowering the interest rate is only going to blow some more air into and already bloated monetary system.

    How is going to make it easier to borrow more money going to fix a problem that is rooted in debt. Thats how mwe got in this mess in the first place.

    I Sure hope someone is worried! It won't effect me much in any case. I don't have a job, I don't pay taves and I don't own a damn thing. And I don't owe one red cent to anyone. Poor me!

    January 22, 2008 at 3:12 pm |
  23. Tom Atkins

    Hi Jack, Looking from the outside as a Canadian into your American glass box, and listening to those Republicans and Democrats throwing slanderous accusations at each other within their own party, the White House has become nothing but an office to practice idiocy, and the Presidents high office has lost all of its dignity, how can any American become involved in giving their time and trouble to vote when seeing these catty, muck slinging individuals, potential White House residents and past President, Senators and what have you, going at each others throats, is it all a part of pre training for the position.?

    January 22, 2008 at 3:13 pm |
  24. Maureen

    I'm extremely concerned about the economy and I'm wondering why it's taken so long for the Federal Reserve, the President and the Congress to get concerned. Any American in the middle or lower class have known that we're in a recession for months now. I don't owe stock, never could afford to buy any because I was too busy raising my kids on a nurses salary....so I really don't care if the rich are losing money in the market. I do care that I am losing money because of the rise in fuel and gas prices, because of the increase in food prices et. al. And while I'm at it, I am angry that the Administration and the Congress think that by throwing some small amount of money at me, that I'll go out and immediately spend it at Target or Walmart. If I get my hands on any extra money, I intend to put it away or to spend it paying bills. What I want from the President and Congress is for them to stop sending middle class jobs overseas and to created good paying jobs in the U.S. I want them to get serious about finding alternative energy that I can afford. Oh what's the use...who in government listens to the middle class?

    January 22, 2008 at 3:13 pm |
  25. Paul

    I am Canadian and I am very concerned. I was following events in USA and it seems like you guys never learn your lesson, how many times Fed decreased interest rate in the past year? It didn't work back in 2007, why the hell you think it will now?! Seriously, do something about your economy, because, you know, if you go down we all go down.

    January 22, 2008 at 3:19 pm |
  26. Kathy H

    Oil prices are holding us hostage. Talk about a terrorist attack! What better way to bring us and our economy to our knees than to keep oil prices high enough to destroy us from within (and the rest of the world as well)? When Bush virtually got on his knees to the Saudi's last week, he obviously didn't kiss their butts enough to have them actually lower the costs of oil. Look at the history since Katrina when the offshore oil rig was damaged and how our economy began to plummet. Am I the only one who sees the connection? Surely not!

    January 22, 2008 at 3:21 pm |
  27. Ted

    The economy ups and downs are controlled by only two factors. Power and Greed. The Power of special interests and lobbyists over politicians who are supposed to be serving their constituents, and the Greed of the politico representatives who happily take the money. You said it all. "they are talking about cooperating to try to find a solution.". Jack, It's their damn job to do that. . As ordinary citizens we cannot bribe them with the millions they're used to being handed, so our voice doesn't matter much. Happily, there is one solution... rebuild Congress. That can be done by voting NO INCUMBENTS. It can't ever happen until Americans make one of the toughest decisions a voter could ever make, it must be done. It matters nothing who is president, as long as Congress does the will of the people.

    January 22, 2008 at 3:26 pm |
  28. peter benton

    Jack,
    The economy is not the only economic worry that the world has. With the single house of cards that the world has allowed its self to build, Stability is the onlything that will keep it aflost.

    the world monetary syatem is about as big a mess as could ever be created. Its not supported by anything other than hope. Death and distruction do not create much hope. Right now, The only country involved in wholesale distruction id the United States. It would seem to me that we can take the first step toward hope and stop what we are doing or just suffer the consiquences. Throwing a little more electronic money at it won't solve the problem.

    I have a question one of our genious mathematicians. If a billion dollars is lost on the stoch market where does it go, and when it recovers where does the new money come from

    January 22, 2008 at 3:27 pm |
  29. Katie

    A recession might be final nail in the coffin that devours the Middle Class. With no savings, their 401K's destroyed and rampant inflation, the middle class will disappear and all that will be left will be a large sector of poor people with no political power and a very small minority of wealthy with all the political power.

    Could a second American Revolution be in the future then?

