Somber Obama meets the Press: Live Blog
Posted: August 8, 2011 Filed under: Barack Obama, Live | Tags: Market crash, Presidential Speech 57 CommentsWithout taking any questions, President Obama addressed the state of the U.S. economy and the deaths of US troops this weekend. The DJ dipped below 11,000 briefly while the President was speaking. Obama said the country will always be a AAA country and quoted Warren Buffet who has said the country is AAAA. However, this is a serious sell off and there’s a realization that there’s something wrong with the US economy. The bond market is holding up better than the stock market which indicates that there is more concern about the economy than the US ability to pay debt. This was clearly an attempt to send a message to global markets and to US citizens that are panicked about a possible second recession during a period when we have clearly not recovered from the last one.
Obama asked for extensions for unemployment insurance and the payroll tax holiday. He additionally said that his administration would be making recommendations to the super congress. He called for expenditures on infrastructure. He also wants to see ‘modest adjustments’ to Medicare.
The president says Washington didn’t need a downgrade to realize that it has a problem. “Our challenge is the need to tackle our deficits over the long term,” he says. (1:56 p.m.)
Obama says the debt agreement reached was “historic,” but that there isn’t much more that can be done to reduce defense or discretionary domestic spending.
He suggests “tax reform that would ask those who can afford it to pay their fair share,” and “modest” adjustments to health care programs like Medicare should be the next step. (1:57 p.m.)
Next, Obama calls on Congress to “put what’s best for the country ahead of self interest, ideology or party.”
He says he will present his own recommendations on how to proceed. “That committee will have this administration’s full cooperation.” (1:58 p.m.)
Continuing to discuss the economy, Obama says the country’s “most immediate concern” is jobs. If the government can deal with the deficit, there would be “more room” to pursue proposals that can get the economy growing faster, he explains. (1:59 p.m.)
Obama calls on Congress to extend the payroll tax cut “as soon as possible,” saying Republicans have agreed to do so countless times in the past.
The president then recalls the earthquake in Japan and unrest in the Middle East that have resulted in higher gas prices. “How we respond to those tests, that’s entirely up to us,” he says. (1:59 p.m.)
Obama recalls the earthquake in Japan and unrest in the Middle East that have resulted in higher gas prices. “How
we respond to those tests, that’s entirely up to us.”
“Markets will rise and fall, but this is the United States of America,” he says. “No matter what some agency may say, we’ve always been and always will be a triple-A country.”
The market plunge stabilized during the speech, but appears to be back on its downward spiral. It’s back below 11,000 again. There was little was no new information so that would be expected.
The President also mentioned the deaths of 30 US troops and 7 Afghani in that Chinook helicopter. A Pentagon statement today mentioned that the catastrophic nature of the disaster means that the remains are not identifiable.
peej
Carissa
ecocatwoman
mablue2
Mama Lopez
peggysue22
quixote
skydancingguestblogger
Mona (aka Wonk the Vote)
Sky Dancing 
WTF?!! You mean these wars can never end or wind down?
Time for you to resign, Mr. President. Our country needs a leader. Please get out of the way now, so we can find one to run against whatever insane person the Republicans nominate.
I’ve never been a Biden fan but you would think he absolutely has to be better than this charlatan.
Not a Biden fan either, but dang, anything is better than Obama. At least Biden has a long tradition as a quasi-democrat.
Ditto – and what about passing bills that are focused on the solution they were written for with no pork slapped on the side before we let it go through. EEEESH 😦
Hey he is saying exactly what Saxby Chambliss said in his response email…dammit!
Hey – did he say what I thought he said -that his office would “cooperate” with the super congress?
I thought he was still president – did he give up his office? Who’s there now? Biden, Bohner, oh,God, let it be Hillary.
Obama created the debt ceiling “crisis” in order to push through another go at his Cat Food Commission. Only this time, the game is really fixed: It will take ony ONE Dem to go along with the Repubs and their recommendations MUST be voted on by the Congress. Rec’s must be ready by T’giving Eve and the vote completed by Christmas Eve.
The better to lessen public input, donchaknow.
This was Obama’s objective. Now, he might not have figured on the Tea Partiers being quite so batshit crazy, but his not tackling the debt ceiling when he gave the R’s their fondest wishes about the Bush Tax Cuts was Obama’s doing.
Obama wanted to use this crisis to implement changes a la Shock Doctrine. He didn’t quite get there, but his Politburo is the next best thing. For him..
jawbone: right on the money. I just wrote the words ” Shock Doctrine ” on the current thread
He’s job has been to dismantle the US as we have known it …from day one
If this was a speech to drive confidence, Obama needs to find a new vehicle or speech writer or something. He clearly doesn’t get it.
oh, lawd, is Jon still writing for him?
