The Economy

Apologies for the lack of direct Mississippi content, but this is heavily on my mind.

There is no doubt that the United States has a long-term debt problem. Our deficit is growing at an unsustainable rate. At the same time we are in the midst of the Bush Recession that threatens to double dip with the news of the collapsing Euro and the oil spill. Let us all remember that the only President since 1980 to run at a surplus was a "tax and spend Democrat". Bush 43 doubled the deficit from 5 trillion to 10 trillion. Does that drummed up Iraq war taste good or what?

There is a lot of populist clamor to cut federal spending, and I understand the sentiment. However the recession we are in does not allow for us to slice government spending at this point. The private sector has started recovery but the jobs are going to be slow to return. We are teetering on a double-dip recession and without public spending to make up for the lack of private it could be bad. We have to make the unpopular choice to create a jobs-based stimulus package that is substantial. The sooner we get folks back to work, the sooner they are paying taxes.

We cannot afford to sit idly while our economy slips into a five year stagnation. There will come a time once the economy is stabilized where austerity makes sense. There will be a time to cut spending and raise taxes. Yes it is going to take both to get some serious fiscal responsibility. This, however is not the time for austerity.

Illinois sheriff has had enough

The Cook County sheriff (Dart) has suspended foreclosure evictions. It is encouraging to see the populist spirit of America coming back to front. Change is on the way.

From CNN:

"These mortgage companies only see pieces of paper, not people, and don't care who's in the building," Dart said. "They simply want their money and don't care who gets hurt along the way.

"On top of it all, they want taxpayers to fund their investigative work for them. We're not going to do their jobs for them anymore. We're just not going to evict innocent tenants. It stops today."

Dart said he wants the judiciary or the state Legislature to establish protections for those most harmed by the mortgage crisis.

In 1999, Cook County had 12,935 mortgage foreclosure cases; in 2006, 18,916 cases were filed and last year, 32,269 were filed. This year's total is expected to exceed 43,000.

The people we're interacting with are, many times, oblivious to the financial straits their landlord might be in," Dart said. "They are the innocent victims here and they are the ones all of us must step up and find some way to protect."

The Illinois Bankers Association opposed the plan, saying that Dart "was elected to uphold the law and to fulfill the legal duties of his office, which include serving eviction notices."

The association said Dart could be found in contempt of court for ignoring court eviction orders.

Illinois

House set to vote on bailout - Updated

I don't ever remember an issue where there seems be this level of uncertainty from all corners. Let's face it, this is a difficult issue. I have spent hours reading economists from the right, left and middle, and I still not sure what to think. Just wrapping your head around "credit default swaps" and "derivatives" is enough to my head hurt. A lot of people I trust a for it. A lot of people I trust are against it.

I definitely think we need to do something to secure the credit markets, that I understand. If credit dries up, businesses will not be able to acquire short term loans to meet operating costs. Loans for expansion and growth will be off the table. This could lead to a depression. Whether or not this is the bill, I don't know.

Daily Kos is keeping a running thread open with live coverage of the House deliberations. There is a lot of pressure from party leaders on both sides to get this passed through. Public sentiment seems to have shifted slightly to more in favor of the bill than it was last time. I think the 777 point drop in the Dow might have had something to do with that. Also a lot of the Representatives are facing tough elections back home and want to get something done so they can get back on the campaign trail.

Last week the vote was 228-205 against. Daily Kos is keeping a running tally of those who have switched sides so far.

Switchers
Howard Coble (R-NC)
Zach Wamp (R-TN)
John Lewis (D-GA)
Bill Pascrell (D-NJ)
Gresham Barrett (R-SC)
Judy Biggert (R-IL)
David Scott (D-GA)

I will update this post as we know more. I am especially interested to how the Mississippi contingent votes this time.

Update: The bill passes with at least 250 votes as of 12:15. I will get an exact vote total as it becomes available on the internets. Chip voted for the bill. I have not heard about Travis, Bennie or Gene yet.

Update 2: Final vote 263-171. Gene, Bennie and Travis all voted no. Chip voted yes.

Travis Childers: Why I Voted Against the Bailout

Thanks to the Jackson Free Press for the lead:

From Travis Childers:

Hard-working families are struggling in the face of job losses and home foreclosures resulting from overall economic instability. They are justifiably angry about a bailout that would require them to dig deeper into their pockets to rescue Wall Street from its own recklessness.

Earlier this year, I voted against a budget that would raise the federal debt to an unprecedented level. Today, I was again compelled to vote my conscience against a massive debt increase. While I appreciate the bi-partisan effort to craft this legislation, at the end of the day, I could not, in good conscience, vote for a bailout of Wall Street that would increase our national debt by such magnitude and place such a heavy and undue burden on working families.