    January 22, 2008 at 3:29 pm |
  30. Scott

    can't wait for the bottom to fall out of the market. let them cheating rich s.o.b.'s
    feel what the rest of us have felt since this idiot we had appointed by the courts
    has ran the show. a horror show that is, Jack, wake me up and tell me that George bush's presidency was a bad nightmare.
    Scott Missouri

    January 22, 2008 at 3:30 pm |
  31. earl illingsworth

    I am a realist Jack, and far from an alarmist,let's get that straight, but I've been worried about the economy ever since globalization. Paul Voeker the fed chief during Regan's term cleaned up the mess from pass administrations, but the miracle worker Greenspan has put us right back in the tank! How dare I make a comment about Alan, when it's Bernake's fault, after all he has run the Fed for two years. Ben inherited this mess so lets be clear about that and put the blame where it belongs. Bush#43 has a history of running businesses into bankruptcy (check it out), and he's true to form ,Today! When he fired "Larry Lindsey "for openly saying the war in Iraq would cost upwards of 500 Billion Dollars, the writing was on the wall. So yes I'm extremely concerned for the same reason the entire country is (fill-in name)?

    January 22, 2008 at 3:33 pm |
  32. Ceee

    I'm disgusted with the greedy lenders who made shakey loans and their Wall Street partners who reaped ridiculous bonuses.

    I'm upset with the President and his cronies who led us into an elective war claiming it would be without substantial cost; the oil revenues would cover it. And when that proved incorrect, costs in personnel and resources were downplayed and/or ignored.

    I'm incensed with the previous Congress who moved from "tax and spend" into mire of "charge and spend" and with the current Congress who can't seem to stop the war funding.

    Am I concerned? Hell yes! But since the Bank of America hasn't called me for advice and since the President has been ignoring my emails and since I've been getting form letter responses from my Senators, there's not much I can do about it ...except to complain to you, Jack. Got any ideas?

    January 22, 2008 at 3:33 pm |
  33. David,San Bernardino,CA.

    I was taught since I was little that if you spend more than you take in you will go bankrupt. Americans,corporations and the government have been putting everything on the credit cards for years and now the chickens have come home to roost. Be prepared for a bumpy ride,because you ain't seen nothin' yet!

    January 22, 2008 at 3:34 pm |
  34. Ralph

    Bill Clinton was right when he ran for President – it is the economy, stupid. We can march around the world and boast how we are the world's policeman, but as long as people go homeless and jobless, our country will be on its knees before our own citizens as well as those nations across the world.

    January 22, 2008 at 3:36 pm |
  35. Richard

    Of course I am concerned but not surprised. Haven`t you noticed that every time we have a large downturn in the economy, we have a Republican President? The Republicans blab on and on about how they can make the economy better by corporate give-aways and tax breaks, but when it all comes out in the end, they have screwed it up royally and the folks who make up the middle class have to pay for it. The only time we have a budget surplus is when the President is a Democrat. I can hardly wait for next November to oust the worst President this country has ever seen.

    January 22, 2008 at 3:36 pm |
  36. Beverley

    I don't understand how a war gets started on false information, an entire city gets flooded and no one responds to help, 12 million people are allowed to stay illegally and compete for the crappy jobs here while all the good jobs are sent to Asia, the dollar is now so low it can't even be called a "dollar anymore" ...and still no one has gone to jail or been impeached!

    January 22, 2008 at 3:36 pm |
  37. Allen L Wenger

    I am very concerned, because we are on the start of an economic down turn at a time when our National debt is out of control. This is the result of giving large tax breaks to the wealthiest Americans and I'm sure President Bush's plan will be to give even bigger tax breaks to the richest Americans. This will be one more example of his incompetance and I'm sure he will blame President Clinton for this in the near future. We should all be ashamed of what we are leaving for our children and our children's children.

    January 22, 2008 at 3:36 pm |
  38. Diane

    Jack,
    I am and have been for many years concerned about the economy
    way before anyone in Washington even thought about it. I know
    when my paycheck does not last from week to week just to
    purchase the ususal things like food, gas, electricity, etc. that
    something is wrong.

    Bush doesn't care about middle class and low income
    people - never has, never will. HIs only concern is to take care
    of himself and his wealthy family and friends.

    I am glad at least that they are talking about doing something
    but I'm afraid it's too little, too late.

    January 22, 2008 at 3:36 pm |
  39. Scott

    Jack, is it even legal for the fed to do what it did? dose the federal reserve leader have stock, if so, is this action a conflict of interest? will anyone in the media investigate to see if our elected officials receive a break in their stock portfolio
    because of this action?we poor get screwed, the rich gets immeadiate relief.
    ah! the american way.
    Bowling Green, MO.

    January 22, 2008 at 3:37 pm |
  40. Paul

    I wont be concerned about the economy until food becomes scarce. Too many people living in too many McMansions driving too many Hummers making too much easy money. They're the ones who should be concerned with a serious life style adjustment right around the corner.

    January 22, 2008 at 3:38 pm |
  41. Warren W

    I'm terrified. My investment account which I've played safely with to save up for my first home, has lost 15% this year so far! I'm saving and diversifying like I'm supposed to but all the people who tried to get free real estate loans are destroying my plan.

