Posts Tagged ‘Economy

12
Aug
10

Fed Effort to Aid Recovery Fails to Calm Investors

NEWS
Fed Effort to Aid Recovery Fails to Calm Investors

Thursday, August 12, 2010

More worried about the recovery, the U.S. Federal Reserve has taken a small step to bolster the U.S. economy.

Wrapping up a one-day meeting, the Fed said it will use money from its investments in mortgage securities to buy government debt on a small scale. That could help nudge down long-term rates on mortgages and corporate debt, but wouldn’t have a dramatic impact on stimulating economic growth, economists say.

Perhaps more importantly, the largely symbolic action sends a signal that the Fed sees the recovery weakening and that it stands ready to take more aggressive action, if needed, to keep it on track.

Delivering a more downbeat assessment, the Fed now believes economic growth will be ‘more modest’ than it had anticipated at its late June meeting.

The Fed, citing ‘subdued’ inflation, said it would keep its target for a key interest rate at zero to 0.25 percent for an ‘extended period’.
Investors reacted positively to the statement. Stocks that were down sharply before the announcement made up some lost ground. The Dow Jones industrial average, down about 100 points just before the Fed decision, was down about 40 a short time later. However, the market was likely to fluctuate, as it usually does while investors pore over the Fed’s statement.

Treasury prices rose slightly as investors were pleased by the Fed’s plan to buy government debt, which would reduce the amount of Treasury securities in the market. The yield on the Treasury’s 10-year note, which moves in the opposite direction from its price, fell to 2.77 percent from 2.82 percent just before the announcement.

Economists doubt the Fed can turn around the economy on its own. Some believe additional help from Congress is needed. Others are sceptical that easier credit or even more government aid will persuade Americans to shop more and hire more. Yet others think some jobs – like in construction – will never return to pre-recession levels, as the economy makes a structural shift.
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07
Aug
10

Weekly Address: Medicare Officially Safer After Health Reform

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Weekly Address: Medicare Officially Safer After Health Reform
President Obama Highlights Benefits to Seniors Under the Patient Protection and Affordable Care Act

Saturday, August 07, 2010

In his weekly address this week, President Obama highlighted a Medicare Trustees report noting the steps we took this year to reform the health care system have put Medicare on a sounder financial footing, which will help to preserve Medicare for generations to come. Additionally, America’s seniors are already seeing more benefits as a result of health reform, including a rebate to cover the cost of their prescriptions if they fall into the Medicare Part D drug coverage gap. In the coming years, as we continue to ramp up reform, we expect seniors to save in premiums and out of pocket costs. And the President will continue to make Medicare stronger to ensure our seniors have access to affordable and quality healthcare.

Forty-five years ago, we made a solemn compact as a nation that senior citizens would not go without the health care they need. This is the promise we made when Medicare was born. And it’s the responsibility of each generation to keep that promise.

That’s why a report issued this week by the Trustees who oversee Medicare was such good news. According to this report, the steps we took this year to reform the health care system have put Medicare on a sounder financial footing. Reform has actually added at least a dozen years to the solvency of Medicare – the single longest extension in history – while helping to preserve Medicare for generations to come.

We’ve made Medicare more solvent by going after waste, fraud, and abuse – not by changing seniors’ guaranteed benefits. In fact, seniors are starting to see that because of health reform, their benefits are getting better all the time.

Seniors who fall into the “doughnut hole” – the gap in Medicare Part D drug coverage – are eligible right now for a $250 rebate to help cover the cost of their prescriptions. Now, I know for people facing drug costs far higher than that, they need more help. That’s why we negotiated a better deal with the pharmaceutical companies for seniors. So starting next year, if you fall in the doughnut hole, you’ll get a 50-percent discount on the brand-name medicine you need. And in the coming years, this law will close the doughnut hole completely once and for all.

Already, we have put insurance companies on notice that we have the authority to review and reject unreasonable rate increases for Medicare Advantage plans. And we’ve made it clear to the insurers that we won’t hesitate to use this authority to protect seniors.

Beginning next year, preventive care – including annual physicals, wellness exams, and tests like mammograms – will be free for seniors as well. That will make it easier for folks to stay healthy. But it will also mean that doctors can catch things earlier, so treatment may be less invasive and less expensive.

