Worried about health of U.S. financial system?
Customers line up in front of an IndyMac Bank branch in Santa Monica, California to withdraw their money. The bank failed and was taken over by the government last Friday.(PHOTO CREDIT: GETTY IMAGES)
FROM CNN's Jack Cafferty:
The clouds over America's economy and financial system are growing darker and more ominous.
Federal Reserve Chairman Ben Bernanke told Congress today that the economy is facing "numerous difficulties”, including strains on the financial markets, rising unemployment and the housing crisis.
He warned that rising prices for energy and food are making the chances of inflation worse. And it's getting worse.
The Labor Department reported wholesale prices jumped 1.8% last month, which means inflation is now rising at a faster pace than at any time in the last 25 years.
Bernanke's testimony comes just two days after the federal government made provisions to assist Fannie Mae and Freddie Mac in the event they need it. These two companies hold or guarantee$ 5 trillion in mortgages, almost half of the nation's total. But as more and more people default on mortgages, the bigger the problems that are created for companies that hold them.
One of the nation's big bank's, IndyMac, failed and was taken over by the government last Friday. People in Southern California waited in long lines to withdraw their money, in scenes reminiscent of the Great Depression. Investment bank Bear Stearns went belly up in March and was taken over by JPMorgan Chase. More than 90 banks are currently on the FDIC watch list.
There's more: Corporate profits are slowing, the stock market is tanking, energy prices continue to surge and the dollar hit a record low against the euro today. But this morning President Bush assured us our financial system is quote, "basically sound."
Here’s my question to you: How concerned are you about the health of America's financial system?
Interested to know which ones made it on air?
Patricia from Boise, Idaho writes:
It's starting to get my attention. For the first time, I find myself thinking "sure glad I don't have $100K". I'll tell you what really had me concerned was George W. Bush trying to educate me on the topic during this morning's news conference.
Ben from Chicago writes:
*I am very concerned, Jack. Although there are only 90 banks on the FDIC watch-list, in fact IndyMac was not on that list. When the powers-that-be do not even see the 2nd largest bank collapse in history coming, things could get pretty wild.
Bruce from Minnesota writes:
*It sounds pretty bad, but thank God it’s all in my mind. I think Ben Bernanke should talk to Phil Gramm before he goes spouting off about depressing trends. The liberal media are likely to misconstrue his comments to mean something negative, which I'm sure he did not intend. Personally, I am not too worried about banks. I hardly have any money left in my account anyway.
Jane from Silverton, Oregon writes:
The financial mess is the perfect end to the Bush administration. Could we see a montage of all the film clips of Bush saying the fundamentals of the economy are sound?
Bill from Alabama writes:
Very concerned! It is beginning to sound like the start of a depression, instead of a recession!
Paulo writes:
I am more concerned than President Bush seems to be. Of course, the worsening economy affects me more than him, especially since I am elderly and on fixed income.
Aaron from Champaign, Illinois writes:
The president is "basically" an idiot.
@jackcafferty on Twitter
No. Obama is going to fix the economy by taxing people like CNN who earn over 250K. Then things will be okay. We do not mind paying higher taxes as long as we Americans know that what we are paying is being used well like our infrastructure, the homeless and mentally ill, and not just for the wealthy's paved streets behind gated properties.
Jack,
This administration has had contempt for all aspects of government. Bush has placed his money grubbing cronies in every branch of the federal government. The only agenda on their minds is how much money can they milk out of U.S. citizens. This economy is in such bad shape that it will take decades to pull us out of this mess. Maybe it’s what we need to come to our collective senses with regards to filing criminal charges against the whole Bush crew. After all the Republicans set the standard for impeachment with a falling zipper and now we have a falling economy, falling soldiers, falling U.S. world status. I am really tired of the U.S. being the punch line for describing an inept government.
Mike C.
Wethersfield, CT
Jack,
I am not concerned yet. The real concern will come after the bill comes due. What I am concerned about is the widening suspicion that the Bush Administration (read Cheney) is bringing a burning financial house down on the middle class as a last act to his Presidency. The extent of the disaster of Bush/Cheney will not be known until well after he leaves office since they have a penchant and record of destroying all evidence of their criminality.
Jack I'm very concerned about the health of our economy. After yesterday expecially, when the folks in California made a run on the Indy Mac bank. It was all to reminisant of the 1920's. Ask Phil Gramm this ....Was the line that we saw outside of the bank real or imaginary?
Jack, I commented innumerable times on your blog that the current administration has turned the United States into a third world debtor nation. It will infuriate me when we start receiving C.A.R.E. packages from Eastern Europe and the Far East. Why not tell your viewing public what the real debt is that the current administration has burdened our children and grand children with?
Jack had it right with his "Getting Ugly". It looks like its really getting ugly in California with the bank situation there. I'am concerened that the decline in civility will continuie to escalate if the U S financial situation continues to decompose.
I'm was just approved for disability, have no health insurance, – I'm one of those they talk about who has to choose between food and medicines. I'm just waiting until Obama gets in office and praying he can do SOMETHING to make things better.
Re-write mod,
I'm just glad we speak in terms of bulls or bears when we talk about the state of our financial system, because if we likened it to a horse, it would already be shot.
