MontNews.com

Compromise
There was bad news and then there was good news.

Yesterday we learned that in January, the country suffered its largest one-month job loss in 34 years.

But last night, the Senate struck a compromise on the economic recovery plan and put us on our way to giving the economy the short-term jolt and long-term investments it needs.

“Americans across this country are struggling, and they are watching to see if we’re equal to the task before us,” the President says in this morning’s Weekly Address. “Let’s show them that we are.”

REMARKS OF PRESIDENT BARACK OBAMA
WEEKLY ADDRESS
The White House
Saturday, February 7, 2009

Yesterday began with some devastating news with regard to our economic crisis. But I’m pleased to say it ended on a more positive note.

In the morning, we received yet another round of alarming employment figures – the worst in more than 30 years. Another 600,000 jobs were lost in January. We’ve now lost more than 3.6 million jobs since this recession began.

But by the evening, Democrats and Republicans came together in the Senate and responded appropriately to the urgency this moment demands.

In the midst of our greatest economic crisis since the Great Depression, the American people were hoping that Congress would begin to confront the great challenges we face. That was, after all, what last November’s election was all about.

Legislation of such magnitude deserves the scrutiny that it’s received over the last month, and it will receive more in the days to come. But we can’t afford to make perfect the enemy of the absolutely necessary. The scale and scope of this plan is right. And the time for action is now.

Because if we don’t move swiftly to put this plan in motion, our economic crisis could become a national catastrophe. Millions of Americans will lose their jobs, their homes, and their health care. Millions more will have to put their dreams on hold.

Let’s be clear: We can’t expect relief from the tired old theories that, in eight short years, doubled the national debt, threw our economy into a tailspin, and led us into this mess in the first place. We can’t rely on a losing formula that offers only tax cuts as the answer to all our problems while ignoring our fundamental economic challenges – the crushing cost of health care or the inadequate state of so many schools; our addiction to foreign oil or our crumbling roads, bridges, and levees.

The American people know that our challenges are great. They don’t expect Democratic solutions or Republican solutions – they expect American solutions.

From the beginning, this recovery plan has had at its core a simple idea: Let’s put Americans to work doing the work America needs done. It will save or create more than 3 million jobs over the next two years, all across the country – 16,000 in Maine, nearly 80,000 in Indiana – almost all of them in the private sector, and all of them jobs that help us recover today, and prosper tomorrow.

Jobs that upgrade classrooms and laboratories in 10,000 schools nationwide – at least 485 in Florida alone – and train an army of teachers in math and science.

Jobs that modernize our health care system, not only saving us billions of dollars, but countless lives.

Jobs that construct a smart electric grid, connect every corner of the country to the information superhighway, double our capacity to generate renewable energy, and grow the economy of tomorrow.

Jobs that rebuild our crumbling roads, bridges and levees and dams, so that the tragedies of New Orleans and Minneapolis never happen again.

It includes immediate tax relief for our struggling middle class in places like Ohio, where 4.5 million workers will receive a tax cut of up to $1,000. It protects health insurance and provides unemployment insurance for those who’ve lost their jobs. And it helps our states and communities avoid painful tax hikes or layoffs for our teachers, nurses, and first responders.

That’s what is at stake with this plan: putting Americans back to work, creating transformative economic change, and making a down payment on the American Dream that serves our children and our children’s children for generations to come.

Americans across this country are struggling, and they are watching to see if we’re equal to the task before us. Let’s show them that we are. And let’s do whatever it takes to keep the promise of America alive in our time.

Thank you.

