Archive for February, 2009

Economy suffering ‘maximum recession stress’
“The economy contracted at a staggering 6.2 percent pace at the end of 2008, the worst showing in a quarter-century, as consumers and businesses ratcheted back spending, plunging the country deeper into recession.

The Commerce Department report released Friday showed the economy sinking much faster than the 3.8 percent annualized drop for the October-December quarter first estimated last month. It also was considerably weaker than the 5.4 percent annualized decline economists expected.

A much sharper cutback in consumer spending — which accounts for about two-thirds of economic activity — along with a bigger drop in U.S. exports sales, and reductions in business spending and inventories all contributed to the large downgrade.”

Obama Administration to Rescind Bush’s ‘Conscience’ Regulation
“The Obama administration has begun the process of rescinding sweeping new federal protections that were granted in December to health care workers who refuse to provide care that violates their personal, moral or religious beliefs.

The Office of Management and Budget announced this morning that it was reviewing a proposal to lift the controversial “conscience” regulation, the first step toward reversing the policy. Once the OMB has reviewed the proposal it will published in Federal Register for a 30-day public comment period.”

Obama Plans to End Combat Mission in Iraq by August 2010
“President Obama heads to one of the nation’s most storied military bases Friday morning to unveil plans to pull most troops out of Iraq by August 2010 and he has support from an unlikely quarter — Senator John McCain, the Republican he beat in last year’s election.

Mr. McCain and other Republicans emerged from a meeting with Mr. Obama at the White House on Thursday evening reassured that the president’s withdrawal plan is responsible and reasonable. After securing assurances from Mr. Obama that he would reconsider his plans if violence increases, Mr. McCain and the Republicans expressed cautious support.”

U.S. government boosts stake in Citigroup
“The U.S. government will exchange up to $25 billion in emergency bailout money it provided Citigroup Inc. for as much as a 36 percent equity stake in the struggling bank.

The deal announced Friday — the third attempt at a rescue plan for Citigroup in the past five months — is contingent on private investors also agreeing to a similar swap.

The aim is to keep the New York bank holding company alive and bolster its capital as it faces growing losses amid the intensifying global recession. Existing shareholders would see their ownership stake shrink to as little as 26 percent and the bank said it is eliminating all dividends on common shares.”

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