So, President Obama has asked a few federal departments to figure out a way to cut $100 million from the budget.  Cuts are good, but the overall Obama budget is $3.55 trillion (HT: The Drudge Report).  So, to put this in numbers most people can understand, this is the equivalent of someone with an annual salary of $35,500 taking a pay cut of $1.

Why, oh why, do I think this is all just for show?

From The LA Times:

In addition to shutting down public-works projects, Schwarzenegger administration moves toward massive state layoffs as legislators again fail to garner the final GOP vote needed to pass a budget.

Full Article

Now, the Republicans are looking like the bad guys based on the above statement.  However, it looks like they’re fighting a tax increase, which is good, as a tax break is more likely to help the economy than tying up everyone’s disposable income with more taxes.

Cali needs something, but this ain’t it.

From KTNV:

Some locals who depend on conventions to survive say they can’t afford the war of words going on between President Obama and Mayor Oscar Goodman.

Full Article

Don’t get me wrong, I don’t think a company that’s taken government money should have extravagant bashes on the taxpayers’ tab, but I also don’t think they should be expected to do absolutely nothing to build morale.  Maybe conventions could be toned down a little?

Bottom line: a fun place to work has more potential to be a successful business, and punishing the low-level employees for high-level stupidity isn’t going to fix anything.

From The Examiner:

The nation’s largest banks are refusing to say how they’re spending billions of dollars in taxpayer money.

Full Article

So, I was under the impression the main point of “The Bailout” was to get credit flowing again.  However, I suspect most banks either paid off some debts or are hoarding the money to buy smaller banks that collapse (Once you’re a certain size, the government can’t let you fail, right?  RIGHT?).  Not exactly a good return on my money.

From the AP (via Yahoo!):

An alarming half-million American jobs vanished virtually in a flash last month, the worst mass layoffs in over a third of a century, as economic carnage spread ever faster and the nation hurtled toward what could be the hardest hard times since the Great Depression.

Full Article

Yep, it’s getting worse.

Stock prices are sharply lower at midday on Wall Street.

Full Article

Specifically, here’s the problem:

Investors were fixated on worrisome corporate earnings reports that are raising fears of a deep and painful recession.

If there’s one thing I’ve learned over the last several weeks, it’s that the Dow, NASDAQ, and S&P 500 are hardly a good source to measure economic health.  While trading definitely plays a big role in the economy, the folks on Wall Street seem driven more by emotion than solid economic indicators most days.

Keep an eye on your bank, the government, and the unemployment rate.  Don’t let the ridiculous fluctuations in trading screw with your head.

Courtesy of Israel Matzav, here’s the new Dollar:

He has a lot of views I disagree with, but when it comes to the economy, he’s the only one making any sense: