Hoovervilles Return as Bushvilles

Today in the New York Times there is a report on the growth of tent cities across the country. Atrios at the blog Eschaton has dubbed them "Bushvilles." I think the title fits.

From the New York Times:

Like a dozen or so other cities across the nation, Fresno is dealing with an unhappy déjà vu: the arrival of modern-day Hoovervilles, illegal encampments of homeless people that are reminiscent, on a far smaller scale, of Depression-era shanty towns. At his news conference on Tuesday night, President Obama was asked directly about the tent cities and responded by saying that it was “not acceptable for children and families to be without a roof over their heads in a country as wealthy as ours.”While encampments and street living have always been a part of the landscape in big cities like Los Angeles and New York, these new tent cities have taken root — or grown from smaller enclaves of the homeless as more people lose jobs and housing — in such disparate places as Nashville, Olympia, Wash., and St. Petersburg, Fla.

The Economy Shrank Faster Than Thought

The U.S. economy contracted at pace of 6.3% at end of 2008, slightly worse than had been
previously reported. This was the worst showing in a quarter-century, and probably isn't doing much better this quarter.

Other news about the economy was not much better. New claims for unemployment benefits last week rose to a seasonally adjusted 652,000 from the previous week's revised figure of 644,000, the Labor Department said Thursday. The total number of people claiming benefits jumped to 5.56 million, higher than economists' projections of 5.48 million, and a ninth straight record-high. More job losses were announced this week. Shaw Industries Group Inc., the world's largest carpet maker and a subsidiary of Warren Buffett's holding company Berkshire Hathaway Inc., said it would close two plants in Georgia and lay off about 600 workers. Pharmaceutical company Hospira Inc. said it would cut 1,450 jobs, or about 10 percent of its work force, while beleaguered automaker General Motors Corp. said it laid off 160 engineers, the beginning of 3,400 planned cuts among its salaried employees.

The figures indicate the labor market remains weak even as some other economic indicators have come in better than expected. All the negative forces that are occurring in the economy are now feeding each other in a vicious cycle that has only deepened the recession, now in its second year, and really made this a Great Recession.

South Carolina's Republican Governor Turns Down $700m in Stimulus Money

South Carolina has the second highest unemployment rate in the country, so of course their Repuglican governor is going to turn down $700 million in stimulus money for unemployment insurance. What a moron. The people of South Carolina should really think about the votes they have made. They voted for McCain 54% to 45% for Obama. They voted for this Republican governor who will screw his state for an ideology. Now their state is entering into a massive depression, and I have to wonder will they wake up? I sure hope so, because we need the whole country to succeed. We are in the midst of a great recession, we don't have time for Repuglicans.

Update: Obama says NO to South Carolina Governor's stimulus scam

The Governor of South Carolina, Mark Sanford, trying to curry favor with the far right wing of the Republican Party (the ones who vote in presidential primaries and attend presidential caucuses, btw), wants to use federal stimulus dollars to pay his state's debt instead of rebuilding schools, for example.

Today, Obama, via OMB Director Peter Orszag, said NO to Sanford's scheme:

The Obama administration has rejected South Carolina Gov. Mark Sanford's request to use $700 million in federal stimulus cash to pay down state debt.White House Budget Director Peter Orszag (OHR'-zag) said in a letter to the Republican on Monday that the federal stimulus law doesn't allow President Barack Obama to make an exception for that cash. Sanford sought a waiver last week, asking to pay off debt rather than use the money to create jobs and avoid deep program cuts.Don't mess with Orszag. Now, keep in mind, Sanford pulled this stimulus stunt to garner attention. He got some of that attention in the form of an ad from the Democratic National Committee:

IMF warns of global "Great Recession"

The International Monetary Fund warned on Tuesday that the world economy will likely contract this year in a "Great Recession." The IMF expects global growth to slow below zero this year, the worst performance since World War II.

This will be the backdrop when the Group of 20 leaders meet in London on April 2