Barack Obama added four new proposals to his economic package today, but then said something you don’t usually hear in the final days of a campaign. He told his supporters the nation had lived beyond its means and we had to change that. It marked the end of an era.
Obama’s new initiatives were part of what he called "a rescue plan for the middle class," to follow the rescue for Wall Street. He proposed temporary tax credits for companies that create new jobs here. He embraced an idea McCain suggested to give retirees greater flexibility about when to start withdrawing from their IRAs and proposed to allow retirees to withdraw part of the retirement savings early without penalty. He borrowed Hillary Clinton’s idea for a 90-day foreclosure moratorium for homeowners whose banks were being bailed out by the government. And he proposed an open lending facility at the Fed to help cities and states facing short-term deficits.
But Obama also told his audience that the era of living beyond our means was over, not just for government, but for individuals:
It also means promoting a new ethic of responsibility. Part of the reason this crisis occurred is that everyone was living beyond their means – from Wall Street to Washington to even some on Main Street.
CEOs got greedy. Politicians spent money they didn’t have. Lenders tricked people into buying home they couldn’t afford and some folks knew they couldn’t afford them and bought them anyway.
We’ve lived through an era of easy money, in which we were allowed and even encouraged to spend without limits; to borrow instead of save.
Now, I know that in an age of declining wages and skyrocketing costs, for many folks this was not a choice but a necessity. People have been forced to turn to credit cards and home equity loans to keep up, just like our government has borrowed from China and other creditors to help pay its bills.
But we now know how dangerous that can be. Once we get past the present emergency, which requires immediate new investments, we have to break that cycle of debt. Our long-term future requires that we do what’s necessary to scale down our deficits, grow wages and encourage personal savings again.
Obama is accepting a staggering challenge for his Administration and the country. We know we have to fix the immediate financial crisis, and most agree we have to reboot the economy through stimulus while protecting those most adversely affected.
But Obama is also proclaiming a need to change the underlying basis of the economy, to abandon the borrow without care and let’s go shopping mentality that has prevailed for decades. It’s a revealing and unexpected dose of reality three weeks before an election.





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Excellent!
Thank you for this, Scarecrow. I like the part of his speech where he says we have all been living beyond our means, it covers Wall Street and the goverment as well as people who borrowed too much. Time to think about this as a nation.
Where are the specifics?!?! What an empty suit.
/s
Challenging consumerism is a good thing!
Stockmarket
+ 960
“But Obama is also proclaiming a need to change the underlying basis of the economy, to abandon the borrow without care and let’s go shopping mentality that has prevailed for decades. It’s a revealing and unexpected dose of reality three weeks before an election.”
And one no one wants to talk about; he is correct but when a paradigm change is needed, how does such occur? Certainly not by just talking about it.
Here is an example of one paradigm that would have to change for Obama’s goals to occur:
“The mass media are dominated by commercial interests and are used to promote a high-consumption culture.” changing to:
“The mass media awaken to the challenge of sustainability and begin to explore more workable and meaningful approaches to living.”
Now, how to do that?
Well, here’s ,perhaps, a start:
http://www.changetheparadigm.org/
The return of Day Trading cannot be far.
A return to the fundamentals (of roulette)
That was in response to the Dow up 980
i like the foreclosure moratorium.
but is there anything else in this to like? because i don’t see it. what i see is all kinds of red flags because it sounds like what in the ’90s was called “shock therapy” and what we imposed, if we could, on other countries via the imf and other means.
the few times I allowed myself any 2008 aspirations, my one hope was for the President Elect to engage the electorate. and look at how smoothly he did it, keeping it real without scolding – yeah buddy
frankly, we the people are all he has against the onslaught commencing November 5th
re: living beyond our means.
yes of course we have. but then why is he ok with with giving trillions to the people and institutions who have got us in the this fix?
he’s asking us to change our expectations – but not the elite he serves. that is my take. i hope others can show me how to have another.
But, but… President Bush told us to shop and spend money. How could our Dear Leader be wrong???
What’s that whining noise I hear? Does it EVER go away?
i posted this a couple of threads down, but i’ll repost it here because you-all might want to read it.