Jack, is this what happens when greed rules the day? And what happens to the millions made by this greed. Do these folks get to pay some back? Hell no, they get bailed out and go on their merry ways while people are losing their jobs and their homes. What's wrong with this picture?
Before the president's latest speech about the economy I had thought it might recover with a new White House administration and some new members of Congress. If Bush is telling us that it is "basically sound", that must mean he has managed to damage it beyond saving.
If the architect of the McCain economic plan ( Phil Gramm ) has his way, we'll lower taxes to the point that the government won't have to bail anybody out because it won't be collecting any revenue. What's to worry? If nobody has anything, then we're all even-steven.
Dear Jack,
I'm very concerned about the health of America’s financial system, but not nearly as much as I'll be concerned about health of my back once I stash my life savings under the mattress.
Jack,
How concerned am I about our nation's financial institutions? I'm a doctor and if this was another type of situation I'd call in Hospice.
I'd also call in a Psychologist for the president. He needs his head examined if he doesn't seem to know we're in a crises.
Dr. Steven Lehmann
fostoria, Ohio
Very concerned! It is beginning to sound like the start of a depression,instead of a recession!
My folks were young people during the great depression and yes I'm worried for my kids who live like there is no tomorrow. Yes, I have a rainy day fund and keep my bills paid up. This I learned from listening to my parents warning. It's too bad our goverment doesn't keep a rainy day fund. And isn't great that Mr. Bush has a in with China and can borrow more money to give us to blow toward more foriegn goods.
Gwinn
Very Concerned! It just supports my belief that we should throw out of office any and or all politicians that had anything to do with our country's misery!
Yes, I'm very worried. Our financial institutions rely upon the full faith and credit of the United States government and, at the moment, there is a lack of confidence. The President's fiscal policy of cutting taxes while increasing spending has increased our national debt from $5.7 trillion to $9.4 trillion. Interest on this debt is $1 billion per day! As a result, we have less tools to work with to solve our problems.
Ed Reed
Port Aransas, TX
i'm not too concerned.when the economy collapses we'll all have no more money to buy fuels that are destroying our planet.economic failure ,government collapse ,anarchy,are all things that have been overcome in the past.the destruction of nature and our planet are irreplaceable,and can not be repaired,once its gone.
Jack
I`m very concerned with the financial system at this time. We have got to the point with this administration that we have no enforced regulations on anything from banks to tomatoes and I`m afraid it`s killing us and the nation. I hope when Bush gets out of office that we will stop having the fox watch the hen house.
Sam
Bryan Tx.
The U.S. financial system is sick, it ate too much garbage it shouldn't have like adjustable rate mortages. Just like when you eat something you shouldn't, you get sick. The American Economy is vomiting up those businesses that built themselves on the garbage we shouldn't have eaten, and then once its out of the system, we'll be healthy again.
VERY! Pure and simple VERY CONCERNED! And too be honest there are so many issues I am concerned about, that I believe that all people running for political office should be required to take and PASS an IQ test.
Maybe then we would not have a monkey in the White House as we do right now!
I am a disgruntled American!
When I woke up this morning I was very concerned about the health of America's financial system. But then I heard Bush speak and I was completely reassured, so I went back to sleep. Bush probably has too.
I'm in a rage Jack. I won't believe for a minute that any of this craziness that we have seen in the past 8 years needed to be. Your average people have been paraylized in fear for years now. Let's see, Enron, gas prices, mortgage meltdown, job loss, Iraq war, terrorists in NYC and DC. banks faling, We have a president that has preached fear for years. And a congress that doesn't work, they should all be fired.
When Bush left office as the Govorner of Texas, the state was in financial trouble. It looks like he has done the same thing as President .
I am very concerned Jack; although there are only 90 banks on the FDIC watchlist, in fact IndyMac was not on that list. When the powers that be do not even see the 2nd largest bank collapse in history coming, things could get pretty wild.
It sounds pretty bad, but thank God its all in my mind. I think Ben Bernanke should talk to Phill Gramm before he goes spouting off about depressing trends. The liberal media is likely to misconstrue his comments to mean something negative, which I'm sure he did not intend. Personally, I am not too worried about banks. I hardly have any money left in my account anyway.
I'm somewhat concerned even though we're told that policies and procedures put in place after the Great Depression will protect us. Bank failure is a continuation of the same problem that has brought about the savings and loan scandal, Enron, etc. I wish I could put all the blame on George W. Bush, but reality is this entire slippery slope started with Reaganomics and the trickle-down theory which makes the rich richer and hurts the rest of us. George H.W. Bush was right. It was "voodoo" economics. Personal greed and corruption were never factored into the equation, hence, the problem. The curse continues today. It's time trickle-down economics becomes a thing of the past, never to be revived again.
How concerned am I? Let's put it this way, Jack, at 4:00 today I have an appointment at the Bank. See you at 5:00 if I can afford the gas to get back home. Maybe I should give Cindy McCain a call and see if she will loan me her credit card.
I finally believe that the America we knew and grew up with is over. The US economy therefore the world economy is collapsing at an ever increasing rate. You can't bail out with a cheque drawn on an empty account. The US dollar is going to sink further and further until the Arabs/Chinese/Indians all demand repayment in euros. Then the dollar will totally collapse. Inflation will soon approach that felt by african and south american countries.
If you want to see the future look no further than Bolivia or Equidor. The rich and influential will own everything of value, the educated remainder will work for them at bare wages. The remainder will be in the streets, living by their wits and in their sub-culture. The dis-enfranchised will defeat the best efforts at a social and economic recovery to todays standards of living.
The troops will soon be home from Iraq....stationed to preserve and protect the politicians and the connected i.e the wealthy. In the name of good government and peace and order.
Too grim a future? Travel the world some and then report back.
The Great American Experiment is over.
Our kids are going to suffer.
My husband and I are "middle class" ... we have been unable to save a great deal. Admittedly, however, I'm now convinced we may be better off converting our 401Ks to cash and stashing the cash in a fireproof safe buried in the back yard – ESPECIALLY since GWB has seen fit to "assure" us that our finance system is "basically sound" .... NOT very reassuring coming from the guy that believed Saddam Hussein had WMDs and that U.S. forces would be "welcomed with open arms".
The bushies laissez-faire attitude toward wall street is finally coming home to roost. The oil companies,corporations,halliburton,KBR,blackwater,etc. have had a blank check to the U.S. Treasury for 7 and a half years and they have finally broken us in their unrelenting greed. We will recover,but it will take a long time and a lot of pain for all of us except the ones who broke it. The really sad part is no one will go to prison for their crimes.
President Bush assured us our financial system is quote, “basically sound.”
THAT statement ALONE makes me want to PANIC. George W Bush hasn't been CORRECT about ANYTHING during his WHOLE "administration"
Not very concerned. Dubbya does not have much time remaining to screw up the the financial system anymore than he already has.
Jack, Not to worry! The president just said," I'm not an economist, i'm an optimist. Now...that should give the economic systems a shot in the arm, or...heart.
Jerry N/Tulsa
As a poor retiree, I am very worried. When my Social Security hits the bank tomorrow [the third Wednesday of the month for me], I just hope it's still there on Thursday. Our beloved President, George "Herbert Hoover" Bush is even more "economically challenged" then John McSame. He couldn't tell us the price of a gallon of gas or a gallon of milk, and in most places they are about the same. I assume his "basically sound" remark was as much a charicature as this weeks New Yorker Magazine cover.
Don't worry, be happy! When we die, no one will care what we have in the bank or who got what. The point is to be happy and spend everyday like it could be the last. With George Bush, he makes it just alittle more realistic! My advice, drink a Margarita, listen to Jimmy Buffett, and listen to the waves!
Wildwood Crest, NJ
Our economy is in a downward spiral and of course I am worried. Pollyanna statements by Bush and McCain about the economy are not helpful. We need some serious changes and we will not get them with the Grand Oil Party in charge.
Tell us what numbers and items have been used to judge the economy as "basically sound". This administration has rigged so many numbers, at times leaving out energy and health care costs in the "cost of living". Who can believe anything they say?
Before the president’s latest speech about the economy I had thought it might recover with a new White House administration and some new members of Congress. If Bush is telling us that it is “basically sound”, that must mean he has managed to damage it beyond saving.
A long as Dubya is the decider, or any wealthy white man is the decider, we should all be very worried.
There's a disconnect between the government and the real people. If they make money by us losing our money it seems to be ok.
Get big business out of our government.
Jack, I'm worried and since I don't trust anything Bush tells us, his
press conference did not reassure me. The dollar is trading at a low rate so I think many countries are worried about our economy too. We need someone who is looking at the long picture instead of trying to just keep things afloat until he is out of office.
Jack I’m very concerned about the health of our economy. After yesterday especially, when the folks in California made a run on the Indy Mac bank. It was all to reminiscent of the 1920’s. Ask Phil Gramm this ….Was the line that we saw outside of the bank real or imaginary?
i am 51 years old and have seen my share of recessions, some were pretty bad, but i truly beleive what is happening now is gonna be a whole lot worse. there is no good news about the economy, wars, jobs, wages, layoffs, constant price increases and the mortgage meltdown not to mention, food, oil and utility prices. I pray nothing happens befor bush leaves office or this will be a total U.S. meltdown.
doug in knoxville arkansas
I'm not concerned at all. I've been broke for a few years now and I'm just hoping it touches that "upper elite" so they can get a taste. Us "po folk" can take it. I doubt Bushie's lil rich babies can, but they are getting rich off our situations so they have no worries.
How concerned am I? I've seen a pattern. When W. says anything about any subject you can plainly see that all of the facts contradict him. I don't think this man has any grasp of reality whatsoever. Sad to say I voted for him, twice.
John in Three Rivers, MI
The president is "basically" an idiot.
As long as the president says the economy is sound I believe him. Now where did those WMD's go? Oh yeah, they are over in the corner next to the promise to hold anyone accused of leaking Valerie Plames identity accountable.
Jackzilla, how worried?. Soon the American people will be asked to bail out the 2 banking giants, Fanny and Freddie, which we are told can not be allowed to fail. LET EM' FAIL. Last time I checked, these were companies with shareholders, who have been enjoying profits, over the past years, at the expense of duped home buyers. What about the folks running these companies, what are their salaries like?. What about the sea of homeowners who have lost their homes ?, whose is going to bail them out.
Here's an Idea, anyone who has been forclosed on, gets their house back. Anyone facing forclosure, don;t have to make payments for 2 years, Yea, I know...that's about as crazy as bailing out freddie and fannie. Let the s–t hit the fan for everyone, not just the choosen few.
Americas Financial System is as Corrupt as our Government! And both are greedy and getting worse!
Hey Jack; remember this? America's going to make it. Don't worry about that. Just have six month income in your insured savings account. Boy, talk about words to live by! I can still see the pies flying on the Johnny Carson show. If we privatise the white house and move it offshore we could call it the outhouse. We're just storing a couple of useless turds in it anyway.
More concerned, apparently, than George W. Bush.
I am incredibly concerned. I will graduate college next spring and I will have soaring fuel costs, interest rates, and inflation to deal with! That is no way to start out in this country. The economy could begin to stabilize itself if we would start making smarter choices– like ending the war in Iraq, investing in green energy technology, and helping those with less than millions in their bank accounts.
I'm not a bit worried. I have all my savings stuffed into an old coffee can and burried in my back yard.
We are our own worst enemies. We need to change our ways. We need to shop for products made in the USA. We need imported goods to be taxed at source to equal the playing field. Trade agreements need to be made fair. It's not fair that Chinese make products for a fraction of the price do and then subsidize their suppressed citizens with cheaper gasoline.
I am extremely worried about the nation's economy! President Bush can stand on his podium and tell us "the economy is sound", "our economy is growing", etc., etc. He's been saying this ever since he took office, but I would say 75% of Americans do not believe a word he says. Given his and Cheney's past record of inaccurate statements, half truths and outright falsehoods who can blame us for not believing one word that comes from the White House or any presidential appointee? The Chickens are coming home to roost and the American citizenry is suffering the burden of Bush's policies over the past seven and one-half years!!!
Jim
Prosperity SC
The site hasn't posted my 1st comment, so I am going to try again. Sorry folks.
I'm just a bit worried. I'm going to be coming into some money soon Jack. The bank I was going to use was WAMU to make that wonderful deposit. But, if WAMU is in trouble, I don't know what bank to use. I don't believe in omens Jack, but the location of the WAMU branch in my town was also the branch that was open during the "Keating 5" mess.
Scary ain't it...???
Patricia
Palmdale, Ca.
Very! …..Ever since 2003 when I was “downsized” out of the mainstream economy and left only with frustrations and eventual acceptance of retirement.
As the old saying goes, “Cheer up, things could be worse.” …..Well, sure enough, I cheered up and things did get worse! …..and worse……and worse!!!
Corporate CEOs, Executives and Politicians (from the highest to the lowest levels) have sold our country’s heart and soul (the middle class) to satisfy their own greed with deceit, unethical behavior and short sided thinking. It now looks like it’s all come home to roost for them as well.
It’s time for accountability on their part along with full term sentences and fines. Let’s start with Senator Chris Dodd. As head of U.S. Senate Committee on Banking, Housing, and Urban Affairs, he should have been on top of the situation all along. Instead, when the “feathers” have really hit the fan, he blames every one else and/or the other party (so typical of our politicians).
kerry diehl
grosse ile, mi
of course, extremely worried. Look back 8 years ago, and life was better off; Peace and Prosperity. And now, our financial system is pretty much in a mumbo jumbo.
Jack, Soc Sec, Medicare, & other Social Programs are hated by the idilogs on the right. Since they could not eleminate such popular programs, why not bankrupt the nation with a war, allow corporations to avoid regulation, and rape the environment? Might the "energy meeting in Cheny's office" have developed a means to force the price of oil upward further bankrupting the nation? Now the social programs will die for lack of funding. HooRAy for "market forces".
Extremely concerned. It has been obvious for quite a few years now that everything has been turned on its head by this administration. I am afraid we the people do not even suspect the half of it. Big business and Big Oil have been allowed to operate carte blanche. Many Americans are just beginning to realize the price the average person is going to have to pay. Jack, you have no idea how Ugly it's going to get out here.
Jack,
I am very worried about the health of America's financial system. Currently there are more people without jobs in america including me. With the rise in oil prices gas as well as food prices are skyrocketing. People are losing there housing at a faster rate and can't get themselves back from it. I really hope that the financial system gets better before we end up in a full blown depression.
It's about time some americans get a smack on their hands. Most americans seem to have been buying too much on credit, spending more than they make and now we are all paying the price. Americans need to learn to live within their means and be happy with what they have. It took a great depression to teach that to an older generation, maybe we need another one to teach it to the younger generation.
I am very concerned about the state of our economy. As a history buff I see a lot of things happening that are similar to the beginning of the Great Depression in 1929. I place ALL THE BLAME on the Bush Administration who has sold this country out. If January 2009 doesn't come soon, we are going down the tubes. BUT, I have faith that Barack Obama will get us out of this mess.
I am very concerned. This week was the first time we have had a run on a bank since the great depression. I grew up in the last one and believe me, it was bad. Voters had better think hard about voting for John McCain as he is promoting the same economic legislation that Herbert Hoover was in 1929. If a republican had been elected in 1932, we would still be in that depression. Roosevelt put people to work through government projects, and created other help for the average citizens like social security, and the republicans fought against every one of them just as they are today with health care and any other project for the average person. A government without a heart is not what this country should be about.
Jack,
Although the nation hasn't become inundated with Hoovervilles, the fact that the economy is less than sound is an understatement. Bush's cheerleading amounts to no more than Herbert Hoover's refrain that "prosperity is just around the corner" and that by giving big business tax breaks the money will eventually "trickle down" to the masses. History showed that Hoover was wrong and there is nothing in the news today that tells me Bush is right. Afterall, lax regulation of business and bank failures were important characteristics of the Great Depression. But, then again, what do I know since I am suffering from a rare form of "mental recession".
I’m very concerned about the health of America’s financial system, but not nearly as much as I’ll be concerned about health of my back once I stash my life savings under the mattress.
I’m very concerned about the health of America’s financial system, but not nearly as much as I’ll be concerned about the health of my back once I stash my life savings under the mattress.
Jack, It Is Getting Ugly Out Here. Pres. Bush is Nero. He's playing his harp while Rome burns. Out of Touch. Completely. And McCain supports his approach. What's sound about this is the weight of our American lives crashing along with our economy. What's worse, we haven't seen anything yet....
High priced Oil. The weak dollar.
Drill offshore. Strong dollar. Natural gas and shale oil. Stronger dollar.
Don't make loans to people who can't afford to pay it back. Duh.
Anyone who is not concerned about our financial system has been living in a bunker with their life savings under the mattress!! Each day we read about bank failings, a list of 90 additional banks on the list, corporations profits in the crapper, Bernake and company sending out the facts about what is about to happen. And George thinks we should believe him?? This is the same guy who told us staying the course in Iraq for 4 years was a great idea. We all should join those guys in the bunker and buy a new mattress.
Very concerned. I never voted for King George Bush. I knew the Bush administration and Republicans' oil and corporate interests would ruin the us.
This comment is from "One of the peasants"
As long as Chuckie Shumer and Chris Dodd are on the Banking Committee, I am very worried. You never know when old Chuckie Baby will leak another memo so he can have some headlines. As long as we have the inmates running the banking committee we all should be worried.
I am more concerned than President Bush seems to be; of course, the worsening economy affects me more than him, specially since I am elderly and on fixed income.
It is amazing to me how the government has seemed to put their "blinders" on and continually argue that we are not headed toward a recension. In there thinking its seems that if it it looks like a duck and quacks like a duck it must be an............iguana.
When America was taken off of the gold standard, she adopted fiat money based on faith. I am not worried about the health of the U.S. financial system because I have faith that American leaders will use proper judgment to save the economy from its woes. We need a leader to step up with a long term plan to ensure economic success. I have faith that someone will take it upon themselves to look to the past to ensure future success. The most recent successful economic plan was Reaganomics. Let's bring President Reagan's policies back. I have a feeling they are still effective.
Dayne
Statesboro,GA
Washing out those mayonaise jars... turning the mattress.. and keeping only the absolute bare minimum to cover debit card in my account. Whether it is identity theft... government privacy concerns... or fear of not having access to funds.... not to mention... there isn't a whole lot to put in the bank these days.
Yes, I'm concerned about the Fianacial System. The only thing more expensive than food and fuel is the Hot Air that comes from Washington. It doesn't keep me warm...it gives me chills!
Jack, Bush is right - the economy is basically sound, and will withstand even the damage that he caused to it. Unfortunately, a lot of people will be hurt in the meantime. As for my concerns, I'm more optimistic the closer we get to the end of Bush's term, and each time a new poll comes out showing Obama leading McCain.
I am appauld at the state of this country! There is only concern for making a buck. From customer service selections on the phone that avoid you, no notice price increases, gas price gouging, credit industry woes, unemployment, mortgage crises, massive debt, banks failing, a war we cannot afford among others. As long as there is controversy there is money to be made. I beleive that is why we are always in a state of gray "potential." I am sure that Bush will be laughing all the way to his mansion when he leaves office.
Jack,
Why should we be concerned? Our wondrous leader is bailing out Fannie Mae and Freddie Mac, the FDIC will take care of the banks, Dick Cheney and his "BIG OIL" honchos will lower the price of gas, all courtesy of the US Government. This would be the same US Government that is in hock up to it's ears to China, Japan, Korea, and God only knows who else is holding our Treasury Bills! Why worry? Be Happy!
Hey Jack,
Welcome to our world the poor and disfranchised. We've been suffering economic woes for eons. It's nice to see the rest of America is finally joining us.
The American economy is as sound as the presidency of George W. Bush? Be afraid, be VERY afraid!
Mark Wilson
Coppell, Texas
Absolutely I am worried. Just do a little historical reading and it doesn't take much comparison of the economic events and environment of today with that of the 1920s to see what could happen.
Too much credit + over-investment in the stock market + devaluation of the dollar = stagflation and the great depression
It's a grim reality. I just hope that Obama brings an FDR approach to an economic recovery with investment in infrastructure and alternative energy technology to create jobs that cannot be outsourced.
Casey | Tecumseh, Mo
Enough not to pay any attention to Alfred E. Newman's opinion on the subject!
