When Will the U.S. Economy Turn Around?
FROM CNN’s Jack Cafferty:
News on the economy just keeps getting worse. We're officially in a recession, unemployment filings are at a 26-year high and more layoffs are reported every day. No one really knows if the end is near.
Two-thirds of Americans don't see the economy turning around anytime soon, according to a Gallup poll. Most of those surveyed think a turnaround is at least two years away.
Here's how it breaks down: 29 percent say it will be two years until the economy starts to recover, 20% say three to four years, and 17 percent say five or more years. Just 15% think it will be within a year.
This is mostly unchanged from how Americans felt three weeks ago despite the fact that the news has continued to get worse during that time.
It becomes a vicious cycle: public fears of a lengthy recession lead consumers to stop spending which makes the recession worse.
It's been a year since the recession started. As the folks at the Gallup Poll point out, if it takes two more years for recovery to start, this could be one of the worst economic downturns in the nation's history.
Here’s my question to you: What will it take for the economy to begin improving?
Tune in to the Situation Room at 5pm to see if Jack reads your answer on air.
And, we love to know where you’re writing from, so please include your city and state with your comment.
@jackcafferty on Twitter
Time, Jack, time.
Ray Kinserlow
Lubbock, Texas
Personally I think,first of all that all these folks wanting bailout money and officials of our government that keep ending up in prison need to take classes in "co-dependancy"!! Then figure out some way for the American people to have trust in out government again, because like a marriage, without trust you have nothing! We need a "leader" that will lead for once and put us in the right direction once again!
What will it take for the economy to begin improving?
I think that we'll see an immediate response on Janurary 21st, don't you?
A bit of protectionism and updated trade agreements would be helpful as well.
Jenna
Roseville CA
It is going to take 3-5 years if not longer. Unemployment and the stupid bailout plus home foreclosures have really ruined the economy. Big business has prevailed once again. The unfortunate american taxpayer is stuck..however, I have a question for you Jack...how will the government make money when the biggest contributor the middle class has no job nor money?
As soon as we get any accountability in the treasury instead of the kind of tactics that went on with the Bush administration regarding Cheneys war profiteering. They are mis-spending all the money that was supposed to rescue the economy and the very criminals who got us here in the first place are reaping aditional rewards. WHEN IS IT GOING TO STOP? Hopefully January 20 when we kick that useless piece of human flesh out of the White House!
A complete resetting of the credit market. Total loan forgiveness for all outstanding debt. I bet that won't cost $700B. With that, those banks that created this mess (and yes it was the banks that did this), who are counting on those interest charges and fees will collapse and new more responsible banks will emerge. Banks are at the center of lending, and we are not lending right now. Homes were not purchased through the builder, it was financed through the bank. The Adjustable Rate Mortgages were not the invent of the Broker or the Real Estate agent, nooooo, it was the bank. We're paying the interest, fees, and penalties to the bank. So when will this turn around when we take our ability to purchase back from the banks. If not, we will repeat this debacle over and over again.
When we get our bailout
Less government and more hard working small business people tell people to bail out them selves and they will do what they have done for them selves time and time again stand up and do it
Perry jones
iowa
People have to feel confident that their sources of income aren't going to dry up. The more employers make headlines with massive layoffs, the less all of us spend money.
I have a secure job and a good salary, but the daily reminders of gloom and doom prevent me from spending like I normally do. I've scaled it all back just to be careful.
Boise, ID
It will turn around once we get real, and get rid of half the government program's and employee's...try E-Bay, LOL.
Who knows? But my take is that instead of giving that $700 billion to the financial district and the $15 billion to the auto industry, they should have just wrote a $500,000 check to each taxpayer which would have probably alleviated part of the problem. It would have been cheaper and more productive because folk would have paid off their debts.
Up to now, the Treasury, the Fed, and the White House have just been saying, "Economy–Turn around!!" Everyone knows you need to say, "Simon says: Economy–Turn around." Then it will happen right away.
when all the dummies in DC are gone and educated ones are in.
Jack: We first needs jobs that generate wealth, in order for the consumer to get out and buy. Since private industry is on the wane, we need an infusion of dollars to get large public works going so that jobs become available, people get paid and private industry's products are sought after. The war in Iraq had no return; investment in America will help mainstreet, Wall Street and the global economy.
The economy will start to turn around when our government gets off this trickle-down economic nonsense. They can start by taking a cut in pay and perks like they are suggesting for the CEO's, altho, the CEO's actually work more than two days a week so they earn their pay more than our elected politicians.
It will take a January inauguration with a new president who has intelligence for a change, getting rid of self-serving arrogant Republicans in the Senate who care NOTHING about American workers and families, a much-needed manufacturing policy that protects American business for a change, and getting rid of that stupid "free trade" at all costs ideology.