And as reform ramps up in the coming years, we expect seniors to save an average of $200 per year in premiums and more than $200 each year in out of pocket costs, too.

This is possible in part through reforms that target waste and abuse and redirect those resources to where they’re supposed to go: our seniors. We’re already on track to cut improper payments in half – including money that goes to criminals who steal taxpayer dollars by setting up insurance scams and other frauds. And we won’t stop there. Because by preventing the loss of these tax dollars, we can both address the runaway costs of Medicare and improve the quality of care seniors receive – and we can crack down on those who prey on seniors and take advantage of people.

So we are no longer accepting business as usual. We’re making tough decisions to meet the challenges of our time. And as a result, Medicare is stronger and more secure. That’s important. Because Medicare isn’t just a program. It’s a commitment to America’s seniors – that after working your whole life, you’ve earned the security of quality health care you can afford. As long as I am President, that’s a commitment this country is going to keep.
Thank you.

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• Source(s): The White House
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04
Aug
10

President Obama at AFL-CIO on the Economy: “Made In America”

NEWS
President Obama at AFL-CIO on the Economy: “Made In America”
Making the Right Choice for the Economy

Wednesday, August 04, 2010

Speaking at the AFL-CIO Executive Council Meeting here in DC, the President thanked “all my brothers and sisters in the AFL-CIO” who have worked so hard to help get America’s economy back on track. He spoke of the progress that’s been made, with millions of people at work now because of the Recovery Act, and the length left to go until the millions still out of work find their jobs.
As for his plans going forward, he summed it up in “three powerful words”:

Together, we’re jumpstarting a new American clean energy industry – an industry with the potential to generate perhaps millions of jobs building wind turbines and solar panels, and manufacturing the batteries for the cars of the future, building nuclear plants, developing clean coal technology. There are other countries that are fighting for those jobs, in China and India and in Germany and other parts of Europe. But the United States doesn’t play for second place. As long as I’m President, I’m going to keep fighting night and day to make sure that we win those jobs, that those are jobs that are created right here in the United States of America and that your members are put to work. (Applause.)

So the message I want to deliver to our competitors – and to those in Washington who’ve tried to block our progress at every step of the way – is that we are going to rebuild this economy stronger than before, and at the heart of it are going to be three powerful words: Made in America. Made in America. (Applause.)

That’s why we’re finally enforcing our trade laws – in some cases for the very first time. That’s why we’re fighting for tax breaks for companies that invest here in the United States as opposed to companies that are investing overseas or that keep their profits offshore. Because it is my belief – and I know it’s the belief of this room – that there are no better workers than U.S. workers. There are no better workers than your members. (Applause.) And they are absolutely committed to making sure that America is on the rise again. And we are going to keep moving forward with them – not moving backwards but moving forward with them.

As we rebuild our economy, we’re going to rebuild America as well. Over the last 20 months, bulldozers and backhoes have been whirring in communities across the country, as construction crews from local companies repair roads and bridges, railways and ports. That was part of our plan, and it’s put hundreds of thousands of folks to work. But there’s a lot more to do to rebuild our infrastructure for the 21st century, and a lot more Americans who are ready and willing to do that work. So that, too, is an area where we’ve got to keep moving forward.


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03
Aug
10

BP Agrees to Sell Colombian Business to Ecopetrol and Talisman

NEWS
BP Agrees to Sell Colombian Business to Ecopetrol and Talisman

Tuesday, August 03, 2010

British oil giant BP says it will sell its Colombian business for a total of $1.9 billion.

The divestment is part of BP’s recently announced plans to sell off up to $30 billion of assets, as it struggles with the soaring cost of the Gulf of Mexico oil spill disaster.

‘BP today announced that it has agreed to sell its oil and gas exploration, production and transportation business in Colombia to a consortium of Ecopetrol, Colombia’s national oil company (51 percent), and Talisman of Canada (49 percent),’ it said in a statement.
‘The two companies will pay BP a total of 1.9 billion dollars in cash… for 100 percent of the shares in BP Exploration Company (Colombia) Limited (BPXC), the wholly-owned BP subsidiary company that holds BP’s oil and gas exploration, production and transportation interests in Colombia.’