Jack.... I'm not worried about our economy at all....and I'm optimistic that it will bounce back. I'm more worried about the lowly tax payer that must bailout some of our most greediest companies/banks and the ordinary people always get stuck holding the bag. I would much rather see you in another cameo in one of America's top movies then watch this fiasco playing out with our Government
Worried? Try total tailspin! Lost my job three weeks ago, no good prospects, age discrimination in the workplace is alive and well in America, Fannie & Freddie, gas over $5 here, Budweiser being grabbed and a president whose blase attitude is gut-wrenching.
It is obvious that a free market economy cannot exist with self-policing. Greed takes over and risks start to appear that jepordize its proper operation. Now, we the taxpayers, who have no control over any of it, will probably be left paying the bill. Bush and his big money cronies have operated over the past two administrations to take the U.S. economy down. I think we are in for a lot more pain before this economy is back in good shape.
If President Bush says our economy is 'basically sound', we should all panic! This pitiful excuse of a leader has been wrong about everythying from the War in Iraq to gas prices, from the mortgage meltdown to global warming! His optimism has made me pessimistic! January 20, 2009 cannot get here soon enough!
Shane
Los Angeles
I am definitely worried if we are losing jobs now what going to happen this winter when the enconomy normally slow down.
Despite our government, we'll pull through these tough times as we have in the past. I'm more concerned about our national debt and our leaders laissez faire attitude toward spending.
It's the future health of America's financial system that worries me even more, Jack.
After all, every mortgage default represents a check that an American wrote and can't cash. And we sold about a third of those checks, packaged as mortgage securities, to foreign banks.
So, those banks gave us capital, they won't get all of it back, and what they do get will be paid in palm fronds, er, I mean the tanking US dollar.
So will you be surprised when the Europeans and, especially the Chinese, decide they don't want to buy any more US debt? What will our children do then?
Keith in AZ
On top of that, there is a $9,000,000,000,000 deficit. The country is only worth something like $13 trillion. If we have to borrow another $5 trillion to bail out Fannie and Freddie, we are officially bankrupt. Not broke...owned by someone else. We need an economist, not an optimist.
Worried is not the word I would use – terrified is closer.
Jack,
I do not worry about the health of our economy at all. I have lived at the bottom of the food chain for so long that if the stock market crashed, all the banks failed, and our dollar becomes worthless, maybe the playing field would equal out. The problem is the rich would still be rich, considering up to $100,000.00 is federally insured. the $10.00 I have left won't make a difference. Our grand country has fallen and the American dream has been lost in the downfall.
We all should be ! Although Bush reassured the country this morning that all is well. To bad he didn't read the report from the Fed. Chairman today. Bush also forgot the fact that you must have credibility to provide confidence. Unfortunately this has been lost with him as the polls show due to his continued untruths and ignoring of the facts that effect most Americans. And no I an not a Democrat – I voted for him the first time
I am not worried about the healt of the American Financial System. I am worried about the health of my famil's financial system, the health of my financial system.
Banks used to give you gifts for investing with them. Banks used to pay dividends on your accounts. Now banks are simply another bill collector. I might add an added bill collector. They charge you for keeping your money. (DUH!!!)
I'll keep my money under my mattress.
America's financial system has no health.
It is dead and dying.
Put what money you have left in gold or energy or European bonds and look for some tillable land and fresh water in a moderate climate and become as self sufficient as you can.
Not only does our government not care about us it wouldn't know what to do even if it did.
Be afraid, be verry, verry afraid.
Jack,
I am really worried especially since Mr. Bush said I don't need to worry.
His comment that "our economy is growing and is still good" can't represent a President that is in tough with reality. Plus his statement that this Administration acts fast and will take care of the financial problems, really scare me.
His time in the White House can't be short enough for me.
Carol
St. Louis, MO
Yeah, Jack, you and Wolf and all the other "sky is falling", gloom and doom artists on the air are not satisfied that you have convinced the country that we are in a recession, you would like to convince us all that we are in a "depression" so that your buddy OBAMA can get elected. Way to go, Jack.
I just want to congratulate Jack, Wolf, and the rest of the CNN crew!
You are indeed the BEST 2 hours of TV News and I never miss an episode.
I'm pretty cynical.....I blame all this distuption from the secret Cheney meeting back in early 2000. As far as Banor's comment, I like how Wolf let him off the hook stating that this whole mess is the democrats fault. Where's the challenge? I often wonder what Cheney and his cronies chatted about. Probably an eight year plan.......
With each new day bringing more disasterous news on the state of our economy, George Bush's comments on the "strength" of the financial markets are ridiculous. If "W" thinks all of the Americans that are paying $4.00 a gallon gasoline to drive away from the home the bank just foreclosed on believe his implausible comment, he needs to see the White House shrink immediately.
Finally, finally, and probably too late, GM have got the message. No more Hummers, the most anti-social SUV on the road. Thank God for high oil prices. It has done what the social concience of the US couldn't do. Now bring on the mini cars. Imagine, the US could save 25% of it's transportation oil costs by converting to smaller vehicles. So easy, yet so hard. Good bye GM.