I am proud of American products, American workers and those Republican SOB senators can put THAT where the sun don't shine!
What it will take is Obama getting in office and American companies
who start putting America and their workers first ahead of their own
greed. This whole economic mess can be traced back to a "me first
and what's in it for me" attitude. People and business trying to get
rich off the backs of the working people has caused more harm
than any other indicator. It's time for all of us to pull together and
get the country moving again. Throw the bums out who caused the
meltdown and put in people who care about America and who won't
ship all our jobs to China.
I have no confidence that it will turn around. We are paying now for outsourcing, importing trash products, neglecting education, a failing health care system, fighting senseless wars, crazy spending, corruption, failing energy independence, free trade. We failed everywhere.
Hi Jack,
It's common sense! It will take a "bail out" for the hardworking people whose tax dollars are spent bailing out a bunch of bumbling idiots in the banking and auto industries. I still can't fathom how bailing out these institutions will help solve the economic issues facing America, as a nation. The employed will still be strapped with over inflated prices and mounting bills that we must attend to. Thus, we still won't have money to spend, which in turn will stimulate the economy. Because we are falling behind on paying our bills, our credit scores are falling like the ball in Time's Square on New Year's Eve.
Unless the middle and working classes in this country get a bail out, our economy will continue it's downward spiral.
Jack, I just seen an article that said the senators were going to get a raise next year, where is their sacrifice?We have politicians making larger salaries and if they are old enough drawing social security. I do not think the Governor of Illinois is the only one play the people.
The economy will turn around as soon as all of the jobs outsourced to foreign countries come back home. Without employment the economy cannot grow.
It's going to take fuel, or at least heat. Whether fossil, earth, wind or fire, industry takes lots of heat. Without it, we have to work to produce money to send to countries that can and will send back fuel for heat. Without it, I'd say the economy is not going anywhere soon.
When all the Wall Street Fat Cat Crooks, do the Penguin walk in good ole' USA handcuffs.
Where can I start? The first thing is getting the banks to cut loose of the taxpayer money they have been sitting on. They should be penalized for every day they withhold loans from qualified borrowers. Second, the creation of new types of jobs. Obama speaks of green jobs, and I agree with him. The creation of more renewable sources of energy will help wean us off of foreign oil. Penalties for shipping jobs overseas. Shift some of the tax burden from the middle-class to the wealthier populace. Most of this is well understood by most everyone but the current administration. Good luck Obama.
I think it will take creating new industries and infrastructure in the US. Gimmicks like stimulus checks or tax holidays don't generate wealth, they just push debt around. It's like the GDP growth of the past 10 years... I was all economic voodoo, no actual work being done.
Jack!!!
When ever big Corporations stop asking Congress for money then USA in right Direction. i am sure it will take 3-4 yrs.
never , they want to deunion our country, lower wages to china style, ect, ect the good old days are history
it will take time but we must clean up Bushs mess
Jack – It will take the American people getting off their butts and working their way through it. America needs to reinvent itself again and put regulations on corporate greed and outsourcing of jobs.
Our economy will turn around when we change our mind-set about money. It is not the solution to our problem; it is the cause of it. It is when those who earn multi-million dollar salaries and bonuses understand that more money won’t make them happier. Then we will see them participating in solving the problems that face the rest of the world. As long as greed corrupts the hearts of men, human-kind will fall short of our potential. It is when enough see this reality that we will begin to see a lasting turn-around for our world’s economy.
Hi Jack:
Evict Bush and his cast of "Dirty Rotten Scoundrels" from The Whitehouse.
Ron San Diego
Jobs,Jobs,and more Jobs. Put some money into the American people's hands and give them some dignity by earning it. People don't want hand outs. They want to work. President-elect Obama needs to create some type of job training program where people get paid while they are training for a job. When people have money they spend. I believe this would help the economy recover.
Jack;
The economy will improve when...
1. we buy American
2. we build factories
3. we build the infrastructure of this country
4. we create jobs
5. we get rid of our oil dependence
6. we end the ground wars which are too costly
7. we export all illegal immigrants taxing the system
8. we get rid of waste and pork barrel projects
9. we stop or limit the excessive protection, aid, and military in foreign countries
10. take back the 700 billion or what is left and give it right back to the taxpayers. I'm sure they will spend it more wisely!!!
Wildwood Crest, NJ
I worked in a trailor factory for 20 years. It employed about 30 people. It was a very lazy bunch, due to the lack of leadership. The factory changed ownership, and put me in charge. Whip these guy`s into shape, they said! I said, these guy`s have been sitting on there hands for 20 years, we should shut down for a few weeks, rehire, and start fresh. After the first year, the new company went bankrupt. They said you were right. The moral of this story is, we are not going to move forward, with the same type of corrupt washington insiders at the helm.
