December 6, 2008
President elect Barack Obama has not taken office yet, but already has analyzed the economy he is taking over as President in six weeks which will be worse.
In a weekly address Obama stated that we need action and now, in a vain attempt to speak to the current administration under George Bush which is totally out to lunch for the rest of his term.
Several key factors this week have led President elect Obama to be much less enthusiastic for speaking about the economy when he said that it is going to get worse, and most economist agree that it will be much worse. Obama stated the structural problems of the economy before the bailout of the financial industry made recovery more difficult. These days reminded him of what his parents had gone through with the Great Depression.
Obama has not seen any agressive steps in the housing market which he vowed to fix when he becomes President, namely in a freeze on foreclosures to give people breathing space before foreclosure proceedings.
Jobless Figures Released:
Employment fell sharply in November and the numbers of the unemployed rises to 6.7 percent of the total population as the figures were released from the US Department of Labor on Friday. In September 403,000 were added to the number of unemployed workers and November rose to 533,000 people out of work in one month as the recession deepens further. Job fairs are crowded and unemployment lines are long, as layed off factory workers look for jobs that do not exist.
Bailout of the Auto Industry:
Obama supports the bailout of the auto industry but with strings attached, namely a complete restructuring and asking for conditions to be met and holds the industry responsible for recovery. A 15 billion dollar loan will be floated to keep the big 3 alive until Obama takes office.
Senator Chris Dodd struggles with the fact that you cannot keep the same management that failed to make necessary market changes to keep the automakers in business namely smaller more fuel efficient cars.
The reasoning behind floating the loan to the automakers is the number of auto workers that would be out of work due to the failures of their company. Millions of workers would be added to the already record high unemployment figures released today.
TAGS: unemployment rates, jobless rate, Chris Dodd, President Elect Barack Obama, automakers, big 3 bailout, fuel efficient cars, unemployment rate rises to 6.7 percent, Jobless figures released, economy, bailouts, its going to get worse, news, media, politicol news.