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This week, we start by looking at the latest economic data, and how hard it is to get a new job if you become unemployed. We also examine President Obama's new 'jobs program' that would spend what's left of last year's TARP money that was supposed to be repaid to taxpayers. Next, we look at the Democrats' move to raise the national debt ceiling, and what they really have in mind for the debt limit in January.

Following that, we will look at the disappointing holiday spending levels - as if anyone is surprised. On the plus side, there was at least a little encouraging news on the housing front over the last couple of weeks. Finally, we take a look at some of the forecasts for 2010 - hint, they are all over the board.

As always, thank you for taking the time to read this weekly E-Letter, and I especially appreciate your comments and suggestions. Happy New Year everyone!!

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While the global recession and credit crisis are still in full swing, at least we have finally seen a few positive economic reports of late. Specifically, we have seen some good news in the housing sector where new and existing home sales actually increased nicely in February, following months and months of decline. We also saw an unexpected jump in durable goods orders for last month. These reports, along with the nice jump in the stock markets, have led several noted forecasters to suggest that we've seen the bottom in the recession and the worst of the credit crisis. I am not so convinced.

We will also take a close look at Treasury Secretary Geithner's latest bank bailout plan that would partner government and private investors in a scheme to take toxic assets off of the banks' books, but there is no guarantee that this new plan will work. We'll also examine the Fed's latest plans to buy Treasury debt and more toxic assets from banks. Next, we'll examine the latest report from the Congressional Budget Office regarding President Obama's record large budget for 2010, which the CBO says will result in a massive $2.3 trillion deficit. Can I say, I told you so?

It's a lot to cover in one letter, but I trust you will find it interesting....

Well, the 'R' Word (recession) can now be officially used to describe the US economy since the National Bureau of Economic Research (NBER) declared that we have been in a recession since December of 2007. Considering the back-dated nature of NBER's announcement, we find ourselves in the midst of the third longest recession since the Great Depression, with no end yet in sight. No wonder the Treasury and Fed are pulling out all of the stops to bail out the economy. This week, I'm going to discuss the current bleak economic picture, the Fed's latest bailout and the possible long-term consequences of the Fed's printing money....