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FROM CNN's Jack Cafferty:
A top economist at the IMF, the international monetary fund, told a Swiss newspaper this weekend the worst of the financial crisis is still in front of us. Olivier Blanchard went on to say things won't start to get better until 2010 or later.
These comments came before the government extended the late night lifeline to Citigroup. The president also left the door open for aid to other banks and financial institutions considered too big to fail if they find themselves in the same spot.
But are bailouts and loans, ones taxpayers are on the hook for , really the answer? We are in the midst of the worst financial crisis since the Great Depression. About $23 trillion, or 38 percent, of the value of the world's companies has been wiped out. Three of the biggest Wall Street firms have been brought down. Investors, home owners, and job seekers are all suffering.
Americans have high hopes for a new president and his administration this January. But even President-elect Obama said today, "The economy is likely to get worse before it gets better."
Here’s my question to you: Do you believe the worst of the financial crisis lies ahead?
Interested to know which ones made it on air?
Carol from Maryland writes:
Yes, but the good news is that over time things have a way of turning around. Maybe the cycle can be broken, especially with new leadership.
Ken from Pinon Hills, California writes:
Jack, there are no new jobs in sight. Every economic downturn since World War II recovered because many good paying jobs were created by new technology, a new product, or a new industry. At the moment, there appears none of those opportunities are in sight. Without coming technology, products, or industry, our economic future becomes predictable, and the American lifestyle as we know it, will only be a memory.
No, the worst is over. The air has been let out. Thank God we didn't burst. Real values are returning to the market and hopefully society. We're taking our first steps down the only path out of this "recession", an industrial-scale green tech revolution. This will be remembered as "The Great Correction" before a sustainable economic boom that will benefit everyone on Earth.
Tom from New Hope, Minnesota writes:
Of course, the worst is ahead of us. A year ago the government told us they had their arms around the housing foreclosure crisis. It turns out they didn't have a clue how big the problem was. The government is always slow to recognize the problems we face and slow to take the proper corrective action.
Joan from North Carolina writes:
Unfortunately, I do believe the worst is ahead of us. The full effects of deregulation will hit us with a vengeance. We seem to be acquiring a great new financial team but they have a lot of years of corporate socialism to overcome. Let's hope.
Steve from Huntington Beach, California writes:
The worst is behind us. Houses are becoming more affordable, Obama has a plan to create millions of jobs and the markets appear to be recovering. Let's keep our fingers crossed.
I think that it's going to get worse before it gets better. How many more bail out's can the government provide? And while we are on the subject, I do not see Citi getting raked over the coals to obtain their $20B. Why are they not subjected to the same conditions as the automakers?
Yes, only because the real financial crisis is trying to correct the massive mistakes of the few with the finances of the many. If history has taught us anything, it's that good hard working people will pull through this thing. In my opinion, we'll be better off without the people who don't make it.
Yes, Jack, believe it is going to get worse before it gets better.
There are going to be many more job losses and home
foreclosures. And, of course, our numerous problems will
not be resolved overnight.
It is frightening that Bush, Paulson and crew are still in power
and allowed to make decisions on the future of our country.
If CEO's, financial institutions etc are forced to be more
accountable, perhaps a little good will come out of this.
Once the Obama Presidency takes place in January the markets will likely respond positively because of the great cabinet choices he has made in all areas of his administration.
With the markets rising albiet likely slowly and the promise of new initiatives to create employment the economy should remain fairly stable and begin a slow but steady increase over the next 2 years.
I don't believe that we've seen the worst yet. However; I hope that I'm wrong. I am in the automobile business and I have seen a hugh drop in sales over the past three months and we sale Honda's. People are affraid to buy due to the uncertainty in todays market and with the increase number of job loses and business closings.
Do you believe the worst of the financial crisis lies ahead?
If we let the 3 big auto makers go under, like it is looking today, we'll be looking at 3 MILLION new job losses on top of the job losses we face today..
Obama is right, you have to bailout Main Street as much as you need to bailout Wall Street.. And we can't bail out main street without creating jobs..
Where I live the unemployment rate is over 8% and climbing.. Those of us over 40 years of age have been looking for employment for years.. Age discrimination is alive and well and we are the ones that are supporting children and parents..
Look it's pretty ugly out there and I don't see an end in sight..
This is the worst of the financial crisis, it can not get worst than this. I suggest that young people educate themselves about stocks and take advantage of this all time low. The market will gradually return to its original value over time.
I believe it will be. Paychecks haven't risen, but our property taxes have, the electric company was just granted a 25% pay hike courtesy of the Florida Public Service Commission.
Companies say they have the right to pass along costs to their consumers and when they go belly up, they get bailed out.
What option do consumers have when their is no choice but to use theirr services. Who is going to bail us out?
It's hard to say. President-elect Obama has created a team of all stars to take on the problems and that makes me optimistic. January 20th can't come soon enough. It seems the current administration is place holding and nothing more.
If this thing gets worse, we can then look forward to wave after wave of crises for decades to come, as each crop of retirees finds that 2008 cost them more time in the savings process than they can possibly make up before they become unable to work.
Their is no doubt that we or the planet has not bottomed out yet, I am afraid it will get worse before it gets better. My guess and it is fairly optimistic is that a start to recovery will be mid to late 2010, sorry but I just cannot see any return to normality before that.
However, to see a return to the levels we saw under the Clinton administration will not be before a second term for our President Elect, borrowing may ease, but it will never get back to; "give e'm the money and ask questions later" we are going to have to do it the old fashioned way, QED earn it before you spend it.
Martyn, Fort Lauderdale.
Jack, the worst is yet to come. On a daily basis we see the economy worsen day by day. Let's hope Obama can come up with something quickly so save the U.S. from imploding.
Do I believe that "things" will get worse before they get better. Hard to say Jack.. It is difficult for things to get much "worse" for the families who are facing forclosure, and unemployment for the holidays.
Jack, I think the domino effect of the Big three and the investment banking tanking hasn't been seen yet. The dealerships are beginning to close but the secondary effects havent been heard about. how many jobs that aren't banking jobs are effected by them... lots. the same with the auto industry. The rippling effect is no money being spent by the consumer, this is also a factor in pushing the market down.
We are in for a long tough haul.. so move over george and let Obama drive.
No, I think if we haven't hit bottom we are awfully close. I truly believe that President-Elect Obama has everything in place to get our country going again in the right direction. It will take time, but the American people are a strong bunch who will not stay dowdn for long. We have a president-elect that has confidence in ALL of us, and that is something the Bush administration lacked. With his direction, we'll start moving forward again.
I don't believe that we have seen the worst of this financial crisis. Americans need to tune in and be very focused on this terrible economy, watching and listening to every word, bailout and stimulus package that is served up to every industry. I liken this current economic situation to spoiled brats that keeping coming back to their parents to bail them out after each and every mistake they make. There is zero accountability for spoiled kids, Washington and businesses that fail. We got to this place in our economy by congress continuing to bailout their friends that make contributions to their campaign's. We need to practive tough love and let them fail. If we don't, they all will be back with hat in hand.
Yes, definitely! Unfortunately, Corporate America must be "allowed" to file for protection under bankruptcy ... a "market-based economy" requires that the strong survive. The taxpayer/consumer MUST not be burdened with keeping badly-managed entities afloat ... they take our money, lay off tens of thousands of workers while retaining the million-dollar executives with extensive bonuses, stock options and retirement plans. When is the CONSUMER/TAXPAYER going to reap the benefit of the taxes paid in the form of a "bailout"?
If you think of losing your job and not finding another one is a financial crisis then yes!
Of course it is but not for Obama et al but for the average hardworking American. Obama's team are all insiders who played a role in the current meltdown. What we really needed was fresh ideas and a new perspective as promised by Obama but as so many of us saw-Obama was never about change but about securing power.
Absolutely. Bernanke has only begun to milk us dry for the sole benefit of his fat cat friends before Obama can do anything about it.
Regrettably, I believe harder times lie ahead of us for the next 12 months or so. My concern is the continued "bailout" of financial institutions, even though they don't seem to have a business plan to see that the taxpayers get repaid. No one will bailout my business if I make strategic mistakes.
It depends...For those who've lost their jobs and homes, and can't afford a Thanksgiving turkey, or toys for Christmas, the worst is here and now.
Citi Group just announced that it would be eliminating more than 50,000 jobs. However, since the company just received a *second* multi-billion dollar bailout from the government, does that mean it won't have to cut so many positions? If not, will someone ask them why? What is the company doing with the money if it is not going to payroll, etc? How are taxpayers kept apprised of how these funds are being used?
It will take many years to undo the damage done in the past eight. Although tougher times may lie ahead, I'm optimistic that the next administration will get America back on track.
We are hoping and praying that it is not ahead. We have already lost 40% of our retirement funds.
In order to answer this question, the outcome of the proposed Auto Industry bailout will be the major deciding factor. If we don't save Detroit from certain financial ruin, then yes, the worst of the financial crisis lies ahead. If we help this important industry save crucial jobs, then I think we will have avoided pending disaster. The lives of millions hang in the balance and we cannot afford to be so obtuse anymore.
I really don't think the worse is behind us; however i feel that with each of us working together and doing what is needed we will be a better nation on the other side of this great problem
Howdy Jack: We haven't seen the worst of this mess yet. Even with a new administration in Washington it will take time to work out of the mess the Bush (Hoover) years have left us. But he dosen't care he and his friends "got theirs". I just wish he would retire someplace but Texas.
Absolutely the worst is ahead of us. All of the companies rely on the middle income and lower income people to in the end purchase thier products and they are going broke fast. Even if you make the best widget around and you had a great business plan and are completely solvent as a company if there isnt anyone willing to buy your stuff, you go broke. Compared to a baseball game we might be in the second or third inning, the worst is coming, mark my words.
Yes, much more severe and it will take much longer, if ever, to get out because the "Fed" just keeps feeding the fire with bailout after bailout.
After letting go of 850,000,000,000 without even asking for a plan, who really believes that we are going to get what MAIN street really needs. The economy is going down because us people who only make $20,000
a year can't seem to hold on to enough money to advance. I hope we can turn it around but it seems like the credit rating companies have doomed us with their house of cards left in a pile...
Unfortunately yes. Remember what went up (the stock market) has to come down, and it will probably be in the low 7000s or less before we see the economy start to stabilize. The way the Bush Administration keeps "bailing" out banks and the like it might get even worse. Where is the money coming from to keep giving to the banks and Wall Street?
When the US loses its AAA credit rating in 2009 or 2010 this question will seem odd in retrospect. This thing hasn't even started yet.
Oh yeah! We haven't even touched on the $500 trillion worth of dirivitives that are soon to implode. This will be much worse than the Great Depression of the 1930's. Back then we had factories that actually produced good quality products that people needed. We've shipped our manufacturing base overseas. Now we don't make squat and the things that we do produce, suck. In the 1930's the US was the world's creditor, now we're the world's largest debtor nation. We owe everyone mega-bucks. Also, the US was a oil exporter during the depression. Now we're the largest oil importer. To top it all off, the population is in massive ammounts of debt. The savings rate is in the negitive. We have a criminal cabal in charge of the country that starts wars for corporate profit. The rest of the world knows this and is quite tired of dealing with our crooked masters and they might just stop financing our greed.
This country is toast.
Unfortunately yes. Citi Corps stock value went up synthetically today because of a promise of more bailout from the Bush people. All we are doing is shuffling paper around and don't have anything to back up the "loans." The stock market will probably settle at 7000 or less before the economy really stabilizes. Remember, "what goes up, must come down," and it doesn't take a financial genius to figure that out.
We are only seeing the very tip of the iceberg. The worst is yet to come, and if something is not done soon, it will get really ugly out there. With gas prices going down, a lot of people are probably going to feel complacent again instead of holding on to more frugal ways. We'll see what happens after the Christmas season when those sales numbers come in (as well as those credit card bills).
The worst not only lies ahead, but so does rapidly declining worldwide oil production starting late next year, which eans it going to get WAY worse.
What this country actually needs to do is politically impossible in a democracy with the voters at their current state of ignorance, but there is hope Obama can at least keep utter catastrophe at the door long enough for that to change sufficiently to save th country over the long term.
The worst not only lies ahead, but so does rapidly declining worldwide oil production starting late next year, which means it going to get WAY worse.
What this country actually needs to do is politically impossible in a democracy with the voters at their current state of ignorance, but there is hope Obama can at least keep utter catastrophe at the door long enough for that to change sufficiently to save th country over the long term.
