"This comes back to what President Barack Obama has referred to as the 'three-legged stool'"

[ProSense]

How Increased Unemployment ‘Directly Undercuts’ A Fix For Banking

Last week, the unemployment rate climbed to 8.1 percent, a problem that has further reaching implications than simply the sheer number of people out of work. As Fortune pointed out today, “increasing joblessness directly undercuts the massive efforts underway to stabilize the banking system”:

In fact, the pace and magnitude of further job losses is one of the most critical (and elusive) factors in the unrelenting struggle of policymakers to resuscitate the banking industry. The ballooning ranks of unemployed are steadily feeding the near-tidal wave of homes on the brink of foreclosure as well as delinquencies on auto loans and other types of consumer lending. This process inevitably expands the already dangerously high levels of toxic assets on bank balance sheets.

And this is a vicious cycle, because as the banks deteriorate, they tighten up on credit, denying businesses access to the funds they need, which requires them to lay off workers.

This comes back to what President Barack Obama has referred to as the “three-legged stool” required to repair the economy: economic stimulus (to keep people employed), a housing fix (to keep them from foreclosure) and addressing the banking crisis (to ensure lending and credit is available). Without the others, the effectiveness of each individual plan is blunted.

[FreakinDJ]

1. All moot without "Long Term Economic Viability"

which Obama is also attempting to address

He has a VERY FULL plate and under the same circumstances Bush would have crumbled, began crying in the Oval Office, and retreated to his Crawford Ranch for photo ops of him chopping fire wood

Buffet is Right

Congress needs to fall in line and get behind the president just as if we were attacked on American soil

[depakid]

4. "just as if we were attacked on American soil"

The country has been attacked from American soil.

Unfortunately, some of those who attacked it- or looked the other way are in the current administration formulating the response.

[FreakinDJ]

6. You'll have to enlighten me as to those in current administration

please..

[depakid]

7. Easy enough

Have a factual read of (among other things) this:

re: Larry

http://www.motherjones.com/mojo/2008/11/obama-taps-larry-summers-recalling-summers-days-regulation-foe

and this re: Tim:

http://www.smh.com.au/opinion/obamas-economic-saviour-savaged-as-keating-lets-rip-20090306-8rk7.html?page=-1

Fact is we've all got a pretty serious set of matters to deal with- and it's wise to listen to the folks who've gotten things right- as opposed to recycling folks into positions of power- who most surely got it wrong.

[FreakinDJ]

8. Perhaps they have changed their tune

From what I saw of the Senate Banking Committee hearings last week every one is talking in accordance about Nationalizing Banks - Some thing modeled after the Swiss and Norway plans

Doesn't sound like your average "Deregulation Junky - Let the Markets work it out itself"

[amandabeech]

9. Do you mean the Swedish plan? n/t

[FreakinDJ]

11. That is what they were discussing in the hearings - yes

[GeorgeGist]

2. Americans thought profits were free ...

until they got wise.

[Cha]

3. Rec'd~

For real news on Obama and the Economy.

[firedupdem]

5. Thanks ProSense....very informative and right on the money. n/t

[csziggy]

10. Some female Repub the other day was blathering about the "three stool" analogy

She kept bumbling on and came up with "legs," "three" and "stool" but just could not put it together. I was laughing too hard to try to catch her name.