"Worst Is Yet to Come:" Americans' Standard of Living Permanently Changed

"I Inherited This Mess."

Economy shrinks at 3.8 percent pace in 4Q

The economy shrank at a 3.8 percent pace at the end of 2008, the worst showing in a quarter-century, as the deepening recession forced consumers and businesses to throttle back spending.

http://biz.yahoo.com/ap/090130/economy.html

Total 2008 job loss: 2.6 million

The economy lost 524,000 jobs in December, bringing 2008's total job loss to just below 2.6 million. The annual loss is the biggest since the end of World War II. Payrolls shrink by 524,000 in December, and unemployment rate rises to 7.2%.

According to the Labor Department's monthly jobs report, the unemployment rate rose to 7.2% last month from 6.7% in November and higher than economists' forecasts of 7%.

The vast majority - 1.9 million - of last year's job losses came in the final four months of 2008, after the credit crisis began in September. November's job loss was revised up to 584,000 from 533,000, and October was revised up by 103,000 to 423,000.

Job losses were spread across a wide variety of industries. Manufacturing lost 149,000 jobs, the leisure and hospitality industries cut 22,000 jobs, and construction employment shrank further by 101,000 jobs. Even in the midst of the holiday shopping season, retailers still slashed payrolls by 66,600 workers last month.

President-Elect: December 6, 2008

President-elect Barack Obama talks economy, foreign policy on ‘Meet the Press’

U.S. Is Investing $250 Billion in Banks

According to President Bush, “This is an essential short-term measure to ensure the viability of the American banking system.”

The proposal would make $250 billion available to banks — nine have already been identified — in order to help recapitalize those banks and to get them lending again, among themselves and to businesses and consumers.

With the proposal, the United States follows similar plans announced Monday across Europe — almost all intended to inject money into the banks and unfreeze the credit markets.

In addition to injecting money into the banks, according to the plan, the United States would also guarantee new debt issued by banks for three years — a measure meant to encourage the banks to resume lending to one another and to customers.