    That having been said, rate fixes in a supposedly free economy, creating money from nothing to fund an unending military empire while paying China to foot the bill is the real source of the problem. Runaway inflation has caused the powerful U.S. to fall to its knees in the global marketplace. The only people who can stop it, are the ones who've benefited from our suffering. It may never end until we're on all fours.

    January 22, 2008 at 3:39 pm |
  42. James

    Jack,

    As a recent college grad I am very worried about the economy. For years these politicians have been more worried about petty arguing amongst themselves and giving handouts to their districts to stay in power. Unfortunately none of them realize they are not elected by the people to act like this. Instead they are supposed to be responsible for the wise management of the country. Giving away jobs with free trade agreements, printing more money to pay the bills, and throwing away The People's hard earned tax dollars on every little comfort and program that sounds nice on paper is not okay. We are having financial problems? How could we not be with this nonsense?

    January 22, 2008 at 3:41 pm |
  43. Rich Torres

    I'm very concerned, but not surprised. Our country has been turned into one huge super walmart stocked with the rest of the worlds goods, we have sent all our manufacturing jobs over seas. The price of fuel has driven the price of all goods up and it's out of control, I bet the presidents investment portfolio contains petroleum stocks. Just because the fed chairman doesn't want to utter the big "R" word doesn't mean were not in one.

    January 22, 2008 at 3:41 pm |
  44. Dale Hill

    Jack, it is Bush's fault. Waging war is expensive. But Bush doesn't have to worry about it. His family has lots of extra bucks. And besides, Bush will be leaving in a few months. After that, he can fly to Dubai and go skiing. Face covered, shoot, no body would know him, over there. Anybody in the U.S. can smell him – smells like rotting flesh in New Orleans and Iraq.

    Dale – Anadarko, OK

    January 22, 2008 at 3:41 pm |
  45. Eugene

    The Administration, as well as congress should be charged, with criminal negilgence and dereliction, of their constitutional duty. Our economy is about to fall flat, on it's face but "The Decider" say's not to worry. The " have and have mores" won't worry, as long as, there are a few sheets, of ice left, in Greenland.

    January 22, 2008 at 3:42 pm |
  46. Amy

    I'm concerned, but not for the reasons you think. Without all the media hype and government intervention, the economy would correct itself naturally. Our government shouldn't adjust interest rates, print more money, or issue tax rebates just because some homeowners signed up for sub-primes loans to pay for homes they couldn't afford to begin with. Everyone should relax. It's all this excitement that is causing the real problems.

    January 22, 2008 at 3:45 pm |
  47. Joseph Willette

    Jack it seems very strange to me ,that the pundits and media has little to say about ron Paul and his stand on the way our country is being run...He is a great advocate of STOPPED THE SPENDING ,and stop primting all that money that has no backing ... Joe ONE UNHAPPY VOTER....

    January 22, 2008 at 3:48 pm |
  48. John Kelley

    I am concerned now, not because of the market so much as the lack of confidence in the Bulls belief who were saying it is not the economy so much as the growth of fear among investors. The growth of fear has put a halt to growth and Bernacke should have realized that back in December. Instead of a 1/4 point decrease in the rates, Bernacke should have dropped interest rates 50 basis points before the end of the Xmas Shopping Season. I don't think he would have had to react as he did today.
    One other point, I have watched Cable news coverage and I can not help but feel that the media hyped the coming of a recession.

    January 22, 2008 at 3:50 pm |
  49. Tom Bulger

    I panicked when I saw how ferociously the Bush administration fought Senator Olympia Snowe's efforts to reign in the spending. I can't seen the end of the war or impeachment in sight yet. I guess we're waitin' on Obama, Jack.

    January 22, 2008 at 3:53 pm |
  50. Bill, Quarryville, Pennsylvania

    Jack I think we have created a perfect storm for a recession. With the cost of fighting two wars, then add to that all the problems you mentioned, the only way the economy could go was down. But Congress and the president sat on their butts and watched all this develop before their own eyes and did nothing about it. Now all of a sudden they want to work together and tried to come up with a quick fix, because it is an election year and they might lose their jobs. We can't keep giving people more money to spend and not fix the problems that put us into this situation.

    January 22, 2008 at 3:53 pm |
  51. Dennis

    I was more concerened when we were spending it. Why is this such a surprise? When is the general public going to stop living in fantasy land and relize that there will always be reality to deal with. The fact of reality is that everything is not cute and fuzzy or blond and beutiful. Ugliness and darkness always border a lightened situation. The giveaway that we were going into a recession was when Hummer came out with an H2 and people forgot that Jeff Foxworthy was trying to tell a joke. Responsibility has become an ideal instead of a commonality, how much can get accomplished with out responsibility? We need to stop living in the now and the yesterday and start living for tommorow and the rest of the future which by the way lays in our childrens hands. We fight over oil now but what will we fight over in the future? Fresh water? Clean air? Can the economy now as we know it really provide us with what is going to be essential for survival or is it based on buying, marketing and, selling commoddities that we don't need? Is the human race in trouble or is the human rat race in trouble? The woes in the economy will let the wealthy know what the poor have been dealing with for quite some time.