Oakland “Miracle” Shows Better Path Than “Hope For Homeowners’” Utter Failure

OAKLAND, Calif. – At 6:00 in the morning on Wednesday, February 4, more than 30 members of ACORN gathered at the home of Eddie and Martha Daniels in West Oakland, armed with prayers, cell phones, and the hope that Wednesday would not be a day in which yet another family who had done no wrong was claimed as a victim of the raging foreclosure crisis. Since 2006, the Daniels had paid their rent each month to their landlord, who had not told them that he was not in turn paying the mortgage on time. The landlord’s lender had foreclosed on the property and terminated the lease, and on Wednesday the Sheriff was scheduled to come to their home and evict the Daniels, a family on the verge becoming another statistic in the national economic catastrophe.
ACORN members rallied their neighbors, spoke with local media, including one radio station that broadcast live from the home, and flooded the Sheriff’s office with calls urging compassion and forbearance of the scheduled eviction. At the same time, ACORN Housing Corporation was working furiously behind the scenes with the lender to negotiate a stay on the eviction, which successfully came through. This remedy alone would put the Daniels among the fortunate few who are able to get reasonable solutions from lenders, but what happened next was truly unique: ACORN Housing Corporation was able to counsel the Daniels and determine their eligibility to apply for a VA loan that would enable them to purchase the very property from which they were almost evicted earlier that day, and the foreclosing lender has agreed to sell.
“This shows the power of communities coming together to fight back against the foreclosures that are taking our homes and ruining our neighborhoods,” said Maude Hurd, ACORN President. “Oakland is showing the nation a new way forward, one in which community-based civil disobedience combined with savvy counseling and advocacy can take a family on the verge of eviction and help them become homeowners. While this kind of same-day miracle is rare today, ACORN believes that hundreds of thousands of families across the country just like the Daniels, innocent renters and predatory lending victims who are losing their homes at a record pace, can fight back by getting organized and defending their homes through old-fashioned community organizing. This system is broken and it’s time we throw a wrench in it.”
The Daniels hope to close on the sale in the coming weeks, and are relieved and thankful to be able to stay in their home. “Yesterday morning, I was so scared to be losing my home,” said Eddie Daniels. “Tonight, I am still sleeping in my own bed under my own roof, and that is no small miracle. I am so grateful and fortunate that my neighbors and ACORN came to defend our home. Millions more families need this kind of help.” Families facing eviction or foreclosure can call ACORN for help at 1-866-67-ACORN or visit www.acorn.org.
As ACORN members celebrate this miraculous victory in Oakland, they mourn the ongoing federal inaction and failure in the face of the foreclosure crisis. Bloomberg News is reporting today that only twenty-five (25) loans have been refinanced through the much-touted Hope for Homeowners program, which was originally expected to help between 300,000 and 400,000 families avoid foreclosure. Hope for Homeowners is the only federal program designed to fight foreclosures created in the year and a half since foreclosures reached record levels.
“Even as the federal government works to correct serious flaws in the program, Hope for Homeowners will still rely on voluntary industry participation, and therefore remain doomed to failure,” said Hurd. “We desperately need changes in federal policy that will force mortgage lenders and servicers to stop unnecessary foreclosures, both by lifting the ban on judicial modifications for primary residences and by requiring bailout recipients to modify loans in an economically rational way, as Citigroup has agreed to do. As even Republicans have recently taken to arguing, no successful economic recovery will be possible without directly targeting the mortgage mess that lies at the heart of our economy’s failure. Across the country, ACORN is working with families to save homes and fight foreclosures, and it sure would be nice to have a federal government doing the same.”

The Federal Reserve on Tuesday announced the extension through October 30, 2009, of its existing liquidity programs that were scheduled to expire on April 30, 2009. The Board of Governors and the Federal Open Market Committee (FOMC) took these actions in light of continuing substantial strains in many financial markets.

The Board of Governors approved the extension through October 30 of the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (AMLF), the Commercial Paper Funding Facility (CPFF), the Money Market Investor Funding Facility (MMIFF), the Primary Dealer Credit Facility (PDCF), and the Term Securities Lending Facility (TSLF). The FOMC also took action to extend the TSLF, which is established under the joint authority of the Board and the FOMC.

In addition, to address continued pressures in global U.S. dollar funding markets, the temporary reciprocal currency arrangements (swap lines) between the Federal Reserve and other central banks have been extended to October 30. This extension currently applies to the swap lines between the Federal Reserve and each of the following central banks: the Reserve Bank of Australia, the Banco Central do Brasil, the Bank of Canada, Danmarks Nationalbank, the Bank of England, the European Central Bank, the Bank of Korea, the Banco de Mexico, the Reserve Bank of New Zealand, the Norges Bank, the Monetary Authority of Singapore, the Sveriges Riksbank, and the Swiss National Bank. The Bank of Japan will consider the extension at its next Monetary Policy Meeting. The Federal Reserve action to extend the swap lines was taken by the Federal Open Market Committee.

