The news media is describing US economic prospects in notably sunnier terms after yesterday's announcement of a raft of positive economic numbers, along with another day of big gains on Wall Street and optimistic comments from NEC director Larry Summers. The Wall Street Journal reports "there's a growing body of evidence that the economy is beginning to make a cyclical turn." The Wall Street Journal also reports, "Economists in the latest Wall Street Journal forecasting survey expect the recession to end in September." According to the Los Angeles Times, "After months of nearly unmitigated gloom, glimmers of improvement are emerging in the U.S. economy." The AP says, "At last, after a nerve-racking six-month descent, the economy appears to be leveling off."
The Financial Times reports Summers, at the Economic Club of Washington yesterday, "said the 'sense of freefall' in the US economy would end in the next few months but cautioned that the risks of deflation and more job losses had not gone away." Summers "said the government's intervention and a natural recovery cycle were having a positive effect. 'I think the sense of a ball falling off the table - which is what the economy has felt like since the middle of last fall - I think we can be reasonably confident that that's going to end within the next few months and you will no longer have that sense of free-fall.'" The Hill adds that Summers also "ruled out comprehensive tax legislation this year."
Reinforcing Summers' assessment, the Wall Street Journal notes that "among the positive indicators, the government said exports rose in February for the first time in seven months. Initial claims for jobless benefits fell more in early April than any week since the start of the year. A survey of chief executives by the Conference Board found slightly less pessimism." The Financial Times reports, "The US trade gap plunged by 28.3 per cent in February to $26bn, the lowest level in nearly 10 years." NBC Nightly News reported, "First-time applications for unemployment benefits edged down a bit last week to a still very high 654,000. Total number of Americans collecting benefits now rose to 5.84 million, that's a new record." USA Today notes that in total, "13.2 million people were unemployed in March. ... That means less than half of those who were out of work and were actively trying to find a new job were receiving unemployment benefits."
Stocks Up 20% From March Lows The Washington Post reports the DJIA "jumped 3.14 percent to land at 8083. The Standard & Poor's 500-share index and the tech-heavy Nasdaq were up nearly 4 percent after steep losses earlier in the week. For the fifth week in a row, stocks have ended in positive territory. In the month since the market reached a low in March, stocks have climbed more than 20 percent." The Los Angeles Times notes that "a report that all 19 of the nation's largest banks were likely to pass the government's so-called stress tests for financial health also buoyed confidence. ... An index of bank stocks was up 20% for the day." However, in an article headlined "As Stocks Surge, Some Still Fear Possible Plunge," the New York Times reports on its front page that "a nagging question faces investors: Is the stock market making real progress, or glossing over deeper problems in the economy that will start a new wave of losses?"
President Obama's call on Americans to consider refinancing their mortgages was covered in two out of three network newscasts and in major US newspapers. ABC World News, for example, reported, "A little more than a month after...Obama said it might be a good time to buy stocks, today he made the case for refinancing your mortgage. The President trumpeted record low mortgage rates and urged homeowners to take advantage of the opportunity." The Los Angeles Times notes Obama urged "Americans to visit the website his administration has created, www.makinghomeaffordable.gov."
Largely portrayed as an effort to herald positive economic news, some of the print coverage of Obama's remarks has a markedly mocking tone. The New York Times reports, "He is not a mortgage broker. But for a time on Thursday" Obama "seemed to be playing one on television, urging Americans not to miss out on rock-bottom refinancing rates. ... Seldom has the president sounded so much like the host of a late-night infomercial, stopping just shy of imploring people to call the toll-free number at the bottom of their television screens." Dana Milbank, in his "Washington Sketch" piece for the Washington Post, writes, "When last we heard from the salesman in chief 10 days ago, he was pitching General Motors and Chrysler cars so aggressively that he did everything but offer to rotate every American's tires. Now, it seems, he's moonlighting for LendingTree.com. ... Every salesman knows repetition is key to closing the deal, so Obama repeated the name of the site again, for a total of five times in his five-minute pitch." Milbank concludes, "Barack Obama: Your First Choice in Home Loans." Roll Call reports, "Some reporters, perhaps confirmed renters, just didn't seem to care. 'Can we get a quick reaction on pirates?' shouted one. 'Guys, we're talking about housing right now,' the president reminded." Adds Roll Call, "And anyway, pirates live on boats. It has nothing to do with a quality refi."
Sounding a skeptical note on Obama's plans, the Chicago Tribune notes the President lauded "the surge in mortgage refinancing as 'good news' for American families," and "credited 'some extraordinary actions by the Federal Reserve'...as well as his own housing relief plan, announced in February." The Tribune also says, however, that "almost all the refinancing so far involves homeowners with conventional mortgages who are not in serious financial trouble. The president's own programs for helping troubled homeowners are just beginning to get off the ground." The Washington Post also says "the president's housing program, launched last month, has yet to have a significant impact."
Another Chicago Tribune story reports that as Obama "talked up the economic benefits from the wave of home refinancing sweeping the nation, a mortgage broker said he and First Lady Michelle Obama would likely do well to stand pat with the 30-year mortgage they have on their stately mansion in Chicago." Jim Brady of PrivateBank Mortgage Co. in Chicago said the Obamas "do not need to worry about lowering their monthly expenses as much as most Americans, and their Washington housing is free. Back in Chicago, they have a mortgage locked in at 5.625 percent, compared with the current national average of about 4.87 for a standard home loan." But the Obama loan "is what bankers call a 'super jumbo,' which is larger and often harder to finance in today's market conditions."