    January 22, 2008 at 3:55 pm |
  52. douglas gengler

    very serious trouble. 7 years of republicans spending money like water and tax relief to the richest 2%, a war with no end, and tax credits to the oil companies i have not seen in my 50 years the hurt we will see in the coming months.

    January 22, 2008 at 3:55 pm |
  53. W B in Las Vegas

    Jack,

    one thing I am not worried about is massive plant closings and worker layoffs like in the 1930's. we have ALREADY moved our steel, electronics, auto parts and consumer products plants to China and the workers have ALREADY been fired so I guess an "economic recession" is really no big deal now days because it's ALREADY HAPPENED to most people that are not wall street big shots.

    January 22, 2008 at 3:55 pm |
  54. Jack

    Jack,

    I extremely concerned about the economy since I just retired two years ago with what I thought at the time was a very secure future. Now, it appears that 7 years of fiscal mismanagement by the Bush White House and the GOP controlled Congress, that our economy has been shaken to the core. The severe drop in Interest rates a few years back launched a giant bait and switch housing scheme that has trapped millions of middle class Americans in a no-win situation no matter what they do now.

    The only solution has to be a severe re-direction in our nations trade policy and economic growth through a renewed manufacturing infrastructure. We need to tax the top 10% to finance infrastructural improvements and put in place trade and investment incentives to make America competitive in the world market. Cheap labor is only one part of the world trade puzzle and when we address what's good for America, we will revert to "Fair Trade Barriers".

    Manufacturing jobs create national wealth and America needs to get back to what made us great!

    January 22, 2008 at 3:56 pm |
  55. Terri Spencer

    The race card has been played. And the wrong pepole are being blamed for it. Sense when is saying the word fairytale racsist??? The Clintons were only stating facts. I have listen to Obama and I find that he can sing a good tune but he can not read the music. Hillary Clinton was right ,when she said that he does not show how he is gong to pay for some or most of his programs. I still dont understand what he intends to change. After last night debate, I have come to the conclusion that Obama is nothing more than a piped pipper who is out of tune. If Hillary Clinton can take heat why cant Obama??? Dose he think that if he wins (which I doubt) the republicans are going to be nice, and play fare. Somehow I think not

    January 22, 2008 at 3:57 pm |
  56. Stephen

    I'm scared sh**less. I have been since "the idiot" took us into Iraq.
    Can you imagine what it will be like if 1 or 2 of our 'partners' shift
    their value base to Euros? How'd you like to buy gas based on Euros?

    January 22, 2008 at 3:59 pm |
  57. Annie

    There was a time when parents taught there children the value of the dollar. Now, no one even knows what a dollar is. Everyone uses plastic. We are heading for a recession like no other. This economy is built on people spending, but instead of spending dollars, they are spending plastic, which is now melting away.

    January 22, 2008 at 4:02 pm |
  58. Greg from PA

    I am afraid that we are heading toward a depression, Jack. Not since the days of Herbert Hoover have we seen such mismanagement of our economy. A trillion dollars thrown away in a war we started for no good reason. Tax cuts to the wealthy–that's called trickle-down voodoo economics. Trade agreements and other policies that gut American businesses or drive them overseas. Outsourcing and work visas that rob Americans of decent paying jobs. And the list goes on. It was just a matter of time before the dam burst and now there's a flood of misfortune heading our way.

    January 22, 2008 at 4:04 pm |
  59. silver18

    I'm terrified, Jack. The government needed to do something last year, not right now. Start buying gold and saving your Euros.

    January 22, 2008 at 4:04 pm |
  60. Alita

    Very concerned! Any person with a brain should be.

    Alita Adams
    Charleston, SC

    January 22, 2008 at 4:04 pm |
  61. silver18

    I'm terrified, Jack. The government needed to do something last year, not right now. Start buying gold and saving your Euros.

    Sterling, Florida.

    January 22, 2008 at 4:05 pm |
  62. Jim Hodges

    The rest of the world is not buying rate cuts and platitudes from Bush. The issue is debt. Who else but Bush would cut taxes and increase borrowing. it is scary when a potential candidate "doesn't care" if we stay in Iraq for a 100 years. We can ill afford another week.

    January 22, 2008 at 4:06 pm |
  63. Cindy

    Being a small business owner of a construction company, and seeing no end in sight with the troubled housing market, we can't hold our breath any longer. Bushes stimulist package is what Hillary said last night is, " Too Little Too Late". Let's hope that the interest rate cuts will help. What is it about this adminisration, Everytime there is a crisis in this country, Katrina, 911, economy, the adminisration is a sleep behind the wheel. I say wake up and smell the decaying roses.