What economy Jack? We have an economy? I thought we have a mess. Right now I could use a mess of greens. That would be more helpful to me.
hi jack,
well the us economy will come around only when the job market gets back on its feet, the financial institutions are sound , their officials don't spend money lavishly, the housing market gets steady, people are able to get loans and don't have bad credit . us jobs should not go overseas , manufacturing jobs should start building up and people who know only one job should try and learn other skills. only then will the us economy will come around though in bits and spurts not in leaps and bounds.
As a Mortgage Broker I have been saying 6 more moths for over 2 years.. Anyway, Jack how are we supposed to know, when the government didn't know we were in a recession for 12 months and they put out the data..
Hopefully around the middle of 2009. All the bailouts should be in place by then
As a Mortgage Broker I have been saying 6 more moths for over 2 years.. Anyway, Jack how are we supposed to know, when the government didn't know we were in a recession for 12 months and they put out the data..
Jack, to put it plainly, it'll take the exact same thing that got us into this situation in the first place: for people to buy more than they need with more money than they have.
I figure Obama will get us out of this hole about the time his second term is up. At that point, a Republican will be elected because people will have forgotten who exactly dug the hole to begin with. And shovel in hand, they'll start the cycle over again.
We need manufacturing jobs be it auto, housing, furniture, clothes etc.
You have to make something not just shuffle papers as in banking, lawyers, accounting, stock brokers. We need a paycheck each Friday for the work we did making a product.
Turn around?! I don't think we will hit bottom until late summer or early fall of 09. We will probably flounder on the bottom for awhile and not start to turn around until sometime in 2010.
But I'm an optimist!
More government intervention and a miracle.
To Jack
Just for Bush and Cheney to leave office and to do it very soon, can't wait until January 20, 2009. Thank, Winnie
Praying it will be soon, haven't had a raise in 2 years, still happy to have a job, eventhough it is difficult to make ends meet.
National Health for one. Taxes won't be spent on losing your lively hood and maybe saving lives instead. Logansport,In.
Jobs are key. When we start hiring instead of laying off the housing will turn around and maybe we will start to look forward to tomorrow.
If we lose the auto industry I don't expect to have this country turn around until 2020. There will be too many jobs lost, too many families impacted and too many wiped out companies. It will be extremely difficult to dig ourselves out of the economic crater.
When CEOs are held accountable, fired without severence and competant persons are placed in charge that make no more than the president of the USA plus no benefits that the rest of the employees do not receive. When the people directly affected by the economic collapse get some consideration, breaks on the interest rates charged and are actually represented by the congress they elected! When our jobs are brought back to the USA and jobs are no longer outsourced.I won't hold my breath.
When all the stupid Congressmen/women get out of the picture. The bailout for their banking friends hasn't shown anything positive. They handed out money (no strings attached) and now wring their hands and wonder why it bought junkets and bonuses. Now they hand out chump change to auto industry with strings attached and say you don't do what want and we'll yank your chain and the money back. Of course we're only giving you enough money until Obama is in office then you can come begging to him. Lou Dobbs stated that not one member of Congress would read or understand the bailout plan presented by Big 3. He was right when you listen to arrogant idiots like Dodd. He wants GM CEO to step down. I think Wagoner should do that if and only when Dodd and all banking, insurance and credit CEOs who received dollars step down first.
I say give a tax break to those who hire in the next six months, anything that will get companies willing to hiire agian is a positive start. I for one, would take a minimuim wage job just to have a job to go to. it's not like I'm asking for $100,000 a year all I want is a job to pay my bills, get groceries, and maybe enjoy a beer every now and then and then. Is that too much to ask?
Once the current occupant of the White house departs the premises the economy should start improving. He has done more than anything else to destroy the economy and everything else about the country.
The very day we outline a new vision of America. In 10 years- no more foreign oil, 10 years – all local,state and fed. buildings as well as transportation run on solar/wind/renewable, 10 years before new fast track railways are in service. If we go about this proactively and make a commitment to meet deadlines, our economy will rebound immediately.
Jack,
The economy will turn around when we stop all of these rediculous bailouts!
invest in the Middle and Working Class. The economy is like a pyramid. If the top is strong and the bottom weak the pyramid will crumble, just like our economy.
The market will turn around in late 2009. The real economy will follow in 2010. Unfortunately for our children and grandchildren their economic future is grim. There is too much blame to go around to list all the folks that are at fault for this mess....republicans, democrats, bankers, and the american consumer who lived above their means. Our generation was suppose to exceed our parents accomplishments. Unfortunately our generation played liars poker. Our parents generation did it the old fashion way-hard work, sacrifice and saving.