The current expiration date for the Term Asset-Backed Securities Loan Facility (TALF) remains December 31, 2009. Other Federal Reserve liquidity facilities, such as the Term Auction Facility (TAF), do not have a fixed expiration date.

The AMLF provides loans to depository institutions to purchase asset-backed commercial paper from money market mutual funds. The CPFF provides a liquidity backstop to U.S. issuers of commercial paper. The MMIFF supports a private-sector initiative to provide liquidity to U.S. money market investors. The PDCF provides discount window loans to primary dealers. Under the TSLF, the Federal Reserve Bank of New York auctions term loans of Treasury securities to primary dealers. The TALF will support the issuance of asset-backed securities collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration. Under the TAF, Reserve Banks auction term discount window loans to depository institutions.

Tokyo, Japan — Hitachi changed their forecast from profitability to a 4.1-billion-dollar quarterly loss.

Hitachi is one of the world’s largest corporations. It was founded in 1910 by Namihei Odaira as an electrical repair shop. They succeeded in manufacturing three 5hp (3.6775 kW) electric motors as the company’s first products.

Today, they manufacture consumer products:
* Home Appliances
* AV Products
* Personal Computer / Mobile Phones
* Home Equipment / Life service

And, business products:
* Information Technology
* Security
* Electronic Devices / Materials
* Public / Urban / Transportation
* Medical / Health Care / Biotechnology
* Environment / Power / Industrial

Because of economic conditions, they plan to lay-off 7,000 workers.

n the weekly address, President Barack Obama addressed the latest economic news and urged the passing of an America Recovery and Reinvestment Plan.

He also announced that Treasury Secretary Timothy Geithner is preparing a new strategy for reviving our financial system — which will not only ensure that CEOs aren’t abusing taxpayer dollars, but also get credit flowing and lower mortgage costs.

ADDRESS OF THE PRESIDENT
TO THE NATION
January 31, 2009

This morning I’d like to talk about some good news and some bad news as we confront our economic crisis.

The bad news is well known to Americans across our country as we continue to struggle through unprecedented economic turmoil. Yesterday we learned that our economy shrank by nearly 4 percent from October through December. That decline was the largest in over a quarter century, and it underscores the seriousness of the economic crisis that my administration found when we took office.

Already the slowdown has cost us tens of thousands of jobs in January alone. And the picture is likely to get worse before it gets better.

Make no mistake, these are not just numbers. Behind every statistic there’s a story. Many Americans have seen their lives turned upside down. Families have been forced to make painful choices. Parents are struggling to pay the bills. Patients can’t afford care. Students can’t keep pace with tuition. And workers don’t know whether their retirement will be dignified and secure.

The good news is that we are moving forward with a sense of urgency equal to the challenge. This week the House passed the American Recovery and Reinvestment Plan, which will save or create more than 3 million jobs over the next few years. It puts a tax cut into the pockets of working families, and places a down payment on America’s future by investing in energy independence and education, affordable health care, and American infrastructure.

Now this recovery plan moves to the Senate. I will continue working with both parties so that the strongest possible bill gets to my desk. With the stakes so high we simply cannot afford the same old gridlock and partisan posturing in Washington. It’s time to move in a new direction.

Americans know that our economic recovery will take years — not months. But they will have little patience if we allow politics to get in the way of action, and our economy continues to slide. That’s why I am calling on the Senate to pass this plan, so that we can put people back to work and begin the long, hard work of lifting our economy out of this crisis. No one bill, no matter how comprehensive, can cure what ails our economy. So just as we jumpstart job creation, we must also ensure that markets are stable, credit is flowing, and families can stay in their homes.

Last year Congress passed a plan to rescue the financial system. While the package helped avoid a financial collapse, many are frustrated by the results — and rightfully so. Too often taxpayer dollars have been spent without transparency or accountability. Banks have been extended a hand, but homeowners, students, and small businesses that need loans have been left to fend on their own.