    Cindy

    January 22, 2008 at 4:07 pm |
  64. Tyler N

    With half of the world living off less than two dollars a day, and one billion people living off less than one dollar, I am much more worried about the financial status of those living in the third world. I do not see myself shedding a tear when people have to start selling off their hummers because they cannot afford the $100 they have to pay at the pumps. I will however shed a tear if we attempt to boost our economy by giving tax rebates to those who do not necessarily need them at the expense of the governmental services that we actually do need. We must not allow our green fingered friends in Washington to forget the 50 million Americans who are actually starting to feel the heat (or lack thereof) when the rebate pie is divided.

    January 22, 2008 at 4:07 pm |
  65. john

    Free markets behave such that they constantly move up and down seeking equilibrium known as the business cycle. My concerns are twofold: first that I am properly positioned to profit from whatever direction the economy is traveling and second that flaming liberals don’t impede or cause man made impediments to stymie market movements, whatever direction that may be.

    January 22, 2008 at 4:09 pm |
  66. bnthdntht

    I am not too worried if we can get rid of Bush and his deficit spending and elect a democrat. You can't run a household on just credit.

    January 22, 2008 at 4:10 pm |
  67. Aileen Bailey

    Jack: We The People are never surprised about anything that has happened, is happening or will happen while GW Bush is in charge. Republicans MUST go so that we can regain that element of surprise in our lives.

    January 22, 2008 at 4:11 pm |
  68. Joy

    The economy has been plundering for at least two years and as usual, Bush is now just waking up? Wages for middle class America are declining, the dollar is losing value, Congress votes in a $4,000 raise for themselves and a four day week and we're left to fend for ourselves! It's unbelievable that our government has forsaken the American people for greed and the power of Corporate America. I'm nervous and rightfully so, it's going to get worse before it gets better!!!!!

    January 22, 2008 at 4:11 pm |
  69. George Yesalavich

    The economy is going down the tubes for the middle class. We get a 2.3% cost of living raise in our Social Security & govt pensions. doesn't even come close to the real increase.

    The Fed reduced their rate 3/4 of a point today. If they really wanted to stimulate the economy, the banks should reduce their credit card rate. Then consumers would be able to pay off their credit cards faster and would purchase more. Tough to buy more when most of the payment goes to interest.

    January 22, 2008 at 4:12 pm |
  70. Karen

    Why is the mortgage mess discussed but not the next level that has yet to hit – the mortgage insurers? Isn't there something like $500 billion hanging out there. This is not over....

    I'm tired of debt (govt and individuals). I'm worried about all of the programs being discussed when I'm not sure the pay plans will work. We need to limit social welfare and corporate welfare. The out of control spending is not over......

    I live in California, so of course I am tired of the impact of illegal The Governor is proposing cutting $1000 per child from education next year. This is not over...sigh...

    I am tired of the politicians sniping about NAFTA when we are entrenched commercially and economically and all the analysts say there isn't a thing any of the politicians can or would do about China. Outsourcing our jobs is not over......

    January 22, 2008 at 4:13 pm |
  71. Dennis

    Mr. Bushs' legacy continues to grow, even if it is all negative. What would you expect from someone who has shown very little leadership capabilities. The phrase 'A Bag Of Hammers " come too mind.

    January 22, 2008 at 4:13 pm |
  72. LIsa White

    Heckuva Job, Bushie!

    So the Prez just announced the formation of a task force on financial literacy.
    Just today he is concerned about sub-prime mortgage holders and if they understand their loans.
    Bit late, dont you think?
    Where was he 2-3 years ago when his buddies were writing all of these junk mortgages? Did he give a hoot then? No, he was too busy ignoring another tragedy...Katrina .

    January 22, 2008 at 4:13 pm |
  73. Elaine

    It was only a matter of time until this all happened. You cannot take away decent paying American jobs and expect the middle class to have the money to keep the economy going with $8.00 per hour jobs. I would define global economy as coporate greed. The corporations only think of themselves and try to make more money than they could ever spend and not think of what they were doing to their fellow Americans. When pepole cannot even afford the cheap products from China and Mexico, maybe they will wake up and bring some of those jobs back to American. Corporate greed and the greed of the banking industries along with the Bush Administration only thinking about big business (oil companies) has caused the whole of American to sink.

    January 22, 2008 at 4:14 pm |
  74. Tom Hutcheson

    Jack,
    The economy is in shambles! The democrats finally raised the minimum wage, but it was not enough for the working class people of America to survive! Two people making the $7.50 and hour minimim, that has not taken effect, con't keep a family gong. Gas is $3.00 per gal. Milk is $4.00 a gal. Housing is out of site, and everthing that people have to buy is going through the roof.
    Democrats must push for a more equatable society.
    We will not survive as a nation, unless we change this system and stop selling off America to foreign nationals.

