Stocks Get Pummeled

Dow down almost 367 points, its third worst day of the year, on fears about credit and housing sector, earnings, record-high oil prices, slide in dollar, what the Fed will do next.

Stocks tumbled Friday as record-high oil prices, more problems in the bank sector and slower corporate earnings growth revived worries about an economic slowdown.

The Dow Jones industrial average lost around 367 points, seeing its third-biggest point loss of the year, its worst since the steep selloff in early August in the midst of the credit and mortgage market mess.

The decline Friday left the blue-chip indicator at its lowest point since Sept. 17, the day before the Federal Reserve cut interest rates for the first time in 4 years, triggering a rally that was cut short this week.

The S&P 500 index lost 2.6 percent and the Nasdaq composite gave up 2.7 percent.

Disappointing earnings from Caterpillar, Honeywell and others exacerbated concerns about weak third-quarter profits. Meanwhile, Wachovia became the latest financial services firm to reveal how the credit and mortgage market crisis had hit its profits.

Oil prices ended lower Friday, but not before hitting an all-time high of $90.07 a barrel in electronic trading. The dollar fell to a new record low against the euro and also slipped versus the yen. Treasury prices surged, as investors sought safety in the comparably safe haven of bonds.

The house of cards that is the United States economy seem ready to come tumbling down. The question I think isn't if we will go into a recession but how severe a recession we can expect?

Dollar Hits New Low as Unemployment Claims Spike Upward

The euro reaches $1.4305 after U.S. jobless claims spike.

The dollar fell to a new record low against the euro on Thursday, with the 13-nation European currency breaking through the $1.43 mark for the first time after Washington reported a spike in jobless claims.

The euro rose to $1.4305 in early afternoon trading in Europe shortly after the U.S. Labor Department reported that applications for jobless benefits hit 337,000 last week - up 28,000 from the week before and the biggest one-week surge since claims jumped 42,000 the week of Feb. 10.

It settled back slightly, to $1.4290, but was still up more than a penny from the $1.4186 it bought in late New York trading on Wednesday and was higher than the previous record of $1.4282 set Oct. 1.

The jobless increase was four times the gain of 6,000 that economists had been expecting and was taken as a possible sign that the labor market is starting to weaken under the impact of a housing downturn and turmoil in credit markets.

Earlier this week, both Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke warned that the housing crisis was likely to last longer than had been expected.

Of course the housing crisis will last longer. Who exactly will buy all these homes after foreclosure? Real wages are down for six years under this administration and the savings rate is negative for the first time since the great depression. With new underwriting standards on loans less people will qualify. This all adds up to a disaster in the making.

This is what happens when you kill the middle class.

Foreigners Dumped U.S. Assets in August

Foreign investors fled from U.S. assets in August as a meltdown in the U.S. subprime mortgage market triggered a global credit crunch, Treasury Department data showed on Tuesday.

Net sales of long-term securities such as bonds, notes and equities -- a more closely watched gauge of foreign demand -- hit $69.3 billion, also a record. The last time this measure turned negative was in August 1998, the month when Russia defaulted on its sovereign debt, sparking a global crisis.

Economists had expected net foreign purchases of long-term securities of $60 billion, according to a Reuters poll.

"Investors seem to be moving money outside of the U.S., which leads us to believe they are planning for a continual U.S. dollar decline," said Mark Meadows, currency strategist at Tempus Consulting in Washington.

"What they are saying," he added, "is they are not going to receive as much in return as it will cost them to hold dollars."

The net sales of $163 billion, which includes short-term securities such as Treasury bills, beat a prior record outflow of $42.3 billion in March 2001.

U.S. capital markets would have needed to attract nearly $58 billion of inflows in order to cover the August trade deficit.

"The diminished foreign appetite for long-term U.S. financial assets is alarming, and will weigh heavily on the dollar," said Tu Packard, chief economist at Moody's economy.com in West Chester, Penn.