I’m not only worried about the health of the financial system, I also worried about the health of my healthcare system and our security system and of defense system and out drug system and our infrastructure system and our employment system – how much did I leave out?
Can't sleep. Uncontrolled eating. Uncontrolled crying. Depressed. Suicidal. Have I answered your question?
Worried? Energy. Debt. Inflation. Rotten leadership. Bogus information coming from Federal regulators (do you believe the inflation numbers they publish? I certainly don't.) And now the taxpayer gets to bail out the excesses of bad fiscal management, monetary foolishness, and all around poor decision-making on several levels? Yes. I'd say I've BEEN worried. The most worrisome thing is that leadership is only now noticing the mess they've made, which makes me think the value of the currency is about to fall to new depths. All this and a Bush war as a bonus.
How concerned are you about the health of America’s financial system?
Our financial system is on life support right now.
The US dollar at an all time low
Banks failing – Indy Mac the latest
Citibank close to failure
Our economy in shables
It's only time before we see a Depression
Jenna
Roseville CA
The only difference between our economy and the Titantic is that the Titantic had a band.
Cliff
North Carolina
If Bush says the economy is sound then you better start to
really worry.
The high price of oil is strangling the US economy, and thereby the world economy. It will destroy the demand for oil until prices fall.
The world is going to be in a lot of pain as the economy slows.
why doesn't anyone seem to realize that the american economy goes in cycles. about every 7 yrs. we have a drop in the economy, maybe a recession,maybe worse. but it does happen every 7 yrs. or so. the financial system of the u.s. is designed to deal with this, provided with the appropriate checks in the system that prevents predatory loans, and other greed based stupidity. if some of those checks have been weakened or removed then it takes longer to stabilize the situation. but fear not Jack, the dollar is still worth 100 pennies, and all will be well in the end.
worry ?not me jack .china or russia will bail us out.
No. I do believe that our financial system is sound. Are there problems? Of course, but the media (including CNN) helps cause a lot of the problems. Instead of reporting a full issue, the media reports the "highlights" and helps to start a panic. Talking about "possible" problems can cause a full-blown panic reaction. What you hear is that the stock market is tanking and that there may be bank failures, which is fine, but nothing about what people should do. Rarely do you hear that people should think things out before making a decision. The media has helped cause the problems that are affecting the American people and the media should take partial responsibility. Good reporting includes angering, soothing, and above all, complete and accurate information. Lately, it all seems to be along the lines of tabloid reporting instead of respectbale journalism.
In a word: Terrified! The Republicans have Deregulated all of the New Deal Protections away and Bush sounds like Hoover, each time he opens his mouth. Worse yet, so does McSame. I'm afraid we've got a world of hurt coming; that will make today, look like the good old days. It's men like Bush, Delay, McChinless and Bone Headed Boehner, that we'll have to thank for the mess we'll be in, when the bottom drops out. Question: Will we call the massive and many Homeless encampments Bushville's?
I've been saving coffee cans for months to bury my money in the back
yard. Don't ask for my address.
I'm most concerned about the banking system, we don't have millions to lose, just our monthly social security checks, they're getting harder to stretch to pay everyday expenses. We don't travel, go out to eat and can't save. Haven't seen anything like this in the 70 years I've been here on earth.
I don't really worry much about the Indymac. My concern is I hope its not the first domino in the line.
Jack: Listen to George W. there is nothing wrong. He has not enforced a law to stop this BS.
The US financial system is on life support and waiting for Chinato pull the plug.
Well, Jack, I AM worried–not for myself, but my children and grandchildren. By the way, it seems that Phil Graham, while a U.S. senator, was a main architect of the commodity futures deregulation as well as other provisions that have directly led to the financial crisis we are now in. The Enron debacle was also caused by the policies he espoused, and he now thinks we're in only a "mental recession".
Jack, I'm not concerned at all, I trust the Bush administration and Bush's optimism about the economy. I mean, hey, he was right about there being WMD in Iraq right? Hey don't sweat it, Bush has it all under control!
No way, this countries economy is going to hell in a handbasket. I would suggest we drink a lot of water. Its getting kind of hot.
Now that I have President Bush's assurance that the economy is basically solid along with Phil Gramm's promise that everyone's concern about the economy is just a mental health issue, I know that my concerns can be addressed by increased medication. I just need to know what kind our political leaders are using so that I can a prescription for the same meds.
Not at all, McCain has all the answers once he finds his cue cards ,ummm i have a solution to help the economy see more sunshine ,umm wait what is it again??, where are my cue cards ummm ummm ummm ,no worries at all!!!,, registered republican kenny griffin leadville colorado
kenny July 15th, 2008 4:22 pm ET
I am very concerned. And the fact that the President is so out of touch with the common man's pocketbook doesn't lessen any of my concerns. But there is a better day a coming !
Jack, It wasn't so long ago that President Bush was saying "The dollar is strong and the American economy is robust and growing". The economy seems to be in the tank and the dollar hasn't been weaker in 25 or 30 years. If president Bush now says the banks are in good shape, I say GRAB YOUR MONEY AND GET GOLD. Remember "MISSION ACCOMPLISHED!"