The Down is now Dow 600 points.
They just don’t get it’s about the bad economy right now and not the damned debt.
Krugman:
Internet is back!! Thanks for everybody’s well wishes. This is a wonderful place with wonderful people. Thank you all again!!
Now onto the day’s events. We are below 11,000 and still falling, Nasdaq is now down 5%, and Obumbles is just NOW pivoting to job creation????
Asshat.
We are so f&*%’d.
Hillary 2012
That’s wonderful, Rock. I freak out if I lose my internet!
There seems to be issues with the internet due to bursts on the sun – satellites are being affected
Dow just closed at 600+ down …
I was just about to post that! Nasdaq is off almost 7%. Obumbles has the market right where he wants it!!
Asshat.
Hillary 2012
http://finance.yahoo.com/news/US-markets-fall-sharply-Dow-apf-1960115615.html?x=0&.v=12
http://finance.yahoo.com/news/All-sectors-year-optmonster-2172952985.html;_ylt=ArscJXghzNY19rekUC8wfQTeba9_;_ylu=X3oDMTE2ZDJjMjh1BHBvcwMyBHNlYwN0b3Atc3RvcmllcwRzbGsDYWxsc2VjdG9yc2Fy
Hillary 2012
Dow suffers its worst one-day loss since December 2008, plummeting 632 points, closing below 11,000
per CNN
and the Drudge page made me laugh, with the big headline…BARACKALYPSE NOW
My internet is not working correctly, and there is a tech coming out to check it. So the Evening Reads will be late today.
Obama is lecturing for a test. He provides options for his opposition to attack and dominate the air waves.
Did anyone find a focused definition of the problems and identificaiton of what he was going to put his name behind?????
Axelrod / Biden have to tell him to stiffen up.
Hillary must be shaking her head and looking forwart to getting to her family full time.
Did anyone find a focused definition of the problems and identificaiton of what he was going to put his name behind?????
Did you mistake an untesterd 50-year old black man for a 63-year old experienced white woman?
Hillary 2012
From the speech:
Okay, so let me get this straight: The Executive Branch is now under the authority of the Super-Congressional Catfood Commission?
This guy is completely rewriting the Constitution and the Democrats aren’t doing a thing about it. UNBELIEVABLE.
Sounds like the deficit comes first to you, Barack. Not jobs. Otherwise it would be, “Jobs are the most immediate concern, therefore we are using an Executive Order from the FDR Administration to re-activate the WPA and get Americans back to work.”
The more he tries to “deal with the deficit,” the more jobs are going to be lost. What a moran!
And here is the effect of Obumbles ‘dealing with the deficit’ in the real world….
The first guy is a bit of an idiot. He talks about a reduction in spending as the primary answer, forgetting that an infusion of capital into job programs will work for the masses. Also he seemed to be advocating for commodities purchases as the sole answer to the question.
http://finance.yahoo.com/blogs/breakout/double-dip-recession-more-depression-says-peter-schiff-124843251.html
http://abcnews.go.com/Business/signs-double-dip-recession/story?id=14221305
Hillary 2012
even a newbie small business owner knows that a quick increase of cash flow is the first thing you seek before you start cutting –
Thank you, madamab! This super congress shit has got to go – it is undemocratic and it does not belong in our government. Neither does Obama, for that matter. He is an epic failure and should be perp walked out of there for treason, along with the other “representatives” of we, the people who are not upholding or protecting the Constitution or us. It makes me furious to think about the damage they have done to our country.
It has to be unconsitutional! And Obama must go!!
None of these idiots wanted to be trapped into making a decision. I bet the supercongress will be all retiring people or extremely safe people.
Me too, Delphyne!!!
Dak – I read that the Repubs are going to nominate all the Catfood people, including – wait for it – Paul Ryan.
Trust me, this is no toothless committee. This is the Catfood Commission on steroids, which Obama has now pledged to “cooperate” with! ARE YOU FREAKING KIDDING ME!!!!
Ahem. Sorry.
They probably want the supercongress to gridlock because that gets those strangling cuts to take place and they don’t have to do anything.
Seriously, what if anything can we the people do about this Committee of the Twelve Caesars? Except call, email, visit and picket out Congress Critters’ offices? As if they’ll care anyway?
WHAT can we DO?
I think that the base closing committee deals mean this is constitutional. Unless, bcz there may be revenue involved, it’s not??? I have no idea.
And I sure don’t trust Obama as a constitutional scholar.
Until people are willing to risk mass demonstrations in the streets, nothing is going to happen. So far the best the progs have to offer is petitions, which are less than worthless, IMO.