Sign up here to get the US News Political Bulletin emailed to you each morning at 8 a.m.
Media reports last night and this morning point to an apparent contradiction by President Obama on the use of supplemental appropriations (special spending requests outside the regular budget process) to pay for the wars in Iraq and Afghanistan. On Fox News' Fox Report, Shepard Smith asked last night, "Isn't this the same thing that then-Sen. Obama criticized George W. Bush for doing?" Correspondent Shannon Bream retorted, "You are right," but "they promise it will be the last one they are going to ask for Iraq and Afghanistan." CNN's Situation Room also noted that "the White House says this is the last time the President will do this."
The AP notes the President asked Congress on Thursday "for $83.4 billion for US military and diplomatic operations in Iraq and Afghanistan, pressing for special troop funding that he opposed two years ago when he was senator and...Bush was president." White House press secretary Robert Gibbs "acknowledged that Obama has been critical of Bush's use of similar special legislation to pay for the wars," but "said it was needed this time because the money will be required by summer, before Congress is likely to complete its normal appropriations process."
The Hill reports Obama "urged Congress to move 'expeditiously' in funding his request," and the Los Angeles Times notes "Defense Secretary Robert M. Gates said that without the funding, the US would be forced to make sudden withdrawals from Iraq and Afghanistan." Said Gates, "I don't know anybody who thinks that's a good idea." The Washington Times predicts that "unlike war supplemental spending bills from the previous administration, Mr. Obama's should pass easily." Republicans, "many of whom view the Obama administration as adopting Mr. Bush's war plan and applying the Iraq surge strategy to Afghanistan, will likely support the bill," but "are considering using the legislation as a vehicle to restore some of the military budget cuts announced last week by...Gates, such as ending production of the F-22 fighter jet."
The New York Times, Washington Post and Financial Times analyze the request's contents, as does The Politico, which notes "the scope of the requests runs far past just the wars themselves," including "$38 million to try to ease the divisions in Kenya," "$242.5 million for the Republic of Georgia to recover after the fighting last summer with Russia," and "$30 million for the Justice Department to implement his orders regarding the shutdown of the Guantanamo Bay prison and $250million for forest and wild land firefighting operations in the US."
Sign up here to get the US News Political Bulletin emailed to you each morning at 8 a.m.
Top
The Politico reports that Scott Murphy (D) has taken an 8-vote lead over Jim Tedisco (R) in the NY20 special election as the counting of absentee ballots continues.
The AP reports that state Attorney General Jack Conway (D) on Thursday became "the second major Democrat to enter the race" for Kentucky Sen. Jim Bunning's (R) seat, joining Lt. Gov. Daniel Mongiardo (D), who announced in February. Meanwhile, the Louisville Courier-Journal adds that state Auditor Crit Luallen (D) said yesterday that she will not run and will back Conway.
Sign up here to get the US News Political Bulletin emailed to you each morning at 8 a.m.
Dorothy Samuels, a New York Times editorial board member, in an Editorial Observer piece that continues the paper's nearly uniformly negative coverage of Sen. Kirsten Gillibrand (D), notes that before being election to Congress in 2006, Gillibrand "spent a significant chunk" of her time representing cigarette maker Philip Morris, which should not be "excluded from the mix of things voters consider" next year.
The Hill reports that Arkansas Sen. Blanche Lincoln (D) "announced Thursday that she raised $1.7 million in the first three months of 2009, with about $1 million coming from her campaign kickoff event with" Vice President Joe Biden on March 14, marking "a strong start" for Lincoln, who has been "targeted" by the GOP.
The AP reports that Illinois Sen. Roland Burris (D) "says he's rung up $500,000 in legal expenses tied to investigations surrounding his appointment by indicted former Gov. Rod Blagojevich."
Sign up here to get the US News Political Bulletin emailed to you each morning at 8 a.m.
The Richmond Times-Dispatch reports that a Daily Kos/Research 2000 telephone survey of 600 likely Virginia voters conducted April 6-8 shows Brian Moran (D) leading the race for the Democratic gubernatorial nomination with 24%, followed by Terry McAuliffe (D) with 19% and state Sen. Creigh Deeds (D) with 16%.
The Chicago Tribune reports Illinois Gov. Pat Quinn (D) "floated a new idea" yesterday proposing that gubernatorial candidates next year "shouldn't be allowed to use money they've already collected," a move that would "greatly benefit" Quinn, who had only $83k in his campaign account in his last report, compared to $3.5 million for Attorney General Lisa Madigan, a potential rival.
Sign up here to get the US News Political Bulletin emailed to you each morning at 8 a.m.
Top
The late night shows were in re-runs last night.
Sign up here to get the US News Political Bulletin emailed to you each morning at 8 a.m.
Top
Click image for larger view.
Smart analysis, insightful reporting, in-depth perspective—in a new, digital format.
Log in | Buy Now | See sample
View sample page 2View sample page 3View sample page 4View sample page 5advertisement
Get your POLITICALBULLETIN
Click image for larger view.
Smart analysis, insightful reporting, in-depth perspective—in a new, digital format.
Log in | Buy Now | See sample
View sample page 2View sample page 3View sample page 4View sample page 5Embed exclusive U.S. News headlines, rankings, columns, and blog postings to your Web site, blog, or social network.
advertisement
Use of this Web site constitutes acceptance of our Terms and Conditions of Use and Privacy Policy.