And adding to this outrage, we learned this week that even as they petitioned for taxpayer assistance, Wall Street firms shamefully paid out nearly $20 billion in bonuses for 2008. While I’m committed to doing what it takes to maintain the flow of credit, the American people will not excuse or tolerate such arrogance and greed. The road to recovery demands that we all act responsibly, from Main Street to Washington to Wall Street.

Soon my Treasury Secretary, Tim Geithner, will announce a new strategy for reviving our financial system that gets credit flowing to businesses and families. We’ll help lower mortgage costs and extend loans to small businesses so they can create jobs. We’ll ensure that CEOs are not draining funds that should be advancing our recovery. And we will insist on unprecedented transparency, rigorous oversight, and clear accountability — so taxpayers know how their money is being spent and whether it is achieving results.

Rarely in history has our country faced economic problems as devastating as this crisis. But the strength of the American people compels us to come together. The road ahead will be long, but I promise you that every day that I go to work in the Oval Office I carry with me your stories, and my administration is dedicated to alleviating your struggles and advancing your dreams. You are calling for action. Now is the time for those of us in Washington to live up to our responsibilities.

by Widgette.com

On January 26, 2009, the Federal Reserve conducted an auction of $150 billion in 84-day credit through its Term Auction Facility. Following are the results of the auction:

Stop-out rate: 0.250 percent

Total propositions submitted: $136.051 billion
Total propositions accepted: $136.051 billion
Bid/cover ratio: 0.91

Number of bidders: 102

The awarded loans will settle on January 29, 2009, and will mature on April 23, 2009. The stop-out rate shown above will apply to all awarded loans.

Institutions that submitted winning bids will be contacted by their respective Reserve Banks by 11:30 a.m. EST on January 27, 2009. Participants have until 12:30 p.m. EST on January 27, 2009, to inform their local Reserve Bank of any error.

How low can interest rates go?

Markets around the world are falling. This could be the first time that so many countries have slid into recession at the same time. The United States has been in a recession for the past year. Great Britain announced that it, too, had fallen into recession. In Korea, Samsung posted its first ever quarterly loss. Japan’s Sony saw its first quarterly loss in fourteen years. Canada went from predicting a positive GNP to revising the projection to a recession. Even China is seeing a slowdown with growth going into the single digits for the first time in many years.

Employers announce nearly 40,000 jobs cuts

In what’s being called “a rare move,” Microsoft is considering job cuts and may announce as early as next week, according to The Wall Street Journal.

Saks and Neiman Marcus Announce Layoffs

General Electric Co. said Friday its finance business has informed employees of layoffs, following up on previous statements that it would restructure the battered financial unit.

“Circuit City Stores Inc. said it is liquidating, closing all its U.S. stores and cutting 30,000 jobs after being hobbled, in part, by declining consumer spending. Rental car company Hertz Global Holdings Inc. is eliminating 4,000 jobs worldwide as families and business travelers forgo trips. Insurer WellPoint Inc. is cutting about 1,500 jobs, with rising unemployment leading to fewer people with health insurance. ”

Petroleum company ConocoPhillips said Friday it will cut about 1,300 jobs, or 4 percent of its work force.

Motorola Inc. said Wednesday it will eliminate 4,000 jobs

“Even Internet search leader Google Inc., which seemed impervious to the economy’s troubles, earlier this week said it will close three engineering offices and cut 100 recruiters. “

Department Of Labor — Nonfarm payroll employment declined sharply in December, and the unemployment rate rose from 6.8 to 7.2 percent. Payroll employment fell by 524,000 over the month and by 1.9 million over the last 4 months of 2008. In December, job losses were large and widespread across most major industry sectors.

In December, the number of unemployed persons increased by 632,000 to 11.1 mil-
lion and the unemployment rate rose to 7.2 percent. Since the start of the reces-
sion in December 2007, the number of unemployed persons has grown by 3.6 million,
and the unemployment rate has risen by 2.3 percentage points. (See table A-1.)