Economic rebound if Democrats lose the house?

The fusillade from Pelosi and other Democrats at a closed-door meeting escalated an already fiery clash between the White House and its own party in Congress. During the tense evening meeting, the speaker grilled the top White House aide in attendance, senior legislative affairs staffer Dan Turton, about the impact of Gibbs' comments.

"How could [Gibbs] know what is going on in our districts?" Pelosi told her members in the caucus meeting in the basement of the Capitol Tuesday night. "Some may weigh his words more than others. We have made our disagreement known to the White House."

Read more: http://www.politico.com/news/stories/0710/39703.html#ixzz0teHpPip6

Not likely. The economy is already on the rebound. Companies have been showing higher than expected earning which in turn causes the stock price to go up which encourages people to spend more which will eventually reduce unemployment. The best thing the govt can do right now is leave things as they are. Financial reform (democrat's plan) and cutting back govt spending (republican's plan) could both be disastrous at this point in time.

omg.

Republicans, the very cause of this mess, would only make things worse through their obeisance to corporate interests, lower taxes and less regulation. That's like parents giving candy and junk to their obese, self-indulgent, lazy children, something I sadly see quite often.

The Democrats have handled this economic crisis at least 4% better than the Republicans would have.

Although Bush was an idiot it's not fair to dump all the blame on him. Democrats have far more responsibility for causing the real estate boom and bust by encouraging sub-prime lending. The Republican's contribution to the massive deficits is the perpetual war we're still stuck with.

I agree that the Democrats handled the crisis a lot better than Republicans would have. Although its counter intuitive the massive deficit spending kept the economy from completely seizing up. I think the economy would be recovering even faster if the health care bill wasn't passed and if they put financial reform on hold. The uncertainty that these changes create play a big role in corporate hiring decisions.

Both parties are incompetent and both got us here.
- Spent over a trillion dollars in stimulus and got no new jobs
- Bailed out institutions that are completely ineffective and incompetent, which will need further help instead of building new infrastructure or improving future energy concerns
- Got more taxes, and expect EVEN more taxes to come to pay for said stimulus
- Due to tax increases, rich and companies threaten to and probably will leave (Steve Wynn among others)
- Nobody knows what to expect from Congress, they constantly change the game

Is there a reset button anywhere?

Agreed. Both parties are incompetent. Defense of Bush is untenable, really ridiculous actually. His administration will go down as one of the worst in history. This is not a matter of "fairness", it's a matter of truth. His tenancy was a den of lies, thievery and incompetency.

Obama and the Democracts have been completely ineffectual, driving the country further into debt for the benefit of the corporate oligarchy. Health reform has been a wash, financial reform a joke, environmental protections laughable. Those who think they went too far lack a sense of history and global perspective.

This country is being driven into the ground by idiots screaming that THEIR idiots should be the ones driving it into the ground. Are people so polarized they cannot see the misdeeds of their own party... There is no wisdom in government currently, no moral strength. Only greed. Where is this generation's FDR who will ignore the chorus of naysayers and chart a bold course for the better of the country?

spaceboy

Both parties are incompetent and both got us here.
- Spent over a trillion dollars in stimulus and got no new jobs
- Bailed out institutions that are completely ineffective and incompetent, which will need further help instead of building new infrastructure or improving future energy concerns
- Got more taxes, and expect EVEN more taxes to come to pay for said stimulus
- Due to tax increases, rich and companies threaten to and probably will leave (Steve Wynn among others)
- Nobody knows what to expect from Congress, they constantly change the game

Is there a reset button anywhere?

"Is there a reset button anywhere?"

BEST LINE OF THE YEAR!!!

of course there is. it starts with people taking responsibility for their own actions and not endlessly blaming everyone else. the idea that the republicans have a set of ideas that would somehow magically transform our economy is absurd. and that is not meant as an endorsement of the democrats.

the right is screaming that obama is a socialist, borderline communist and the left is screaming that obama is a sell out closet conservative. everyone is screaming that he is an idiot.

no one listens, everyone screams.