However, there was considerable progress made by including provisions for oversight and accountability over the past week. While it was still not convincing enough for me or my constituents, I will keep an open mind as negotiations continue in hopes that a more fiscally responsible plan that ensures protection of hard-working Americans will be presented.

A central concern is the fundamental issue of fairness. Asking every American to shoulder an additional $2,300 in debt because of Wall Street's reckless mistakes is incredibly unfair. Working families have been left on the sidelines for far too long as tax breaks and special treatment have been handed to the wealthiest and most powerful interests. The average American's stake in the economy needs to be protected.

I look forward to negotiating a plan that makes sense for American taxpayers, and will continue to put North Mississippians first as the effort to reach a fiscally responsible, bi-partisan solution continues.

Roger Wicker voted against main street bailout

As our leaders in Washington gather to formulate a plan to bail out Wall Street, just a week ago they had an opportunity to help bail out main street. The House passed a $61 billion "bailout" bill that would provide those feeling the business end of our economic recession.

From Market Watch:

Last week, the House of Representatives passed a $61 billion package to aid working families and stimulate the economy that included investment in American infrastructure, increased aid to workers in the form of unemployment and food stamp benefits, home heating assistance, and Medicaid funding to cash-strapped states. Republican Senators however, blocked the bill

This once again shows who Roger wicker is in Washington for. If you are hurting, your job has relocated to China, your fuel costs are up, and you can't find a job in this Bush economy, then you mean nothing to Roger Wicker. How many people in north Mississippi fit this profile, where unemployment has crested above 10%?

"Americans are fed up with politicians who are more concerned about the fate of Wall Street than the fate of Main Street," said SEIU President Andy Stern. "We are going to make sure voters know which Senators turned their back on laid-off workers, funding for health care, and energy assistance for low-income people in their communities. We have to address the underlying economic crisis affecting working people if we want revive and rebuild our economy over the long-term."

Economic crisis: Wicker voted against regulatiing the subprime industry

I wrote about his a while back, but this has to be repeated. The deregulation that allowed for the creation of irresponsible financial instruments is to blame for the housing market crash. Subprime loans were at the center of this. Deregulation also allowed these loans to be bundled into securities and sold without full disclosure of the underlying risk. The first wave of pain due to deregulation was and is still being felt by the 11% of homeowners facing foreclosure today. The second wave of pain is the failing of our financial behemoths who overlaid on these shoddy subprime backed securities. The Dow had its worst day in 7 years yesterday. Bear Stearns, Lehman Brothers, AIG, Fannie and Freddie etc...

Make no bones about it, this whole stinkpile started with the regulation-free subprime market which allowed load sharks A.K.A. mortgage companies to swindle millions of hard working Americans out of their home. Minorities have fared worse than the rest, losing homes at a frightening rate. Back in 2007 we had a crucial opportunity to fix our housing market run wild, with the Mortgage Reform and Anti-Predatory Lending Act; Bill HR3915. How many families in Mississippi have faced foreclosure during this crisis? Our state is near the top per-capita in foreclosures.

How did Roger wicker vote on the Mortgage Reform and Anti-Predatory Lending Act; Bill HR3915?

HR3915 - Voted NO on regulating the subprime mortgage industry.

Thanks Roger Wicker for helping to facilitate the stinkpile.

Donate now to Ronnie Musgrove to make sure we have a Senator who votes for the interest of his constituents. That is not asking too much is it Roger?

Famous McCain quotations

Here are some golden John McCain quotes. If he could keep his mouth shut he might have a chance of getting elected.

"I’m always for less regulation" – to The Wall Street Journal, March 2008

Remember John McCain's economic advisor Phil Gramm led the charge to deregulate the very financial instruments that first caused the housing crisis and now is bringing Wall Street to its knees.

"And I promise you, we will never put America in this position again." – campaign speech, September 15, 2008

At least he is admitting that it was his cohorts who were in power and whose policies lead to this meltdown.

"The fundamentals of our economy are strong." – campaign speech, September 15, 2008

Say what?

"The issue of economics is not something I’ve understood as well as I should." –to the Boston Globe, December 2007

Ah, the old Straight Talk Express.

"I'm going to be honest: I know a lot less about economics than I do about military and foreign policy issues. I still need to be educated." – to the Wall Street Journal, 2005

More straight talk

"There’s been great progress economically over that period of time (since Bush took office)." – campaign speech, April 17th, 2008

He must be referring to some of those houses he bought. Good times I tell ya.

Women need "better education and training" - said in April 2008 in opposition to a Senate bill that would have secured equal pay for women.

Right, women at this point don't deserve equal pay because they are not as well educated or trained as well as men...

"Bomb, Bomb Iran." – campaign speech, April 19, 2007

Your next Commander-In-Chief making a joke. Real funny.

