We gave Wall Street and the Big Auto companies a bail-out and they blew it. They came back and asked for more. The mess keeps getting uglier and we simply haven’t seen the worst of it. The Federal Reserve painted a really bleak picture on Wednesday, hours after President Obama announced his plan to help homeowners, one day after he signed the Stimulus Bill:
Under the new projections, the unemployment rate will rise to between 8.5 and 8.8 percent this year. The old forecasts, issued in mid-November, predicted the jobless rate would rise to between 7.1 and 7.6 percent.
The Fed also believes the economy will contract this year between 0.5 and 1.3 percent. The old forecast said the economy could shrink by 0.2 percent or expand by 1.1 percent.
The bottomline is that the Feds now anticipate that “unemployment would remain ‘substantially’ higher than normal at the end of 2011 ‘even absent further economic shocks.'” What’s worse, a “few Fed officials — none are identified — feared that it could take five or six years for the economy and employment to get back into a sustainable mode of health.”
According to an Associated Press-GfK poll released on Wednesday, “- Fears are mounting about losing a job, not having enough money to pay the bills and evaporating retirement accounts.”
The poll also found that:
- Nearly two-thirds, or 62 percent, think Obama is making about the right amount of effort to cooperate with Republicans in Congress on solving the country’s economic problems. About the same percentage, 64 percent, think Republicans aren’t doing enough to cooperate with the Democratic president. Obama courted Republicans during negotiations on the stimulus bill, but it passed with no Republican votes in the House and just three GOP votes in the Senate.
- People don’t think much of last year’s $700 billion bailout for the financial industry. Nearly half, or 47 percent, say it had no real effect on the economy, and almost a third, or 32 percent, say it actually made things worse.
Clearly the obstructionist Republicans in Congress just don’t get it and now there are some GOP governors who are actually considering turning down stimulus money. What the? These idiots have their conservative ideology and values twisted just a little too tight. Take California for instance… where “Republicans in the California legislature are trying to close down the entire state.” Unbelievable. Stunning.
The economic pain will cut through this country like a laser through steel, before these idiots wake up and start to realize that we’re all going to be bankrupt soon.
[Originally published at TaylorMarsh.com]