The transaction, which is subject to regulatory and other approvals, is expected to complete by the end of 2010.

News of the sell-off comes one week after BP’s vilified chief executive Tony Hayward resigned in the wake of a record second-quarter loss of $16.9 billion – the biggest quarterly loss in British corporate history.

Hayward will step down in October and hand over the reigns to American executive Bob Dudley.
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• Source(s): BP PLC
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31
Jul
10

Weekly Address: Good News on Autos, Obstruction on Small Business

NEWS
Weekly Address: Good News on Autos, Obstruction on Small Business
President Obama Hails Successes of the Restructuring of the Auto Industry, Calls on GOP Leaders to Stop Blocking Aid for Small Businesses

Saturday, July 31, 2010

In this week’s address, President Obama praised the successes of the auto industry restructuring. When his administration decided to invest in the American car companies, some said such a move was bound to fail. But since GM and Chrysler have emerged from bankruptcy, the auto industry has added 55,000 jobs – the strongest growth in 10 years – and for the first time since 2004, all three companies are operating at a profit. The President also called on Republican leaders in the Senate to stop blocking a vote on a bill helping small businesses. Even though this bill will help the recovery, and has been endorsed by groups like the Chamber of Commerce and the National Federation of Independent Business, the Republican Senate leadership continues to hold it hostage to politics by denying an up-or-down vote on the bill.

Hello everyone. I’m speaking to you from the GM auto plant here in Detroit, Michigan, where a hopeful story is unfolding in a place that’s been one of the hardest hit in America.

In the twelve months before I took office, American auto companies lost hundreds of thousands of jobs. Sales plunged 40 percent. Liquidation was a very real possibility. Years of papering over tough problems and failing to adapt to changing times – combined with a vicious economic crisis – brought an industry that’s been the symbol of our manufacturing might for a century to the brink of collapse.

We didn’t have many good options. On one hand, we could have continued the practice of handing out billions of taxpayer dollars to the auto industry with no real strings attached. On the other hand, we could have walked away and allowed two major auto companies to go out of business – which could have wiped out one million American jobs.

I refused to let that happen. So we came up with a third way. We said to the auto companies – if you’re willing to make the hard decisions necessary to adapt and compete in the 21st century, we’ll make a one-time investment in your future.

Of course, if some folks had their way, none of this would be happening at all. This plant might not exist. There were leaders of the “just say no” crowd in Washington who argued that standing by the auto industry would guarantee failure. One called it “the worst investment you could possibly make.” They said we should just walk away and let these jobs go.

Today, the men and women in this plant are proving these cynics wrong. Since GM and Chrysler emerged from bankruptcy, our auto industry has added 55,000 jobs – the strongest period of job growth in more than ten years. For the first time since 2004, all three American automakers are operating at a profit. Sales have begun to rebound. And plants like this that wouldn’t have existed if all of us didn’t act are now operating maximum capacity.

What’s more, thanks to our investments, a lot of these auto companies are reinventing themselves to meet the demands of a new age. At this plant, they’re hard at work building the high-quality, fuel-efficient cars of tomorrow – cars like the plug-in hybrid Chevy Volt that can run 40 miles before taking a sip of gasoline. Throughout Michigan, an advanced battery industry is taking root that will power clean electric cars – an industry that produced only 2 percent of the world’s advanced batteries last year, but will now be able to produce as much as 40 percent in a little over five years. That’s real progress.

There’s no doubt that we have a long way to go and a lot of work to do before folks here and across the country can feel whole again. But what’s important is that we’re finally beginning to see some of the tough decisions we made pay off. And if we had listened to the cynics and the naysayers – if we had simply done what the politics of the moment required – none of this progress would have happened.

Still, even as these icons of American industry are being reborn, we also need to stand shoulder-to-shoulder with America’s small businessmen and women, as well – particularly since they’re the ones who create most of the new jobs in this country.

As we work to rebuild our economy, I can’t imagine anything more common-sense than giving additional tax breaks and badly-needed lending assistance to America’s small business owners so they can grow and hire. That’s what we’re trying to do with the Small Business Jobs Act – a bill that has been praised as being good for small businesses by groups like the Chamber of Commerce and the National Federation of Independent Business. It’s a bill that includes provision after provision authored by both Democrats and Republicans. But yesterday, the Republican leaders in the Senate once again used parliamentary procedures to block it. Understand, a majority of Senators support the plan. It’s just that the Republican leaders in the Senate won’t even allow it to come up for a vote.