What will happen if the United States can not attract foreign investors in order to cover the HUGE deficits run up by this administration? You can either print money to pay the bonds being redeemed which would lead to a further devaluing of the dollar or you would need to raise interest rates enough to make U.S. debt attractive again to foreigners. Either option will be bad for the U.S. economy.

This is what happens when you believe that deficits don't matter. Will Americans realize that this disastrous economic policy is actually the fault of this administration or will they blame it on the next administration. Only time will tell but I think people understand that the huge surpluses left by the Clinton administration were squandered by Bush as he presided over a huge redistribution of wealth from the middle and lower classes to the rich.

That is Republican economic policy in a nutshell. Give it all to the rich and the rest of us will be patient while we wait for "the trickle down effect". The Bush administration is a failure on absolutely every level.

Builders' Confidence At All-Time Low

Home builders see weakest buyer traffic in 23-year history of trade group survey, outlook for future remains at record low as well.

The nation's home builders' confidence in the battered market for new homes fell further in October, and a measure of their outlook remained at a record low level, according to the latest industry survey.

The National Association of Home Builders/Wells Fargo Housing Market Index showed the overall confidence measure sank to 18, the worst reading on record for the 23-year old monthly survey.

The trade group's statement said the problems included decreased availability of subprime mortgages, a glut of new homes available for sale and reports about declining home values.

The builders' expectations for the market six months from now came in with a reading of 26, matching the lowest reading on record that was set in September. And their view of current buyers' traffic fell to a record low reading of 15.

"Builders in the field are reporting that, while their special sales incentives are attracting interest among consumers, many potential buyers are either holding out for even better deals or hesitating due to concerns about negative and confusing media reports on home values," said NAHB President Brian Catalde.

The overall confidence reading reflects the eighth straight month in which that measure has declined. It has fallen sharply, and is down from a very strong reading of 74 only two years ago. A reading of 50 in any of the three measures indicates the number of positive responses from builders is equal to the number of negative responses.

The housing woes continue unabated with the worst still to come. The housing market correction will be very painful for millions but hopefully after the dust settles we will have a market that is both affordable and vibrant. This could not come at a worse time for the Republican party. What accomplishments can they point to over the past eight years? The rich got richer and the poor got poorer, not exactly a 30 second political commercial to sway the masses.

The Real Rudy

The man who is trying to be the President of 9/11 has some explaining to do!! I am still baffled as to why this clown is even running for President let alone is a top contender for the Republican Party. He has become rich and powerful as a result of 9/11. The term blood money never had such a clear description.

Oil Tops $86.00 Per Barrel

Crude prices reach record high on worries about declining oil inventories, OPEC says production by non-member countries may fall; Turkey-Iraq tension.

Oil prices surged higher than $86 a barrel Monday for the first time after OPEC said crude production by non-member countries is likely falling even as global demand for oil is rising.

The price for light sweet crude settled at a record $86.13 a barrel, up $2.44 from Friday's $83.69.

Prices were also supported by concerns Turkish forces will pursue Kurdish rebels into Iraq, disrupting oil supplies, and by technical buying by investment funds.

Monday's intra-day high was $86.20 a barrel, breaking Friday's peak of $84.05.

Despite the Organization of Petroleum Exporting Countries' decision last month to boost its production by 500,000 barrels per day beginning next month, the rest of the world will likely produce 110,000 fewer barrels of oil per day than expected in the fourth quarter, OPEC said in a report.

At the same time, fourth quarter demand for crude oil will grow by 100,000 barrels a day over last year, OPEC said.

The estimates add to sentiment that crude supplies are tight. Last week, the Energy Department reported that domestic crude inventories fell during the week ended Oct. 5 when they had been expected to rise. And the International Energy Agency concluded that oil inventories held by the world's largest industrialized countries have fallen below a five-year average.

The rise in oil prices will most surely make it even more likely that the U.S economy will tip into a recession. The housing collapse is being felt in many other industries and the rise in gas prices will also spill over into other industries. This double whammy will have a very damaging effect on the economy. It is time to spend money on alternate sources of energy not on invading countries that have the oil.