Time, Jack...it's going to take some time. President-elect Obama's not making any pie in the sky promises about the economy recovering on January 21, 2009, and we shouldn't expect that from him. It took bush's eight years of incompetence to get us where we are now...turning that around is going to take a while.
A HUGE stimulus package for taxpayers that will allow them to SPEND. And I hope that, if there is any of the 700 billion left, that Obama will grab it and do something more productive than what has already been done.
That's easy: consumer spending. But, with the number of jobs lost in the last year, that's not very likely. Only when the job situation improves can the economy improve. So, if the new president can indeed create jobs, just not in construction but in energy and in manufacturing as well, maybe by next fall. Keep your fingers crossed!
The economy will turn around when leaders are no longer motivated by greed and avarice. When leaders come forward who are willing to make a commitment to use their superior skills and intellect to create opportunities for others who are less skilled and endowed rather than feed their own narcisistic desires, then we will begin a new era of joyful expansion. I am afraid it will take a long, long time.
There have been only two things that I can see that have realigned the economies of any nation, throughout history.
One, a big war. Two, a revolution.
Take your pick.
It will start turning around when the programs of our new President are implemented! When more people have jobs, they will start feeling more confident. And the economy is a confidence game, after all!!
- Los Angeles, CA
Nearly every economist believes the bottom will be reached sometime next year. The estimates vary between mid-year to the end of 2009. No one knows how deep it will be nor how long the recovery will take, but we probably need to expect at least another couple of years. The massive debt we've acquired and expect to extend over the next year, will take years to dissapate, accompanied by a radical change in our culture of debt probably driven by a retreat of the Chinese from their current subsidies.
Because our government has failed to seriously address and fix problems like better health care, more jobs, energy independence and ending the ridiculous war in Iraq...I think it will be a awhile before our economy bounces back! Scary stuff Jack.
Jack,
When the world economy turns around. We now live in a world where our economies in North America are dependent upon underlying forces driving the global economy. Once world markets for energy, real estate, finance and the threat against terrorism are stabilized, only then will the US (and Canadian) economies start to recover.
It's a scary time Jack. As far as turning it around, that would be a banker question. The control is with the bankers and this mapped, planned and engineered crisis couldn't have happened without the bankers. Now you tell me Jack, how many dumb bankers does it take to break our economy? You tell me there are no smart bankers that knew what they are doing and I'll again tell you mapped, planned and engineered.
I think instead giving all this money any big company that ask for it how about bailing us, the American people out and split all that money among all the tax payer. That will stimulate the economy, first thing people will do is pay off their debt and mortgages. Other will start businesses and buy from other business. It's time for us citizens to stand up and say where is our bailout?
This isn't a small recession and it isn't going to be solved by throwing ourselves into more debt or by bailing out big banks. We have to put our heads together and work as a team to be more fiscally responsible and innovative as a society. To do that, we need to get stop saying "someone should fix it" and start coming up with ways to be part of the solution. We can start by going back to a zero debt mentality accross the board. Until then, our economy will always hang by a thread and we, as people, will always be one paycheck away from being homeless.
It will turn around as soon as the GOP stops throwing selfish monkey wrenches into the works. All these southern senators are doing a helluva a job protecting the auto industry...the foreign auto industry. It truly is difficult times that bring out the worst in people, and these southern senators are proving the rule....Since McConnell has been re-elected, he has entirely lost his contriteness and strength of purpose in stewardship of the nation.
I'm not sure, Jack. But if it doesn't happen anytime in the near future, we'd all better hope we don't live a long life because there won't be any money left in our IRAs to live on.
A long needed change in the American mindset is the only thing that will keep us from going into the abyss. We lack the single most important element that all previous generations were blessed with and understood. That element is unity. We are no longer in pusuit of what is best as a nation, and we no longer put aside our differences so that we may work as a team. Everything, from the top down, is all about what's in it for me and how can I screw the other guy so that I get my share.
We have lost our focus and sold our national soul to the highest bidder, and for that we will continue to pay dearly. Our immigrants don't fly the Stars and Stripes, they put the flag of the country they abandoned ahead of ours. We no longer demand students learn economics, ethics, social and civic studies or even english. The current economic situation is merely a reflection of who we have become.
Jack –
I've read all 12 comments so far, and I will have to agree with several people, so far, I agree with Jenna Wade in Calif....Anthony Smith from
N.J.
Larry C.
Houston Texas
A massive correction. As long as the government continues to print money to prop up failed institutions, there will be no end in site. We are only prolonging the agony. It is like borrowing from one credit card to pay another.
I don't believe the economy will improve until fry-cooks at McDonalds are considered mid-level executives. Until then, you can expect massive unemployment, poverty, hunger and homelessness to abound Welcome to the 21st Century everyone.
at the rate things are going, it will be a long time.