That isn’t right. And I’m calling on the Republican leaders in the Senate to stop holding America’s small businesses hostage to politics, and allow an up-or-down vote on this small business jobs bill.

At a time when America is just starting to move forward again, we can’t afford the do-nothing policies and partisan maneuvering that will only take us backward. I won’t stand here and pretend everything’s wonderful. I know that times are tough. But what I also know is that we’ve made it through tough times before. And we’ll make it through again. The men and women hard at work in this plant make me absolutely confident of that.

So to all the naysayers out there, I say this: Don’t ever bet against the American people. Because we don’t take the easy way out. That’s not how we deal with challenge. That’s not how we build this country into the greatest economic power the world has ever known. We did it by summoning the courage to persevere, and adapt, and push this country forward, inch by inch. That’s the spirit I see in this plant today, and as long as I have the privilege of being your President, I will keep fighting alongside you until we reach a better day.
Thanks.

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• Source(s): The White House
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30
Jul
10

President Obama in Detroit: The Fight for America’s Workers

NEWS
President Obama in Detroit: The Fight for America’s Workers
President Obama hails auto bailout as good news in Michigan

Friday, July 30, 2010

Today the President was in Detroit visiting workers at a Chrysler plant and a GM plant that have not only survived, but found success after critics looking to score political points claimed there was no hope for them. For those critics the President offered a lesson: “Don’t bet against the American worker.”

During the two years since the economy took its hard downward turn, millions of Americans have had to fight with everything they had to stay afloat, to keep food on the table, to keep their businesses in business – and nowhere has that been more true than in Detroit.

The President has also been fighting alongside America’s workers – from the Recovery Act that’s saved or created about 3 million jobs, to the fight today over small business lending – and of course for the workers in Detroit and across America who contribute to the decades-old craft of American cars. When political opponents said that helping the American auto industry survive was a lost cause, and tried to turn public frustration against the President, he stepped in and made the hard choices anyway. There couldn’t necessarily be a life raft for everybody, but he was not going to let a million American jobs fall by the wayside simply because it opened him up for cheap political attacks.
And as the report released yesterday made clear, that investment is paying off: “In the year before GM and Chrysler emerged from bankruptcy, the auto industry shed 334,000 jobs. In the year since, auto industry employment has increased by 55,000 jobs. This is the fastest year-over-year growth in auto employment since 1999.” Not only that, but with a boost from the Recovery Act’s investments in the clean energy economy, the industry has turned toward the future in ways many thought they never could. A quick look at the interactive map released yesterday gives a glimpse of how America can move back to the front of the pack in the coming generation of fuel efficient and electric vehicles.

In his visit to the Chrysler Jefferson North Assembly Plant, speaking to workers who have had to fight just to keep working, it was clear the President felt in a bit of a fighting mood himself:

The President: Investments like those mean jobs for American workers to do what they’ve always done: build great products and sell them around the world.

So the bottom line is this – we’ve got a long way to go, but we’re beginning to see some of these tough decisions pay off. We are moving forward.

I want you to remember, though, if some folks had their way, none of this would have been happening. I just want to point that out. Right? I mean this – this plant – this plant and your jobs might not exist. There were leaders of the “just say no” crowd in Washington – they were saying – oh, standing by the auto industry would guarantee failure. One of them called it “the worst investment you could possibly make.”

Audience: Boo!

The President: They said – they said we should just walk way and let those jobs go.

Audience: Boo!

The President: I wish they were standing here today. (Applause.) I wish they could see what I’m seeing in this plant and talk to the workers who are here taking pride in building a world-class vehicle. I don’t think they’d be willing to look you in the eye and say that you were a bad investment. They might just come around if they were standing here and admit that by standing by a great American industry and the good people who work for it, that we did the right thing. It’s hard for them to say that. You know, they like admitting when I do the right thing. (Laughter.) But they might have had to admit it. And I want all of you to know, I will bet on the American worker any day of the week! (Applause.)