Banks Said To Be Prepping Up To $100B Fund

Reports: Citigroup, others working with Treasury Department on plan to protect against further securities collapses.

A consortium of the world's biggest banks, led by Citigroup, is working to create a fund to back up to $100 billion in shaky mortgage and other securities, according to published reports Sunday.

The fund, according to reports in the New York Times and Wall Street Journal, would be used to buy securities at risk in the current credit crunch in an effort to avoid a broader economic problem. An agreement on the fund's framework could be announced as early as Monday, the Times reported, adding the talks were ongoing and could still result in no accord.

A major focus of the fund, according to the reports, is structured investment vehicles, or SIVs. The Times said the SIVs - which issue short-term notes to invest in longer-term securities with higher yields - have been tainted by the loss of confidence in subprime mortgages.

The Journal, citing Moody's, said there are about $400 billion in SIVs.

Besides Citigroup, the Times said Bank of America and JP Morgan Chase were involved in the discussions. The Journal said Britain's markets regulator has suggested that U.K. banks participate in the plan.

The Journal said Citigroup has about $100 billion invested in SIVs, while Britain's HSBC Holdings PLC has about $35 billion.

Both the Times and Journal see the fund as an echo of the 1998 plan to bailout the hedge fund Long-Term Capital Management after it made a series of bad bets. The bailout was made to thwart an international financial crisis.

This is a sound idea to ward off any major economic collapse. It does make me realize that these large banks must understand that the threat of collapse is real or they would not be putting in 100 Billion dollars of their own funds to head off such a collapse.

The Bush administration has been one that believes that industry can police itself. With the subprime mess and the continued recalls of food and toys I hope we all realize that this belief is false.

Ann Coulter Is A True Asshole

When will the media stop inviting this junk toting stick figure (thank you Stephanie Miller) on their programs? Watch this witch spout her nonsense while her adams apple jumps up and down. I thought only men had an adams apple? Since she is such a true Christian does that mean she is still a virgin?

Rich Getting Richer

Is this supposed to be a surprise?

The richest one percent of Americans earned a postwar record of 21.2 percent of all income in 2005, up from 19 percent a year earlier, reflecting a widening income disparity among different classes in the nation, the Wall Street Journal reported, citing new Internal Revenue Service data.

The data showed that the fortunes of the bottom 50 percent of Americans are worsening, with that group earning 12.8 percent of all income in 2005, down from 13.4 percent the year before, the paper said.

It said that while the IRS data goes back only to 1986, academic research suggests that the last time wealthy Americans had such a high percentage of the national income pie was in the 1920s.

Is history about to repeat itself? The 1920's was referred to as the roaring 20's and it was the era of the Robber Barons. This era ushered in the great depression. Whether we are seeing history repeat itself isn't clear but what is clear is that the rich are getting richer and the poor poorer with the middle class being killed in the process.

Is this the type of society you want to live in? If you are not sure you should arrange a trip to Brazil and see what income inequality looks like in real time. It is time for the middle and lower classes to stand up and say enough is enough. The only way to fight back is to elect those that understand that a large and stable middle class is essential to protecting democracy. What we have right now is a government that is bordering on fascism. If you don't believe me then look at this list of the warning signs of fascism:

1. Powerful and continuing expressions of nationalism. It was usually coupled with a suspicion of things foreign that often bordered on xenophobia.

2. Disdain for the importance of human rights. Through clever use of propaganda, the population was brought to accept human rights abuses by marginalizing, even demonizing, those being targeted.

3. Identification of enemies/scapegoats as a unifying cause. The most significant common thread among these regimes was the use of scapegoating as a means to divert the people's attention from other problems, to shift blame for failures, and to channel frustration in controlled directions.

4. The supremacy of the military/avid militarism. A disproportionate share of national resources was allocated to the military, even when domestic needs were acute.

