The federal deficit for October reached a record-setting level for that month: $176 billion. The Treasury Department made the announcement on November 13, saying the shortfall occurred as income of $135 billion was exceeded by $311 billion in spending.
Many small banks are turning down federal money from the Troubled Asset Relief Program (TARP) because they recognize that it comes with too many strings attached. Additionally, the small businesses they primarily cater to “need lines of customers, not lines of credit,” as ABC News put it on November 9.
The unemployment rate shot from 9.8 percent in September to 10.2 percent in October, the highest it has been since 1983, the Labor Department reported on November 6. In response, the Obama administration is set to sign a $24-billion economic stimulus bill.
The Ford Motor Company has posted a net income of nearly $1 billion in the third quarter of this year, no thanks to Uncle Sam. Ford was the only Detroit automaker to escape federal bailout money while steering clear of bankruptcy court.
The federal $3 billion “Cash for Clunkers” program promoted by the Obama White House last summer cost an average of $24,000 per additional car sold, according to an analysis by automotive consumer researcher Edmunds.com. The White House has responded with a blistering attack disputing the finding.