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24
Jul
10

Weekly Address: Moving Forward on the Economy vs. Moving Backward

NEWS
Weekly Address: Moving Forward on the Economy vs. Moving Backward
President Obama Praises New Wall Street Reform Law; Says GOP Plan Will Take Us Backward

Saturday, July 24, 2010

In this week’s address, President Obama praised the Wall Street reform bill that he signed into law on Wednesday and explained how it fits into the greater strategy to bring the country out of recession and build an economy for the long run. The president’s plan is aimed at strengthening the middle class and gives tax breaks to small businesses that creates jobs here, invests in homegrown, clean energy, and cuts taxes for working families. Unfortunately, when the Republican leader in the House offered his plan to create jobs this week, he presented the same policy ideas that led to this recession – ideas that will kill jobs instead of create them, and will add $1 trillion to the deficit, not reduce it.

This week, I signed into law a Wall Street reform bill that will protect consumers and our entire economy from the recklessness and irresponsibility that led to the worst recession of our lifetime. It’s reform that will help put a stop to the abusive practices of mortgage lenders and credit card companies. It will end taxpayer bailouts of Wall Street firms. And it will finally bring the shadowy deals that caused the financial crisis into the light of day.

Wall Street reform is a key pillar of an overall economic plan we’ve put in place to dig ourselves out of this recession and build an economy for the long run – an economy that makes America more competitive and our middle-class more secure. It’s a plan based on the Main Street values of hard work and responsibility – and one that demands new accountability from Wall Street to Washington.

Instead of giving tax breaks to corporations that ship jobs overseas, we want to give tax breaks to small business owners who are creating jobs right here in America. Already, we’ve given small businesses eight new tax cuts, and have expanded lending to more than 60,000 small business owners.

We’re also investing in a homegrown, clean energy industry – because I don’t want to see new solar panels and wind turbines and electric cars manufactured in some other country. I want to see them made in America, by American workers. So far, we’ve provided new tax credits, loan guarantees, and investments that will lead to more than 800,000 clean energy jobs by 2012. And throughout America, communities are being rebuilt by people working in hundreds of thousands of new private sector jobs repairing our roads, bridges, and railways.

Our economic plan is also aimed at strengthening the middle-class. That’s why we’ve cut taxes for 95% of working families. That’s why we’ve offered tax credits that have made college more affordable for millions of students, and why we’re making a new commitment to our community colleges. And that’s why we passed health insurance reform that will stop insurance companies from dropping or denying coverage based on an illness or pre-existing condition.

This is our economic plan – smart investments in America’s small businesses, America’s clean energy industry, and America’s middle-class. Now, I can’t tell you that this plan will bring back all the jobs we lost and restore our economy to full strength overnight. The truth is, it took nearly a decade of failed economic policies to create this mess, and it will take years to fully repair the damage. But I am confident that we are finally headed in the right direction. We are moving forward. And what we can’t afford right now is to go back to the same ideas that created this mess in the first place.

Unfortunately, those are the ideas we keep hearing from our friends in the other party. This week, the Republican leader in the House of Representatives offered his plan to create jobs. It’s a plan that’s surprisingly short, and sadly familiar.

First, he would repeal health insurance reform, which would take away tax credits from millions of small business owners, and take us back to the days when insurance companies had free rein to drop coverage and jack up premiums. Second, he would say no to new investments in clean energy, after his party already voted against the clean energy tax credits and loans that are creating thousands of new jobs and hundreds of new businesses. And third, even though his party voted against tax cuts for middle-class families, he would permanently keep in place the tax cuts for the very wealthiest Americans – the same tax cuts that have added hundreds of billions to our debt.

These are not new ideas. They are the same policies that led us into this recession. They will not create jobs, they will kill them. They will not reduce our deficit, they will add $1 trillion to our deficit. They will take us backward at a time when we need to keep America moving forward.

I know times are tough. I know that the progress we’ve made isn’t good enough for the millions of Americans who are still out of work or struggling to pay the bills. But I also know the character of this nation. I know that in times of great challenge and difficulty, we don’t fear the future – we shape the future. We harness the skills and ingenuity of the most dynamic country on Earth to reach a better day. We do it with optimism, and we do it with confidence. That’s the spirit we need right now, and that’s the future I know we can build together.
Thank you.

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• Source(s): The White House
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