Jack, what it will take is strong, visionary and charismatic leadership. Maybe the voters have someone in mind...
We've had the industrial revolution, which is in the death throws now.
We have the technology revolution, which we are just adapting to.
Next will be the green revolution. This is where the jobs will come from and rebuild the economy.
But first we must regenerate and revamp our education system to reflect the changes in our society.
With the Republicans wanting to destroy the middle class by decimating wages and benefits of working people, continue to give huge tax cuts to the rich, subsidies to rich companies and offshore, non farming "farm" owners and to give subsidies and tax breaks to foreign companies for locating factories in their states, i doubt if America's economy will ever truly recover.
Perhaps these Republicans who are against the bailout loan and are proposing that union contracts be ripped up and the workers reduced to $1 an hour j0obs and reduced benefits, perhaps they should set an example by cutting their wages in half, refuse the medical benefits they receive and sign out of their pension plan. Perhaps then they will understand what American workers are going through and they will roll up their sleeves and actually work FOR the American people.
Jack I myself gloom and doom and don't see it coming out for a long time, especially with these idiots that are going to let millions of Auto workers loose there jobs and loose are Independence and a hole culture as well. Retraining 2 to 3 million people is not going to happen just like that, I can speak with experience Ive been in limbo for three years and have not found any thing yet with all the help that's been available and I am only one let alone millions. end free trade and I would say I see it getting ready to recover Jack.
Jack, The economy is going to linger until states with conservative republican senators start to feel the pinch. Eight years of republican leadership and four years of Bush 1 shuffled enough federal projects to the so called "blue states". Unless those federal dollars are redistributed out of those areas and until those people feel the economic pinch as much as the rest of Americans, the republican senators will feel quite comfortable filibustering real solutions to this economic mess.
As an older person, I was suprised by the news that related stories concerning past recessions, and previous layoffs. In the 70's I changed jobs often and obtained invaluable experience. In the 80's I saved and invested for my retirement. In the 90's I didn't buy anything I couldn't afford. So, I say to you Jack, as soon as CNN and the others stop constantly telling us that the sky is falling; as soon as Congress gets out of the financial advisor business, as soon as citizens only purchase what they can pay for in cash and when a new government stops finding WMD's and seeing falling skys and announcing the ends of the world; the economy will begin to improve.
Giving money to the Auto companies won't help. People have to buy the cars they are making now, they can't because they have no money.
What good does it do to build cars that no one can buy.
I do not buy the excuse that they were building cars no one wants. They were buying them when they had money.
It will take at least 5 years before the economy will turn around. We are too deep in the hole thanks to "King George" and his cronies.
Bring back regulation or at best oversite of the banking industry.
A new administration in January for starters will be a great improvement for the economy. How about reform for the health care system so that U.S. companies can compete on a level playing field with foreign companies. Put money in the hands of people instead of banks. Public works projects and small business projects can all inject needed cash into the economy a lot faster than giving money to a bank or large corporation. We've already seen what the AIG's can do.
It will take some cooperation from the Republican Party. They don't seem to realize that sitting on their hands and doing nothing while the automakers' bankruptcy brings the entire economy to a collapse is not going to correct this mess. We need to do something to save the American and the world's economy. The horrible policies of the Republicans have gotten us into this mess and they seem to believe that they must seem their policies to fruition, which will be the complete collapse of the economy. That is not looking out for America's best interest. It is personal interest and the personal interest of the rich. It will take years at this rate, especially, if the GOP allows the economy to collapse.
I think the economy will improve once the government stops meddling. We're in for a rough couple of years, but I truly believe things will get better – I have faith in the entrepreneurial spirit of the American people. But things will be different and hopefully for the better. My hope is that companies and individuals will be more careful in their spending become better at saving up for those rainy days.
Missy M
Phoenix, Arizona, where it is sunny and 70 degrees every day.
Come On Jack the economy will get better as soon as the current president leaves
On October 21, 2009.
As soon as we get rid of that nightmare in the white house. I mean George W. Bush. He's done absolutely nothing since he's been there.
John
Charlotte, NC
It won't turn around Jack. They are taking the wrong steps to fix the economy. The government is putting a bandage on cancer and hoping it goes away. The United States economy will be terminated within the next ten years and we will have to build from the ashes. Unfortunate.
Cincinnati, Ohio
our economy will improve when the fat cats figure out that giving breaks to foreign businesses actually hurt our businesses.....BUY AMERICAN for god's sake........
When we end the needless wars in the Middle East and start reparing our own infastructure and minding our own business.
Jack,
It will take our government working together. No more fillibusters, postering, finger pointing and egos. They must unify for the survival of our country. They must put our country and the American people
first. No more politicing. They have to work together to do the job they
were elected to do.