I think the econmy has about hit the bottom end. It's a pretty bad bottom so the road back is going to be slow and painful. I like Obama's idea of creating jobs to fix our highways, bridges and the total infrastructure of our country. That, I believe, would get people back to work and buying cars, homes, food, clothes and other things that get the economy on the road to recovery. Put us back to work because thats what makes Americans, Americans.
Jack I sure hope so as it took me 44 years of hard work
to build an IRA and to see it lose 41% of it worth in just a matter
of a few months. I'm 71 years old and will never recover the loss.
Home, auto and commodity sales drive the domestic economy. The payments that people make on these assets drive liquidity. The value of the assets establishes the value of the market. Value & liquidity drives investment, expansion, jobs and further consumption. Know anyone in foreclosure? Know anyone buying a new car? Know anyone that owes more on their house that it is worth? You tell me Jack... Does it look like the worst is over to you?
Of course. With Bush abdicating his responsibilities and traveling to Peru and other places so he doesn't have to deal with his failures, the economy is bound to continue to flounder. The only way it would get better with Bush is if it could be cured with fearmongering. We need leadership. That means Obama. Maybe Bush should resign. Him recognizing the fact that he is drowning in this crisis might be the only way I'd develop any respect for him.
I believe that we are at the start of a major depression or deflation. Using public monies to bailout financial institutions or the auto industry is like pouring gasoline on a fire in the hopes of putting it out. The existing US government policies as to regualtion, oversight and polcing has bred a group of greedy and incompetent executives who have used the opening as a carte blanche to satisfy their own personal egos and wealth. The existing group of executives in both the financial and the auto industyr have proven their incompetence and need to be replaced. Otherwise the recession is going to be long and deep.
I believe it is. Being a retired senior, I wish it weren't so. The domino effect is going to take much longer to slow down & hopefully reverse.
At least after other recessions there were factories to reopen. Those factories are in China, India etc. We have lost all of our influence in the world because of greed & horrible leadership & I have deep concerns for my children & grandchildren. I trust president-elect Obama to do what he can. Unfortualely, we have little bargaining power anywhere in the world. Hey, I know, let's nationalize like other cpuntries have done & cancel everything we owe to China etc.
Just watched President Elect Barack Obama's news release.
He indicated things are going to get worse before they get
better, and, the numerous problems which took several years
to develop will not be resolved overnight.
Am sure there will be additional job and home losses.
We will all have to tighten our belts, finanical institutions,
corporations etc included.
One shining light, it appears a knowledgable, intelligent team
is being put into place to lead our country back to the greatness
it once had. Alhough there have been terrible consequences,
perhaps we will all come out of this better than ever.
Now that all the player's agree were in a recession the depression is right around the corner for some Americans. I think we return to normalcy in Mid 2010
the worst is ahead of us as long as the people working on this, so called, bail out aim the help at Wall Street and not Main Street. Almost all of the money spent, to date, on this issue was to help Financial Organizations who benefited directly from the Mortgage Problem. And Main Street and the Auto Industry with its Millions and Millions of working people will have to pay for it, again. Just remember, when you ignore the working families you reduce your Income (taxes) and we are already deep enough in the hole.
Jack, Yes!! The unemployment picture will get worse in the next 6 to 12 months before getting better. Inflation will go up before stablizing at an even level. The interest rate for credit will go up for about a year to 18 months before dropping. But it will take 4 years before the stock market gains 75% of the loses experienced in last 2 years. This is great for 401K's and mutual funds, but patience is required and retirements will have to wait for about that leangth of time.
Yes, I really truly do. And yet, I still seem to be overshopping for holiday food and gifts and decorations, etc. Much as I hate to admit it, I think I'm that middle-class American who just isn't ready to go cold turkey and face up to our economic crisis in real and tangible ways. Maybe I want to have one more really good Christmas before the bottom falls out completely, or maybe I'm just in a fog of denial. Honestly, I'm really not sure. But the prospect of things getting a lot worse before they get better, yeah, I'm pretty darn sure of that.
Probably. I'm sure the current administration is in the process of leaving little time bombs behind to keep President Elect Obama on his toes. However, with the quality of team he is creating, and the lack of imagination of Bush's people, I don't think that there will be anything that the new administration can't handle - with OUR help. Dealing with the mess is going to require us all to pitch in!
I believe the confidence of the consumer and of the investor is beginning to become stronger. The financial team that Obama has selected has created that confidence. If we have confidence we are more apt to react in a positive manner to that confidence. Net result....we have seen the bottom.
Most definitely Jack, the corrupt Bush administration along with a self-serving Congress and criminal, greed-driven CEOs have dug us into not a hole, but a canyon!
Jack. Of course there are more difficult times ahead. We didn't get into this mess overnight, or just the last 2 years. It will take us at least 2 to 4 years just to see the bottom. Look for many job opening in the corrections field because we will need many more prison guards shortly as the economy worsens and crime rates increase. Too bad most of those responsible for this will be jetting off to homes in other countries or they hide in their walled and policed estates and not going to jail .
Yes. How much longer do you think the Chinese will continue loaning us money? Which is why I am liquidating my financial investments, stocking up on cans of Vienna Sausage and shotgun shells, and retreating to a secure, undisclosed location.
Port Aransas, TX
as long we have bush in, what can we do but wait until obama gets sworn in as president..this is worst finanical crisis that i have seen in my lifetime..hurry up with bush's term so obama will fix the economy so people won't be stressed out..
Probably, but the scary part is that no one really knows what will happen next. There are surprises every day, like yesterday's bailout of Citigroup. The government needs to force the big corporations and financial institutions to be truthful and forthcoming about their financial situations so that the planners can get an idea of what is broken and how to fix it, and fix it all at once. Patching problems on the fly has the stock market scared and on the brink of a really big crash.
Yes, the worst is yet to come. The banks and auto companies are yet to come clean- neither has stated exactly the total amount required to save them in the long haul. They would prefer to nickel and dime us continually, never telling the whole truth. The initial dole becomes the argument for why they can't be denied the next one- lest the first one will have been for naught. It's a slippery slope we are accelerating down. God help us all.
I don´t understand why the american taxpayers are paying for bad management decisions, such as that of Citigroup. Citigroup recently bought two banks in Central America, Banco Uno & Banco Cuscatlan, both known for their bad service and huge amount of debt, due to bad collections techniques and unstable economies. Nevertheless, Citigroup is now asking the american people for a bailout. Americans need to wake up and pay more attention as to what these companies, which represent you and your lifestyle are doing with your money.
Jack, I think that for the financial crisis to improve we have to shore up our infrastructure, which will create jobs, and improve spending. The big dogs in the business sector can have millions, but if they have no one to sell to how long can they last?. We the public need to spend, spend, spend w/new jobs, jobs, jobs.
Jack, How much more can we take?
I guess with the new prez elect we have to have faith in him to pull us out of the mess we find ourselves in. We have think positive but optimistic.
How do you stuff a Spam turkey in can?
Unless you have been living in a vacuum, you should have been preparing for this situation years ago. We take far too much for granted.
On the plus side, we are about to be forced to become a greener society. We may not eliminate our dependence on foreign oil for awhile, but we are certain to learn about alternative energy sources and conservation.
Learn to create a budget and then learn to live within those constraints! You will have to choose between spending that $50 for energy or to put food on the table. Turn off lights when they aren't needed. Recycle what you can. Walk more or ride your bike (you need the exercise). Use mass transit (you're already paying for that!). That goes for the government, every business, and each and every family in America.
Wake up, America! If we don't pay attention, illegal immigration and gay marriage will be the least of our worries.
You better believe it. The domino effect is just starting. First Wall Street, whom I'm beginning to believe lied about it with the trips and spa retreats. There is the auto industry and now Citigroup who did it to themselves with their greed of high interest rates, over the limit fees, late fees and high finance charges. I have no sympathy toward any of them. If it weren't for the low-tiered people who really need their jobs at this firms, I would let the chips fall where they may.
I shudder to think about after inauguration of President-Elect Obama what messes and surprises he will find himself saddled with by the crooks who put us in this mess.
Jack: I believe that the worst is still yet to come. The market hasn't bottom out yet. I don't foresee another Great Depression, but I am under no illusion that it can't happen, however, I'm going to take a chance and hang onto my stocks. But I'm going to make sure, over the months and years to come, that I turn down the thermostat.
The is still ahead if we keep printing up money to bail people out. We have to let the market correct itself. There are going to be tough times. There is no way around that. The actions that we take to day will determine if the tough times last for 1 year, 2 years, 5 years or 10 years.
I believe that the worst of the crisis probably is ahead, but the comforting reality is that we have competent people in the Obama administration already working on it. In every major speech that Obama made prior to and also on Nov 4 he said the road will not be easy. With renewed American spirit and preparation we'll get through this one, as difficult as it may be. The patient is on life support, but we now have the best doctors attending.
I'm wondering why CitiCorp is "too big to allow to fail" and the auto industry is not. While I agree that big auto has not been keeping up w/the times and should have been designing more eco-friendly cars and scaling back on over paid workers w/greatly inflated fringe benefits, why are the bankers, who've had billions thrown their way, been allowed to hoard it and not lend it out as was the plan in the first place? And now, Citi Corp will get another chunk of our tax dollars! What's wrong w/this picture?
Yes, Bush has a chance to redeem himself a little now, but he`s not going to. We are in limbo right now ,allowing a mad man to fulfill his destiny, to see just how much distruction he can inflict upon us while we just sit and watch, and count the days until jan. 20th. Way to go dubya. MISSION ACCOMPLISHED!!!!
No, I think we are in for worse times yet as more and more big businesses come looking for a handout while the American citizens out here lose their retirement funds. WHEN do we get bailed out?! I've lost over $90,000 in my retirement fund and I'll never see it back before time for me to retire. The government is leaving our kids, grandkids and great-grandkids a huge mess.
This is just a begining. Our corporations are sending billions of dollars to China, India and Saudi Arabia and Iraq. Workers here are competing for lowest wages. Our government is giving our money to the rich without strings attached. This money is going into the black hole without doing anything for mainstreet. Fat cats are worried about their taxas going up Companies are forcing labor unions to give up their contracts but CEOs can not give up their contracts.
306 billion bailout upon the 2 trillion borrowed on top of the 5 trillion national debt; difficult question; as bush still wants to bail out more banks!
Now that creepy Bush is leaving it can only get better. Send him home NOW!!
I'm afraid so, Jack.
Fareed Zakaria has brilliant guests on GPS like Sachs, Friedman, Soros, they fear this nose dive continuing for 6 to 18 months before Obamas steps will level us off.
They must act to avoid the crisis which are lying ahead as soon as possible.
Jack, one thing is for sure – the economy is going to get worse before it gets better. There is going to be a lot jobs eliminated in 2009 as more and more businesses fail and large corporations continue to cut or outsource jobs. The impact on the economy will be huge as financial, auto and retail industries are hit hard. We already see large and small retail business going under faster than we can track.
Hopefully, Obama and our newly elected congress will be able to put some things in place to lessen the severity and longevity of the recession. One thing is for sure, years of neglect, deregulation and deficit spending by the government and the American people have brought on this crisis. It will also take years to correct the damage.
Thank God that we no longer have the incompetence of the Bush Administration and a Republican led Congress to screw it up even more. Now it is the Democrats turn, only time will tell if they can do any better, but I don’t think they could do any worse.
The "bail out" of CitiGroup is being made with money the US no longer has (how come then the assests of the Federal Reserve banks have now reached over 2.5 Trillion?). We're effectively bankrupt at this point. There is no where to go, but down in an increasing death spiral.
I don't think that anything can be done at this point to pull the nose up. TPTB want this to happen and will sabotage anything anyone with brains can come up with.
We'll be lucky if the bottom is around 5000. At this point I think we're facing a total collapse of the US and possibly the World economy.
My crystal ball is in the shop for repairs today, but I think the economic crisis may possibly get worse between now and January 20th, but will recover and be on the upswing after Obama takes office. I think he will instill the confidence needed to get the economy moving again.
Unfortunately I do, especially as no one seems to know the answer to improving it. They'll be alot of hits and misses before it's all over.
Question – The banks/financial institutions that have received bailouts, why have they not reduced their credit card interest rates?
They have received federal/taxpayers monies, but in turn, they don't seem to relish helping the consumer (main street). This has already been proven by them not unfreezing lending. I truly don't get it!!
You betcha! I think it will take about a full two years to see the full devastation bush & co (republicans) have wrecked on this country.
I think the worst does lie ahead. Congratulations all you out-sourcers & greedy CEOS! Since so many manufacturing jobs & Technology jobs have left the country – it's going to take a heck of a lot longer for this country to recover. It would bew nice if we could outsource those CEOS overseas.
yes. Paulson and the Bush administration is keeping the worst from everybody until Obama takes over then we will see just how bad everything is.