It's not just our elected officials that are the problem. Congress and the administration know the public has lost its apetite for deficit spending, so they are attempting to use the Federal Reserve to prime the economy at any cost. Problem is no Fed action will cause a rebound in new housing, for the simple reason that we have an over-supply, those that needed a home made the decision to purchase during the bull market, and that for structural reasons the home ownership rate needs to decline. They will spend a great deal of money and take on a great deal of balance sheet risk for an outcome that is largely outside of their control. The experts are already questioning the effect of the Feds MBS purchases.

prime example of criticizing someone, anyone.

There IS a reset button.

Regardless of party you should vote against the incumbent. A new set of politicians, regardless of their persuasion, will be less adept at maneuvering the system for their own benefit and that of their cronies. You might even get a few actual leaders who care more about the country than partisan politics and graft.

Just vote out the incumbent in every position. People will notice.

One big problem is Politicians have no idea how the economy works and when they are told by members of Treasury or the Fed the economy is going to tank unless we do something, they panic and agree to support any spending request presented. They have no idea how to fix the problem, but do know that rising unemployment is not conducive to getting re-elected. Now add to that mix special interest groups....

River - the diff is that the more experienced politicians know that most of what they might be told is BS, but they also recognize an opportunity for benefits to their constituents or even for outright graft. Of course they will jump at an opportunity to "do something" but watch them and see if what they do ever involves something from which they can't personally benefit (either politically, financially or otherwise).

It is why they will always prefer a Gov't spending stimulus over a tax cutting stimulus. They get to direct the spending stimulus themselves. (this is aside from the tax-cut vs. spending argument.)

AvUWS A clear example of what I'm referring to occured when Congress passed the big Stimulus package. They were told the world would end if they didn't act. The result was a great deal of wasted money. A big problem with C+I+G is that it makes no effort to qualify what "G" is. It's all the same. And to the Keynsian mind that suggests this approach taxes are irrelevant and not even part of the equation.

vote out on incumbents? didn't we just do that?

"This country is being driven into the ground by idiots screaming that THEIR idiots should be the ones driving it into the ground. Are people so polarized they cannot see the misdeeds of their own party... "

Very well put.

" I swear, by my life and my love of it, that I will never live for the sake of
another man, nor ask another man to live for mine." A.R.

Wynn on US:

"The governmental policies in the United States of America are a damper, a wet blanket," Wynn said. "They retard investment; they retard job formation; they retard the creation of a better life for the citizens in spite of the rhetoric of the president."

"I don't think the Las Vegas market at the moment beckons a large investment," Wynn told Bloomberg "The economic outlook in the United States, the policies of this administration, which do not favor job formation, do not encourage investment at all."

hilarious.

the problem in las vegas are the policies of the obama administration?

???
How is the problem isolated to Las Vegas in any way? So the US economic outlook, administration policies favor job formation and investment outside Las Vegas?

>> Democrats have far more responsibility for causing the real estate boom and bust by encouraging sub-prime lending.

This statement is simply not true. If you are talking about the CRA, it had nothing to do with sub-prime. What are you talking about?

here we go again?

soon we'll be arguing about who's fault it is that its raining.

It isn't raining anymore. :)

http://www.ritholtz.com/blog/wp-content/uploads/2010/07/Best-Govt-Money-Can-Buy.jpg

more criticism no doubt.

i guess you'll never stop.

Agree, here's what we need to get started:
http://streeteasy.com/nyc/talk/discussion/20078
columbiacounty
about 12 weeks ago
stop ignoring this person
report abuse

so...here's how we get started.

a politician stands up and says: there are no easy answers anymore. for a viable future, we need to have shared sacrifice. rather than try to figure out how and which programs to cut, lets start with a lengthy dialogue aimed at creating a process that is fair.

i naively thought that obama was that guy; i think he may have thought he was as well.

http://www.nytimes.com/2010/07/15/us/politics/15lobby.html?hp

WASHINGTON — Lawmakers take contributions every day from corporate executives and lobbyists hoping for their votes. The question of whether that represents business as usual in Washington or an ethics breach is at the heart of a far-reaching Congressional ethics investigation that is stirring concerns throughout Washington and Wall Street.