I am very concerned about our financial status as a nation right now and for the foreseeable future. GW Bush ran 5 businesses in the ground before he was selected President, use the politics of fear to be re-elected and is finding out just how strong we, as the engine of the American economy are. I believe, he will not be able to bring us down to the levels of his past failures before he was President. But he must be held accountable for both his incompitence and his self serving goals. The US will survive and it will take all of us to work together to fix his mess over the next 8 years. After that, maybe we can start to see the REAL growth left to us by President WJ Clinton.
Still hopefull of surviving this even though the economy caused me to be laid off this past March, but I think I held on long enough to get through to the next Presidential Cycle. Thank you Democrats for finding a way to extend unemployment benefits for a bit longer. I am going to need more than those extra three months.
Sincerely,
Mr. Jamie Miller
Louisville
PS Dear Mr Obama, we here in Ky are going to need some Presidential coattails to remove Mitch Mc Connell. You ran away from this fight during the Primary, and dismissed us as bigots. That is not the kind of leadership that will bring Americans together. Still hopeful for the convention floor vote to put Senator Hillary Clinton where she belongs. On the ballot for President.
The oil companies are a monopoly and big business and about profit and not about improving the economy. The licenses on the land are taken but no drilling. Why? Off shore drilling or licenses will not solve this problem.
The cause of the economic down turn is the economic policy and not the war. The tax cuts cost $3000 Billion and the Iraq war about $700 Billion. The deficit and speculation caused the US dollar to fall resulting in this crisis.
In my opinion the economic policy is a fraud.
The wealthy get tax cuts and the resulting debt is redistributed to the general population the middle class who will suffer and pay for this debt and wasted taxes.
The fraudulent pretences, representations, or promises is that the President George Bush and his administration claim that the profit, wealth and treasure, this special interest group obtains through the tax cut will be reinvested into the US economy. This is not based on economic reality or fact. There are no measures that this special interest group will reinvest they’re acquired profit due to the tax cut or that it will be reinvested into the US economy instead of a foreign economy. The President’s professional economic advisors are also aware of this economic reality and fact.
I for one am tired of this administration treating me like a child. I wish they would quit telling me everything is O.K. with the economy and give me the brutal truth. I can make better decisions on what I can do to better my situation with correct information.
To me it's not just an election that hangs in the balance, it's my families well-being.
I don't know if we are heading to another great depression or not. I'M worried that we could be. Neither candidate seems to have the qualifications to get us out of this mess. One knows nothing about the economy and one has no experience. Obama can talk the talk, but no one has seen him do the walk. How worried I'm I on a scale of zero to ten how about a seven.
Carol
Jack,
I am really worried especially since Mr. Bush said I don't need to worry.
His comment that "our economy is growing and is still good" can't represent a President that is in touch with reality. Plus his statement that this Administration acts fast and will take care of the financial problems, really scare me.
His time in the White House can't be short enough for me.
Carol
St. Louis, MO
Jack, Every United States citizen ought to be VERY concerned. Our economy is unique, based on the Middle class striving for the American dream.If we don't take the reins of destruction out of the Republican hands, we are heading for "third world" form of government. The Middle class will become the slaves of it. We will no longer have dreams become reality. If we continue down this distructive path, I foresee sects of our culture read only in our History books.
Ali Bie
Minot, ND
Jack, anytime Mr. Bush says *anything* is "basically sound", it's time to grab on, because if his mouth's moving, he's... (well, you know the rest!).
Not in my lifetime, and I'm in my 60s, have I seen things in such a horrid mess... not even during Mr. Reagan's years of deregulation, followed by Bush 1's years of economic 'slight-of-hand', when so many lost everything they had! And the insane thing about it is that it only took us 7 years to arrive at this sad state of emergency. Guess The Economy is another thing that Mr. McCain has in common with the Bush "Dyastery"!
W.L.Sakowski
I am elderly and retired. Should I draw my money out of the stock market now and put it in my basement so I have money to live on? I am to old to regain the money on the market. Oh well, if I lose all mine I guess everyone else will lose there also. Except of course, the politicians.
I was put on medicare July 1, 2008. I have been a diabetic since 1955 and have an insulin pump for the last 7 years. I was denied medicare coverage for the pump supplies necessary to use the pump because medicare didn't provide the pump and for me to get my supplies I have to get a pump through medicare. How stupid and what a waste of money. They cost over $5,000.00. I feel guilty but I will play their idiotic game and let them buy another for me just so I can get the supplies. And they demand a test quarterly that cost $300 that is not effective for juvenile diabetes. Does anyone there know what they are doing. What a waste of money, no wonder they cut back on coverage!
Very very concerned.
Very, concerned, much more than about a terrorist attack, which is very unlikely to affect me, however a financial squeeze would hurt most of us.
Until our "Credit Card Congress" realizes that it is destroying the dollar with its absolute refusal to be fiscally responsible we will continue this downward spiral. Running a war on credit and putting no limit on "earmarks" is totally, indeed criminally, irresponsible. All congressional salaries and pensions and health care should be suspended until the budget is balanced. If these people were in the business world they would be summarily sacked (and should be)
Doesn't President Bush have an MBA (Masters degree in Business Adminstration) ???? If so, that is supposed to indicate that he knows how to run an origination effecently... Well so much for having an expensive Yale and Harvard education.....