    January 22, 2008 at 4:14 pm |
  75. Chris

    Jack,
    Yes, I am very concerned about the economy. Haven't we learned anything from our nation's history? Look at all the warning signs before the Great Depression – high consumer debt, borrowing and extending credit, too much money in the hands of the wealthy few . . . Then, we had Herbert Hoover, who directed most of his economic measures helping business instead of long term help for average citizens. I feel like we're living the movie "Groundhog Day"
    We're in trouble thanks to poor economic policies from this administration, corporate greed, and people who are interested more in getting elected than helping those who elect them.
    Our economy is a house of cards ready to collapse! And, and should not be happening.

    January 22, 2008 at 4:14 pm |
  76. Julia

    Bipartisanship? In a two-party nation? This is simply unheard of, Jack! I'm hyperventilating with excitement over the prospect that people can actually get along!

    January 22, 2008 at 4:14 pm |
  77. Kristen Ingram

    Am I concerned? Yes. The U.S. is run by corporations and if they go belly up, maybe the country could be run by people. But don't count on it.

    January 22, 2008 at 4:15 pm |
  78. Ron

    Very concerned. And if it's always about everybody buying, buying, and buying, were in deep trouble.

    January 22, 2008 at 4:15 pm |
  79. Jerry

    The economy is going down the drain. No matter what they do just doesn't seem fast enough. The economy is bad today. It doesnt matter what they say they will do in a week or two weeks. No more waiting on a solution to the problem.

    January 22, 2008 at 4:16 pm |
  80. Pat

    What's scarier than the tanking economy is that Bush is talking the same ole same ole – give the breaks to business and it will all somehow miraculously trickle down to the rest of us. The only trickle down to the middle class is the bill. By the way, I've been reading your book and it should be required reading for anyone who cares about tthis country. Keep up the good work.

    January 22, 2008 at 4:16 pm |
  81. Jim Barton

    Jack, I have been concerned for the economy since learning we're borrowing the money for the foreign wars we fight now. We are funding so many projects for the purpose of fighting terrorism that we're spending ourselves into bankruptsy. Maybe Our president isn't fighting for a total victory, as he claims, but a Pyrrhic victory. He's nearly accomplished the latter at the expense of his "fellow americans".

    Malta, NY

    January 22, 2008 at 4:16 pm |
  82. Jerry

    As long as we have the liars, cheats and all the dishonest people in congress there is not much hope for the middle class americans. It is funny that when we have a politician running for office they are always going to do this and that, but when they get in office al they do is pander to the wealthy, take bribes, and sell the country down the tubes in the interest of their corporate sponsors. It's a damn shame that our elected officials can't take care of the business that they were elevted to do. It's to bad we can't kick out ever damn one of them. My old grandfather always said that a man had to earn his respect and so far there is not one politician in Washington that has come close to earning my respect, they are all worthless.

    January 22, 2008 at 4:16 pm |
  83. Jama Ali

    Jack, I am as worried as I am worried about republicans running for presidency...after taking the economy in a free tour to deep south.

    January 22, 2008 at 4:16 pm |
  84. Mike in Mississippi

    The affects of the US economy on global economies makes think that Bin Laden might end up attacking himself.

    January 22, 2008 at 4:16 pm |
  85. John

    As much as I would love a rebate check (my money) I don't think it'll help stimulate the economy. You don't need a college degree to figure that out! The president and congress expects that most Americans will go shop, putting more money in their coffers pockets. They must think that the American people can't see through their political games. They need to stop playing "politics" with people's lives!

    January 22, 2008 at 4:16 pm |
  86. Anthony G.

    Jack,
    Of course. The American Dream has diminshed and that idiot in the White House doesn't know what to do. With stocks plunging as much as they are, we are days away from a recession.

    January 22, 2008 at 4:17 pm |
  87. Alex

    Why do people blame the government only for this? Everyone was scared by the tech crash and went into housing causing the same thing. I see this as a great opportunity to buy stocks on a discount.

    The government bailing this out is expected now which is a terrible way for an economy to work. The government isn't here to pay your house payments or turn the stock market into an insured investment. Wise up or get out.

    January 22, 2008 at 4:17 pm |
  88. Karen P

    Until we bring manufacturing jobs back to USA and are more careful about the horrible trade policies and support Made in USA Pride again...our economy wil never be in good shape. I am not afraid for the economy for myself (semi-retired), but I am afraid for my kids and grandkids. God help them at the rate we're traveling downhill. And for goodness sakes...make lobbying illegal. They're not politicians speaking for us.

    January 22, 2008 at 4:17 pm |
  89. Tina

    Its always the economy stupid when we have had 8 years of Republican rules and this president has had his head so far in the dark and padding his rich buddies accounts with the sweat of working Americans. I cannot afford a new car nor afford to take a decent vacation. My health care is tanking and he is optimistic that we will all over come. No Mr. Bush, it will take decades to over come what you have done to your people you swore on the bible to do right by.

