By Patrick Rizzo

American Airlines, the nation’s third-largest carrier, has filed for Chapter 11 bankruptcy reorganization, seeking the same route out of high debt and costs that many of its major rivals have taken in the past decade.

UK government has lightened the mood of the country by predicting a double dip recession in the new year!!1

Great

Heck Yogi, we don't dip over hare anymore we have the trough out !

Tough times Frosty, for sure!

Our top financial government chap, the Chancellor has given his Autumn statement to Parliament. Things are going to be crap for another 5 years, poor economy growth, no pay rises and grim prospects for all, but we just have to stick those famous upper lips out and get on with it.......and trust in the government to see us through it!!!

You have it my friend, that there any of us can do. In all our country's , God Help us all.

I'm not sure how much further i can stick my famous upper lip out though........

Times is tough, but me and my wife keep working away, keep our family close. A tight unit, the kids are all that matters at the end of the day, i slog my guts out to give them the oppurtunities and chances in life that i crave for them!

That there Yogi is the answer, in past times when married and only had 1 child, lol but most of the neighbor kids which were many you would think I had at least 16. But those were the best days of my life. No matter how stressed I was I could lighten up with those kids around. And for the most part the wife enjoyed it to. And to this day they all remember me and those times and they have kids now. Yepper , Skipper you have the right idea of TRUE LIFE and WHAT really is IMPORTANT.

Very interesting article on the economic recovery. Congress (both sides) better get its ass in gear, stop worrying about who's in the White House next year, and heed advice like this.

If Congress doesn’t act soon, economy could take another hit

By Zachary Roth & Daniel Gross

On the long list of risks the economy faces in 2012, the prospect of congressional inaction would seem to rank quite low. But that's not actually the case--thanks to legislative tripwires on issues such as the payroll tax, unemployment benefits, and Medicare reimbursement rates, gridlock over the next few weeks may have a significant impact on growth next year.

The economy grew at a 2.0 percent annual rate in the third quarter, and the economic consulting firm Macroeconomic Advisers pegs fourth quarter growth at 3 percent. The White House had hoped to address the status of payroll tax cuts, Medicare reimbursements and jobless benefits as part of a grand bargain on deficit reduction. But the failure of Congress's fiscal "supercommittee" to hammer out a big deal nixed that plan. Economists suggest the cumulative cost of inaction on all three measures could result in a reduction of several hundred billion dollars of demand—not enough to tip the economy into a new recession on its own, but enough to slow it down and boost the unemployment rate.

Continued inaction on these fronts "increases the headwinds for this economic expansion," Gary Burtless, a senior fellow in economic studies at the Brookings Institution, told Yahoo. "It makes it much much harder for a weak economy to expand at all."

Here's a breakdown of the issues in play:

Payroll tax cut. Late last year as part of a White House-GOP deal to extend the Bush tax cuts for high-earners, Congress and the White House agreed to a temporary, one-year reduction in the payroll tax that funds Social Security. Instead of paying 6.2 percent on the first $106,800 of income, individuals would only pay 4.2 percent. Come January 1, 2012, the rate reverts to 6.2 percent—unless Congress and President Obama agree on an extension.

That would amount to a significant tax increase on wages—about $180 billion—and a reduction of spending and demand in the economy at large.

Michael Pond of Barclays Plc told Bloomberg TV last week that a failure to extend the payroll tax cut would likely cause his bank to reduce its estimate for first quarter growth next year by 1.5 percent. "It's that big," Pond said.

Estimates that look at 2012 as whole tend to be more conservative--though still significant. Our analysis of a study (pdf) released last month by the nonpartisan Congressional Budget Office (CBO) suggests that the end of the payroll tax cut would mean a hit to GDP of anywhere from $18 billion to $108 billion. Using the mid-point of that range, that means a roughly $63 billion impact for the year--or more than 0.4 percent of GDP.

