Obey: U.S. Falling Into "Massive, Massive Hole"

As Democrats move closer to taking command in Washington, there is growing alarm and anger in the party over the economy Barack Obama will inherit and the huge cost incurred after months of stalemate between Congress and President Bush over how to respond.

Thursday night, the White House was hoping to announce -- possibly as early as Friday -- plans to stave off bankruptcies in the auto industry by using available Treasury funds, a decision favored by Democrats. But Congress and President Bush remain at loggerheads over any larger fiscal stimulus package -- even after leading economists in both parties have urged action.

Democrats are reduced to speaking of a "jobs salvaging" bill that can only hope to slow the rise in unemployment next year. Discussions have moved past just increasing food stamp and unemployment benefits and also include the possibility of Washington helping workers who lose their jobs to finance COBRA payments needed to keep their family healthcare coverage.

Given the long impasse, speed is a huge priority. The first choice seems to be a single large fiscal-stimulus bill, but it can't be ruled out that the money could move in tranches if other legislative vehicles become available.

Caught in the middle is House Appropriations Committee Chairman David Obey, who must spearhead the recovery package for Obama next month. He told Politico that the transition has proven to be "a disaster for the country because Bush is sitting around like Hoover did."

Read the whole story here.

Comments

[Okieborn]

David Obey Tried In Vain To Warn America Where This Economy would End Up !!!
To Bad So Sad !!!
What Now ????

[jalowe1957]

If our economy sinks deeper into a depression, it will need megadoses of Prozac and Zoloft as part of the stimulus package.

[Lion24]

This started well over 10 years ago. State governments and the federal government were oblivious to it all -- and so was Congress.

Now they're all crying over spilled milk. They all had a chance to fix the situation long ago -- and ignored it.

[lthuedk 1]

http://www.light-to-dark.com/black_hole_06.html

[rabiddog6708]

America cries: "I'm falling and I can't get up!" No LIFE ALERT necklace to summon help.

[Pdubya]

the crux of the problem is the federal reserve. printing and borrowing currency is not money. couple that with deficit spending and inflationary money supply and we'll get a greater depression. credit comes from production, exports, and savings - not more credit. and this bailout bill was all about the authority given to the fed under the bill's fine print...th­e dollars were a political ruse to keep us fighting (rightfully so, but the fed was more interested in the authority expanded).

[springsm]

Prior to the 2000 Election I was standing in my son's living room saying "Bush will lead us into an abyss which will be hard to climb out of and he has never succeeded at anything in his life, And further more he doesn't know what truth is". My son who voted for bush, laughed at me. I am ashamed of him in this. But then this fall I have once been able to say.."I was the only on at the table who was right". End of comments.

[senorlou]

A Pyrrhic Victory that many of us have experienced lately. Yes, we were right. What the hell can be done now except for CLEANUP TIME? None of this had to happen. Well, they aren't laughing anymore are they?

[sparkey]

Who knows, mabye next time, he'll listen to you. But, just like you didn't always listen to your parents, he'll also have to learn the hard way. I just hope it's not too late for all of us.

[chronic]

Amen

[anonimost]

Bush is a selfish, self-centered idiot. He has nothing to offer unless it will benefit his "great" legacy. Face it, people get their timeframes muddled especially when they are feeling financial heat. There's just no way Obama can escape being blamed for this big dump left for him by Bush.

I mean, honestly, 911 happened on Bush's watch but he is credited for keeping the country safe even after a memo as recent as August 2001 had warned of the attack. And yet, USA forget that he didn't act on that intelligence. They actually nod their head in agreement that Bush did a great job regarding keeping US safe.

And they will forget that Obama did not create this mess - especially when he is forced to spend more. We've got a rough road ahead and in this blame filled finger pointing society, Obama will be the fall guy.

[senorlou]

Good points, but I'm going to try to make one here. If this country is so stupid as to blame Obama for Bush's mess, then it will not survive this mess. Sure, some Republicans will blame him, but for the entire population to be completely fooled...a­gain....we­ll - our track record has sucked lately. Maybe you are right, but I'm hoping we collectively come to our senses. We have to.

[Davwbaird]

Our very lives depened upon that we do. Ideas and vision is needed. Share your ideas. Grow vegetables this year learn to trade, support each other, go the extra mile, than another.

[ptsd6869]

IF YOU SAW HOW OBEY'S AIDES FLAUNT THEIR power AROUND THE HILL & TRY TO MAKE OTHER CONGRESSMEN & NON-OBEY STAFFERS FEEL LIKE THEY ARE SUB-SERVIANT TO DAVID'S "chosen", YOU WOULD UNDERSTAND WHY OBEY IS OUT OF TOUCH. I HOPE PELOSI, HOYER & EMMANUEL CAN GET THE JERKS UNDER CONTROL. LAY A LITTLE SHAME ON THE bastards!!!

[dolphy]

He's appropriations chairman and he says this after a year of being in a recession?

[research]

what special powers did you think he had? The GOP and Bush favor Hoovers failed policies.

They have absolute veto power.

[ShakeYourComplacency]

We've all become one big Katrina. No help for us, while the politicians circle in planes.

[harriscrl3]

Oh joy more great news about our economy good thing some of us have our priorities straight. WHo cares about the economy who cares that children are going to bed hungry who cares that homelssness is rising. Lets focus on the important stuff like Blago and who's giving a 3 minute speech.

Carol

[armadillious2002]

The US. is bankrupt because we had massive tax cuts for the wealthy and corps during war time. Any economist anywhere knows that this is a prescription for disaster. Now, we've bought a war and couldn't pay for it so we are in fact bankrupt.

[beherenowbud]

Is there such a condition as going "more bankrupt?"

If there is no Detroit payback, because they are not selling enough product, and the collateral is sold, then what does the government do with the funds from the sold collateral?

Where might we go from there?

[beherenowbud]

1. Once the trillions of dollars are let out into the economy from the Dept. of Treasury, how long will it take for the Treasury to be bankrupt?

2. Once the checks are cashed for the Detroit bailout, and we have been assured that these funds wil be, must be, paid back, then, how will the Big Three start the payback with so few of their cars being purchased? What will we do then?

3. If no pay back and we confiscate their assets being held as collateral, What then?