The financial crisis AROUND THE WORLD will worsen because many countries outside America are facing the same or worse economic problems but without sufficient bailout capability. These failing global conditions ultimately impact international trade (harder to export and more expensive to import) and inhibit the flow of credit and currency between countries.
Unfortunately, I do believe the worst is ahead of us. The full effects of deregulation will hit us with a vengeance. We seem to be acquiring a great new financial team but they have a lot
of years of corporate socialism to overcome. Let's hope.
Jack I just don't know. But I will say this having seen President elect Obama news conference with his financial advisers this afternoon made me feel hopeful we can turn this thing around. People regaining their confidence means a very big thing in today's economy.
The sooner we get the new congress and president in place the better for the economy.
Unfortunately the worst is ahead of us. It will be hardest for those whose worth is based on how much they own. It will be hard on kids who have been indulged and given everything they want. It will be hard on those who believe that fiancial growth is the only way to succeed.
As long as W is the decider, it can get worse. 57 days and keeping my fingers crossed that the red phone doesn't ring.
I hate to imagine how much worse it COULD get. I'm already facing foreclosure (VA loan, small house bought 20 years ago, by the way - long before the subprime mess), have already been thorugh bankruptcy due to lack of jobs (most of the ones in my field have been outsourced to India and China), and I'm getting older. Thankfully, I have a new job that I hope remains steady, and health benefits for the first time in 8 years. So many others I know are in the same situation or worse, and it isn't due to greed on their part (none of them are a part of the subprime mess), or over-reliance on credit cards, or bad long-term planning. Most are just caught in the middle of the crisis.
But I know I HAVE to imagine worse, because it may actually happen. I may lose my house and have to sell off many of my belongings. I'll never again be able to afford to get a house with my credit rating now. My job may disappear, my health get worse, etc. etc. etc.
Worst to come, definitely. The financial mess atill hasn't been stopped. If caused a widespread repercussion including loss of jobs. However, the underlying problem is the loss of jobs due to yhe loss of industry to chesp overseas labor markets, outsourcing, and to some extent the use of illegal immigrants in the US.
Until the absurd Trade Agreements are altered, there will be continued loss rather than recovery. All Agreements, including NAFTA and the one involving China need to be renegotiated to provide that imports to the US meet our Health & Safety standards. Importers should pay the cost of inspection.
The tax incentive for job creation is OK but small impact. Wened permantent encourage for keepin jobs in the US. WE should give a tax break to employeers with a high percentage of US citizens in the workforce. 5)% break even, higher percentages, more reduction. This should be paid by a 15% increase in Corp. tax – deceases to use the excess generated.
NO. I think we just need some creativity from our leaders.
How about confiscating oil company profits to bail out the auto industry instead of fleecing taxpayers.
How about confiscating C.E.O. profits to bail out banks instead of shaking down taxpayers.
How about firing the people in charge of regulatory agencies and putting some competent people in charge.
How about mandatory restructuring of all mortgages to rates that homeowners can actually afford instead of letting millions go homeless.
There are many things that could be done to turn around the economy immediately.
Glen in Laurel, Maryland
2008 isn't costing us, it is the last eight years. It is the bankrupt policies of trickle down didn't work for Reagan or Bush, Sr. much less for the family idiot, W., the greed of Wall Street and the big oil companies, and the short-sighted view of big business that caused this mess.
The current financial crisis has it's roots deep in the history of the GOP...it started under the Reagan Administration which created the largest deficet in our country's history to that time, Bush 41 did nothing to check spending and balance the budget, he left office with a defecet even larger than Reagan, The Clinton come along and starts to show real progress at balancing the budget and building a sustainable economy...The comes the GOP again and Bush 43 cuts taxes for the rich and continues the defecet spending to the stratosphere...We have seen the results of income redistribution from the working class to the rich...And it starts with GOP policies
No Jack, there are no new jobs in sight.
Every economic down turn since WW2 recovered because many good paying jobs were created by new technology, a new product, or a new industry. At the moment there appears none of those opportunities are in sight. Without coming technology, product, or industry, our economic future becomes predictable, and the American lifestyle as we know it, will only be a memory.
The worst is ahead of us. Then will come the realization that this is permanent decrease in the American standard of living.
My question is what has the federal, state and local governments done to prepare for the tens of millions of homeless men, women & children?
As the jobs for the boys bailout grows on wall street, anything wall street wants it gets, what has happened to using some of this bailout for main street, after all its main street that's paying for it.
Hats off to Congress for insisting on a plan from the auto manufacturers before paying. They didn't go far enough. We taxpayers should also insist that Congress provide the taxpayers with a plan as to how they are going to rescue us and the country from falling over the edge. Perhaps, we should ask Congress to cut their own fat, remove the perks,eliminate the recesses, etc. before we provide them with revenues generated by our tax dollars!
I'm forever optimistic! but think it might be a great idea to initiate a drug screening program for all financial exec's at bailed out banks before we see real change, aren't Walmart clerks regularly screened? For the past two fabulous Hampton summers, Wall Street was partying like it was 1999 again. Oh those were the days!
The economic future of our country is traveling down a long road that is filled with many pot holes, with each hole representing a Government bailout or stimulus plan. Ironically any action by the Government to save some of these companies will turnout to be the worst case scenario for our economy...
Yes. The bottom has not been found yet. Sad isn't it? How we have allowed this mess to get started and we, the American people will have to pay this and the wars for the rest of our natural born lives and our children's children will still be paying for our mistakes. What happened to the slogan " Never trust anyone over 30"? Maybe the hippies were onto something.
JACK: All the big companys alway want the biggest,best higer,Now they have got to the top.And it cost too much to upkeep their IMAGE. They want to budget cut, Well they better BUDGET CUT from the top, CEO's have got to roll up their sleves and wipe their own nose.
2008 is only the beginning of this financial storm. 2009 will be twice as bad, we will be wishing for 2008 numbers. Politicians, Wall Street, Bankers and Brokers sold us all down the river. Greed and Corruption is and was the name of the game. The Government pumping money in every direction is NOT gong to save us (the American taxpayer).
I'm glad my Dad, who fought in WWII is not alive to see what has happened in America. The USA is in sad shape, and there is not a "Cabinet" that President Elect Obama can put together to save us from this. GOD HELP US...
One thing the past 8 years has proven is that unfettered capitalism is only in the best interest of a very few people with the masses paying the price for their success.
Unless governments start imposing some rigid restrictions on lending practices and bailouts etc. then this will just be the start.
The fact is greed has to harnessed to a degree and corruption has to be met head on for the good of the country.
No Jack, Wall Street shot up like mad After Obama revealed his new
Yes, Jack, I do believe the worst is ahead. But, I also still believe that if they gave the money to the people it would be a shorter problem. If the people had the money it would be kicking up the economy immediately. Those with morgages could pay them off. Those who rent or live in substandard housing could buy homes. Those of us who own our homes could install solar systems and other energy efficient programs to our homes. Those driving clunky old gas hogs could upgrade to more fuel effcient vehicles. And of course we would all go shopping. We would have the small businesses and big businesses, too, out of the hole in no time. Where have all the practical people gone? Not to Washington.
Its being predicted that it will get worse. All the campaign florick and promises will not suffice when reality hits you square in the face. The current administration is lame duck, so they aren't going to get into it any deeper. The upcoming administration is just going to have to tax to the hilt, in order to cut back on the TRILLIONS of deficit that the bail outs are going to impose on us taxpayers. We were warned !!! So the so called 'Change' is just another cover up word for more of the same.
Jack: The best and the worst is yet to come.
Yes. I do believe the worst is ahead of us. Too much damage has been done by Bush and his cohorts for it to be stopped or, even with great effort by the best minds available, turned aside. To all those who voted for Bush once or, God forbid, twice I say, thanks a lot.
Jack, the difference between reality and fantasy is pain and we have not as a country gone through the pain necessary to bring about the changes that we need to make. It will take at least two years to get the regulations in place to stop the bleeding, so the answer in my opinion is yes it will get worse, a lot worse, before it gets better.
Jack, this could be the greatest boondoggle in American economic history if we only grabbed the reigns of this beast. We need to harness the best minds of our generation to put forth new energy resources, new transportation resources, and incorporate those into the infrastructure for the 21st century. We could market these goods and services to the world and bring forth a new Renaissance. I look at this world and see hope where others see despair. We have the backbone, the know-how, and audacity to do it. By God, we just need someone to pick up the flag and lead us!
Not yet Jack, But where is all this bail out money going to go. We really have not herd, how it will be spent? How about a veterans bail out, and a middle class homeowners bail out or a collage student bail out, instead American will bail out the top 1% of the wealthy? That is not even trickle down economics that’s just highway robbery.
Of course the worst has yet to come.
But....there is a light at the end of the tunnel (for the last eight years that light has been a train or should I say "trainwreck").
That light is Barack Obama. As we can all see by the Cabnit he is putting together.....which consists of the Best of the Best.....he is going to bring about the Change that he promised.....the change our Country needs.
Jack, Unfortunately I believe that the worst is yet to come. Hopefully early next year, we will start to climb out of this mess.
Yes, I do believe the worst is to come for the average working American. Instead of bailing out Corporations that made their money, spent it on lavish living and whatever, bailouts need to go to the people. After paying out all the taxpayers' bailout money for the millionaires, there's nothing going to left for poor slobs like me and the rest of us working Americans. As soon as this crisis began, the layoff of workers who make the least of wages, no bonuses, the big pigs pointed at their benefits, wages and said they made too much money and the cause of the crisis.
However the big corporate suits kept their positions. It should be the other way around. Workers need to stay on and produce, the CEO's should be the first to go!
Even when credit eases, loans become available, and the financial markets settle down, the flywheel effect from all the hits to-date on jobs, 401k's, and housing will continue to drag the economy down. The real effect of the 2008 crash is just starting to kick in. There will be many more layoffs, foreclosures, and bankruptcies before this wreck is finally cleaned up by Obama and crew. And I think it will take years, not months.
I think it will get worst for 2009. But I think it will last even longer 2013 if (1) Bail-Out packages are not given to homeowner through their banks (2) banks that have already gotten Bail-Out money aren't forced to renegotate mortgages with homeowners in default, makes loans, feds monitor the use of those funds, and re-payment plan is formed (3) Bush's low tax rate on the wealthy is rescinded immediately and tax the wealthy at a higher rate or at the Clinton's rate (4) Bail Out the car companies b/c they hold millions of jobs for middle-class America w/ feds monitoring, plan to create quality products to compete with foreign countries, no-outsourcing of the funds or add'l jobs, car made with higher mileage – 35 mpg on all cars. (5) compnay outsourcing business overseas recd less tax write-off then companies that do business here (6) simplified Tax regulation for those making less than 50K a year w/children
It seems that nearly all the indicators (unemployment, bankruptcies, retail sales, foreclosures, corporate profits, the DOW, etc.) are continuing to slide down. Imagine each of the indicators as a comet on a collision course with earth. Trying to deflect any one would be a challenge. Deflecting them all? Well, that's gonna take some time.
By the way–two possibly related thoughts about which I've heard very little. Maybe grist for future questions.
1. We're hearing this crisis is shaking out the weak corporate entities. However, the lifelines such as that going to Citibank today are being tossed not necessarily to the strong, but to the behemoths who are "too big to fail."
2. As property values fall, governmental entities that survive on property tax revenues are going to feel the pinch in the moderate term future. For example, schools where I live are largely funded by property taxes. They're okay for a year or two, but as valuations fall to match the market, property tax revenues for the schools will fall too. There will be a lot of weeping and gnashing of teeth then, won't there?
I believe that we are going into a depression. As much as I believe in Obama and his economic team, I don"t think they can stop what we have been heading for. All the jobs gone, more and more in food shelters. I don't think we have seen the worse of it yet.
I think we should consider several things, the trade imbalance, increasing foreclosures and something that the media may not really be focusing on and that is the effect of the financial crisis on international trade. If Citigroup had to essentially be bailed, then we need to check the health of all major American banks because right now, no one seems to be safe.
currently in Abuja, Nigeria.
How can it get worse Jack? Obama has promised us all jobs building windmills and electric cars. Sorry, have to go now and fill out my bailout application so I can get a new windmill powered snowblower. I'm not sure it will fit in the garage though.
I suspect the DOW and related market indexes may be near their bottoms (I sure hope so) but I also suspect that the effects of job losses and dwindling savings and 401Ks have yet to be fully felt. It's going to take some time to fully refloat our economic boat. I'm willing to give Obama his full four years before I pass judgment on his success or failure in dealing with this crisis.