Unemployment Benefits. Typically, unemployed workers receive 26 weeks of benefits. But since the onset of the recession, Congress has repeatedly approved extensions to those benefits, since many jobless Americans are out of work for more than six months. Last December, as part of the same deal that extended the Bush tax cuts and temporarily reduced payroll taxes, Congress agreed to reinstate the Emergency Unemployment Compensation (EUC) program, which extends benefits for workers in high-unemployment state for 34-53 additional weeks. Some workers are able, when they combine this assistance with other programs, to receive up to 99 weeks of benefits. But the EUC, like the payroll tax, is scheduled to expire on January 1, 2012. Extending the benefits for another year, as President Obama proposes, would represent an additional $45 billion in spending.

That dollar amount is smaller than the payroll tax cut. But economists argue that the economic impact of extending benefits (or not extending them) is larger than it might seem. People on unemployment tend to spend their benefits quickly—on rent, groceries, or gas—thus providing a jolt.

The Economic Policy Institute, a labor-backed group that supports extending the benefits, projects that failing to do so would cut the country's gross domestic product (GDP) by $72 billion in 2012, or half a percentage point. Again, the CBO study is more conservative. It finds a mid-range estimate of around $42 billion in losses to GDP, or 0.3 percent.

If neither the tax cut nor the jobless benefits are extended, then, the combined downward impact on GDP would likely be around 0.8-0.9 percent. That jibes with a prediction by Mark Zandi, chief economist at Moody's Analytics, who recently put that figure at nearly one percentage point.

The labor economy would take a hit, as well. Burtless projects that failing to extend either measure would add about 725,000 Americans to the jobless rolls next year. That would mean an increase in the unemployment rate of around half a percentage point, compared to what it would have been had both measures been extended.

The Doc Fix. The third potential economic hit is both the smallest and the most familiar. Several years ago, Congress decided to hold down Medicare costs by cutting back the amounts it paid to health care providers over time. But each year since 2003, as doctors howled and lobbied, Congress has acted to spare the healing profession from steeper cuts, requiring billions in extra spending. The annual routine has become know as "the Doc Fix." For 2012, the Doc Fix is likely to cost $22 billion. If Congress fails to act, in other words, a large group of professionals will face significant wage cuts. While few people weep for the financial predicament of generally well-paid doctors, it would nonetheless have a significant effect.

All in all, it's likely that inaction on these three items could make growth 1 percentage lower in 2012 that it otherwise would have been.

So what's the likelihood that this trifecta of law-making inertia will come to pass?

The White House has been mounting a full-court press for the payroll tax cut. Failing to extend the cut, President Obama said this week, would deal a "massive blow" to the economy, and raise taxes on 160 million Americans. Republicans tend to like tax cuts, and they've said they're open to the idea, but they oppose the White House's plan to pay for the payroll cut by raising taxes on millionaires. Instead, they want to cut federal pay, and reduce the number of people who get benefits such as food stamps and healthcare for the elderly. The usual cycle of proposal, counterproposal, and brinksmanship has already kicked into high gear. Most observers expect a deal to get done before the end of the year, but given Washington's level of dysfunction (remember the debt ceiling fiasco?), and the short-time frame, there are certainly no guarantees. Chance of action: 80 percent.

The odds on an extension of jobless benefits--which the Obama administration is also pushing for--seem somewhat lower. Many Republicans opposed the original extensions last year, arguing that they reduce the incentive to find work. While the main Republicans running for president have come out in favor of a payroll tax cut extension, they've generally been quiet on unemployment insurance. Politically speaking, spending programs such as unemployment insurance are much less potent issues than tax cuts are. Chance of action: 50 percent.

As for Medicare reimbursement, Congress has acted every year since 1996 to avert a drop in the rate. And this tends to be a nonpartisan issue: Democrats like their parents' physicians as much as Republicans do. So it's likely they'll do so again, whether before or after the end of the year. "We are confident they will act," the American Medical Association told Yahoo in a statement. (Of course, most Washington organizations were confident the supercommittee would hash out a grand debt bargain, as well.) Chance of action: 95 percent.

In other words, it's not impossible that the fragile recovery--already contending with a European debt crisis and a moribund housing sector, among other drags--could be about to suffer another major blow. And this one is entirely avoidable.

