LOUIS UCHITELLE: Maybe It Can’t - A Trap in Obama’s Spending Plan - NYTimes.com

Source: NYTimes.com: “That is the risk facing Mr. Obama’s plan. By January, Congress will probably be asked to approve an outlay of more than $700 billion. Spent in one year on construction, research or equipment, it might well offset the contraction at first. But unless it also revived general confidence, the economy could collapse again, once the money was gone.

“If that spending can’t get the private sector going, then it is just a make-work maintenance operation,” said Stanley Moses, an economist at Hunter College in New York.”

-- I disagree with this because it ignores the ripple effects of spending in the form of architects, caterers, construction vehicles, and other local spending due to these projects. we've let billions in roads and public works go without repair for decades. There's a lot of work out there. But spending for a manufacturing public works effort would go a longer way toward rebuilding the economy.

Mary L. Schapiro, Gary Gensler and Daniel K. Tarullo, Obama Economic Appointees

Truthdig - Ear to the Ground - Tough Road Ahead for New Economic Appointees: “Mr. Obama named Mary L. Schapiro, 53, to head the Securities and Exchange Commission, which has come under sharp criticism for its failure to detect signs that major Wall Street banks were in trouble before the financial crisis, as well as lax oversight of the New York financier Bernard Madoff, who the authorities say has confessed to running a $50 billion Ponzi scheme.

[...] Mr. Obama also announced the selection of two former Clinton administration economic officials, Gary Gensler and Daniel K. Tarullo, to leading economic posts.

Mr. Gensler, who will head the Commodity Futures Trading Commission, was a Treasury official in the Clinton administration. He also worked as a senior adviser to former Sen. Paul Sarbanes, a Maryland Democrat, who wrote legislation to increase oversight of the accounting industry and reform corporate governance.

Mr. Tarullo, a law professor at Georgetown University who was also an economic advisor to President Clinton, will fill an open seat on the Federal Reserve board in Washington. He is currently leading Mr. Obama’s transition team at the Treasury Department, and is considered an expert in international economic regulation.”

-- President-Elect Barack Obama is rounding out his economic team with the choice of Mary L. Schapiro, Gary Gensler and Daniel K. Tarullo. I have to note that it seems there are more women appointed to this cabinet than at any time in American History. I think the reason for this is these choices -- and women in general -- may have better "vetting" track records than their male counterparts. It's just a guess -- I have nothing other than experience to base this on.

OPEC cuts record 2.2. million barrels a day | ajc.com

OPEC move will raise oil prices From AP and AJC: “ORAN, Algeria — OPEC on Wednesday agreed to slash a record 2.2 million barrels from its daily production as of Jan. 1, while the bloc's outsiders Russia and Azerbaijan announced their own cutbacks of hundreds of thousands of barrels from the market.

Oil prices tumbled close to four-year lows after the announcement, however, a clear indication of the growing belief that the world is heading for a long and painful recession in which energy use will continue to erode.”

--- Just what we need now in this bad economy, more high gas and energy prices. Americans should cut back on car use ASAP. But this also signals a need to have fuel-efficient cars and keeps Detroit on the hook.

Iraq Report Spotlights Iraq Rebuilding Blunders - NYTimes.com

Huff Post: Report Spotlights Iraq Rebuilding Blunders - NYTimes.com: “BAGHDAD — An unpublished 513-page federal history of the American-led reconstruction of Iraq depicts an effort crippled before the invasion by Pentagon planners who were hostile to the idea of rebuilding a foreign country, and then molded into a $100 billion failure by bureaucratic turf wars, spiraling violence and ignorance of the basic elements of Iraqi society and infrastructure.

The history, the first official account of its kind, is circulating in draft form here and in Washington among a tight circle of technical reviewers, policy experts and senior officials. It also concludes that when the reconstruction began to lag — particularly in the critical area of rebuilding the Iraqi police and army — the Pentagon simply put out inflated measures of progress to cover up the failures.

In one passage, for example, former Secretary of State Colin L. Powell is quoted as saying that in the months after the 2003 invasion, the Defense Department “kept inventing numbers of Iraqi security forces — the number would jump 20,000 a week! ‘We now have 80,000, we now have 100,000, we now have 120,000.’ "

--- That waste can be used to help the American Economy!

Bad Times Draw Bigger Crowds to Churches - NYTimes.com

Bad Times Draw Bigger Crowds to Churches - NYTimes.com: “Like evangelical churches around the country, the three churches have enjoyed steady growth over the last decade. But since September, pastors nationwide say they have seen such a burst of new interest that they find themselves contending with powerful conflicting emotions — deep empathy and quiet excitement — as they re-encounter an old piece of religious lore:

Bad times are good for evangelical churches.”

BANK OF AMERICA PLANS TO CUT 30,000+ JOBS OVER NEXT 3 YEARS AFTER MERRILL LYNCH PURCHASE - New York Post

BANK OF AMERICA PLANS TO CUT 30,000+ JOBS OVER NEXT 3 YEARS AFTER MERRILL LYNCH PURCHASE - New York Post: “Bank of America said yesterday it plans to eliminate 30,000 to 35,000 jobs over three years after it completes its purchase of Merrill Lynch.

The cuts could affect about 11 percent of the combined companies' roughly 308,000-person work force. BofA employs about 247,000 people and Merrill about 61,000.

BofA said the expected cuts reflect the pending merger, as well as "the weak economic environment, which is affecting the level of business activity."”

AIG MAY NOT PAY BACK $60 BILLION TO GOVERNMENT AS PROMISED IN BAILOUT PLAN - New York Post

AIG MAY NOT PAY BACK $60B TO GOV'T AS PROMISED IN BAILOUT PLAN - New York Post: “Uncle Sam may not get paid back as promised in its $150 billion bailout of American International Group, the giant insurer conceded.

AIG had agreed as a condition of its recent government lifeline to escape bankruptcy that it would repay at least $60 billion by selling valuable assets.

However, CEO Ed Liddy admitted yesterday that it may not be that easy to raise the cash.”