CQ Transcript: Obama Campaign Advisers Hold News Teleconference on the Economy
howdy raven. nice to see you.
I love this and appreciate the risk he is taking bringing the honesty so close to an election. BUT I want to be sure this isn’t a time of sacrifice by the masses which will lead to a surplus to once again be looted by the top 1%. We need a way to protect against that b/c when conscience seems to be in very short supply when there’s a surplus laying around.
btw scarecrow, that is one sweet ass post – rec.
this is where he could remind everyone that before Big Debt, things like Unions, GI Bill, & Pre Prop 13 Public Education, provided the means for people to keep up and move up, nudge, nudge, wink, wink
Exactly. Did you know that he has an MBA?
The IRA fixes are important to a few, because this is the last time you want to be forced to start selling if you don’t have to; but not otherwise a huge deal.
I think the lending facility for states and cities is important, since many locales are hurting with declining revenues. If firms need short-term lending, so do local/state governments. But lending probably won’t be enough. I expect the after the election Congress will consider larger bailouts for states/cities as part of Stimulus 2, just to limit cuts in medicare/caid, SCHIP, etc.
I don’t think the details were as critical as the overall message of the speech which is that the bailout for banks was only an unavoidable first step; the next essential step is to help everyone else, and that’s an important message to be sending now before the election. If he wins, it’s important that he can claim a mandate to do what he proposed.
cbl2 – but obama is not proposing anything of the kind. he’s doing tax cuts – and none of the stuff we’ve been talking about here that is needed.
what am i missing?
i’ve been thinking that obama is a sane republican. but that’s not what i see here. can someone tell me how this plan will work?
please?
That association with unions has turned up in other speeches, and the notion that we’re all in this together, we rise/fall as one people, has been a constant theme in many of his speeches.
The other day, I was reading a letter my grandmother sent to my father. It was from the 1970s. She said her mother used to get after her for “peeling the potatoes too thick.”
The good old days. Coming back.
You, my good man, are yelling down an empty mine shaft.
Personally I love the quote from Obama above. I think he’s right that we all have to accept some responsibility, yet he makes it clear that some folks (like CEOs) bear a little more of that responsibility than We The People.
This was Hillary’s recommendation months ago – hope he gives her cred.
It’s a fact that many, many of us have lived more lavishly than our parents ever did while they were raising us. I think this is something that needed to be said. And they are bailing out the big jerks because the big jerks are actually holding our life savings in their nasty pocketses. I hate it, but it is what it is.
Not at all. I have friends there, and we are just talking.
McCain: I’m not gonna spend 700 billion bailing out….
Ummm…Hellooo..
and a governor
bom dia pups
well L.A. is surrounded by fire (once again) tis the season for firebugs and Santa ana winds
you’ve made a good point re lending to states. do you know how much that will be? will it be enough?
re: IRAs – how is that a fix? here’s the quote from today’s teleconference:
regarding message vs specifics – i completely disagree. what we’ve seen from obama so far is nice rhetoric and bad actions. i want a mandate for specifics – otherwise it’s a mandate for whatever he says it is.
the specifics i do see are mostly tax cuts. yuck. reaganomics redux. but maybe it was the tax cuts that jumped out at me and so i paid more attention to them and less to other stuff. will go back through the transcript and pull out the specifics inorder to try to be more objective.
Hi, wobbly. Do they know if this one was arson? It’s just horrible to look at.
so true.
Here’s text of the whole speech, selise. I thought it was brilliant.
He is also raising taxes on those over 250K and corporations. Additionally same as mcshame with making bureacracy more efficient.
Yeah defeinitely arson. They are starting fires along the 14 hwy. IT’s all over the t.v. here and the winds are terrible today (I can’t go out due to allergies)
unfortunately the 3700 acre fire has claimed a life *so sad*
God, that is just awful!!
I wish the “news” would cover it…
we have some friends that live up in Porter Ranch. They went to work this morning (no fire) now they have no idea what is going on back at home
I’m sure it will be on the nightly national news. they like to show cali burning, you know *g*
Big expensive homes. I wonder how many are foreclosed, are being foreclosed or have been abandoned?