    January 22, 2008 at 4:17 pm |
  90. Jahbir Malone

    Perhaps our economy could use a major donation from halabertan or would it be called putting their loan in default.

    January 22, 2008 at 4:17 pm |
  91. Karen

    Did someone from Texas say that he raises beef fed by grain (which has some of the largest govt agricultural subsidies) and then tell people to stop expecting the govt to solve their problems for them? Oh, good grief.

    To those who supported globalization.... how's it working now? Ha!

    January 22, 2008 at 4:17 pm |
  92. Conor

    The problem with the economy is a fundamental one. We can't base our currency on nothing and we can't print it when we come up short. Until that changes recessions will happen every 15 years or so. But I fear this one is going to be as bad as the Great Depression. Therefore I really do have a "Plan B" in my file cabinant. It has the details on my move to Canada.

    January 22, 2008 at 4:18 pm |
  93. Mattt

    Jack,
    Concerned HELL I'm HORRIFED

    January 22, 2008 at 4:18 pm |
  94. mike

    Thank god the economy has finally got your attention – we have had to hear about Iraq for far too long. The economy woes can be categorized into one three letter word – OIL.. Yep it is the high cost of petro that has drug the economy into its new hole. Lets thanks the Republicans for both the high cost of oil and the tanking economy.

    January 22, 2008 at 4:18 pm |
  95. Martha K

    Moved all our family's investments out of the stock market and into safer investment vehicles two weeks ago. We're not getting creamed again like we did back in 1999/2000. Live and learn. The next 3-5 years are going to be an economic nightmare for most ordinary people. The top 1% in wealth won't have to worry...they don't keep their money onshore. In fact, since most of them have the requisite funds to hedge their bets, they're sure to just get richer no matter how bad it gets.

    January 22, 2008 at 4:18 pm |
  96. Bruce Marshall

    Jack I'm an upbeat guy and try to see the good side of things so I'm concerned about the U.S. economy. I think throwing a few hundred dollars out to each house hold isn't going to do it. I fear it is to late for that. If they want to try something they should get gas and heating oil price's down as fast as they can. It is to late and the money now will be used to pay up bills, buy gas and oil to heat their homes.

    January 22, 2008 at 4:18 pm |
  97. Danny

    I am growing more and more concerned about the economy, the rising threat of the US invading Iran now just adds to the fear of a serious economic crisis. Ron Paul is the candidate who has been talking about the economy from the start. I think out of all of the republicans he understands our situation the best.

    January 22, 2008 at 4:18 pm |
  98. Lucas

    I am very concerned about the present U.S. economy; however, I have confidence in it overall, becasue it always bounces back; that's the nature of the beast our forefathers created for us to tame.

    January 22, 2008 at 4:18 pm |
  99. geoff

    I'm as concerned about the economy today as I have been since I found out about the New World Order's agenda. Does the average American not understand that when the federal reserve cuts the interest rate as it did today, that they are ultimately robbing them blind? Do they not understand that the open border policy is skipping along hand in hand with the fiscally devastating economic policy to introduce a North American Union with a North American 'Amero'? It's time to wake up America. Your only hope is Ron Paul.

    January 22, 2008 at 4:18 pm |
  100. Jim Blevins

    The Economy is approaching true crisis. Bin Laden stated that his objective was to destroy the US economy and he is succeeding. What bothers me is that people refuse to admit that Bush's so called war on terror and tax cuts are the root problem.

    January 22, 2008 at 4:18 pm |
  101. John Razevich

    Well the economy situation is just a reflection of the media arts. you can tell by the beginning of a down fall of a society by its decline in the media arts. Until there is enough jobs and management to run those jobs. i think the loss in jobs is with the management in the white house and the laws relating to small business taqxing. It also dont help that the cost of food keeps going up to compensate the gas prices, but they dont drop when the gas prices drop. 5 years ago $200 dollars would get you at least 2 shopping carts of food. Your lucky to get one full cart.

    January 22, 2008 at 4:18 pm |
  102. Gordon

    Oh, I'm concerned about the economy, Jack. I think it's funny that this President is just as responsible for a near recession as his father was for the last recession. Shouldn't the media be bothered by more important issues as picking the next President, it is after all, the media who chooses who we the people will see on TV air Time, I as a lifelong Democrat will be choosing as i did last year... Undecided. Unless you or Lou Dobbs Run.

    January 22, 2008 at 4:19 pm |
  103. Wendel

    I'd give the Republicans and Democrats my 2 cents worth about the economy, but I need change for the $800 check headed my way. The only stimulus it adds to the economy is 10 items or less at the checkout.