Jawbpne, I’m thinking about voodoo right now. You know, dolls with the faces of these criminals and lots of pins. 🙂
Voodoo and street action — I love it! Might work better than calling….
Super Congress… It so makes me think of the fall of the Roman Republic, it’s shift into the Empire and the token nod to democracy that was left after the Empire was created.
Doomed. Sometimes I think we are all doomed.
@Madamab, ugh…I think I am going to be sick! My god, what is going to happen to us?
This guy is completely rewriting the Constitution and the Democrats aren’t doing a thing about it. UNBELIEVABLE
that’s what gets me….Our goverment , which has stood for some 2030 years is, without a peep, being misshapen and played with like a can play-dough.
Hillary said we would not recognize our country …per usual, she was right
Perhaps it’s time for American’s to rise up, speak out and bring things back into line.
I was pretty upset after Obama’s speech because I think words matter. This is my take as I watched my small little stock portfolio that had crawled back up to its pre-dump level, tank! http://www.ksvoboda.com/?p=1780
I will not even look at my little portfolio because I’m sure it will be too depressing. Obama can’t and or chooses not to lead!
I bailed to global bonds about 2-3 weeks ago. Right now it’s still sliding but not quite like equities.
I figure it will probably come back eventually. I just feel that most of this was caused by the politicians. They play games. The whole Tea Party group needs to be taken out and Obama is worthless.
We move our little knibble into Global Corp Bonds about a month ago – we still have a small amount in stocks – we didn’t have that much to begin with.
So now we wait and watch and pray that things will stop sliding and we the people will figure it out because O and the boyz surely can’t.
As for the Tea Partiers – it appears they are just a bunch of frat boyz who want to win the prize but don’t know how to even play the game.
I hear many of them are living in their offices. Are we collecting rent???
Heh. I’m outta the stock market — but only bcz I was wiped out by huge premiums for individual health insurance.
And I couldn’t have slept not having had insurance. First, the cancer, then I spent a month in a burn center…so thank FSM I did not stop my insurance when I was thinking about doing so.
I swear, every time I seriously thought about dropping my insurance something really serious was found or happened….
Anyway, zero, zilch, nada in stocks.
Silent Kate, NPR reported that Obama’s teleprompter had words about taxing the richest individuals and corporations (no transcript until tomorrow), but as the reporter was watching the speech scroll by on the teleprompter, the words were highlighted and disappeared before Obama came to them….
Obviously, a very last minute change!
Obu$hma was not selected to lead – he was selected to do what he is doing.
Supercongress = death squad
Dak – about that billion $ bet against US debt crisis resolve – how did it work out for those who made it?
Who owns S&P and who gains for “their downgrade? It is still the economy, but those big money people who own S&P to spout their nonsense are going to make it big somewhere in the mix. This is the same S&P that gave grade A ratings to nothing but junk and haven’t spent one day behind bars. So why would anyone listen to whatever comes out of their mouth is beyond me.
What people really don’t want to hear is the truth. A country cannot borrow money endlessly to fund two wars over the last decade while cutting taxes and pretend that isn’t the problem. It isn’t social security and it isn’t medicare. Tax cuts will not work in a global economy when the problem is lack of demand and unemployment. Austerity measures simply will cripple the economy making it easier for those which large amounts of cash to clean up. The last thing we need is to continue to de-fund social security when it didn’t work to do so in the first place. So what is next..more quantitative easing schemes that permit those who have to have more on our dime?
I heard this AM that S&P made a $2,000,000,000,000 mistake in their calculations and that’s why Timmy was really ticked at them – the person who wrote the report was an English professor or something and had little econ in their background – that’s the scuttlebutt
Oh and did we get anymore info on who at the Federal Reserve made the decision to give away our $2,000,000,000,000 that they were holding – and who did they give it to, why did they give it away, ????????
Interesting diary at FDL about Obama administration telling IMF it felt the government post 2012 would provide a one party Congress and make it easier for accomodations to be made to impement cuts.
The diary author asks whether Obama wants a R Congress (well, um, it would make things easier for him….0.
IMF wants $6 Trillion in cuts, but not front loaded, given the precarious economic recovery..
In the administration’s reply to the IMF demands, there’s this:
Also said VAT now on the table (regressive tax). Both quotes are from Page 20 of the PDF, which is prepared by the IMF..
The deficit reduction plan will need to include both changes to entitlement programs and revenue-enhancing measures, given pressures from population aging and excess cost in the health care sector. Administration proposals would already cut the share of non-security discretionary spending in GDP to very low levels. Additional measures (discussed in Box 3) can include Social Security reform, additional savings in health care and other mandatory spending categories, and reducing tax expenditures (which amount to 7 percent of GDP according to the President’s Fiscal Commission). In the longer term, consideration could also be given to introducing a national value added tax (VAT) or sales tax, as well as carbon taxes
.