Yes, I believe the worst is ahead. If Citigroup, the largest bank in the U.S. and one of the largest in the world needs financial help, we are not yet at the bottom of this financial hole. The Treasury is only taking steps to try and prevent a financial market free-fall while they are still in office and buy enough time for them to leave this mess for the next administration and get out of town.
I'm the eternal optimist...just like everytime I play video poker in Las Vegas, I think I'm going to get a Royal Flush, I definitely think that we have seen the worst of the financial crisis. It is all behind us now and we are on the road to recovery! We'll all be singing "Happy times are here again" very, very soon (like on January 21st).
Well, if President Bush gets the ball rolling it can help, but if the bulk of aid won't be until after January 20th, we can free fall a long way in two months. It will be a yone to two years at best before we will see the light of day and that is if the auto companies don't disappear. Obama didn't start this mess, but he will clean it up. Lame duck George has run up an enormous tab and is leaving it for us to pay off, regardless of who is in the Oval Office..
I think there was much worse still ahead for us, but hopefully the team Obama is putting into place can start turning this mess around. We are close to bottom now thanks to the Bush people. Thank goodness for term limits!
No....Jack.....Obama was elected because he swore he could fix it! He better get to work or will can his butt too!
yes, the worse is ahead because those who have some assets will run out of the assets and/or will not be able to unload them, the car industry is going to be a mess whether it is bailed out or not, the banks keep going further down the drain (e.g. citibank).
but as dickens said- it is the worst of times and the best of times... the best is also yet to come, in the name of a new generation of leaders, a new government in washington and an opportunity to shift the paradigm under which our economics have been run.
America is currently facing two distinct and radically different futures. One would pull the nation out of the clutches of economic ruin. It requires a proactive, disciplined, and focused government; a people who are willing to pull together for a common objective, united by humanity, and who will sacrifice when it serves the interests of the people, the nation, and the community.
America's other future is apocalyptic. In this scenario, the government continues along the same path it has followed for the last eight years. Record numbers of businesses and individuals fall into bankruptcy. Unemployment skyrockets. Poverty becomes rampant. Shanty towns begin to crop up throughout the country. The crime rate explodes with a rapid increase in violent crimes and crimes against property. Violence and clashes with police grow rampant in the inner cities and bleeds over into the wealthier suburban neighborhoods. International unrest grows worldwide and wars break out in many regions throughout the world. As governments crack down on dissidents and revolutionaries, freedoms disappear and democracies are replaced with facist and despotic governments. Think it can't happen?
Human Rights Advocate
Yes! Every day it seems the news gets worse. Today it was Citigroup,who's next?
IF I knew the answer to that question Jack, I'd be a very rich man! I'll tell you what though, if this downturn happened a year ago,and we would have had to rely on the present administration to get us out of it.
I think we would be all fighting over Gov. Cheese, and standing in line at the soup kitchen's!
Yes, because at this time many haven't felt the crunch yet, and when that happens you will see it a lot harder for all of us. It is the hardest on the people who are hurting now, because they are at the low end of the totem pole, and that is the only trickle down effect that they get, as we all know that STUFF flows downstream, so you know who will be left holding the STUFF, and which end of the stick they are going to be holding when it happens.
I think it might depend on the world's economy. If things are just as bad or worse, we just might pull through this. But I do feel that the stock markets will go much lower close to 6000. This crisis is just getting started. We may have to go back to something like the WPA work program of America to jumpstart our economy.
Dale New Mexico
What we see now is the tip of the iceberg. The whole system is collapsing. OK we bailed out mortgage, talking about Detroit while ahead looms a 900 billion dollar credit collapse. Citicorp is just the first. As people lose jobs they can't pay their bills.This one will cost more jobs, more money. This whole nation, government and citizens have been living on borrowed money. If Obama and company can't fix this, then the whole nation defaults. Scary
That's a definite YES,. The government doesn't seem to be too concerned with helping businesses that actually keep people employed. It seems more interested in giving away tons of money to the Fat Dogs running Wallstreet who seem to have no interesting in helping anyone but themselves. Yet they have never had to account to Congress what their doing with the billions they've received. (And yes, I do mean to call them Fat Dogs).
Probably! We got into this mess primarily because of three factors: greed, status, and living for the moment. As the government is trying to provide aid / bailouts, we are seeing these three factors still in play. The automotive industry asks for aid and uses the status of private jets to get to Washington DC. After having asked for money, the financial institutions have probably been misusing funds to satisfy personal greed as well as status. What else could you call going and spending a fortune on hotels and continuing to identify funds for bonuses? Further, has anybody provided the government with the long term strategic plans that Congress and President-elect Obama finally stated was expected from the automotive industry. Why shouldn’t the financial institutions have to do this as well?
Until everyone works toward the common good rather than toward corporate and person greed and status, we will continue toward the precipice of economic catastrophe.
When it comes to this economic crisis, as Sarah Palin would say, "We ain't seen nothin' yet."
it will definately get worse before it gets better Jack.
the outsourcing of good paying middle class American manufacturing jobs has finally come back to bite us esp in the Auto and Steel industries. I am sceptical of any so called " stimulus package" that is NOT for "21st Century New Deal" jobs like rebuilding or creating new Infrastructure here in America.
just giving government checks out, so people can buy "consumer products" like the last time would just help the Chinese economy more than ours.
yes and no... I think that people who say that they know this answer are fooling themselves. Nobody even has past data to use to make a fair prediction.
I am sorry I cannot be more optimistic about the economy, but my gut says the worst is yet to come. It seems the bailout money is being saved for the banks so they can hoard it. The effects of the death of the American auto industry will be far reaching. I know the dealerships began layoffs months ago, the downward spiral of unemployment and deteriorating consumer confidence will be devastating. The president elect will do what he can, but the reality is no one can make such a prediction. It is too volatile.
How can the worst be over when the worst is still in charge of the companies? It seems to me that we bail out the super rich in the hopes that they will share it with people they have never shared with in the past. Some of the tax payers that will help the bailouts make less then twenty thousand per year, or on trip by the big three to ask for money. Is it just me? That seems insain to me.
Ted Matthews, Morris Minnesota
We've been had. I'm not usually big on conspiracies, but it seems obvious that big business and big goverment have colluded to ransack every part of our economy. They drained the middle class, the treasury, everything. Even now, Secretary Paulson is throwing cash at Wall Street while President Bush is tweaking regulations to favor certain industries. Things can not possibly improve until ordinary people are able to pay their monthly bills, spend some money, and eventually even save some money. Since that has not even appeared on the horizon, things will continue to get worse.
With Bush still in office we can only see the tip of the financial iceberg. In January, when President Obama and the rest of the grownups, get into the Oval Office and go over the Bush financial records, if there are any, only then will we know how bad it’s going to be. Elected officials, who are in power, and scam the system for profit and their ego, should be held accountable and prosecuted. That’s the only way our political environment will change for the better. The stories I herd about, “ The Great Depression”, from my parents may look somewhat attractive next year.
So the big 3 car makers have to have a business plan and explain exactly why they need the money, and what it is to be spent on, but Citigroup only have to ask for it and they get it!
Whatever happened to accountability?
Or is it a case of who has the biggest lobbyist?
Yes I do~~~~~~~~~~~
Jack I had hoped by this time, after all the bail-out bluster, that there would be some light at the end of the tunnel. But it seems that the tunnel is very long, longer than I had feared.
I pray not! With President Obama taking office on January 20, they'll be a new sense of confidence in our government! No longer will the Decider wreck havoc with the American spirit! It will be great having a President who actually listens and hears other people's opinions before formulating public policy!
The world has been built on paper, plastic, credit for longer than anyone realizes. and all the fancy change promises in the world
are too little too late to keep it from getting worse "before it gets better"
I do not think it will be the worst. But it may become worse that what it is now. What I believe is that America will emerge with a different economic models that will work well with new Global economic conditions. This economic crisis is a solid indication that we as a nation has to change. Now we will have an agent of change in the White House and lets see how America will come out this mess. It will not be easy but we will emerge stronger and different.
– Nuwan from Houston, TX
We might have a chance to see some improvement in the economy, if Pelosi and Reid don't do continual bailouts to "crybabies"!
Yes,I believe the worst is yet to come. Long food lines for Thanksgiving fare,rising unemployment,more bank bailouts expected,auto industry woes, all point to a downward spiral. I have heard that this is going to be longer and deeper than the analysts predicted. I've heard this time called as "unprecidented." People need to brace themselves because we are on a runaway train.
I really don't think that we have hit bottom yet. I would expect that we are looking at another 12 to 18 months before conditions improve. It is going to take a new administration to set up the regulations in place to ensure that this won't happen again.
No bailout..the money would have been better spent by giving it as a stimulus to middle class america....on a fixed income as we are with rising food prices and other increases we spend no money. With a stimulus we would be able to purchase goods and avail ourselves of small businesses. Sadly we cannot do that because the money is going to Wall Street...Hopefully we will not bailout any one else, ie the auto industry. These companies and corporate america's greed have bankrupted america.
By the time this is over,Our Great Country as we once knew it ,will be dependent on,"The Super Power's Financial Aide",from abroad! We've been sold out folks ,by our own government .....
I have been monitoring the stock market, and one thing is for sure. We haven't hit bottom yet.
Given that the stock market tends to be a leading indicator, that means that we're in for a heck of a ride, at least for another year.
No, I think the financial crisis has bottomed out. It just can't get any worse. Once we've bailed out the automobile manufacturers, the financial crisis will finally be on the up and ups! I just hope we don't have to wait until January 20th when President-Elect Obama is sworn in. I hope Obama uses his executive powers if he has to to get things going again.
Yes I think so, and until this mess is figured out, Congress gets four weeks vacation/year. Think of the money that will save – they'll actually get something done.
I love the way they get all upset about this, then say, "well, we'll work on this when we get back." WHAT?
Sit your butts down and figure this out and until you do – NO vacation!
Sadly I don't think it's a question of whether the financial situation is going to get worse – it's more a question of how bad is it going to get...
After studying the bond markets, and levels of liquidity in Europe and Asia, I strongly feel that there will be an extremely devastating economic crash in the months and years ahead.
The levels of bad debt were outlined by many working in european banks internally in late 2005 / early 2006, warnings had fallen on deaf ears. However banks had let their strategists, or their strategists had let their banks activities fall into a short-termist activity that lacked precautionary foresight.
I do hope that this period does not herald the beginning of a a highly politicised and controlled banking system, where governments actively suppress the minutest signal of recession. Companies with bad debts owing to poor risk management and short termist views are eradicated from the market and the market can then be cleansed of bad debt. Jim Rogers had said much the same earlier in March of this year.
The winter freeze has set in and the ice will probably get much thicker before we start to see any kind of thawing. The sun might be slowly coming out and the government is salting the roads with money, but there are cold winds blowing. It will take time before everything gets moving again.
Our economic situation is like going on a roller coaster ride and will have it's ups and downs. The problem is going downhill now and will stay that way until the housing situation corrects itself in about 18 months but we will never be as high as we were in the past unless we as a society wake up and take back the manufacturing leadership we have enjoyed for over 100 years.
If businesses do not revamp their current 'Corporate Model' with a better one for this next century the worst IS AHEAD.
-All companies taking federal bailouts should be forced to incorporate into a new kind of company that can no longer give unlimited bonuses not based on performance, and have to adhere to strict budget and spending standards transparent to the Fed.
-Wall Street has to end the era where 10% growth year over year is expected as this has turned into mass layoffs, taking workers' benefits and retirement plans.......and all for the sake of the stockholders.
-Any companies making windfall profits should immediately be taxed on those windfall profits to benefit the greater population.
It hasn't begun to hit Main Street yet. After Christmas, that's when it really will hit the fan.
Yes, there's no way we're at the bottom of this yet.
Jack, I do not see the economy getting better anytime soon. It will take atleast 3yrs before we will see any true stabilization.
I hear everyone pointing the blame on Bush and his Administration, but hey let's not forget that the Congress and Senate could have stopped all of this as well when it first broke with Enron...
I do believe the worst is still to come. The current administration is done, they are only going to allow the troubles to pile up for Obama and his team. I truly believe that the team Obama has put together is compitent and capable of pulling America out of the economic crissis, but its going to get worse before it gets better. As people all around me are losing their jobs, I keep hoping that my family manages to be spared a layoff and can stay a float until better times come.
It took more than two decades to create the greatest expansion of credit in history. The growing debt bubble made the economy look better at the time, but it also cannibalized future growth. Based on similar debt bubbles of the past, it will take about half as long for balance to be restored. So, get ready for the next economic boom... in the 2020s!
