Lots of bleak economic news to start your morning. Many pundits and analysts are wondering: can we afford to wait until Obama takes office in January?
Also, Eugene Robinson discusses the bailout while University of Michigan economists release a stark prediction for auto sales next year.
And, reaction to Napolitano and some are wondering where will Bill Richardson go?
The New York Times reports that action on the economy may not be able to wait until Obama takes office in January:
With the stock market plunging and the credit market entering a new freeze, cries are being heard for a new government intervention to prop up major financial institutions before President-elect Barack Obama takes office.
and:
The renewed sell-off in the stock market this week has been stunning, with some of the worst declines coming in the financial stocks and the shares of retailers. The credit markets are again shaky, with junk bond yields soaring.
In retrospect, the decision to let Lehman Brothers fail had devastating consequences, and not just to the financial system. Shares of some major retailers — for which the season now beginning is critical — have lost nearly three-quarters of their value since that mid-September decision.
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This view is echoed by Paul Krugman on the Time's op-ed page:
Yet economic policy, rather than responding to the threat, seems to have gone on vacation. In particular, panic has returned to the credit markets, yet no new rescue plan is in sight. On the contrary, Henry Paulson, the Treasury secretary, has announced that he won’t even go back to Congress for the second half of the $700 billion already approved for financial bailouts. And financial aid for the beleaguered auto industry is being stalled by a political standoff.
How much should we worry about what looks like two months of policy drift? At minimum, the next two months will inflict serious pain on hundreds of thousands of Americans, who will lose their jobs, their homes, or both. What’s really troubling, however, is the possibility that some of the damage being done right now will be irreversible. I’m concerned, in particular, about the two D’s: deflation and Detroit.
and:
But nothing is happening on the policy front that is remotely commensurate with the scale of the economic crisis. And it’s scary to think how much more can go wrong before Inauguration Day.
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While we're on the subject of the economy, Eugene Robinson argues that the auto-industry management must go:
It's true that demand for cars has fallen off a cliff, largely because many would-be buyers are unable to get financing. It's true that the auto industry claims to have seen the light about making energy-efficient cars. But it's also true that these newly enlightened executives spent years defending their industry's obsession with SUVs -- and pooh-poohing the idea that times, and tastes, would ever change.
They should be given the money -- and then be shown the door to make way for management that can see past the hood.
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The debate over the bailout continues as University of Michigan economists release a bleak forecast for the auto industry:
In a chilling forecast, University of Michigan economists predicted Thursday that sales of cars and light trucks will "continue to plunge" next year.
Their annual U.S. economic forecast suggested sales will fall from 16.1 million in 2007 and 13.3 million this year to a 25-year low of 12.2 million in 2009.
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And, tough times ahead for the Associated Press. AFP reports that the AP will be cutting over 400 jobs in 2009.
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Onto another topic, is it wrong that I derive so much pleasure from the GOP's tanking favorability ratings?
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The UVA Center for Politics thinks it is never too soon to start discussing the list of Republican hopefuls for 2012. Of course they lead off with Sarah Palin:
Palin has her strengths. She's energetic and engaging. The television camera loves her. Plus she's a governor and Americans love sending governors to the White House.
but...
Her debut on the national stage turned into an utter disaster. For all the love she inspired from conservatives, Palin left an especially bad taste with moderates and independents.
And TurkeyGate may prove to be her final undoing! Other top contenders obviously include Jindal, Romney, Huckabee and Gingrich. Although of Romney and Huckabee, the Crystal Ball predicts:
They'll try to look the part of leader-in-waiting, but Huckabee's future probably lies on Fox News Channel, while Romney's will be enjoying his picture perfect family and hundreds of millions dollars.
Other notable mentions include Haley Barbour, Mark Sanford, Tim Pawlenty. Hmmm... I'm going to go out on a limb and predict that the GOP nominee in 2012 will be... none of the above!
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Obama has recorded a radio ad for Jim Martin in the Georgia Senate run-off:
In the spot, Obama thanks Georgians who voted for him Nov. 4.
"The elections aren't over,'' Obama said. "I want to urge you to turn out one more time and help elect Jim Martin to the United States Senate.'' Obama said Martin will "help me change Washington and get America moving again.''
Some have argued that Obama should campaign for Martin in person while others say it is risky and opens Obama up for a political defeat before he even takes office. What do you think?
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This is why I didn't really want to see Napolitano leave Arizona:
Arizona Gov. Janet Napolitano’s expected exit to serve as U.S. Homeland Security Secretary under Barack Obama will leave Arizona Secretary of State Jan Brewer as governor and put Republicans in control of the Legislature and governor’s office.
That could result in the state pulling back from Napolitano-backed efforts on climate change, emissions caps, increased health insurance and education spending. It also could push the state forward on immigration controls and penalties for businesses hiring illegal immigrants and abortion rights restrictions, according to officials familiar with Brewer and Napolitano.
and:
Brewer has stated her opposition to abortion rights, but has been more open to tough immigration controls while siding with business interests against regulations and for tax cuts.
But I guess Arizona's loss is America's gain, judging by the bipartisan reaction covered in this Washington Post article.
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Given all the talk of Clinton as Secretary of State (the lastest is it's back on again), many are wondering what role, if any, Bill Richardson may play in the Obama administration. My guess is maybe UN Ambassador?
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Michael Lind has an op-ed at Salon asking:
If the conservative era is over, can liberals come out of their defensive crouch and call themselves liberals again, instead of progressives?
My response - does it really matter?
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So what's on your mind this morning? For me, it's the economy. I will feel much better when Obama is actually in office and we have a real leader to implement economic reforms, instead of a lame duck President who is more concerned with trying to undermine the Endangered Species Act and burrow in his appointees in his last months in office.