5. Domestic spying. Secret surveillance of and gathering dossiers on its own citizens.

6. A controlled mass media. Whether directly or indirectly, these regimes exercised power to ensure media orthodoxy. Methods included the control of licensing and access to resources, economic pressure, appeals to patriotism, and implied threats. The leaders of the mass media were often politically compatible with the power elite.

7. Obsession with national security. National security apparatus was under direct control of the ruling elite. It was usually an instrument of oppression, operating in secret and beyond any constraints. Its actions were justified under the rubric of protecting "national security," and questioning its activities was portrayed as unpatriotic or even treasonous.

8. Religion and ruling elite tied together. Most of the regimes attached themselves to the predominant religion of the country and chose to portray themselves as militant defenders of that religion. Propaganda kept up the illusion that the ruling elites were defenders of the faith and opponents of the "godless."

9. Power of corporations protected. The corporate structure was a way to not only ensure military production, but also as an additional means of social control. Members of the economic elite were often pampered by the political elite to ensure a continued mutuality of interests, especially in the repression of "have-not" citizens.

10. Power of labor suppressed or eliminated. Since organized labor was seen as the one power center that could challenge the political hegemony of the ruling elite and its corporate allies, it was inevitably crushed or made powerless.

11. Disdain and suppression of intellectuals and the arts. Intellectuals and the inherent freedom of ideas and expression associated with them were anathema to these regimes. Intellectual and academic freedom were considered subversive to national security and the patriotic ideal.

12. "Normal" and political crime were often merged into trumped-up criminal charges and sometimes used against political opponents of the regime. Fear, and hatred, of criminals or "traitors" was often promoted among the population as an excuse for more police power.

13. Rampant cronyism and corruption. This corruption worked both ways; the power elite would receive financial gifts and property from the economic elite, who in turn would gain the benefit of government favoritism.

14. Fraudulent elections. Common methods included maintaining control of the election machinery, intimidating and disenfranchising opposition voters, destroying or disallowing legal votes, and, as a last resort, turning to a judiciary beholden to the power elite.

If you can't see parallels to today's America then you simply are not paying attention.

Al Gore Wins The Nobel Peace Prize

Run Al Run.

Former Vice President Al Gore and the U.N.'s Intergovernmental Panel on Climate Change won the 2007 Nobel Peace Prize on Friday for their work to raise awareness about global warming.

In a statement, Gore said he was "deeply honored," adding that "the climate crisis is not a political issue, it is a moral and spiritual challenge to all of humanity."

The former vice president said he would donate his half of the $1.5 million prize to the Alliance for Climate Protection, a U.S. organization he founded that aims to persuade people to cut emissions and reduce global warming.

Vice President Gore is our nations best hope of regaining our standing in the world and the Presidency offers him an outstanding ability to educate the world on the climate crisis but it appears he will not run.

A source involved in Gore's past political runs told CNN that he definitely has the ambition to use the peace prize as a springboard to run for president.

But he will not run, because he won't take on the political machine assembled by Sen. Hillary Clinton, said the source. If the senator from New York had faltered at all, Gore would take a serious look at entering the race, the source said. But Gore has calculated that Clinton is unstoppable, according to the source.

Gore repeatedly denied he has any plans to run again, but this week a group of grass-roots Democrats calling themselves "Draft Gore" took out a full-page ad in The New York Times in a bid to change his mind.

It is time for the American public to convince Vice President Gore to enter the race. I think the Democratic filed is very impressive but I would immediately do all that I could should Vice President Gore enter the race. Once again I must say "Run Al Run for the good of the entire world."

Retailers See Lower Sales

Consumers have started to batten down the hatches.

A slew of earnings warnings from retailers Thursday, on top of poor September sales numbers, added credence to concerns that consumers are feeling tapped out and that retailers are headed for a very difficult holiday period.

"We've had a whole bunch of retail warnings today. Retailers really struggled last month because of slow sales and also because of the warm weather drag, " said Ken Perkins, president of Retail Metrics.