It may get worse in the short term but over time it has to get better. The good news is that the economic crisis is a global phenomenon and not isolated to the US Economy. And since Obama will position himself and his policies as Global solutions his message will resonate around the World and elicit a postive response from foreign investors and governments, which, in turn should result in a trend towards an economic upturn cycle at a steady pace – which is exactly what we need to generate confidence in the financial markets.
Yes, I do. If three auto makers are wanting help and need billions to keep business running, that is 10% of the wokers in the United States. How many other manufatures and other businesses need money just to keep their employees? Will they ask for money too? Banks need more money? Why? Didn't we just give alot of them Billions of dollars last month? We are looking at a return the 1930's all over again, way to go George W. Bush.
Yes, Jack, the worst of the financial crisis still lies ahead for most Amercans while the fat cats line up on Easy Street awaiting the next corporate handout from the government. Citicorp is the latest to get a big Bailout and there are still countless corporations and states waiting in line to beg for their slice of the corporate socialist Bailout Pie.
The beatings will continue until morale improves.
Not yet. It took eight years to get this way, so it won't get cleared up in a day. Eight years ago we had a surplus. He cut taxes on the rich and borrowed us into a depression.
We're doomed, Jack.
again, how can we know if the worst is yet to come. We are just small ants! But ants that are kept working is and wil already be a plus! But we definitely need more transparency, accuracy and responsible corporate memory of past mistakes not to be repeated next time around..>ants can't afford to keep on working and keep on loosing to stand on firm ground>!
No Jack, it's going to get better.
For once... just for once, we have the right man in the right job to fix this mess.
The worst is yet to come because the stock market leads the rest of the economy and it has taken a pretty hard fall in the last few months. There will be more to come, but then it will bottom out and start to get better. I think Obama is on the right track to help solve many of the problems simply by choosing really smart people to advise him.
I am afraid there is more bad news to come. More job losses, more families losing their homes. How can these CEOs take those huge bouses and golden parachutes when so many have no safety net at all?
Yes, I do believe our economy has a way to go before it bottoms out. The biggest problem is the widening gap between the rich and poor. If the wealthy would invest in education and job training here in America, they wouldn't be complaining about the lack of qualified workers. If they would ask qualified experts for their input instead of making reckless decisions that lead to bankruptcy, we would have decent cars to drive and money to lend and invest. Greed however will most likely rule the day.
I hope and pray not. It is time for citizens to be put back to work and to be allowed to stay in their homes. I am encouraged by the rally in the stock market recently with the announcement of the head of Obama's economic team.
Absolutely, the economy is going to get worse – until the Gov't understands that we need to stabilize the Housing Market the economy is going aboslutely no where & thus we will continue to go downhill.
Our brightest economic and common sense minds today are equal to the FDR, Teddy Roosevelt, Dwight Eishenhauer and Truman's intelligence when they were in 8th grade.
Fasten your seat belts everybody! The worse is yet to come.
Yes Jack, the worst is yet to come. Funding the 3 leading american auto makers is like funding an empty house. They saw this coming and knew the state of the economy and chose to be apathetic, and in fact, made it worse with their creative financing for consumers, no interest, factory money back et al. The old saying is, "It's time to pay the piper." Too bad the American Public is going to be the financier for the 'piper." Jim Buffalo, New York
Yes the worst is ahead if we do nothing and just hand out checks with no plan in place and on oversight. You can not tell me that the big three car makers can not retool when in WW two over night went from building cars to tanks and half tracks America we can.
Kinda like the game of Duck Duck Goose. There is so much readjusting in the world going on right now, with every country playing it's own version of this – that it is hard to believe when we will all get to sit down comfortably in a big old circle again without the fear of being tagged – your it.
At this point I'm beyond caring where you place the blame for this absolute disaster in our country, but we sure have some of the most uneducated, uninformed, uncaring and just plain dumb people in our elected seats in Washington.
I never anticipated seeing this magnitude of poor judgement by so many on either side of the aisle in my lifetime. As for 2009, hang on to your hats.
Richard in Kansas
Of course it is going to get worse. They are still using voodoo trickle down bailout economics. The rich are getting richer with the perks and big bonus packages and we the people are paying for it while we are losing everything.
Jack, I'm afraid we've only seen the begining of many companies that will go belly up and the thousands of layoffs that will follow.
This problem did not come about quickly and it is not going to go away quickly.
You ain't seen nothin' yet, Jack.
Until there is universal health care, any stimulous package will result only as a temporary bubble.
what is your definition of rock bottom?
dare i ask?
It may get a little worse, but the quick action Obama plans to take will do a lot to restore consumer confidence!! And that will start the improvement! The fact that Bush will be gone will be a big plus also!
Yes, the hole that this administration dug is too deep to climb out of. mr. Obama has set up a good, young Cabinet, they will figure it out.
Yes Jack, I do think the worst is ahead for us. The crime rate is about to go thru the roof. Old George will be immune from all this, he will be in Texas living like a sheik on all the money he stole from the American public. When I think back on it, it seems that the oil companies were the main ones who profited and isn't it just curious that Bush is an old oil man himself. This is sooo crooked and nothing will be done about it.. It's just not right !!!!!
It ain't gonna be too great for the next year or so..... it'll be a rocky road for sure. However, I do believe that maybe the cause of this meltdown, all the deregulation cheerleaders will be gotten rid of and maybe we will come out of this mess with a better realization of what part our government really needs to play to keep the greedheads in check. Hopefully Phil Gramm will move to somewhere else and help them out with his great expertise.
With incomes down for the past decade, deficits at record levels, corporations deregulated so they have been stripped of their assets, and families so deeply in debt; the economic condition of the U. S. will continue to worsen for a long time to come. Our sending our jobs overseas has and will continue to hurt us badly too.
History will show that our gift of $750 BILLION tax payer borrowed dollars to the financial institution CEOs will be one of the straws that may break our economy and bring on our second major depression. Then those with the cash, we gave them, will buy up the assets of U. S. citizens and continue their accumulation of wealth.
It's not only ugly out here it is getting real tough too.
The worst part of the economic crisis comes on the day we get the bill and realize that there is nothing in the till.
Define worse Jack.
I feel that we are just starting to feel the hurt from this, and that it will get a lot worse than we have already seen before it starts to get better.
Yes, because the remedy is worse than the illness. Government will be where it should not be. Invested in private enterprise to the degree that it can have, by way of stock ownership, a say in how those enterprizes go about their business. Government will now have a vote on what the bailed out do. Is that constitutional? What the Hey!!!!!
The worst is to come, for sure. The ones who caused this mess are still in charge. If Bush and congress support the fat cats...business as usual. If Obama bails them out...business as usual. If there is no punishment for a crime business as usual. When I lose my income and home there will be no business as usual.
When you look at the way our economy is structured– deeply in the red in our current accounts/balance of trade and wholly dependent on foreign investment to bail us out of our financial woes (while still not recieving enough money in our capital accounts to balance the debt)– it's easy to see that the very structure of our economy is simply not sustainable. Our economic woes will persist, and every few years will come back to haunt us in one way or another, as long as we keep this current economic model. It is financial insanity.
The mentality of corporate America leads me to think that they are not through raiding the treasury yet.
I feel the crisis is like that commercial where the guy sticks a piece of gum to a crack in the Hoover Dam expected to hold back Lake Mead. That's us, only our gum is money. In truth, ten years from now we'll be saying I can't believe we just gave taxpayers money to those who'd already proven themselves worthless. The worst is still ahead, however with a totally new approach, that keeps a watchful eye on all business sectors, confidence will come back.
Dear Jack; I myself feel that a lack of respect from its government to its own citizens bye outsource their jobs off to foreign lands for free trade. Well it was good for a small group of Americans but for the Majority the working class the Hart Beat of the country it has wiped us right out, And I feel that free trade agreements needs some attention or some adjustments, free trade agreements was sold as bringing up these other countries up to are way of life not Americans down to there way of life, and endless they the Big Three starts leadership in opening up them plants back here in the USA and start showing support for all American made products again, and may bee Whirlpool, Caterpillar and so on, start the chain and well get our economy really kicken and if not I feel gloom and doom and it getting really bad myself
In the last 15 months, the US taxpayer got on the hook for $7.4 trillion in dubious loans made by unregulated financial wizards.
$7.4 trillion is half of the the US economy.
More is to come, obviously.
The British are talking about sovereign insolvency.
That's what happens when a country goes bankrupt.
And that happens when a country's leadership is brain dead.
Heck of a job, George.
The worst of the financial crisis truly hasn't even hit main street yet. Many people that have been laid off, or lost their homes, or their retirements in their 401 Ks, may not agree with that, but the worst is still to come.
The worst of the financial crisis and economic downturn is ahead of us. The 700B bailout is not really improving the lot of the average consumers who are the ones who feed this retail/services economy we have. If nobody is spending, many more companies are going to feel the pinch and start making cuts, trimming production, etc. Part of a cycle which led to the Great Depression. Nothing is focused on the average Joe. It's all going to line the pockets of the wealthiest companies and executives.
No question about it; yes. We have only uncovered the tip of the iceberg as demonstrated by the Citicorp 20 billion dollar plan today; every day it's someone new. It's going to get a lot worse before it gets better!!
It'll take years to undo the mess that W put us in. It's really a question of how many of us "worker bees" will be able to survive and for how long. We're going to have to keep on working since our retirements have evaporated. I wonder if the government will be able to afford us in our old age?
It probably won't get any better til after 2012, in my professional estimation.....
The U.S. will have to recover the Jobs that have been lost since
the year 2000.....
I am talking about the Manufacturing Jobs that have been going either south, or overseas, since then....Those Jobs are lost, but those people are mostly either unemployed, or have taken minimum wage Jobs, since then (2000)
Those people need to get hired in the new Job sector, which will be in the Enery Independence area / or Road / Bridges area. That will be something of a great magnitude, in people working. It would be of such a magnitude of when they started building the Hoover Dam.... But in un-precedented amounts of people.....Until that happens, our money won't be worth much, Jack....
For me, the worst of the financial crisis probably lies ahead. So far, the only thing I have lost is some equity in my home and retirement account.
If I loose my job, things will get worse.
The worst is still ahead for taxpayers as long as Bush and Paulson are around, especially if the Government continues to hand out freebies to fat cats that should be tightening their own belts. Dumping productive employees should not be the first cost cutting factor. Cutting Execs salaries, perks and benefits by as much as two thirds for any of them earning more than 200,000 should be priority One.
Yes, I’m afraid so and we’re going to have to fundamentally restructure our Economy to get out of the mess we’re in.. But with this misery, there’s hope. Hope that we can re-tool for a Green Economy and change the rules so that those at the top aren’t the only one’s who benefit. There’s a New Deal coming, one that should replace the Raw Deal the Republicans have given us.
Absolutely. We haven't seen the end of the disaster Bush/Cheney left us with. The effects are just starting to be uncovered. All of those firms that outsourced can take some credit for this mess when there is nobody left who can afford to buy even their products with their cheaper than dirt labor because nobody has a job. Obama can only stop some of the bleeding initially and hope to get us back on an upward swing, but it's not going to happen over night. I wouldn't be surprised to see soup lines form again. I hope all of us who still have a job and food will share with those who don't. I'm buying food for others this year instead of Christmas presents.
The financial crisis is that the problem? Or is this an opportunity for a president and some others to purchase us? Why would anyone give Citibank money or AIG? Where exactly is the bailout money coming from? We didn't elect a financial advisor. This is not solving the problem the mortgage companies weren't regulated and a bailout plan seems morally wrong.
The worst is yet to come, there will be a depression. The economy and stock market still have way too much false air in it.
It has to get much worse because the underlying problem is not being fixed. The bad mortgages these large companies invested in is still growing. Giving money to banks or bailing out industries does nothing for millions of people who can't make the house payment.
Spending yet more time blaming lenders or borrowers is a waste of time. Why should we care if in-default mortgages all across the country are re-negotiate where payments can be afforded. It's the only way we'll start working our way out of this "hoarding" mentality and start to buy again.
Richard in Kansas
The economy will worsen before it gets better because so far nothing has been done for the economy. Plenty has been done for the freinds of the administration, but they're either hoarding the money or buying up other institutions to make themselves bigger. Jobs won't pop out of the smoke and mirrors we've seen so far.
San Clemente, Cal.
It's hard to stop a runaway car speeding down a hill, so we haven't seen the worst. However, that runaway car will eventually be slowed once we get more responsible people trying to hit the brakes.