The economy will get better when they help out the home owners from going into forclosure. This is what started the recession in the first place ! When the politicians get there heads out of the sand and realize they must help stop the forclosures, will we make any progress towards coming out of recession. All they care about now is giving TARP money to the banks and money firms who sent them money for their re elections, to bail them out from making loans that were made to fail.
Terry , Piscataway, NJ
To start with, the inauguration of President Elect Obama. In itself, that will help us in international trade and also help us normalize relationships that have become strained over the last eight years.
Secondly, initiation of the new President’s plans to improve public works and offer employment to thousands who need it. Add to that, improved oversight into the Wall Street bailout, and emphasis on helping the beleaguered middle class.
Finally, the realization by the American people as a whole that improvements will not occur overnight, and will require concerted effort of EVERYONE, not just the President and the Congress. We need to take some responsibility for how we got to this mess, and a lot of responsibility for doing what is necessary to make those improvements possible
Jack, The economy needs some cash and the only ones who have it are the Corporate Execs who have been bleeding the system since the Trickle down theory. It looks like Obama may go back on his election promise of extracting some of it from them. Why so much oversite on the Auto industry and non on Wall St. Dems for the blue collar Reps for the white collar???
Our economy will turn around when corporate America stops outsourcing our jobs. If you don't work, you won't have money to buy anything but food and clothes. Hopefully we'll have shelter, until the banks foreclose on our homes. At least we can still keep US farmers employed, but the clothes will most likely be made in a foreign country. Unemployment will continue to rise until major changes are made in this country and this corporations put Americans back to work.
"I'm sorry I cannot be an optimist, I can't afford to be."
Jack, you can quote me.
There will be a moment, maybe one morning when you get out of bed, the sun is shining and all you can think about is that this is going to be a good day.
At that moment, when all that crap about recession, sliding into depression, jobs lost, foreclosures, failed companies, no health insurance, soup kitchens, etc. etc. is no longer top of mind, that everyone can put a smile on their face and get out and enjoy the air, the wind and the sunshine. At that collective moment, there is every reason for everything to be OK, and for the economy to begin to recover.
Decreasing home values are the primary cause of our woes. Because prices have dropped (prices artifically inflated by teaser interest rates and ARMs) people cannot afford to sell their houses. They are afraid that they will have to bring cash to closing. Use the 700 Billion Dollar bail out to reduce the outstanding balances on these homes so that people can afford to sell. This will end the negative equity blight, restore consumer confidence, and get the economy moving.
January 20th when Bush leaves.
In two years all this corruption will play out and the markets will settle with the new president and new rules for lending and trading. Big paychecks will subside or investors will continue to be robbed. We must stop rewarding stupid thieves.
yes it wii jack but i cannot say how long it will take,we have had these periods of recession&depression before and managed to turn things around and will again so i think we should have faith and give president-elect obama a chance to do something about it.fdr once said "the only thing we have to fear is fear itself" how true that was and is
The economy will flourish again with jobs and more jobs:
-bring back the outsourced jobs to America
– create jobs repairing the infra structure in all States
-develop clean energy for the environment and to stop importing oil
-stop wars in a safe manner rendering costly contractors unnecessary
-pay the national debt
-buy American products made in American factories in America
-teach people how to live within their means and save-
-stop bailing out failing private enterprises who obviously do not know how to manage their own affairs
Jacqueline San Diego CA
No.
The system no longer works.
As I have said in the past, we live a dysfunctioal country with a dysfunctional goivernment in a dysfunctional world.
As soon as people see this things will change.
Bush and the republicans had eight years to get us in the mess we're in. It's going to take time to dig ourselves out of the hole they have got us in.
I see hope coming on January 20th., I hope that we all realize that Obama and his team need time to get us out of this economic mess. We need to gi ve him the time he needs, don't be critical and don't try to find fault with everything he does. Give him a chance. This goes for the news media, also. I'm sure Sean Hannity will not have one good thing to say about Obama over the next 4 years. I just hope the rest of the media will give him a chance. He's the only hope we have.
Given all of our problems (housing, finance, auto, etc.), let alone the other countries in the world that are also having problems, I would say it's going to be at least two to four years before we are going back to some sort of growth. However, if we let the auto industry collapse, I would guess that it will be four to six years before we can start digging out.
How about a bail out the American People? The taxpayers that are beyond dire straits.... We're bailing out banks, auto companies and insustries who, through their own greed and complacency helped get us to this point......
It would help to a large degree if the media would stop the incessant doom and gloom, the end of the world is near blab-a-thon.
The American people don't want to have to think... they don't want to do their homework. They simply absorb what the media tells them without critical thought.
Certainly the media doesn't CAUSE the problem... but it's certainly contributing to the economic crisis to a measurable degree.