Other retailers also warned on their third quarter. Limited Brands, parent of Victoria's Secret and Bath & Body Works chains, posted a 4 percent drop in its same store sales last month and warned that it now expects third quarter earnings of between flat to 4 cents a share, from its guidance of 4 cents a share.

Women's apparel chain Chico's said its September sales tumbled 8.3 percent, while teen seller American Eagle Outfitters reported a 2 percent decline in its same store sales.

American Eagle also warned that it expects third-quarter earnings to come in between 44 to 45 cents a share, compared to its previous forecast of 47 to 48 cents a share for the period.

Perkins said the weakness in last month's sales doesn't bode well for this year's holiday shopping season.

The November-December gift-buying months are crucial for retailers because the two-month period accounts for as much as 50 percent for merchants' annual profits and sales.

Two thirds of the economy is consumer spending. If that slows too much then a recession will occur. I have predicted a recession since I started this site and I stand by that prediction.

12,000 fewer jobless claims last week

The number of newly laid off workers filing claims for unemployment benefits dropped last week, a better showing than had been expected.

The Labor Department reported Thursday that applications for jobless benefits dropped by 12,000 to 308,000 last week. Analysts had been expecting no change.

The four-week average for claims also dropped, falling by 3,000 to 310,250, indicating that the labor market is so far withstanding the adverse impacts of a severe slump in housing and a credit crunch which roiled financial markets in August.

How long can the economy withstand the turmoil in the housing market? My guess is soon you will see a real uptick in unemployment as the housing crisis spreads to other areas. What I really want to see is the type of jobs that are being created. Are they middle class jobs with middle class wages or are they service jobs at low wages and poor if any benefits?

UAW Strikes Chrysler

Thousands of Chrysler LLC autoworkers walked off the job Wednesday after the automaker and the United Auto Workers union failed to reach a tentative contract agreement before a union-imposed deadline.

It is the first UAW strike against Chrysler since 1997, when one plant was shut down for a month, and the first strike against Chrysler during contract talks since 1985. Negotiators stopped talking after the strike began, according to a person briefed on the talks who requested anonymity because the talks are private.

Bargaining between the UAW and the newly private automaker has been slowed by several major issues. The UAW's tentative contract with General Motors Corp. included job security pledges that it was likely to seek from Chrysler, while Chrysler wanted the same health care concessions that the union granted to GM and Ford Motor Co. in 2005. Also at issue was how much Chrysler would pay into a company-funded, UAW-run trust that would take on its roughly $18 billion in retiree health care debt. GM formed that trust as part of its tentative contract.

Our auto industry which was once the envy of the world is now in a very diminished position. One of the main reasons is the ever growing costs of health care. The auto industry supports universal health care because they realize that without it they will continue to operate at a serious disadvantage to foreign auto companies.

The middle class of America can not survive without both strong labor laws and universal health care. As the cost of health care continues to grow workers in all industries are paying an ever greater portion of the health care costs. In many industries the growth in health care costs for the employee has eclipsed the annual raise, which by any standard would mean a decrease in annual take home pay. How can the middle class survive under those circumstances?

Home Ownership Declines Under Bush

This is what you call a successful Presidency.

For the first time since the Carter administration, homeownership in the United States is set to decline over a president's tenure. When President Bush took office in 2001, homeownership stood at 67.6 percent. It rose as the mortgage bubble inflated but is projected to fall to 67 percent by early 2009, which would come to 700,000 fewer homeowners than when Mr. Bush started. The decline, calculated by Moody's Economy.com, is inexorable unless the government launches a heroic effort to help hundreds of thousands of defaulting borrowers stay in their homes.

The foreclosure crisis is rooted in reckless and shamefully underregulated mortgage lending. Many homeowners, mainly subprime borrowers with low incomes and poor credit, are now stuck in adjustable-rate loans that have become unaffordable as monthly payments have spiked upward. Their predicament is not entirely of their own making, and even if it were they would need to be bailed out because mass foreclosures would wreak unacceptable damage on the economic and social life of the nation.