Zachary Roth is senior national affairs reporter at Yahoo! News

Follow him on Twitter @zackroth; email him at zacharyiroth@yahoo.com

Daniel Gross is economics editor and columnist at Yahoo! Finance

Follow him on Twitter @grossdm; email him at grossdaniel11@yahoo.com

http://news.yahoo.com/blogs/lookout/congress-doesn-t-act-soon-economy-could-another-143132401.html

Holy Crap SC, your right.

A big meeting of the old EU today, trying to make a new EU,which will be run and dominated by the French and Germans. I would rather pull me own teeth out without anaesthetic than be bossed around by those mealy mouthed f**kers!!!!

Frank Barone: "Pulled their asses out of two wars---the French. And what did they give us? A disgusting way to kiss."

Just for the record, the UK have vetoed the new EU plan and now we stand alone in Europe, just like we did in 1940 to be honest. Sarkozy and Merkel, or Merkozy as we like to call them, are disgusted with us apparently!!

No offense, but isn't that already the status quo?

We are so screwed.

"I, Newt Gingrich, do solemnly swear..."

One thing for sure.

We are so Screwed !

Now those people that invested in the farm and land loaning , after the company went belly up they don't have any fricken idea where a bunch of money is ? The last 3 days they were open they seemed to lose it in the books, Yea Right ! I would have a 45 up somebodys ass until and more than one til it came back.

As of right now? Absolutely.

But what if Europe fucks up and falls off the cliff? Our economy would get kicked right in the balls, and we could easily go back to double-digit unemployment by next fall. If that happens, even Hitler could win the general election.

By ALEXANDER BURNS | 12/9/11 10:42 AM EST Updated: 12/9/11 6:57 PM EST

The conservative opinion elite has reached a consensus on Newt Gingrich: He’s not the one they’ve been waiting for.

In the days since Gingrich leaped to the forefront of the Republican presidential race, the nation’s most prominent right-leaning commentators — many of whom have spent the last year pining for alternatives to Mitt Romney — have rendered a swift and caustic judgment on their party’s latest out-of-right-field challenger.

Are we talking about the same "elite" that so successfully stopped all those '10 Tea Party primary challengers winning the party nominations?

I don't blame the Elite's panic, but their containment efforts aren't working so far.

Of course the irony is, Ron Paul might end up being their savior if he can win Iowa.

(Come to think of it, one good benefit if Newt wins the nom: His swift and inevitable public punishment of Karl Rove. Reap what you sow, mother fucker!)

They want even more power. They want to be in charge of all the financial budgets that countries get. That lot telling us how much money our country can spend????

I have never been a fan of this EU sham. It was a crock of shit 20 years ago and it is even more so today

Celebrate, Celebrate, dance to the music. Ms. MC got an increase in her Social Security - 3.6%! She's only been on it since July. Holy Freakin' Cow! I haven't had a raise since 2003. My taxes go up, gas goes up, the cost of consumables goes up, but not my wages. I guess I'm in the wrong business. WTF. Something is drastically wrong here. If you're a government worker, I don't want hear you f'n cry about having to chip in on medical benefits; you with your 5 weeks vacation, 11 paid holidays, sick time and cost of living raises. Eat me. Oh, pardon me, you might be offended. But thank me, I'm paying for all your perks. The perks you get you doing a shitty job.

Now you are talking MC . This is what I am saying all those idiots in Washington, congress etc. We are paying them to it must be nice to take a fricken vacation when ever and set there and fart in their leather chairs.

I can safely say that when it comes to the state if my finances....i have not got a pot to piss in

don't piss on the floor! ...but Yogi, you're a happy man with a beautiful family.

Hopefully , your window hasn't been taken away ?
No that alot you people are living on the desert, in Az. family's. That had good jobs, homes, now what they got sand blowen up thar ass along with promise's from idiots in Washington.

Thats true MC

I am rich in the best ways

The economy is truely reeling.

CEO Pay jumps 36.5%



http://money.cnn.com/2011/12/15/news/companies/ceo_pay/index.htm?hpt=hp_t2

Dont worry everyone Obamas stimulus package will kick in soon. HAHAHAHAHAHAHAHAAHA .... WHAT A JOKE!!

I'm waiting for the Romney Stimulus. (Don't worry, he won't bring up that headache till 2013.)