The economy will get better when two things happen. First stop listening to the news. Second, when those who have money begin to spend it. Until these two things happen the vicious cycle will continue. Sorry CNN.
Jack, the economy will turn around when the housing market begins to pick up as a function of credit being reasonably available to prospective buyers.
As soon as the American people gets the same bailout the banks received. Give the people the money and they wil spend it quickly. It doesn't take a degree to figure that out. Fire Paulson, he couldn't think of that?
If the economy is truly going to spiral down into one of the worst states it has ever been in history then we just have to look back in history to see how to solve it. What got us out of the Great Depression? Public works and a world war. It's so simple then. We need to find a large project that the entire country can get behind and work on and we need to provoke a war with China. Nevermind the millions of deaths, it will fix our economy right?
A change in the senate and congress The democrats have been
in charge for the last two years. Now we had a new election and it looks like more of the same to me. I would give it 6 years.
Not until there are more strict regulations on DAY TRADERS trying to make a dollar on a penny. People who trade on line now have multiplied the issues plaguing Wall Street. SEC needs to implement a rule that requires traders to hold their stock buys for three to five days before they can sell.
The economy won't really improve until banks start lending again and banks won't start lending again until debt is paid down and savings rates start going up. That takes time, which means that in the interim, consumerism is going to remain low. I don't have a magic number for you but suffice it to say, we're in for a rough few years.
Roland
St. George, UT
The economy will improve when honesty and morality trumps greed. The chances of that happening on a scale of 1 – 10?..."0."
People aren't spending because of fear from loosing jobs or have lost jobs. Governement needs to pump money into Manufacturing facilities to create and sustain jobs. Once employment rate starts to turn around, those who own homes should have wages garnished to pay for their mortgages. That will guarantee banks receive their money, thus unfreezing lending.
The banks need to allocate a portion of the rescue money from the government and offer mortgages at 4% or less to jump start the new buyers' market and the second home trade up market. This will help jump start the the "trickle up" economic start that is needed.
It's going to take leadership in Washington with new innovative ideas. In January we may be close to that level in the white house, but in the Congress and Senate, I do not see it and especially with some old stone age backward Senators that just get in the way of everything.
Jack, Here's what it will take for the economy to BEGIN improving:
1 – The sky will open up and a voice will boom "All politicians report to Hell"
2 – The seas will part and all those who have earned money at the expense of the middle class will be swallowed up.
3 – The CEO's of GM and Chrysler will be replaced by the appointees of Jesus Christ.
4 – I'll win this week's Mega Millions Lotto and spend the $80,000,000 (after taxes) on buying an American made car – what ever is left over will go to buying dinner at McDonalds
Jack,
You're on the right track, it's a simple 3-step process to turn the economy around;
1) Get Bush out of office
2) Get Bush out of office
3) Get Bush out of office
See how simple and easy it'll be once we get "trickle-up" leaders in.
Keep up the great work!
Jack, it will start when we summon the political courage to let weak companies fail, making room for the strong to survive and grow. More government involvement (read bailouts) is like giving a crutch to a wounded antelope. Sure it gets around for awhile, but eventually the lion eats him for lunch.
To turn the economy around? We need to stop outsourcing jobs. We need a Fair trade agreement. We need to start making things in this country again so we dont have to buy most of our products from other country's.All these will create jobs and working people will spend money thus bringing back the economy.
I think the only way we have at hand to improve the economic situation is "The Pickens Plan". We must create jobs that don't revolve around fast food. We must also be honest with ourselves about job creation in that when we report the job numbers "we deduct job losses". Bush NEVER reported what the situation actually was! He and the VP should be impeached!
How about if the Fed govt mail the billions to the U.S. Consumer? We, in turn, would pay off loans, debts, house taxes, foreclosure liens, buy cars, put money in savings? And, a flat tax rate of 10, 15 or 20% would ensure the govt keeps running as well? Everyone' happy except the "Big Three"....... I don't want anyone else getting money if I don't!
It doesn't matter when, or even if, the economy turns around. This country is doomed, it's just a matter of time. If you don't believe it, just look at the great civilizations in history. What happened to them is the same as what is happening to us. And the results will be the same too. Several hundred years from now the people of that generation will study the United States in their history books, along with the Roman Empire.
It's just a self fulfilling prophecy. Stop talking about the bad economic times... the public won't freak out so much, and things will start improving. About every 12 years or so this cycle returns. It's not the end of the world, people!
We haven't even hit rock bottom yet! The economy will only improve when:
1. A WOMAN is President of The United States
The longer we attempt to prop the system up with bailouts, lower interest rates, and the like: the longer it will persist. We need to economy to find its natural equilibrium and bottom out on its own. We need to replace the feds method of arbitrary interest rates with a system of free market enterprise.