The relief efforts so far have been too little, too late. In August, the White House established a program to allow an additional 80,000 borrowers to refinance their loans through the Federal Housing Administration, on top of 160,000 who were already eligible. That's not enough. Foreclosure filings soared to nearly 244,000 in August alone.

Federal regulators and Treasury officials are urging mortgage lenders and mortgage servicers to do their utmost to modify loan terms for at-risk borrowers, but saying "please" hasn't worked. To be effective, modifications must reduce a loan's interest rate or balance or extend its term, or some combination of the three. Gretchen Morgenson reported recently in The Times that a survey of 16 top subprime servicers by Moody's Investors Service found that in the first half of the year, modifications were made to an average of only 1 percent of loans on which monthly payments had increased.

Does anyone still think the middle class is not an endangered species? This is the most destructive administration in our history.

Attacking A Child Because of SCHIP

When you are losing the argument badly about the State Children's Health Insurance Program (SCHIP)what does a true compassionate Conservative do? Attack the child of course.

These people make me sick.

When The Bubble Burst

This is what happens when the bubble bursts.

Out on Phoenix's suburban fringes, where cement mixers are fast colonizing hay and cotton fields, the day is winding to a close. The home hour has arrived.

But sundown gives away a troubling secret: Behind dark windows and unanswered doors, it's clear nobody is coming home.

They're empty, left behind by a rising tide of foreclosures

This is the story of one town on the outskirts of Phoenix but it could be many towns all across America as the roaring home prices have come crashing to the ground and brought with it the financial downfall of many middle class Americans. How did this happen? Stupidity, greed and the desire to live the so called American dream combined to create one of the biggest financial disasters in our nations history. The real problem is that the pain is just beginning.

Just last week banks and investment firms all across the country started reporting staggering losses as a result of these ill advised loan programs that were a disaster waiting to happen. So far firms have reported $20 billion in losses and it is just the beginning. What this all shows is that our economy is built on smoke and mirrors and when the smoke clears the devastation that will be felt by the middle class will be just another nail in its coffin.

The American Dream is overdue for revision.

"There's been a huge shift in the way people view their houses," says John Karevoll of DataQuick Information Systems. "Your house now can basically be used as an ATM."

The problem is that the ATM is out of funds and the economy will soon show the signs of this disaster in all areas. The trickle down theory of Reagan, that was called voodoo economics by the first President Bush but was embraced by the imbecile that currently occupies 1600 Pennsylvania Ave, is one that guarantees ever greater wealth to those at the top while those at the bottom wait for their scraps. Now we are seeing that theory in action and its not pretty.
When there is no middle class in America we will cease to be the beacon of hope that has attracted those to our shores. That shining beacon that was once the world's envy is now just a flicker and unless we fight to reignite the flame we will see the further erosion of the everyday person's standard of living while the rich will get ever richer.

Is this what you want for our future? It is time for the middle class to fight back and demand policies that benefit us all not just those rich enough to be able to make large campaign contributions. It is time for public financing of campaigns. Without it there is no chance for a different outcome.

Is there Something in The Connecticut Water?

Congressman Chris Shays of the 4th Congressional District in Connecticut fawns all over the head of Blackwater citing their perfect record. I guess this incident is part of their perfect record? Chris Shays has become as crazy as Joe Lieberman and just as shameless. Did you know that Shays never served in Vietnam? His reason for avoiding service was that he was a conscientious objector. I guess death and killing just doesn't matter anymore. This clip is a humorous bit from the Randi Rhodes Show. This should be required listening for all Americans.

Unemployment Rate Up To 4.7%

Jobs report shows September gains in line with forecasts, while earlier job loss wiped away; unemployment rate up to 4.7%.

Job growth was back on track in September, according to a government report that showed both a solid gain in Americans with jobs in the month, and revised away the job loss reported a month earlier.

