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In his Crib Sheet, CNN's John King looks back at Sunday's talk shows and ahead to the topics that will be making news this week.

Pocketbook issues drove the Sunday conversation, with mixed assessment on the question of the economy is at a point where it should cause more holiday season cheer than despair.

There was, at first glance anyway, a bit of a mixed message from two of President Obama’s top economic advisers on the threshold question of whether the recession is over.

“Today, everybody agrees that the recession is over,” Lawrence Summers, the director of the National Economic Council said.

“Of course not,” Council of Economic Advisers Chairwoman Christina Romer said when she was asked if she considered the recession to be over.

To be fair, Summers was speaking from a technical perspective; Romer more from the views of an American who still lacked a job despite some more encouraging recent economic data. Still, the different language will only add to the political debate about the administration’s economic policies.

The president’s Monday meeting with bankers was a hot topic, as was the question of whether a Democratic-controlled Washington would truly take steps next year toward real deficit reduction. And of course there was sharp debate over the evolving Senate health care bill, even with some Democrats saying they needed more proof it would bend the health care cost curve before they could pledge their support.

So let’s get to the Sound of Sunday:

STATE OF THE ECONOMY
National Economic Council Director Lawrence Summers on CNN’s “State of the Union”
“It will take time. A year ago the question was would we have a depression? Today everybody agrees that the recession is over. The questions are around how fast we'll recover."

Council of Economic Advisers Chairwoman Christina Romer on NBC’s “Meet the Press”
“The official definition, that talks about just when do you turn the corner, when do you go from plummeting to finally starting to go back up. I think we have at least in terms of GDP reached that point. What I think the president has said and what I firmly believe, you're not recovered until all those people that want to work are back to work,

Romer: “Of course not.”

National Economic Council Director Lawrence Summers on CNN’s “State of the Union”
“I don't think that there is any question that the recovery act is serving its intended function. Look, look at the economic debate today. People are talking about how much job creation there will be, and talking about the pace of the recovery from recession. We are not where we would like to be as a country, but, gosh, it's different from where it was when the recovery act was passed.”

Former Republican Presidential Candidate Mitt Romney on NBC’s “Meet the Press”
“This is not going to be a jobless recovery, the economy will come back, the private sector will grow again. But it has been a jobless stimulus. And that's unfortunate because the president had an opportunity to focus on the economy, to create jobs but instead Nancy Pelosi and Harry Reid created something that stimulated government.”

BANKERS IN THE WHITE HOUSE
National Economic Council Director Lawrence Summers on CNN’s “State of the Union”
“It was irresponsible risk taking that brought the economy to the brink of collapse. It was their irresponsible risk taking in many cases that brought the economy to collapse. And frankly after the Asian crisis and the 1987 stock market crash, and after other things that happened, it was not the first time. And they don't get in some cases that they wouldn't be where they are today, and they certainly would not be paying the bonuses they are paying today if their government hadn't taken extraordinary actions.”

National Economic Council Director Lawrence Summers on CNN’s “State of the Union”
“For them to be complaining about serious regulation directed at making sure this never happens again is wrong. For $300 million to be spent on lobbyists trying to gut serious efforts at financial reform is not how this country should be operating. For firms that have benefited from taxpayer support to be complaining about the government burdening them is frankly a bit rich."

Rep. Eric Cantor (R-Minority Whip) on ABC’s “This Week”
“When the president meets with the bankers, I hope that the discussion centers on what seems to be a real overreaction from the auditors in the regulatory arena that are looking at risk-taking as something that just should be done at all. we know in our economy that the prosperity we know has been built on calculated risk.”

Personal Finance Expert Suze Orman on CNN’s “State of the Union” on what she would tell bankers if she had the opportunity
“I would say, bankers, what in the world is the matter with you? You took taxpayers and you are giving out bonuses and acting like nothing is wrong and some of your stocks have increased in value from their low. However, you're not serving the people you should be serving and in my opinion, bankers, you are serving, not all bankers, but many of them, you are serving your own bottom lines and shame on you.”

DEALING WITH DEFICITS
The White House would not take a firm position, again, on whether it would support creating a new commission to recommend major deficit-reduction measures – with Congress required to cast an up or down vote on the recommendations when the work is done. Plus, a big spending bill that increase some Cabinet department budgets by 10 percent or more only added to the skepticism that real deficit reduction is in the offing.

National Economic Council Director Lawrence Summers on CNN’s “State of the Union” responding to the question of whether the White House would commit to or reject a proposal for the creation of a commission to address deficit reduction
“The president wants to see the problem solved. He’s prepared to accommodate others on the way that will work to do it. What’s important is that the problem be solved.”

Sen. Mark Warner (D-VA) on CNN’s “State of the Union”
“I think the way we will get spending long term under control is to get bipartisan commission, and Democrats and Republicans come together and put revenues and spending out there and come back and vote up straight and down. I don't see how the process where everybody kind of goes on is going to come to an end until we have the discipline to do a straight up or down vote on revenues and spending cuts.”