Hat Tip to Daily Kos blogger StrangeAnimals

Roger Wicker Spokesman Says Manufacturing Job Losses Good

Roger Wicker is attacking Ronnie Musgrove for losing manufacturing jobs even though total employment stayed about even.

But here his spokesman says that it is good that Mississippi is shedding "low skilled" manufacturing jobs.

So they are attacking him for not stopping something that happened in every other state with similar industry while saying it was a good thing?

We need quicker than Wicker.

McCain: We need an economic surge

I am not making this up. John McCain on Wednesday claimed that what our faltering economy needs is an "economic surge". Like I said, I am not making this up. I guess he plans on sending 30,000 economists to strategic financial locations across the map. Like John Kerry said this week, it is no secret that John McCain is looking for a veep with more knowledge on the economy than the Arizona senator possesses. As John Kerry so cleverly mused, that puts all of us on the short list. Thank you Senator Kerry, and if you had answered like that four years ago, I would be working on your second term electoral bid.

From CNN:

Sen. John McCain on Wednesday used language primarily associated with the Iraq war to describe the U.S. financial woes, saying the country needs an "economic surge" to boost the job market.

The move put the economy -- an issue McCain has admitted is not his strong suit -- in the context of foreign policy, an area that's considered one of his strengths.

Speaking in Jackson, Ohio, the Republican senator and presidential candidate from Arizona said the surge has worked in Iraq, so it's time for one at home.

"What we need today is an economic surge. The surge has succeeded in Iraq militarily -- now we need an economic surge to keep jobs here at home and create new ones," McCain said, referring to the additional 30,000 troops sent to Iraq in 2007.

Republicans Like Haley Hypocritically Attack Ronnie On Jobs

When Haley Barbour decided to take up a hobby and ran for governor in 2003 he spent a lot of time and money attacking Ronnie Musgrove's record on jobs.

Vicksburg Post Editor Charlie Mitchell:

The Republican Party has rolled out a litany against Musgrove’s term as governor from 2000 until 2004. It’s their standard, moderately distorted stuff: Net loss of 37,000 jobs...

Well the facts show differently:



When Musgrove left office the number of total employeed was 1,085 less and the percentage unemployeed was actually better/lower than when he started. This reality is quite a bit different from the 37,000 number they throw around.

Charlie Mitchell points out Republican amnesia in apparently forgetting to "point out that the terror attacks of Sept. 11, 2001, might have had something to do with the U.S. economy tanking" including that of Mississippi in the middle of Musgrove's term.

Contrast that with post Musgrove Mississippi after Katrina where billions of federal tax dollars have employeed countless in Mississippi and have bailed out a state government that would have faced major shortfalls.

After the so called responsible Republican stewardship you'd expect far better from a state government led by Republican Haley Barbour.

But that simply isn't the case.

Employment Unemployment Unemployment Rate

1,234,837       76,722                 5.8%  January 2000 (Musgrove Day 1)

1,233,752        74,350                 5.7%  January 2004 (Musgrove Final Day)

1,235,366         92,143                6.9%  June 2008 (Barbour Present)


Post Musgrove total employment is barely up while the total unemployed has skyrocketed increasing by nearly 18 thousand.

Republicans want you to believe that Ronnie Musgrove was a bad steward of Mississippi's economy, but he did better with far, far less.

Travis Childers Comments On Iraq From Iraq

From a press release:

"Yesterday, I had the opportunity to participate in several briefings at the U.S. Embassy and meet with local Iraqi leaders on the state of Iraq's economy. I remain convinced that the Iraqi government needs to step up its own efforts to strengthen and repair the country's economic situation.

"Our own economy is taking a huge hit every day that we stay in Iraq. We are spending billions of dollars on a daily basis, which is damaging to our country beyond the dollar amount itself. Funds spent in Iraq are funds we can't spend at home to invest in sources of alternative energy, job growth, and economic development.

"North Mississippians would like to see our troops return home sooner rather than later, and I am for bringing our soldiers back honorably and safely. That being said, I believe our fine men and women serving overseas are doing an amazing job. The opportunity to travel to Iraq has given me an even greater understanding and appreciation of our soldiers' dedication to protecting our freedoms and I am truly in awe of the challenging work they do every day. Now it is time for the Iraqis to take increased responsibility."

- Travis Childers

MS-01: Greg Davis and the economy, same old song and dance

The Commercial Dispatch has an article about the recession and the forth-coming stimulus checks. Towards the end of the article the two candidates in the MS-01 congressional race offer their opinions on how to best fix the economy. Their response tells you all you need to know on who to vote for on Tuesday.

“We face tough times,” said Travis Childers, the Democratic candidate in the 1st Congressional District race...

...Both Davis and Childers have specific ideas on how to ease the economic woes.

“I am strongly in favor of extending and making permanent the Bush tax cuts,” said Davis, referring to the 2001 measures that President Bush and Republicans passed through Congress when they were in control of the House and Senate. The various tax reductions expire in 2010.