U.S. payrolls showed a net gain of 110,000 workers in the month, according to the Labor Department report. That's roughly in line with the forecast of a 100,000 gain by economists surveyed by Briefing.com.

The Labor Department also now estimates that August had a gain of 89,000 jobs, a big upward revision from the originally reported 4,000 job loss in August. That earlier reading had shaken the markets and stirred concerns of a recession as it was the first job loss in four years. The July reading was also revised higher.

Still, even with the job gains, the unemployment rate rose to 4.7 percent in September from the 4.6 percent reading in August. That increase was in line with what economists had forecast.

The weak August report had opened the door for the Federal Reserve to cut its benchmark interest rate by a half-percentage point in September, the first cut in four years, as it attempted to stave off an economic slowdown.

Friday's report could be a key to whether the central bank cuts rates again on Oct. 31, when its next meeting concludes.

What I always hate about these sunny reports is that there is no mention that the economy needs job growth of 150,000 per month to keep up with new people entering the work force. It also does not include people who have exhausted their unemployment benefits but are still not employed. It does not include the number of people who are under-employed. Those are people that are working but without full time hours but who are seeking full time employment.

Job creation under this administration has been less than stellar and the jobs that have been created in large part are low wage jobs without sufficient benefits including health care. That could be one reason that nearly 50 million people have no health care.

This administration has created a large population of working poor while the rich have gotten extremely rich and the middle class has been decimated.

Unemployment Claims Soar

Federal government says 317,000 applied for unemployment benefits in most recent week, a potential sign that labor market is slowing due to housing slump.

The number of newly laid off workers filing claims for unemployment benefits shot up last week by the biggest amount in four months.

The Labor Department reported a total of 317,000 applications for unemployment benefits last week, an increase of 16,000 from the previous week. It was the biggest gain since jobless claims rose 18,000 during the week of May 9.

The rise was bigger than analysts had expected and could be a further sign that the labor market is slowing under the impact of the worst slump in housing in 16 years and a severe credit crunch that roiled global markets in August.

The housing slump is just starting and as projects already underway are finished the unemployment numbers in the construction industry could rise.

What we are experiencing is the beginning of a recession as a result of horrible economic policies that have decimated the value of the dollar, killed our middle class and put five million additional people into poverty. The redistribution of wealth that has occurred since the 1980's has come home to roost. With negative savings rates not seen since the depression, how are people supposed to weather the storm? The answer is most can not afford any layoff and with the potential of even more in the coming months the pain being felt by many American families will only grow. It is time for sensible economic policies that benefit everyone not just those at the upper echelons of society.

Bush Gives The Middle Finger To Nations Poor Children

If you needed any further proof that this President is out of touch with reality, here it is.

President Bush on Wednesday vetoed legislation expanding a children's health insurance program by $35 billion over five years.

Bush quietly exercised the veto at 10 a.m. before leaving the White House for a trip to Lancaster, Pennsylvania, to discuss the federal budget and taxes.

Congress sent the legislation expanding the State Children's Health Insurance Program, or SCHIP, to the White House on Tuesday.

"It is our hope and the will of the American people that the president will sign the bill into law on behalf of the future. It is right for no less than 10 million reasons -- our children," Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi said in a joint statement.

The Senate voted 67-29 Thursday to expand the program. Bush has said it's a step toward universal coverage, which he opposes on philosophical grounds.

The program would double -- from 4 million to 8 million -- the number of children covered.

Eighteen Republicans joined all of the Democrats in voting to expand the program from its annual budget of $5 billion to $12 billion for the next five years.

The additional costs were to be largely paid for by additional taxes on cigarettes unlike the endless war which is borrowed funds and will have to be paid for by the same children he just refused health care.

President Bush is the worst President in United States history. 2009 can not come soon enough. Lets hope there is something left to salvage. The only silver lining is that George W. Bush is driving the Republican Party off the cliff.