Probably not, don't we still have Shrub Bush for about two more months, he still has time to bail out his rich buddies and make sure they walk away with millions that the american taxpayers are shelling out. It is my hope that him and his thugs depart this land paupers.
I feel it has bottemed out. There will be very slow growth from now on. Patience is needed right now. This instant satisfaction attitude has to be thrown in the trash. Start saving your money folks.
Yes. The economy is a mess thanks to the failures of the Bush administration. Who would've thought that the Iraq war wouldn't be Bush's biggest failure? But we're about to have a competent president which certainly gives us hope. The stock market gained almost 900 points since Obama named the members of his economic team and we see a new day on the horizon.
Hi Jack; I am from British Columbia, Canada and have followed the events in the USA as a good neighbor. My comment is that there are many good people trying to do good things and I hope they are right, but my belief is that "You can not borrow your way out of debt"
Financial instutions, which do not create wealth because they do not create anything ,are being given hugh sums of money with little to no restrictions on its use. Automobile manufacturers do create something , which in turn creates wealth, and are being raked over the coals.
Seems to me we have our prorities backwards.
I'd like to think that the worst of this devastating financial crisis is over. Now, with the new president having assembled his brilliant economic team, I'm sure he'll put an end to this vicious circle very soon. It's time to look at the glass half full again.
The worst of our financial crisis does lie ahead. However the best of life also lies ahead. We as individual people and citizens will have to do what our elected officials have been unable to do – and that is our lives ahead of money – our democracy ahead of capitalism. Equating the challenge of our current financial cycle with how we conduct our daily lives (while difficult to separate) needs to be separated.
The fundamental understanding resides in trust. The financial crisis is real and forbids needed levels of trust; while we need use every effort to find and utilize trust in our daily lives. Blaming the past and individuals won't help and is wasting time and energy.
Unless we spend the money for the companies being bailed out, the worst is yet to come. They've shown over a period of decades that they are incapable of running profitable businesses.
It is not bad enough yet in my opinion.
When one puts it on the news and sees stocks actually going up we cannot consider that rock bottom. It will still get much owrse
Yes. The economy is a mess thanks to the failures of the Bush administration. Who would've thought that the Iraq war would be only ONE of Bush's biggest failure? But thankfully, we're about to have a competent president who certainly gives us hope. The stock market gained almost 900 points since Obama named the members of his economic team and we see a new day on the horizon.
I have an idea. Lets start manufacturing things in the U.S.. My dad told me stories of jobs where people worked and products were labeled "Made In The USA". I thought these were fairy tales but after a bit of research I found them to be true. For this to work we must hope our visionary CEOs can actually make a product with integrity and longevity. So as we fall into the abyss I hope someone will try to understand what we used to be and what we can be again.
No, the worst has come and gone, but if McCain was elected, I would say Yes. It will heal, but it won't happen overnight, it will take maybe 5 years before it heals completely.
Judging by the fact that every day there is a new negative development in all of this mess, I don't see how it can get any better any time soon. We might as well not let today's news faze us and remember that tomorrow's news won't be any better.
With the economy in such bad shape and the government bailing out these huge corporations because if they fail it could cause a depression wouldn't it just make sense to bail out the tax payer with a huge stimulus package. How about give us our money back and we'll go spend it with these companies then everyone can benefit from this so called "bail out"!
Who are the major owners of these corporations being bailed out? And from where do they originate. Has CitiBank for instance been bought out by the Chinese? Thanks
Yes. Thanks GW. Is the Country too big to fail? I can't tell.
Seeing as President Bush has a history of being less than up front with the public we should take this as an omen that the economy is about to bounce back strongly. Of course, this is grim news so the economy will probably get way worse before improvement occurs.
I do believe in will get worse if we keep giving money the corporate idiots. There are about 300 million people in America, why doesn't anyone talk about the idea of paying off Americans' DEBT. Everyone would gain from this and it would be a lot less than 700 billion dollars!
No, the worst is over. The air has been let out. Thank God we didn't burst. Real values are returning to the market and hopefully society. We're toking our first steps down the only path out of this "recession", an industrial-scale green tech revolution. This will be remembered as "The Great Correction" before a sustainable economic boom that will benefit everyone on Earth.
Oh jack we need to tell american's to hold on to every extra penny they have...of course its going to get worse, but we have to have faith that Obama and his dream team will throw us a life line
I don't know. Suze Orman says that she's buying high volume stocks now. Krugman says nobody should be buying right now. so I guess its a tossup. I think that if it doesn't go into a depression, we should be pulling out sometimes in 09. But if it goes into a total depression, it could take years.
Almost surely the worst is yet to come. How long did we think the world could operate financially on a mentality of short-term profits gained by devious and unethical means and not have a collapse of this magnitude? I have great faith in Barack Obama's intelligence. My question is: In the planning of 'what to do', where is the reassurance of regulations that will not allow the shell games to continue?
Yes, the worst is still ahead. Just wait 'till the bill comes due for all these trillions yes trillions that our treasury is printing, then we'll all know what real trouble is.
I shudder to even contemplate the consequences!!!
i think the government should have taken some of that 700 billion dollar bank bailout and given every adult age american $15,000 (would have totalled alot less than 700 bilion) this would have all been spent on mortgagesm cars, clothing etc, stimulating the economy and also getting some of the maney banks were losing from foreclosures because peopel would have used that money to get caught up (nobody wants to lose their house), car sales would have been up, retail sales, a good xmas quater... all and all everyone would have benefited and we could have saved from spending the entire 700 billion
The domino's have yet to fully fall...We are all just holding on one by one until we do.
The rich need to share or the poor will walk with them...Literally.
Jack, If the Federal Government keeps doing what their doing by bailing out these Companies, the feds going to have to file for Bankruptcy. There is no way we can buy our way out of this mess.
You haven't seen anything yet.
If the United States doesn't bring some jobs back into our economy, it will get worse. No need for people in important positions to say the American factory worker needs to get retrained. They told the first workers to lose their jobs in the 80s to retrain. Many did learn to do service jobs and now many of those service jobs have been sent to companies overseas. I wish when they say get retrained they had some idea of what these workers should learn. Learning to flip hamburgers doesn't pay enough to support a family. We need some real jobs for real Americans.
The financial crisis is hardly over – not while millions are losing their homes and jobs and more of the same on the way – how will better credit help them? If you lose your house, will Citi give you a mortgage to buy another one?? I don't think so! Perhaps those who are ready and waiting to buy up cheap stocks and cheap homes will make a killing – but then they are not affected anyway!
Fraid so! As a retiree, in my early 60's, I've watched my contemporaries and younger spend based on monthly payments. Beyond a mortgage, and perhaps a car, this is a recipe for disaster and we've been doing this for 30 years or more. My parents grew up during the Great Depression and taught the lessons of saving to buy. We have failed to pass this lesson on to our children and grandchildren...........now the entire country will learn the hard way.
Jack, who knows if things will get worse before they get better. All I can say is, come January 20, the market will be up that day. New management will be in charge, and I have a feeling they will be better stewards of the economy than the last group. Will it be smooth sailing? Undoubtably, there will be some rough seas, but many Americans seem to be optimistic. Let's hope so.
Absolutely. Throwing Billons at the Corporate Monsters who are holding our Country hostage is only putting off the inevitable.
The financial system is failing, and will continue to do so until our whole ideology about capitalism changes. Period.
By the the way, I've been a fan of yours for years.
Oh, yes. The worst is yet to come. I think 2010 will be the worst financial year on record. Companies are holding out for 4th quarter earnings that aren't going to come. When Jan. hits, and the abysmal earnings reports come in, I think we'll see unprecedented job loss. The market will probably drop to near or below 6000, also, following this news. The housing market won't hit bottom until around the end of next year or the beginning of 2011, and the Bush admin acted way too late to stop that. I think we're in for a wild ride. Save your pennies.
I do believe the worst is yet to come, The Big three automaker I do not believe will come up with a feisable plan for the goverment to give them bailout money . This will cause a trickle affect that will begin a domino affect, Im thinking that Obama will get us out but it will take time. He has begun by naming some great people. I believe his team will work with the big threeto restucture. please leave now Bush and let Obama begin early!!!!!!!we cant wait 55 days
I have no reason to doubt the experts when they say the worst is still to come. I just wish the President-Elect would have been as forthright with the American people during the campaign as he is being now that he secured the presidency.
There is one major problem looming besides the mortgage crisis. What happens when all the banks start dealing with defaults on credit cards?
The banks are already sending notices that minimum payments will be higher.
How much more of our taxes will the government use to bail out executives who mis-managed banks and companies?
They should all go to jail!
Yes. The worst of the crisis lies ahead. And it is being exacerbated by the current crew handling the emergency. The bank that employs my brother-in-law was just purchased by another bank, using money received from the Government in the bail out. That money is being distributed without strings. They might just as well drive around to the houses of the CEOs of the banks involved and put it in their Christmas stockings.
Goose Creek, SC
Yes, the worst is yet to come. There are NO jobs! Because there are no jobs there is no chance to pay off any debts, there is deflation so money is worth is worth less, and the OPEC countries are again trying to raise oil prices by cutting production. All of this means no way for the American people to get ahead. Obama has some great ideas and he might be able to help but most Americans are too uneducated (no one reads the history of our nation or reads in general) to understand what is really going on. This will cause too much resistance to change and I feel that no matter how hard Obama tries he will not be able to make changes that could help Americans.
Yes, we have only seen the tip of the iceberg and few band aids to slow down the process of failure.
It can always get worse! I'm terrified to think of how much damage Bush (and his buddies) can do in his last days in office! I just hope we don't all go up in flames before January 20th!
Isn't it kind of obvious? With indicators like increasing unemployment, foreclosures, and bankruptcies how can the worst not be in the offing? Am I missing some big imminent good news?
I'd like to think the worst is over but almost every day seems to bring another devastating financial revelation. Sometimes I think we could take all the economies of the world, put them together, and it still wouldn't be enough to deal with toxic debt.
Yes the worst is yet to come, because the government will not get the money to who really needs to be bailed out THE AMERICAN PEOPLE. Why not take the 700 billion and give it to the people after all we are what keeps the financial market going by spending. I mean come on, is it really a bad thing to give back to the people who they took it from in the first place?
My Buddy Jack Cafferty. The worse crisis is ahead due to Obama taking office. He campaigned for change and selected his staff from the Carter and Clinton Administration, That definitely won't change the way Washington works. We are lucky that the economy is not as bad as in the Carter Administration. You remember Carter don't you Jack? 21% 18% inflation and 14% unemployment that surely helped the middle class!!! Obama will duplicate this. The economy is going to be far worse than now with Obama in office. All his campaign promises were made just to get elected. The American people will be in for a rude awakening when he takes office. I expect the crisis to last through his term as president.
Every day there is a new industry/firm/bank to bail out. Yes, it's going to get worse.
I am of the dying breed of middle class, and I will not get a bailout. For me and many like me it will get worse. Gas has gone down, but I expect it to climb with the excuse of dwindling demand so higher prices will make the oil companies more money as supply goes down. Groceries, yep those are going up too. I try to buy local, and half the time it's more expensive!
It's a never ending cycle of spend spend spend. Too bad my paycheck gets smaller smaller smaller.
No, I do not believe the worst of the economic crisis is yet to come. I have been unemployed since September 12, 2007. In the meanwhile, I have had my unemployment compensation expire. My health benefits no longer exist and I have suffered a heart attack last July. I cannot afford the meds the cardiologist prescribed for my coronary heart disease. I have submitted my resume over 430 times and have had no responses for a job offer, not even an interview at the same time I hold a four degree in communications from a prominent university ... sooo how much worse could it get.... I believe that once we get rid of the Bush administration things will turn around for a better America. Mr. George W. Bush you have defined lame duck with expertise for 8 years now.... LEAVE the White House now and let a real leader take control, please.
Not even close.
What most people fail to realize is that the commercial real estate market still has to bottom and the jobs being lost now are 2 more huge stakes to be driven into the heart of corporate America.
Most do not have any idea what lay ahead.
On the bright side, since nothing can be done by the average Joe, ignorance is sometimes bliss.
I would have to agree that the worst lies ahead of us. I have a friend that is a pretty well known real estate agent who says the same thing. He basically says that adjustable mortgages are scheduled to peak (ie. total number or adjustable mortgages that readjust for the first time after issuance) in January 2010. I think that says it all as it pertains to mortgage holders that will be defaulting.
This financial crisis will not be over if the credit card industries don't get their act together. They took the mortgage crisis and wanted to make money off of the credit card debts.
They took consumers credit card interest rates up to 30% and lowered their credit scores.
Who can get credit with a credit score like that? Even people with good credit got punished by them just to make a buck.