538’s super colossal electo-insta-vote prediction machine is spitting out today that Obama’s chance of winning now stands at 94%, and McInsane’s is 6%, and has Obama with 351 EVs to John-boy’s 187 EVs. If only Obama would listen to us more!
Hmmm..that’s a thought.
Has anyone seen demi today?
Of course we have to change. A return to the oldest American values is going to become the order of the day. Ben Franklin’s saying; “a penny saved is a penny earned”. We have to recreate a civic morality, a belief in the Common Good rather than in the individual excess.
Obama’s administration will need to do the greatest balancing act of all time. Keeping the world economy from dying while simultaneously convincing Americans that the quality of life, measured in personal relationships and responsibilities, is more to the point than buying the newest gewgaw. This is not a reformation, this is a revolution.
As with all revolutions there will be a lot of dislocation and pain. Unlike the Republican revolution of the last thirty years this one will not be run for the welfare of the corporations. We will need to break up the banks, insurance companies, and anything that is too big to fail. We will have to grow the community bank, the local power company, the regional school district and college.
We will have to move to universal health care even if it is only the currently pending House bill to open up Medicare to all Americans without insurance. We will need the government to get very involved in training and paying medical providers of all sorts. Bringing 47 million new people into the system will break the current hospital-clinic model. Now that mental health care has received parity due to the Bail out bill we will need therapists and medication prescribers who know what they are doing. This can be a part of Obama’s community service to pay for education program.
LOL…he’s run a terrible campaign.
I can’t wait to watch John McSame whoop his *ss on Wednesday…
At least they say the Santa Anas will die down tomorrow and it will be a chilly night. Hope that helps the fire fighters
She was working a temp job last I heard. I’m sure we will hear from here later
Obama wants to destroy the American way of life.
Oh wait. Her son was sick so she may be at home with him today.
What I note is that in giving the $3K tax cut “For every net new job you add in 2009 or 2010, you would get a $3,000 tax credit per worker that you add.”
the key word is ‘NET’; says nothing about using such a tax cut to rehire those laid off.
Nor is anything said about the raising of the minimum wage which is still way below what it needs to be just to reflect inflation over the last 30 years, much less being a ‘living wage’.
The $25B bailout to the Auto industry doesn’t indicate what such is for; the biggest problem facing GM is it’s pension funding, despite the UAW sacrificing wages and benefits in keeping the pension fund(and does anyone else remember the debate re ‘defined pension benefits versus 401K’s?)
Withdrawing $10K sounds good but how much has been lost from these plans just because of the stock market crash? This sounds like a plan to address household debt, not something that really benefits taxpayers.
On the foreclosure issue how is “households that are making a good-faith effort to make their payments — are likely to qualify for restructuring” to be determined? The same way that the FASB says to ‘mark to market?
RE the banks “He thinks we may need to go further and extend broader guarantees of liabilities within our banking system and deposits. If that becomes necessary, we should be prepared to do it.”; well, the Europeans are way ahead of him on this yet he isn’t calling for what they are doing.
The fact it’s Furman doing the discussion says a lot in and of itself.
Yes, a paradigm change is necessary but the plan isn’t such a change.
Oh,well.
So is Obama going to close payday loan companies?
Was just thinking about her. I don’t think she has been in today.
demi said she lived 3 miles from the fire yesterday…
Modern consumerism
http://www.onetruemedia.com/ot…..dium=email
Al Giordano over at the Field has a standing challenge to his readers to find an examples of a politician that once in office enacts the exact plans they propose while campaigning. He claims no one has been able to do it.
I think his point is that campaigns are about winning and getting into office, hopefully with honest policy debate rather than Atwater tactics, rather dissecting proposals that’ll be altered anyway since we’re not a dictatorship (in theory at least!).
On the retirement changes, the key is flexibility. If the market is tanking, you don’t want to be forced to sell if you don’t have to. If you have savings you need access to, but would be penalized by going into retirements, you’d like to avoid that. It’s just short term, emergency stuff for people in a bind. If I were in that situation, I’d want the flexibility. No one pretends its a solution to any larger problem.
