Consumer Reports Morning Update[SIZE=-1]Good Tuesday morning, here are the top stories our editors are keeping an eye on today. Check back with ConsumerReports.org throughout the day for updates and analysis on these topics and many more.
After major stock market indexes ended Monday at 12-year lows, today's focus will likely start on Wall Street but will definitely end on Washington as President Barack Obama addresses a joint session of Congress.
Economic Indicators This Morning:
- The Standard & Poor?s/Case-Shiller Home Price Index for December comes out at 9 a.m.*
- The Federal Housing Finance Agency will release its house price index for the fourth quarter at 10 a.m.*
- The Conference Board will release it's monthly Consumer Confidence Index at 10 a.m.*Economists expect another decline.
- At 10 a.m. Federal Reserve Chairman Ben Bernanke testifies in the Senate about his plans for economic fixes.
- At 2:30 p.m. a Senate subcommittee will have hearings on the Ticketmaster/Live Nation merger.
- At 9 p.m. the president addresses a joint session of Congress.
Bailouts Everywhere:
The government faced mounting pressure on Monday to put billions more in some of the nation?s biggest banks, two of the biggest automakers and the biggest insurance company, despite the billions it has already committed to rescuing them. (New York Times)
The Obama administration yesterday revamped the terms of its emergency aid to troubled financial firms, setting a course that could culminate with the government nationalizing some of the country's largest banks by taking a controlling ownership stake. (Washington Post)
Federal officials told banks Monday that infusions of government bailout money would come with new strings attached -- specifically, the potential that taxpayer dollars could be converted into voting shares that would give the government more influence over how their institutions were run. (Los Angeles Times)
The President's Budget:
In what he said was a change from the last eight years, President Obama is planning a new strategy of putting on the books as many costs as possible to demonstrate the extent of the nation's economic troubles. (Los Angeles Times)
Obama sought to assure the nation Monday that he will address runaway government deficits, despite adding to the red ink now to battle the economic crisis. (Wall Street Journal)
The president said there's one program he'll likely not spend money on: New Marine helicopters for himself. Pressed by Sen. John McCain about out-of-control military contracts, Obama said, "The helicopter I have now seems perfectly adequate to me. Of course, I?ve never had a helicopter before, you know? Maybe I?ve been deprived and I didn?t know it. But I think it is in example of the procurement process gone amok. And we?re going to have to fix it." (New York Times)
Health Care Reform:
President Obama will make reforming the U.S. health-care system his top fiscal priority this year, administration officials said yesterday, contending that reining in skyrocketing medical costs is critical to saving the nation from bankruptcy. (Washington Post)
When President Obama included $1.1 billion in his economic stimulus plan for "comparative effectiveness," he set off one of the sharpest, and most unexpected, political fights of his young administration. The ferocity of the tussle over a relatively obscure proposal provided a warning for those seeking to reshape the nation's healthcare system. (Los Angeles Times)
The Auto Industry:
President Barack Obama named Wall Street deal maker Steven Rattner to lead the team advising the White House on rescuing the U.S. car industry. (Wall Street Journal)
Detroit's troubles will likely result in the death of some car brands--GM's plans indicate it will drop four nameplates--but what does that mean for car buyers who feel they are being forced to divorce from automotive brands they have been loyal to, in some cases their entire lives? (Christian Science Monitor)
Why did some of GM's brands survive the restructuring plan while others? GMC's truck are essentially the same as their Chevrolet counterparts, but both will make it through. (CR Cars Blog)
Even as the spotlight has been trained on struggling Detroit automakers, many of the nation's 20,000 auto dealers are fighting their own battle for survival. (USA Today)
Shopping In A Recession:
The ailing economy is threatening to permanently kill the national buzz. The hundreds of thousands who have been laid off of late certainly have no intention of living the high life, and neither do those clinging to employment with shredded fingernails. Second homes, exotic getaways and French Champagne seem at best imprudent, at worst vulgar. What to do? Think small. (USA Today)
Speaking of shopping, if you're in the market for a digital camera, now might be a good time to save a few bucks--the new spring lines will come out soon and older models may be discounted. (CR Electronics Blog)*
Then again: Ritz Camera, one of the largest specialty camera chains, has filed for Chapter 11 bankruptcy protection. (CR Electronics Blog)
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