Now auto industries and consumers spending power is suffering because of these greedy bankers.
Loosen up people at these greedy banks. You are crippling this country. Get your act together before it is too late.
You live in this country too, don't you?
Yes , unfortunately, the worst of the economy does lie ahead. It stands to reason what household would survive a financial meltdown by borrowing more money. What is happening is analogous to the head of a household responding to income being less than the household debt load by saying to their spouse "Don't worry we can use another credit card" . This country was sculpted on having a strong middle class to keep the economic engine purring along. The only way I see the US not becoming a third world super power is by resurrecting a strong middle class. Yes, the economy will get worse. I sense another great depression, if not greater.
Yes, the worst is still ahead, that's my vote!!! The only thing I can't understand is how our treasury department et al in our government didn't see this coming. Probably too busy enjoying their great perks, profits on their portfolios while NOT having to worry about the real expenses of everyday life that the rest of us deal with. I saw this coming back in 2006. Let's hope the new administration all have IQ's and college transcripts as good or better than mine.
OMG... Is there still anyone out there that doesn't think it's going to get worse before it gets better. My gut is wrenched with idea that the CEO's of this country have a secret union to discuss just how much more they can squeeze out of us. By the way, why are these company's paying these people so much money to run them into the ground. I can do that for half of what they make. Anyone hiring?
jack, lets see... during the last 8 years our congress was the most wreckless with taxpayer dollars that we have ever seen. We increased government spending to its largest ever and did not budget to compensate for this excessive spending. Despite running the largest tax revenues in history this administration still outspent any previous administration. And for anyone thoughtful enough to consider all the facts– party lines thrown aside- you had to know that the congressional spending was something that was way out of line. So if anyone thinks the worst is behind us think again. Our system of government is dead. private ownership is going out the window. With all these bailouts, and i assure you there are more to come we are seeing a shift to socialism.
Yes i believe that the worst of the economic troubles are still ahead of us, granted many people have been laid off from various companies. It is main street that will suffer in this coming year, because alot of these main business's are holding off on laying people off until the start of their next fiscal year. which is January 1st for alot of companies. I just received an email from my local newspaper which shows all the store closings in my area, just in my county alone 400 retail stores are closing down for good. And alot of these other retail companies are actually closing down their whole chains nationwide. Its sad to see how far America can fall if we let the wrong people make the choices for the majority
If you are above the 50% of ave. income (top 5% of earners), it doesn't mater. For the rest of us (95% of us) it will probably be a soup line by next year.
Its pretty evident that its going to get worse. Im not even surprised when the stock market tanks, because its seems like there is no end to how unstable this economy can become. There is whole bunch of bad policies that led to this crisis, so unless we change the way that we run our economy, I don't think that a prosperous economy is in sight. President-elect Obama and his newly announced economic team are going to have some huge challenges waiting for them once he is inaugurated.
Yes, it's going to get worst and stay that way until they make these companies break up. They shouldn't have been allowed to "get too big". When my money is short, I go to Wal-Mart instead of the department stores....so should they. Let these companies go belly up – they are laying off everyone anyway anyway while the CEO's party. If they want to go somewhere else , let them! I'm sick of the "fear tactic" – let them be afraid for a change. What happen to our monopoly laws?
The fact that the feds are printing money like there is no tomorrow is cause for concern. This is money the US doesn't have to bail these idiots out. My two year son's generation won't even have that money paying it 40% tax dollar rate at age 40 years old. It's going cause major hyper-inflation. Forget raising any taxes for anyone now, this volcano will blow up in everyone's face.
Of course the worst is ahead of us. A year ago the government told us they had their arms around the housing foreclosure crisis. It turns out they didn't have a clue how big the problem was. The government is always slow to recognize the problems we face and slow to take the proper corrective action. The voters spoke loud and clear in the last elections – lets see if the politician were paying attention to what we the people want.
A lot is going to depend on how accountable the Congress and new President are going to hold the heads of these corporations that are failing. If you or I were to suck at our jobs, we would be fired. We wouldn't get a thousand dollar, much less a multi-million dollar bonus on our way out the door. We also need to know before a decision is made to funnel money in a direction it was not solicited to go. We desperately need a more transparent government.
Having said all that, I think our financial situation is going to get a lot worse before it gets better. I'm going to think positive, though, and believe there is a light at the end of this tunnel.
ya the worst is still to come, Ive still got electricity ,running water and a couple cans of beans. 3 months of extended unemployment still to come so ask me again next April. there still wont be any jobs and that's when ill be toast...
Yes Jack, it could get worse because we don't know where the money for the bailout is coming from. Will our social security and medicare be wiped out ? Probably, just that no one in Washington has told us yet.
Yes, I do believe that the worst is yet to come. People hold on to your purses and wallets because we are headed downward and Mr. Bush gets to ride off in the sunset and enjoy all of his wealth while the rest of us continue to lose jobs, healthcare, our homes and not being able to feed our families. Mr. Bush can you do all of us a huge service and resign effective immediately. A warning to America hold on to your assets because America in now a liablily.
The "bottom: hasn't been reached yet and as long as our current condition is measured based on where we were before the downturn I believe we'll fall further. Almost all of our loses are paper loses.
All of our industrial infrustructure is intact. The need for their products are still there. Why don't we simply say ALL debts are cancelled and everyone start over from here.
It will worsen Over the next year. Once they figure out the bottom of the mortgage mess and underwrite it, we will bounce back strong and continue into Obama's next term.
Yes I know it will get worse.Does anybody remember what the free for all stocks of the 1920's/and the free for all sub-prime mortgage loans of late have in common?corruption/deception/recession/depression.
Of course the worst of the financial crisis is ahead. The U.S. government is trying to de-value the currency so they can install a new currency called the Amero. People have predicted this for years and now we are finally starting to see it. They will continue to bailout companies because it further pushes the value of the dollar further down. People are blind to the fact that a government would purposely hurt its people in order to accomplish a goal. It’s exceedingly clear that people don’t care as long as they have their entertainment and toys. It’s inevitable people; the Amero is coming.
we aint seen nothing yet, wait till the president elect resumes office.then the country will realize what we are really into.
The majority of people, mortgagees, people with poor credit and unemployed will suffer more before the situation improves. The best we can do is trust our new government to make the right choices and get America back to work. The age of greed is over and we all have to take stock of our real value. It is time for more humility and less crowing. No more bailouts, no more star prizes for failed executives. Just care for those who genuinely can't help themselves, the rest will survive by their wits as well as hope for a better future.
Yes Jack! I do believe that the economy will get worse. The reason I believe this is because no one has been able to come up with a remedy other than bailouts. Until they can come up with a solution that doesn't require spending more and more money to stop the hemorrhaging, we will continue spiral down.
After 8 years of Bushenomics in a Republican controlled White House and 6 years of Republican Congressional control, this is only the end of the beginning and our carefully calculated President-elect Obama is building a stellar team to dig America out of the trenches, but there will most likely be more surprises. I agree with Hillary, it's time for America to rise from the ashes of the "Bushes." We've been burnt long enough!
Yes, Jack, it is ahead of us. We haven't seen the bottoming of the stock markets yet, or the end to failed banks and other corporations, be they major corporations or not. This mess didn't take us a short few months to create and it won't be a short few months to fix it. Let's be real about this, it hasn't been much more than a mont sicne is all became blatant that the economy was in collapse. It's time for many to take off the rose-colored glasses and face reality.
No.... where living through the worst now. I'm sure I"m not the first to say that everything has been WAY overpriced, however once everyone realizes that which I'm sure we are doing, things will begin to get better. House pricing– way over priced. New car pricing– way over priced. The economy, I'm sorry to say, needed this shot in the arm.
Do I believe the worst of the financial crisis lies ahead? You bet I do, but lets get it on so that we can start on our way to a sustained recovery. Mortgaging our children's future is not the American way. Let those businesses that can't make it in today's economy fail. The wise wise will survive. Use the bailout money for extending unemployment insurance until such a time that this crises is over.
Larry / Tega Cay
Yes. Over 80% of our economy tied to the American economy. If you guys go down Jack we won't be far behind. What I can't wrap my brain around is bailing out Citigroup. If their stock has fallen to around $6 how does adding another huge loan to pay off possibly help them or the stock holder? We all know it can't be helping the tax payer.
I personally feel the worse is a head, not only in financial's, but in the loss of liberties, privacy and property as the government attempts to correct a nose dive in the capitalist model. The model works as long as there are steady consumption of goods, but a slow down bring the whole system to a halt.
I partially blame the lack of foresight from our leader in manufacturing, information services and technology; in the pursuit of "cheaper" and perceived profits they forget to ensure there was a base employed that can afford their products – how you can ask the American people to buy forever on credit?
And realestate; the reports come out about new housing's relationship to jobs – how many new homes do we need? Do we build forever, spend forever, keep producing forever – when do we reign in consumption?
Noone can deny that economy will get worst before it can get better. The only question now is how much worst. So far, i mostly only see people mentioned bailout and creating new "green job". I think bailout will create a bad habit for economy. It will makes other company trying to get bigger, and has more influence so they can do whatever they please. And when they are in trouble, they could simply come back and use numbers and stats to threat the govt and its taxpayers to pay for their dept. Also, how can you actually create new job when there are a bunch of big giants standing there monopolizing the market. It is very unlikely for troubled company to lay off their "low paying foreign workers" and go back to the US to find workers that likely cost a lot more.
Over the years, those company has been shipping their job over sea, which basically mean sending our money oversea. Giving other countries billions, if not trillions of dollars in salaries and taxes. So i would like to have one question. Why don't they ask those country for bailout too? why do they come to us?
no....the worst is to come in the form of inflation and non competition on world markets.
Maybe. I think Obama is on the right track with putting the emphasis on job creation. If we have jobs we can purchase those things we need and want, keep our homes, allow our young folks a college education and even stash some away for retirement. Right now things seem bleek but I ave confidence that the Obama team will do some quick fixes and even help our problem with climate change.
Yes, the worst is ahead.
In 1952, President Elect Eisenhower stepped in and negotiated a cease-fire in Korea right after winning the election.
The patriotic thing for the Bush Administration to do would be to step aside as soon as possible and allow President Elect Obama and his team to step in and bring relief to Main Street by investing in the middle class and creating new jobs.
However, unfortunately, I doubt that they will do that because they are too interested in protecting the interests of their rich Wall Street friends.
hey jack..yes, worst is ahead...we've been kicking around an idea these past afternoons (work is slow) to invigorate the economy; ie :buy us some time. like the $600 stimulus pkge, but way bigger. give everyone $250,000. this will replace unemploment and pensions lost (auto industry), be alot easier to administer, get the monkey off the states back, be a hell of alot fairer than just rewarding the "wrong doers", and stimulate the economy overnight. combine this with special tax credits for stuffing some in a retirement or college account. we figure in 5 yrs, the classes would revert back to what we have now. some will blow it and others will save. if the individual has a mortgage balance in default, or credit cards, pay it off and give them the balance. at about say 175 million recipients, this would probably cost less than what we've given just citibank! it would tide everyone over till the jobs are created. so what's alittle inflation among friends?? considering what we've had to tolerate these past 8 yrs, well ,we all deserve it! linda, punta gorda, fl
It hasn't even started to bite yet, Jack.
so, some bankers have lost their jobs so far. I miss my hair more than them. wait till manufacturing jobs go, then hospitality, and finally services.
it'll get nasty, but this is not the 30's. i'm trusting someone has learnt from history.
Oh god, what did i just say!!!!
for the first time in my Adult life am not proud of my country.
No Bout A Doubt it!
I think it will get much worse. We should not give these banks any money. Their greed has placed them in the position they are in today. What happened to all the money thay made from those ATM fees and all of the other fees and charges they could think up to get their paws on our money? Clearly that was not enough for them and they have the nerve to ask for billions more! Let the lot of them go under, theyll be replaced by others who just might have learned a lesson or two from their predecessors. A pox on the bunch of them!
Absolutely, it does. I've been predicting this for a year and have wondered why the media seemed oblivious to it for such a long time. How the mortgage loan disaster could just "creep into the mind" of the American people, I'll never know. And we're just on the cusp of the fallout that I believe has been created by nothing more than greed, starting with the petroleum companies and mortgage lenders. Over the past few months, when I would mention that America is headed for a "Depression," folks just shrugged their shoulders. And still today, the media seems to want to side-step the word. Well, hello America - it's here - we've got people who are ready, willing and able to work who are standing in food bank lines!
Sadly yes...but like the stock market, our economy follows the path of a wave. I dont believe our economy has yet reached its lowest point, but once it does it can only improve from there.