This FDL piece is a must read.
Over a year ago 0bowma=R was planning to attack entitlements — such as Soc Sec and medicare etc.
Sock Doctrine — selling of America by 0bowma=R to his buddies.
Oh wow — the Dem party leaders sure know how to pick their candidates!! Ignore the will of 18 million primary voters and put your own hand chosen guy in. How long has the Democrat party been dead and when did it really die?
I’d appreciate input from people more familiar with econ papers (Dak?). Thnx.
And Obama has been saying he’ll go after entitlements since May ’07. Or earlier, given what he said in Audacity of Hope.
Well the old bitter hag knitters told you so!
My cat is a better leader than 0bowma=R!
To do list — write to Congress critter and US Senators about this stupid Super Congress. Another waste of time — but it is the only option there is — besides physically protesting and what are the odds that the media will even report protest marches????
Slim to none.
I just keep coming back to one obvious truth: The Powers That Be “borrowed” the money in the lock box and, now that the Social Security debt is just about due (those damn Baby Boomers, don’t you know?), they are not going to pay back what they owe. So easy to see.
All of this is so much farce, designed to obfuscate their reneging on a debt – and, not only that, since we paid for our Social Security benefits, they’re also stealing our money. Then they want to stop the FICA tax to starve Social Security to death. Seriously, how can they can blame the loss of the $16 trillion they gave the crooked bankers on those damnable entitlements? It’s ludicrous. The idea is to steal every last penny they can – and then run for the yachts.
So much for the value of the bonds, though – some have value, but others are worthless like the ones in the lock box.
Everyone is going to be affected. This is class warfare. Whether Tea Party or Socialist, we are all going to go ballistic. Once people see what Obama is up to, and they will eventually when they need Medicare or Social Security or Medicaid, there is going to be utter mayhem. When they’re living on the streets or with their parents or with their grandkids and still can’t make it.
The incredibly hot summer is not making anyone calmer either. You know, that hoax called “global warming.”
I read someplace else a really good point about this Super Committee or Super Congress or whatever. Because the committee is divided 50-50 – and thus is NOT representative of Congress at all (since the Dems are in the majority in the Senate) – conclusions will be reached that are far removed from what the voters voted for. And conclusions will be reached, I’m sure.
So are Obama’s actions! When 60+% wanted something like Medicare for All, Obama ignored them (even made fun of them).
When people wanted no extension of Bush Tax Cuts at if it couldn’t be just keepiing for $250K or maybe $500K or lower, Obama ignored them.
It’s the Obama Way. He does not work for us.
NewsHour has Krugman, Kenneth Rogoff of Harvard, and some guy from a TBTF bank (JPMorgan — Terry Belton).
Bankster guy says we need nea- term stimulus and long term austerity. But market has realized there will be no stimulus. Market doesn’t see how economy will be revived. Says Europe situation (slow economies with liquidity crisis) more dangerous than US’s.
Krugman: S&P matters, if at all, not bcz US debt unsafe, but made people think US gov’t will be even more hamstrung in considering stimulus actions. What US has is jobs problem, but the experts who said go austerian are doubling down on that. Doing the wrong thing.
Rogoff: Says acrimony over debt crisis hurt US institutions. People seeing continual misdiagnosis of econ situation.
Krugman: Same diagnosis as Rofoff. Need Fed support for jjobs. No financial reason for the downgrade. It was a political reaction.
Morgan guy: We look more like AAA, but our trajectory is much worse. Debt GDP is in 70’s, will go up to 90’s.
Rogoff: People looking for leadership. Cred shot in Europe. Feels US stronger, but the debt crisis was very bad. Obama should not have given in to Tea Party.
Krugman: Saw growth panic in markets today. You guys obsessing on wrong things.
Morgan: Out of bullets. Fed will no do QE III, but lengthen (didn’t hear) repayment. Again, entitlements need to be reformed, but need stim short term.
Rogoff: Fed NOT out of bullets. Need to work for hier inflation and announce that is objective. GET RID OF DFEBT CEILING–shldn’t be hanging over people every year or more often..
Krugman: Not Great Depression II, but double dip, yes. 9% or higher unemployment one to two more years. Unemployed have very low chance of getting jobs. Someone needs to stand up and say what is needed (STIMULUS). Obama did not do that.
Morgan: Some signs of uptick in labor market. (Riiiiight.) Corp profits still good. Second half of year should be better.
Rogoff: Scary moment. Absence of cred –, no one to stand up and take charge is bad. Stimulus.
I’ll ask again – does anyone have any idea where the Fed Reserve $ went???