Only then, after much collapses, will we be able to rebuild a vibrant economy on a sound foundation.
if they had given all tax paying americans 1 million dollars each. we would be out of the housing crisis, the car crisis and we would have saved bilolions of dollars. why do we keep giving more money to those who missmanaged us to this point.
an even better question is how many politicians and such have people in these phoney corporate board jobs like the illinois governor trying to get 150,000$ dollars a year for nothing real. how much longer should the average american continue to pay for the riches excess?
Price controls on interest rates. Illegalize loan sharking, usury.
FYI the economic crisis has just begun. When credit cards defaults start to grow, look out!
Wage controls on executives, tied to performance.
TIME! Only problem is by the time it starts to turn around our taxes will most likely double to make up for the bailout money and a democratic party controlled government.
We need to cease and desist the bailout efforts. Bailouts are rewards for bad business practices.
We need to cease outsourcing American jobs.
We need to stop spending huge amounts of money for the invasions and occupations of foreign countries.
We need to invest in alternative energies, occupational training, wellness healthcare and education.
And we all need to inspect items before we purchase them. Are they made in China? We need to leave items made in China on the store shelves and do without or find a domestic equivalent.
Thanks Jack; you're the man!
Genie O'Brien, Newberry, FL
The economy will turn around when our consumer culture turns around. We need to create value in our goods, here, at home. When we create here, the wealth of our great nation will stay here.
Never. The US is in permanent decline. It can be traced back to the loss of any and all ethical behavior in the pursuit of financial treasure. Goodbye prosperity, hello despair.
we all want a quick turnaround time, and we are all looking for a glimmer of hope that this recession will be short lived. We didn't get into this mess overnight, and we won't get out of it overnight. All Americans should look at the way they have been spending, and realize that we are all responsible for this credit crisis. A lot of bad habits are going to have to turn around, before our economy does.
We should all be ashamed.
cindi wall
atlanta, ga
The best adjust that can help stimulate the economy is to lower the interest rates on houses (as quickly as possible). it will stimulate (or at least start) construction on new homes and the sales of existing homes. With this housing industry stimulation the banking industry will also benefit from the financing/refinancing of mortgages and maybe restore some confidence in the U.S. economy.
Time happens without regard and by itself doesn't fix anything. What's needed to fix this economy and this nation is the resubscription to the time-tested value of honesty, integrity and character. A return to these principals by every American will create the inertia to pull this country out of the selfishly driven hole it's in.
A foreign company just bought out one of our largest breweries.
Perhaps they know a lot more than we do – that we'll be 'crying in our beer' for a very long time.
Recession? Moneys practically (inflation) a zero sum game. Im making far more money now than I was a year ago. A smart person can turn a recession into a positive. The only problem is most americans are not very bright sorry to say. Invest in education then we'll get out of our habits that cause recessions, the bankers, CEOs, etc are not as much to blame as the American Citizen.
All americans need to start supporting american manufactured goods. That includes automobiles,clothes,furniture and toys. Also only buy what you need and use what you have.
People to spend money
What it will take is a stiffer policy on how companies use their money to invest into the stock market. It was all a domino effect, starting with the mortgage mess, among others. For now it’s everyone’s turn to pay for the riches we have made or the consequences we have yet to foresee.
This is a comsumer economy – no consumer no economy – We gave the money to Government who just does not get the basic principle business needs buyers.
Give the Big Bail out to the consumer – we know how to spend it
What will it take for the economy to begin improving?
Rather Simple:
1. Significant reduction in corporate greed/profit
2. No more golden parachutes or million dollar CEO bonus
3. MASSIVE LOWER CREDIT CARD INTEREST RATES (Should be like 2% for everyone!!!!!!)
4. Lower gas prices
5. And finally, the housing bubble to come to reality and quit over pricing homes that aren't, in fact, worth a dime!
Jack,
The economy will turn around fast if those republican senators accept the same pay as they request of the UAW factory workers,
When we replace the Repuli-crooks with the democans.
A new administration is a good start but we should thank the outgoing president for all his stellar incompetence…. Still wondering when the current vice president is going to come out of the tall grass.
It will require dissolving the Fed and striking the Federal Reserve Act. Also need to dissolve all the Nafta style treaties that export jobs, and renew former tariffs. Also need to ban incumbents from running for office again, and back the dollar with gold. Need to prosecute all the banking executives that got in this mess instead of having them currently manage it. Also need ot recognize that letting the auto industry fail it is just like off-shoring the entire manufacturing base to foreign entities; And forget about gettinng Hummer parts.
The government will print more dollars, they will be worth less and inflation will rise, and then we pay our debts with cheaper dollars. Isn't that what we did during the Reagan Recession? I think it will take about two years.
The economy could recover rather quickly if Americans would wake up and understand the impact of what the Fair Value Tax model can provide.