Unfortunately while greed doesn't "trickle down," pain does. But the Republicans who just love to recall the very average Ronald Reagan presidency, fail to take notice to His basic economic mantra and we're all paying for their legacy.
Frankly, until we Americans stand up for who we are and what we represent, the spiral will continue. Lets review a few myths – outsourcing jobs and manufacturing to 3rd world countries is good for America, every American is entitled to a mortgage, there's nothing wrong with our education system, higher education is for everyone, people on welfare and food stamps want to be there, keep your money in the market and ride it out, the big 3 need the bailout, greed is good, on and on and on. We can't run our families and lives the way we are running this nation. All us girls learned long ago that no means no, and we have to start saying it to nonsensical agendas and move forward..
It depends on what income level you are at right now. Probably will get worse for those who are at the top income levels.
For folks like us, we really are too poor to tell much difference.
Yes. And it will continue downward as long as the work force continues to decrease. The incentives given to corporations to employ foreign employees should cease. And then start building from within, so to speak.
Absolutely. The dow needs to return to 4000 before it begins a new bull cycle. The run up of property values for single family residential must be completely wiped out. In other words homeowners will no longer be able to use theri homes as a credit card and then sell in seven years to some poor unsuspecting person. More retailers must fail. In short, in a true capitalistic system competion can also cause de-flation when ther are too many competitors and too many too big to fail.
Unfornatualy yes..scary times huh..
The worst of the financial crisis can and will be behind us when our budget is reviewed. Those government agencies that exist that most of us have never heard of but are big spenders of our tax dollars, only then will we see change.
Do you believe the worst of the financial crisis lies ahead?
Not only is the financial crisis likely to get worse before it gets better, it is likely to stay worse esp if the auto industry's gang of three gets the assistance they are seeking...you know Jack it is a pity after all that the American taxpayer has absolutely no control over how his/her money is spent, the politicians in collusion with special interest groups and Wall Street barons control everything...that's not socialism that's American capitalism...
Yes indeed the worst lies ahead, unfortunately I don't have any confidence in the current government to even know where or how to fix this problem! I have sat back for months predicting EVERYTHING that is currently happening, sometimes I say something brilliant and minutes later, you wonderful, informative people say the same things! Frustrated and disgusted in CA
Due to the failure of the Bush Administration to tell the truth about anything, unfortunately, we will not know the scope and depth of the problems until Obama takes office and "audits" the books.
My guess is that things are worse and will get worse before the new programs take hold.
What did you expect?
I am hoping and praying President elect Obama will start to heal our Country. He is intellligent enough to think through some of our problems, and has picked people for his cabinet who hopefully will help steer us in the right direction. Obama inspires confidence and hope, which is what we need right now, and a step in the right direction. God Bless Obama, and give him strength for the coming years!
Unfortunately yes. I don't like to admit it but this is what happens when we have a vacuum of leadership and someone who lets these companies do whatever they want without consequences. Now we all have to pay for their poor choices. We have no idea how bad it is yet because there is no transparency in how bad the choices were in the first place that caused this problem.
We need to learn from our mistakes and get that transparency moving forward. If we don't learn from our mistakes we are bound to repeat them.
Just as the Great Depression did not start and end in one day, this Economic Crisis has not run it's course. The cult of greed in the west has lead us to where we are. As nothing the World Governments are doing is addressing this simple cause, the crisis will continue to grow. We are spiraling out of control and the people in charge of fixing the problem are the same people who caused the problem in the first place.
Certainly this new Obama team has their hands full with the largest crisis ever seen in our times. Im in the housing industry and we feel its 18 months to begin to pull up...and slowly...
Jack, the worst is still ahead. Even if the automakers are bailed out, there will have to be job cuts as they are forced to restructure to compete. The wealthy are scared silly that President-elect Obama is going to raise their taxes and make them support the poor and they are going to stop spending to try and wait for two years until the GOP can re-capture some Senate seats. Our economy has turned from being one based on manufacturing and undustry to one dependent on financials and investment and that is where this crisis started. These sectors are spooked now and will remain shaky for a year or so.
Of couse the worst of the economy is still ahead. As long as we continue to bail out banks like Citicorp and companies like AIG. While AIG after 150 billion in bailout money has continued to spend hundreds of thousands on spas and entertainment and Citigroup while waiting for the government to hand over another 20 billion after already recieving 25 billion was busy Friday reassuring the Mets that they would continue with their $20 million dollar a year naming contract for the new park. How can we the working class that used to be known as the middle class ever win. With no bailout in sight for us how can we continue to support a gernment that will need everything we make just to pay off the debt!! One trillion dollars for banks and investment compnaies but we can't do anything for the workers who will suffer the most.
Yes, absolutely. Figure it out, people have lost their nest egg, their ability to borrow on their homes, their credit (and rating). In other words they have lost about 60% of their purchasing power and the economy is 70% driven by consumer spending. We haven't seen anything yet! 10-to-12 percent unemployment for sure. And you still have the economically ignorant Republicans and press. They keep confusing the national economy with their own budget making. We must spend, spend, spend.....1 trillion dollar stimulus package aimed at increasing productivity. Sadly, President Bush is not helping. Left on his own it's clear he's not very bright and cares more about Wall Street than the people. Ralph, Yakima, Wa.
Yes, I think the worst is still ahead for us. If we are all suffering from job losses ,Credit crunches,Housing ...Just think what's in store for Uncle Sam next year when our government starts defaulting on the huge loans we owe because of the decrease Tax revenue . Our government borrows money every day to keep the wheels greased! Guess what happens when the wheels don't get greased . Next crisis-Famine
Jack, The worst of the economy is not over. Like an iceberg, we've only seen the tip. Economics and fiscal expropriations from the worlds major countries have drastically deteriorated. U.S. companies that are failing need to fail, declare chapter 11 and under superior management, will become profitable again and energize other global markets.
I keep hearing the news folks saying this isn't a depression because unemployment isn't at 20-25%. Are you folks just reading what people hand you? The reality is that in the past 8 years Bush has made it possible for most big companies to sell out American workers and get a tax break. The REAL unemployment number is more like 30-35% since you don't count the people who have exhausted unemployment benefits and are now on welfare or living with relatives!
We have not seen the worst. People are still losing jobs and they are having to take money out of their 401K. THAT's why the market falls. Once people have depleted their 401Ks, then there is NO money to BUY the stocks.
And, of course we ALL KNOW, that the BROKERS are sure to get their commissions out of those penalties we pay for early withdrawl.
We've ALREADY depleted our 401K, when the place my husband worked at tanked.
Unfortunately, the worst is to come. It seems with every company we bail out there are more to come. When we keep bailing these companies out we will see it in rising taxes. Sure we may have a better economy but how much money will we be able to keep?
That is the question.
America has a lot of trees. Enough to make enough paper to print enough money to get us through this, If not they could do it all digital. There's no shortage of zero's in Washington.
Jack, we're probably not at bottom yet. I expect the economy to get worst before it starts to turn around. Bush did a great job of digging a large hole for all of us. It's probably the only thing he was successfull at besides keeping us safe here at home. What a legacy for Bush to leave US with.
Where have you been? It's here, what is ahead is a big unknown. This only proves that middle class people cannot afford to sink their retirement funds in mutual stock accounts. This is the risk we all take when we bet that our little investment will turn into a "POT of GOLD". Undeniably some have struck it rich. But for most of us gambleing with our retirement money is too much of a risk. Especially to those who could least afford to lose.
Ron San Diego
Yes I think the bulk of the crisis is ahead of us. We are witnessing
the biggest heist since the Aztec gold in bailouts to banks with virtually no strings attached. They don't have to start loaning money or stop funneling money to the bank robbers in silk suits (CEO's). The buddies are getting a hand out while the rest of us are getting a hand gesture. Obama will inherit this mess and it will take many years to straighten it out.
I am a Viet Nam vet, and like my time in combat didnt matter,my suggestion will not either,but, while they are deciding what to save and what to write the tax payers money off on, why not use that money to pay off the morgage for some the soldiers who have wives and kids to think about along with his life and the lives of his friends.That would show what apatriotic institution like the banks should have done,instead of helping to ruin the economy.
Depends, how much money does China have to lend us?
Seriously though Jack, as people tighten their belts, it means less money for companies to make. Companies lay off more people, people spend less. The vicious cycle is just starting. I think one more year of this would be a gift. It probably will take two years just to turn the tide.
99 yr old aunt says depression wasnt just the crash on wallstreet but included the drought that effected 20 states, the dust bowl years and the flu epedimics during those years, so unless we have another natural disaster that effects half the US and an epedemic, we are panicing for nothing. Sit back and relax. We will survive
I have a great idea! Let all the people (tax payers) be free of their debt all of what they owe and let them all start over with a clean slate. That seems to be what all the banks and now the Auto industry want. What a deal a fresh new start!! FOR ALL THE PEOPLE!
To bad McCain and Sarah aren't in Washington to SHAKE THINGS UP! We now have a good leader just be thankful that the other two could be in there GO HELP US! lets all try to have faith in our new leadership it can't come too soon. Let us all get behind the new administration and at least give them a chance to bring us the CHANGE. Jan in Az.
Jack, it may happen exactly as presented to the secret session of the Congress on March 13, 2008 by the intelligence community...total collapse of the u.s. economy in late 08', followed mid 09' by a collapse of U.S Government finances, followed by chaos. They should know.
Yes – it's going to get much worse before it gets better. Not only do we have a month before Obama becomes president, but it will take some time to enact any new policies... not to mention getting them passed through congress.
As an average american, of course it is! If I were a CEO of one the companies that got a bail out, I could care less.
It's greed, greed, and more greed... They raise your interest rates, add late fees, get a bail out, and now tax breaks.. When does it end. When did the middle class become so insigniffcant? Well, at least if I lose my home I have confidence that I still have my religion and my guns and my old beater car. Funny it took me 30 years to go from 3.60 per hour to 12.00 per hour.. And over 8 years you can go from a millionaire to a billionaire. Ha...Ha!
Of course, all the government has done so far is so money at the problem. They're completely ignoring the underlying flaws in the system. All this has show that free market capitalism is unstable by it's very nature. Selfishness and greed overwhelm any sense of national service. That's not to say that heavy regulation is a good thing either. Like most complex systems it's about finding a balance. What we need is regulation that is handled right, and minimize the corruption. The idea that these industries have become "too big to fail" is frightening. That's a dangerous situation even when the economy is healthy. It stifles innovation and flexibility. These cooperation shouldn't have been allowed to gather so much of a stranglehold over the economy. The USA is "For the people by the people", not "For the companies by the people."
How does anyone really know?
If you look over the last 11 + months there hasn't been any real specific information provided to the American Taxpayer. All we've really seen is the hands outstretched asking for a bail out.
Even last week the Auto Manufacturers we're in town asking for $25 Billion, but how much do they really need to survive the storm, $250Billion or $2.5 Trillion?
Today you hear stories of Millions of Jobs being lost in 2009. So once again who knows – we're in a catch 22 meaning that companies are struggling and the taxpayers deserve to know specific details before they're bailed out, but if the Wall Street boys & girls find out just how bad off a company is the stocks for that company and others in the sector will tank.
So it seems that we're in a severe period of "need to know" if you're entitled to information you can get it otherwise wet your index finger and stick irt in the air to see which way the wind is blowing. Then take a guess!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Jack..........I am no economist. But given what I have learned in educating myself on the current financial crisis......it seems like pretty basic arithmetic to me. I expect things to get a lot worse before the bleeding stops.
There is no doubt in my mind that the worst has yet to arrive. Unwinding the CDS fiasco, credit card defaults, car payment defaults, business going under, all will continue to drag the world economies down.
President-Elect Obama is one very intelligent man, but even with all the help he is looking for, cannot solve this quickly. He knows it, and those who want things "back" are barking for something that is gone, over, done.
How could it do anything but get worse unless strict guidelines are
attched to the money being thrown around and those guidelines
determine its use. It's unbelievable that the banks are sitting on
all the money they've been given. An emergency banking act
should be passed by Congress to force the banks to put that
money into circulation as was originally intended to relieve the
There is more to come than we can guess right now. Who knows what a tight-belted holiday season will do to retail, adding another potential woe into the economic quagmire we are currently wading in? At this point, we need to change the addage to "expect the worse, so prepare for it."
Economics are too complicated, I'm sick of it. The DOW is down, then it's up and then it's down agian. I'm gonna go live in the woods.
Can anyone tell the public exactly how much the US government has? How much money do we have? People can subtract but, can they add? Or is Jethro doing the books? Is there a record we can all see?