Chinese Premier Wen Jiabao’s remark that he was “worried” about the $1 trillion in U.S. debt he was holding caused such a chill down the spine of world financial analysts that even the White House felt forced to respond immediately. “There’s no safer investment in the world than in the United States,” White House Press Secretary Robert Gibbs shot back that same day.
Down, down, down goes the Dow (and all the other stock indexes), and how much further the markets are likely to fall before the recession bottoms out is becoming an increasingly vexed question. The Dow is now well below 7,000 for the first time in 12 years, and bearish market analysts are now wondering: is Dow 5,000 a reasonable expectation? 4,000? Or lower still?
On Tuesday, February 18, President Barack Obama achieved one of his first major goals in office by making his $787 billion stimulus plan a reality. TheWashington Post reported: "President Barack Obama ... signed into law a plan meant to create jobs, encourage people to spend money and in general feel better about the economy." Is it the economy Obama wants the people to feel better about or is it the president himself?
In a December 23 communication sent to the American Civil Liberties Union's benefactors, administration and finance director Alma Montclair reported that the organization will not receive the sum of $850,000 from two foundations whose contributions were counted on to continue the group's work. The unnamed donors, she stated, have been "forced to close their doors and terminate their grants" because they "have been victimized by the Madoff scandal."
The enactment of the now-notorious $700 billion bailout package did not stop the downward slide of the stock market, as its proponents had promised. Recall that when the stock market took a steep drop on the day the House rejected the first bailout bill, hysteria-mongers on Capitol Hill and in the news media warned that that steep decline was a harbinger of things to come unless a bailout was passed, and quickly.