    January 22, 2008 at 4:19 pm |
  104. mike Adato

    Jack, Since Washington hasn't done anything to try and help the economy until it was announced that a recession is inevitability on the way, does this mean that it won't be until our bond rating drops before Washington addressees the problem of the 9 trillion dollar deficit our country suffers. I hear very little about this issue and it seems as if it is at least as important as the war in Iraq and certainly more important than the short term economy effects. When will we deal with the big issue of our national debt or have these guys just figured if the media doesn't say anything neither will Washington.

    January 22, 2008 at 4:19 pm |
  105. Laura

    I've been worried about the economy since 2001. Many service industries were hit hard then and for the next few years. Educated professionals were increasingly without a sector to enter. Outsourcing soared, spending and borrowing skyrocketed. Democrats tried to make the economy an issue in 2004 with messages like Moveon.org's video that showed children working to pay off our debt. Finally, this is hitting home?!

    January 22, 2008 at 4:19 pm |
  106. Jack McGann

    Of course I am worried about the ecconomy. How can you not be with the caos all around us. What really makes me worry is our President. He continues to say, as he did again today that it is fundamentally sound. It is not and neither is he.

    Jack McGann

    January 22, 2008 at 4:19 pm |
  107. Alex J

    I myself am very worried about an economy that's having as much trouble as this country's is these past few months. As a 21 year old looking to move out of my parent's home this year and start life on my own, seeing a failing economy is a scary thing. Such questions like 'Will I be able to make it on my own?' or 'How exactly is this going to affect me in the near future?'.

    January 22, 2008 at 4:19 pm |
  108. richard bjorklund

    I told my girlfriend to take as much money out of her 401k as she could. Her son who is much smarter then me said no. The dow will go below 10,000 and probably this year for sure. I saw this has been a false economy since 2001, and only helps the big companys and now they will let us down. The companys that have shiped their factories over seas will prosper like now, and we can go suck a lemon.

    January 22, 2008 at 4:19 pm |
  109. jim g

    Jack, why do you think the government needs to do anything to "respond" to the recession potential?

    Whatever they do will only make it worse. Borrowing more money from the Asians and sending out checks to the American sheeple might result in a temporary bump in retail sales but what happens after that?

    The cause of the bust is the unsustainable boom that preceded it. Wasn't it obvious that borrowing on the house to finance spending sprees was going to end badly?

    Wasn't it obvious that housing was a speculative bubble that was going collapse?

    Now we have to endure the aftermath where Americans expect the government to do something about it.

    It's time for people to grow up and learn to live within their means. Borrowing money from the Asians to go on a one time spending spree doesn't do anything to support the long term health of the economy. It just runs up the national debt that much higher causes a much deeper problem later.

    January 22, 2008 at 4:19 pm |
  110. paul

    Maybe if the US's biggest companies stopped dipping into foreign markets as much as they do and actually poured money back into our own workers' pockets, this wouldn't be as much of a problem as it is. Globalization is the only possible way to go in this day and age, but how far are we willing to go before it breaks many Americans below the poverty line?

    paul
    wilmington, DE

    January 22, 2008 at 4:20 pm |
  111. V. Huber

    Jack,
    My husband and I wayched the entire debate of last night 1-21-08, moderated by Wolf Blitzer. We have come to the following conclusion that it was the poorest controlled debate (by far) that we have watche this presidential year.

    January 22, 2008 at 4:20 pm |
  112. Chris

    I understand that the house markets, interest rates, and the world market feel all of the economic troubles at present. What I don't understand is why the officials we elect to public office that supposedly sit and watch while tax paying citizens such as myself struggle to keep up with fast rising cost of gas, groceries, and the like. I don't know about everyone else but I could care less about the stock market when I get little or no tax return from MY government and all I have to show for my work and taxes are bigger bills and a barely positive bank account. How about "For the people" it would be nice to see someone in government actually take that route.
    Chris in Fayetteville, AR

    January 22, 2008 at 4:20 pm |
  113. Scott

    Why should we be worried about the economy when our president has spent us into trillions of dollars in deficit and he wants to use billions of our tax dollars to hand back to us in hopes that we purchase chinese goods.

    January 22, 2008 at 4:20 pm |
  114. Cindy

    Anyone watching the economy sinking fast should realize that Republican Presidental Candidate Ron Paul called it right.

    Our rural PA region has lost 1000 manufacturing jobs over hte last two years, with very few new ones.

    We can no longer afford this foolish war or these idiots in DC. The only one of the Dems who seems in tune wiht the common folk is John Edwards.

    January 22, 2008 at 4:20 pm |
  115. Judy

    I was concerned about the economy the day Bush took office. His father was no better. When will we learn? Corporate tax breaks are a way of handing over tax payer dollars to the wealthy. All the time the economists were touting job increases, yeah the jobs increased but the wages went down. It makes it real hard on middle class americans when they have to pay $3.00 a gallon for gas to go to work for McDonalds, and the oil companies pay their high ranking execs millions in bonus'. Yuk!

    January 22, 2008 at 4:20 pm |