Paul Krugman, New York Times, Obama’s “TRUST PROBLEM”

CLUNKER: NO MORE$

Government Ending ‘Cash for Clunkers’ Program Monday

WP: U.S. Transportation Secretary Ray LaHood said the popular “Cash for Clunkers” program will be ending Monday, because the $3 billion allotted to the program has been depleted.

SONG: POLARITY 1 ON THE NEED FOR HEALTH CARE REFORM:

The first new song I know about the issue, a remake of the classic ST JAMES INFIRMARY. Listen and Pass it on.

OBAMA SAYS: HEALTH CARE WILL GET “DONE”

WASHINGTON – President Barack Obama guaranteed Thursday that his health care overhaul will win approval and said any bill he signs will have to reduce rapidly rising costs, protect consumers from insurance abuses and provide affordable choices to the uninsured — while not adding to the federal deficit.

Obama listed those four “bullet points” as his basic requirements in response to a question from a caller to a Philadelphia-based talk radio show. Host Michael Smerconish interviewed Obama at the White House during the show and Obama took questions from several listeners.

Another caller said he sensed the administration’s “knees are bucklin’ a little bit” under criticism of the proposals. Obama said he was as determined as ever and “I guarantee you, Joe, we are going to get health care reform done.”

The Onion: You Can’t Beat this for Satire—or is it truth?

Congress Deadlocked Over How Not To Provide Health Care

WASHINGTON—After months of committee meetings and hundreds of hours of heated debate, the United States Congress remained deadlocked this week over the best possible way to deny Americans health care.”Both parties understand that the current system is broken,” House Speaker Nancy Pelosi told reporters Monday. “But what we can’t seem to agree upon is how to best keep it broken, while still ensuring that no elected official takes any political risk whatsoever. It’s a very complicated issue.”…

House Minority Leader John Boehner (R-OH) said on Meet The Press that Republicans would never agree to a plan that doesn’t allow citizens the choice to be denied medical care in the private sector. “Americans don’t need some government official telling them they don’t have the proper coverage to receive treatment,” Boehner said. “What they need is massive insurance companies to become even more rich and powerful by withholding from average citizens the care they so desperately require. We’re talking about people’s health and the obscene profits associated with that, after all.” …

Center for Public Integrity: The End of the Blue Dogs’ Fundraising Boom?

Though the past six months have been financially beneficial to the Blue Dog Coalition, it appears that the Dogs’ fundraising intake has slowed, despite all the attention the coalition has received. The Center detailed last month how donations to the Coalition’s PAC had soared as members of the moderate Blue Dog Democrats become a crucial swing vote between Democrats and Republicans. Given all publicity about the Blue Dogs’ new-found power, we thought it would be interesting to look at the recently-released July fundraising numbers for the Blue Dog PAC and see if anything had changed. We were surprised by what we found.

Rove op-ed reveals he had inside information about Justice Department probe
By Larisa Alexandrovna — August 20, 2009

CONFIRMATION OF MY ARTICLE ON THE ECONOMY ON MEDIA CHANNEL

Poll from Zogby Interactive:

UTICA, New York – The recession is causing large numbers of U.S. adults to cut back on discretionary spending, as well as lifestyle choices. These trends are a continuation of consumer behaviors that began before the current recession.

Those conclusions are drawn from a Zogby Interactive survey of 41,175 adults conducted from July 2-27, 2009. The margin of error is +/- 0.5%.

Those activities most impacted by the recession, as well as decisions made prior to the recession, were: driving, eating at restaurants, going to the movies and traveling. Substantial numbers of people have also changed their housing situation, purchased second-hand apparel and sold belongings.

Other Stats of Despair:

•Mortgage Defaults Reach New Record

BaselineScenario.com: “Obama’s mortgage modification plan, HAMP (Home Afforable Modification Program), isn’t working very well. Designed to help prevent foreclosures by incentivizing and giving legal protection to previously indifferent middle-men servicers it isn’t producing anywhere near the number of modifications that were anticipated. Is it likely to work in the future? My guess is no.”

•Mounting joblessness fuels US housing crisis
By Saskia Scholtes – Financial Times

“Jay Brinkmann, chief economist at the MBA, said many of the foreclosures involved homes that were vacant, borrowers who no longer had jobs, or loans where there was fraud involved.

“As a result, said Mr Brinkmann, ‘it is unlikely we will see meaningful reductions in the foreclosure and delinquency rates until the employment situation improves.’”

• Higher than Expected

•Officials “surprised.” The official national unemployment rate stands at 9.4 percent, but most economists — and the White House — expect the figure to peak at more than 10 (NOTE: This figure Does Not Count Those Who Have Stopped Looking For Work!)

•Unemployment in New York Surpasses National Average

•Jesse of Le Cafe Americain blog: “US Personal Income has taken its worst annual decline since 1950.

This is why it is an improbable fantasy to think that the consumer will be able to pull this economy out of recession using the normal ‘print and trickle down’ approach. In the 1950′s the solution was huge public works projects like the Interstate Highway System and of course the Korean War.

Until the median wage improves relative to the cost of living, there will be no recovery. And by cost of living we do not mean the chimerical US Consumer Price Index.

• WHITE COLLAR CRIME REPORT

•FT: US indicts ex-UBS banker and Swiss lawyer

The US on Thursday indicted a former UBS UBS banker and a Swiss lawyer for allegedly helping wealthy Americans hide assets in secret accounts, as Washington broadened its crackdown on offshore tax evasion.

•AIG GIVES UNCLE SAM THE FINGER–NakedCapitalism “Arrogance Watch”