On the specifics vs general issue, we just disagree. I think it’s impossible to specify everything you’ll need/want to do before you get in. I expect (hope) the man to change his mind the day after he gets in office, because the facts will be worse than he imagined and his flexibility will be less than he hoped. So I look for predilections — what is his inclined to do? With whom is he sympathetic? How does he learn about/react to a problem? It’s not a guarantee.
Yikes.
which fire? there are multiple fires now
If he were to get 60 dems in the Senate and a larger majority in the House, he could keep his campaign promises. I’m thinking this is what he’ll talk about on one of his 30 minute TV buys.
here are my initial notes:
my bolds. did i miss anything?
oh just read were LooHoo said yesterday so that is the big 3700 acre fire. Hopefully she’ll check in
Oh boy.
Friends where?
thanks i will go look at it. can you tell me what you especially thought was good about his plan?
Image: _wa2.
Loan Terms
* Your loan will be due on your next payday that falls between 8 to 31 days away.
* If you are paid by paper check, we will give you a grace period of 1 day to deposit your check.
* If you are paid monthly, your loan will be due on your next payday that falls between 8 to 31 days away.
* If your pay dates fall outside of these ranges, your loan will be due in 14 days.
Maximum Loan Amount
The maximum loan amount for Washington residents will be $700.00.
Extensions
In accordance with Washington law, your loan must be paid in full on the due date. Early payoff requests must be received at least 2 business days prior to your due date.
Fees and Charges
Your loan fees will be $15.00 per $100 borrowed for the first $500 borrowed and $10.00 per every additional $100 borrowed.
http://www.cashnetusa.com/fee-…..ngton.html
My bold a 15% return on your money in 31 days? So in 10 months 150% return on your money not counting the default rate of course. This tax falls mostly on the poor as the banks get a tax payer bailout.
How about 5% in 31 days I bet that would boost the economy or are who ever is behind the payday loan companies
in trouble?
i’m sure if you have a problem with me, you’d address it with me directly. am i wrong about that?
Wait till the video comes out. It was the points he made, but it was also the authenticity he had about understanding peoples’ worries. He grabbed me, big time. And as you may recall I was a Hillary supporter until the Bosnia lie.
His speech just sounded like good medicine.
If one can tap into an IRA to pay mortgage payments, that would be good. The hottest mortgage business right now is in reverse mortgages. That’s not a good trend.
Some local colleges are taking evacuations of large animals (horses, cows, etc) Evacuation for the big fire is at San Fernando High school
i do remember. *g*
(demi) we’re thinking of you and hoping you are safe and well.
I was reading about it on TPM but was busy doing other things and couldn’t watch it ‘live’
Is that fire near Rancho Cucamonga?
No. It is at the southeast end of San Fernando Valley (Lakeview Terrace, etc.) and I believe the other fire is straddling the counties of LA and Ventura –Rancho Cucamonga is in San Bernardino County
How about unilaterally pulling out of Iraq? Save a minimum of 120 billion a year (and give it to AIG) and a couple of thousand American lives?
Angel Island is on fire too.
Yes, his speech was the usual ‘happy days are here again’ once I’m elected because we are a great nation BUT contrast it with the interview Selise referenced (and I did in #51).
And tell me how the needed paradigm change will be brought about; simply too much expectation is being laid upon this man’s (Obama) back for there to be anything but disappointment and frustration if he is elected.(as it looks he will be if he is not robbed of his opportunity)
Just the one example I gave in #6 is a huge undertaking.
Here’s the economics. If people save, they will obviously spend less. Some of that lessening spending will resolve our balance of payments problem, which is as big as it is because as a nation we spend about 5 to 6 percent more than we make. Not good. But if the saving rate were to rise even more, it would release resources for public investment. This is where we get the biggest bang for the buck: transport systems, first-line health care (general practitioners), and schools. All of these create JOBS. It’s simple. It requires more of the GDP being purchased by government. It creates things we need. It’s win-win.
We’ll never get it. It’s too rational.
http://en.wikipedia.org/wiki/Microfinance
My bold the poor in this country have been facing a crisis of liquidity for quite sometime credit is available at rates as my bold shows for them as bad as third world nations.
To be fair its not as bad as the worst of third world credit but give Bush/McCain time!
great. i’m sure there will be more come later this afternoon/this evening. fire bugs can’t hep themselves
Yeah I hope Demi is ok!