The Office of Congressional Ethics has sent corporate donors and fund-raising hosts more than three dozen requests for documents involving eight members who solicited and took large contributions from financial institutions even as they were debating the landmark regulatory bill, according to lawyers involved in the inquiry.

The requests are focusing on a series of fund-raisers last December, in the days immediately before the House’s initial adoption of the sweeping overhaul, which could win final approval this week. Some of the fund-raising events took place the same days as crucial votes.

For example, on Dec. 10, one of the lawmakers under investigation, Representative Joseph Crowley, a New York Democrat who sits on the Ways and Means Committee, left the Capitol during the House debate to attend a fund-raising event for him hosted by a lobbyist at her nearby Capitol Hill town house that featured financial firms, along with other donors. After collecting thousands of dollars in checks, Mr. Crowley returned to the floor of the House just in time to vote against a series of amendments that would have imposed tougher restrictions on Wall Street.

Unquestionably just a coincidence.

United States has a very high corporate tax rate compared to some of our competitors in Europe, but a low effective tax rate.
The question is why create a system like that.
The answer is so politicians can gain favor by giving various tax benefits in exchange for campaign support.

So...why don't you move with your best bud Julia?

So...why don't you move with your best bud juliag?

I just read an article on how Republicans propose to reinvigorate the economy through tax cuts and putting a moratorium on corporate regulation.

In all seriousness and without the slant of political affiliation, does anyone really think that is a good idea? I am neither a Republican or Democrat and strive for impartiality. I think that recent events, dating back to Enron, Worldcom, Global Crossing, the securitization of Mortgages, derivative manipulation, high speed trading, Goldman Sach's accounting malfeasance and manipulation of International monetary policies which have lead to the near collapse of Greece, the news that BP was negligent in the installation of their drill pipe and further negligent in the operation of the oil rig which has caused deaths, untold billions of dollars of damage and incalculable environmental damage. The macro picture is that wealth is concentrated in the hands of very few and that group is wealthier proportionately than any time in recent history while the rest of the country is suffering from unemployment and losing their homes. How will tax cuts help when there is no income? Lowering interest rates was supposed to add liquidity to the consumer credit market. It didn't. Banks have enjoyed the benefits of a bailout and free money. Why should there be less regulation of such openly greedy and unscrupulous institutions? How is white collar crime any better than a common street thief? One openly flaunts its wealth and the other languishes in jail. One steals billions and the other steals a pocketbook. Is it simply a matter of wiring, genetics, that part of the population's brains light up when the words "less tax" and "deregulation" are used?

PPLAYER I dislike the Democratic proposals, but mus admit the Republicans proposals are not much better.

they're not.... but given that its the Democrats in power, and the Democratic proposals on the table, its just playing games to point at anything else...

The Democrts are in power and the Republican strategy is to frustrate the Democrats and hope they look bad in the public's eye. In short they want to gain seats and hope the pubilc is anti-incumbant.

Democrats are doing a fantastic job of looking bad in the public's eye all by themselves, regardless of what the Republicans are doing.

If anything, the Republicans are taking it worse.... 22% approval rate overall, far below Obama.

But if the Democrats are blowing it big time, which it seems they are, they have noone to blame but themselves.

The Democrats are making themselves look terrible.
The Republicans are making themselves look like a non-alternative.

agreed.

Problem is, the ones in power have the job to do...

Sommewhereelse,
If we can't get a 3rd party in power, the least wors alternative is a stalemate where hopefully the two parties need to work together.

i vote for the 3rd party

Which one?

all of them

Nice!

Thoughts on the Tea Party?