Davis also said, as Southaven’s mayor, he oversaw the only city tax rebate ever distributed in Mississippi history.

“We should continue to ... reduce the tax burden on our families and small-business owners to ensure our economy continues to grow,” he said.

Now that Democrats are in charge of Congress, they’re resisting the renewal of the Bush tax cuts, which they say mostly favor upper-class taxpayers and have contributed to a bigger federal budget deficit.

“Balanced budgets, fair trade deals and broad middle-class tax reform are the right prescription for this economy,” Childers said.

Childers said the U.S. has made bad free-trade agreements that allow cheaper products to be imported and cause unfair competition that force U.S. manufacturers to lay off workers and go out of business.

Greg Davis thinks that the Bush tax cuts, which shifted the tax burden from the top 1% to the middle class, are good for America. Never mind that we can't sustain two wars, a rotting infrastructure, and a hollow government unable to respond when needed (see Katrina), without paying for it with tax revenue or borrowing money from China, which in turn further weakens the shrinking dollar.
Greg Davis is for more of the same old garbage that we have been trying for eight years. I am sorry but that does not pass the sniff test. Greg Davis, when did you become an elitest, out of touch with real working Mississippians? Surely you know your politics benefit only the haves? Mississippians are hurting and know they have been sold a bill of goods, hence we are having this discussion in an R+10 district.

Travis Childers gets it. We need to balance the budget like we did in the Clinton years (remember those, they were horrible compared to now - snark). We need to reform our trade laws so that it does not make sense to send productive, good paying, American jobs overseas for an extra percentage point of profit for some globalized corporation. Childers understands we need economic answers that work for Mississippi families.

Fed-Up When You Fill-up

$1.25 for gas... those were the days...

REMINDER: Travis Childers ‘Fed Up When You Fill Up’ Tour Today

BOONEVILLE (Thursday, May 8, 2008) – Travis Childers will temporarily roll back the price of gas – and outline his plans to reduce the skyrocketing cost of gas – today during his “Fed Up When You Fill Up” tour in Mississippi’s 1st Congressional District.

Childers will stop in Grenada, Columbus and Tupelo. He will offer the first 50 motorists at each location up to 10 gallons of gas for $1.25 a gallon – the average price on March 5, 1997, the day Republican Greg Davis voted in the state Legislature to increase the state tax on a barrel of oil produced in Mississippi.

Childers and Davis meet in the Tuesday, May 13, election to fill the unexpired term of the vacant 1st District U.S. House seat.

“FED UP WHEN YOU FILL UP” TOUR
11 a.m.: Grenada, Kent’s Citgo, 709 Lakeview Drive
3 p.m.: Columbus, Express Mart No. 7, 1604 Gardner Blvd.
5 p.m.: Tupelo, Speeedy Gonzales EZ Stop, 1725 N. Gloster St.

Back to the economy

I didn't get a chance to post this article from the Sun Herald yesterday. It's not completely uncommon for people to steal gas- in Jackson, everyone has to pay before they pump since Katrina. However, stealing $1600 worth of gas is astounishing to me, and further proof we're all in some tough times, especially in the independent trucking business.

Truckers make off with 400 gallons of diesel fuel

JACKSON COUNTY --Two tractor-trailer rigs pulled up to a gas pump at the Wade Quick Stop and BP gas station late Thursday night or early Friday morning and stole $1,600 worth of diesel.

The station, on Mississippi 63, was closed when the culprits made off with 400 gallons. Sheriff Mike Byrd on Monday warned all gas stations to turn off the electricity to their pumps at night.

"Somehow they got the pump to come on," Byrd said. "Someone went into the control top of the pump. I have no idea how they did it."

Economy in Mississippi

The Mississippi Economic Policy Center- a nonpartisan think tank- has released a study (National Crisis Hits Home: Addressing Mississippi's Foreclosures) on the housing industry in Mississippi, and it's not looking good.

According to the report, Mississippi has the highest percentage of loans past due, and the eighth highest rate of foreclosures.

From the report:

Industry experts and analysts attribute the high rate of delinquency and foreclosure in Mississippi to two primary factors:

1. Mississippi has the highest rate of subprime lending in the country. According to Home Mortgage Disclosure Act (HMDA) data, in 2006, 36.9% of all first mortgages originated for owner-occupied single-family homes in the state were subprime. Research shows that subprime lending can result in delinquency and foreclosure rates of up to 10 times the rates associated with prime lending.

2. Hurricane Katrina has left many homeowners unable to keep up with mortgage payments. Delinquencies on the Gulf Coast have soared in the wake of the storm. Since Hurricane Katrina, Mississippi has consistently had one of the highest delinquency rates in the country: an average of 12.04% of all loans have been past due, compared to 4.82% of all loans nationally.