Do you remember when banks offered credit cards secured by savings accounts? Ah, the old days.
There are some places where micro loans are being made that have been successful
Do you remember Christmas club savings accounts
Some one please explain this to me, I’m just trying to understand. Tell me where I am wrong. . .please.
here are my notes on new policy initiatives from obama’s speech. only of interest to folks who are into specifics.
CNN to do wildfire report shortly
crickets
calling me a concern troll is a pretty serious charge.
back it up or admit you can’t.
i’ve been here i since 2005, google has all my comments, and i’ve participated in actions on the ground (citizen lobbying and in CT) with other folks here. if your claim is valid, i’m sure you can find plenty of evidence of something more than a difference of opinion.
Jimmy Carter already tried this.
The American People weren’t ready for it then, and I find it hard to believe they’re any more ready for it now.
one fire in northern Cal m(Angel Island)
two fires (now a third being reported in southern Cal)
1. Marek Fire (Sylmar, Pacoima area)
2. Porter Ranch
3. Santa Susana Pass (old Nike Facility)
Ian up at the Mothership
I’m not that old:)
I’m pro microloans I’m anti payday loans.
good points. sorry i missed your comment earlier.
Selise just disagrees sometimes as I and many of us do. He/She does try and change people’s view to their opinion but I think we all do that.
I do not think Selise has ever supported the GOP position on any issue.
Tempers get touchy the closer we get to election day lets try not to fight about personal stuff.
But if you want to argue the issues Selise is fair game as we all are, as I’m sure Selise knows and accepts.
Concern Troll was a little much.
Wow, I feel so hip. My alternative lifestyle may become fashionable again. At my house, we pay cash for everything, save money, and don’t have the latest of anything. Poverty sucks, but simple living can be quite fine if you can pull it off and meet basic needs. It’s good ecology too. And with a little luck, you don’t have to kiss anyone’s ass to keep up your standard of living or worry about it much, a good way to resist the system.
Obama’s challenge is to seal this one off!!!!!!!!
Close the deal!!!!!!
Bury McCain!!!!!!!!!!
thanks TCU. appreciate that. and please do argue the issues with me, i’ve been wrong about a lot of stuff and appreciate the encouragement to rethink and to get new info. learn a lot from the folks here.
I want to hear more about corporations who live beyond their means. It’s well and good to lecture us profligate individuals and the individual CEO with the large salary, but I think it is Corporate Persons (the businesses) who also live beyond their means. Tell me something meaningful about them, then maybe I will get excited about Obama.
Same here
Selise, I think that things have gotten better on the bailout front. The original proposal was a handout, but the current ideas about direct injection of capital is a major improvement, and was brought on by the economists who identified the problems early and started writing about it. It can be strengthened,particularly with strong equity positions for the taxpayer, and appropriate covenants as described in my diary, but it is not a gift.
I think perhaps we might disagree over the severity of the problems in the credit markets. I think they were serious. I saw signs earlier, in August, but did not recognize them, but now I am pretty sure there is a serious problem here. These proposals address that problem, and we ought to cut Obama slack for his support.
Next time I think I might try to get my subjects and my verbs to agree.
And I challenge you or anyone else to find where I called any individual a “concern troll”? I asked the same kind of “question” that are asked over and over about every bit of minutae about the Obama campaign.
. Seems to to someone who would go to that length to defend themselves when they were never mentioned needs to examine their own position. I have no one to apologize to and nothing to apolgize for.
Maybe if you had a reference to the question (what were you referring to? a post, a person, what?) people would understand the posting better; http://en.wikipedia.org/wiki/Internet_troll
If the shoe fits someone can wear it, doncha think?
I don’t know what a “concern troll” is so decline to comment about that. What I see is a consistently critical stance vis-a-vis Obama. Someone suggested giving Obama some slack, wonder if that’s likely.
I like the simplicity too. Also, the lifestyle allows for more freedom. Living with less in order to have more free time.
Still won’t answer a direct question can you?
Cool. Send the wingnuts old dog-eared copies of Dr. Zhivago to use as reference guides?
Thanks scarecrow.