Sen. John Thune (R-SD) on CNN’s “State of the Union”
“Republicans share some of the blame. We were in charge. We did not control spending well enough either. You have a Democrat President, Democrat majority in the House and Senate, and all of them have their foot on the pedal. They are driving this thing over the cliff. Somebody has to put the breaks on.”

Rep. Eric Cantor (R-Minority Whip) on ABC’s “This Week”
“If you look at the kind of deficit that we've incurred over the last three years that the Democrats have been in control of Congress, 60% of the overall deficit from the last ten years has occurred in that period. And frankly with the incurrence of the debt, we’ve seen very little result. That’s why we think we ought to choose another way.”

And there was a feisty debate about the math – and methods – of the health care debate as well. As senators await new numbers from the Congressional Budget Office on the Democrats’ latest idea, there were bipartisan worries that as it now stands, the measure does not do enough to bend the health care cost curve.

STATE OF HEALTH CARE REFORM
Sen. John Thune (R-SD) on CNN’s “State of the Union”
“The main thing the President can do and the leadership in congress can do now is do no harm. The reason small businesses are not investing is they see the policy uncertainty over Washington. They see more borrowing and more taxing and more debt and more spending, and in the health care bill, they see the premiums going up.”

Sen. Mitch McConnell (R-Minority Leader) on CBS’ “Face the Nation”
“I'm not in favor of no health care reform. I think we ought to go step by step. Target losses between doctors and hospitals, have inter-state competition among health care companies incentivize wellness programs that companies like safe way have shown can bring down the cost. There are things that we can do to improve what is already the finest health care in the world.”

Sen. Joe Lieberman (I-CT) on CBS’ “Face the Nation” about whether he could support the current Senate compromise legislation on health care reform
“I certainly would have a hard time voting for it because it has some of the same infirmities that the public option did. It will add taxpayer cost. It will add to the deficit. It’s unnecessary.”

Sen. Claire McCaskill (D-MO) on “Fox News Sunday”
“It has to slow down the increase of health care costs over time and that is bending the cost curve and, secondly, that it has to be deficit neutral. We have to be saving more money for our government than we're spending. And if we're not saving more money for our government than we're spending, then not only will I not support it. The President said he won't support it.”

Enjoy the rest of your Sunday and the week ahead,
John King

Washington (CNN) - Unemployment will go down in the coming year, but that doesn't mean U.S. economic woes are over, leading economic figures said Sunday.

Appearing on the NBC program "Meet the Press," former Federal Reserve chairman Alan Greenspan and Christina Romer, chairman of the White House Council on Economic Advisers, both made qualified predictions for economic growth and decreasing unemployment.

"I feel (it's) very likely it will be coming down," Romer said of the unemployment rate, but warned some "bumps" are likely in the coming year.

Greenspan noted upcoming boosts to employment, such as more than 700,000 people working in 2010 to conduct the federal census.

Unemployment "is going to be lower," Greenspan said, mostly due to people returning to the labor force.

Greenspan distinguished between a technical end to the recession - which would be consecutive quarters of economic growth, likely happening now - and a comprehensive reversal of the downturn marked by renewed job growth.

To Romer, declaring the recession truly over means a drop in the unemployment rate from the current 10 percent level to the normal level before the downturn of about 5 percent.

"The recession took a long time coming; it's going to take a long time" coming out of it, Romer said.

Another of President Barack Obama's advisers, National Economic Council director Lawrence Summers, told CNN's "State of the Union" that "it will take time" for the economic recovery to bring down the unemployment rate.

Economic recoveries typically begin with growth in gross domestic product, which has started, Summers said.

"Most professional forecasters expect job growth by spring and I think that's a reasonable judgment in an uncertain world," said the former Treasury secretary. Helping spur job creation will be the Obama administration's $787 billion stimulus package, according to Summers.

"The number of projects under the program… is going to be about twice as great over the next six months as it was over the last six months," Summers said.

However, former Massachusetts governor Mitt Romney, an unsuccessful candidate for the Republican presidential nomination last year, said on NBC's "Meet the Press" that the stimulus program has failed to create jobs as promised and should be overhauled.

The nation's real economic threat is runaway spending that is creating "excessive and massive deficits" and "threatens our long-term viability," Romney said. He urged immediate steps to "rein in" government spending.

On "FOX News Sunday," Democratic Sen. Claire McCaskill of Missouri and Republican Sen. Judd Gregg of New Hampshire agreed on the need to set up a bipartisan congressional task force to advise the government on how to lower the federal deficit. McCaskill also plugged Obama's push to help small businesses get credit, starting with a meeting the president will have Monday with bank executives.

At the same time, the Obama administration wants to increase regulations on Wall Street firms and financial institutions to help protect consumers from excessive risk-taking that helped spawn the economic crisis last year. The House passed a bill Friday calling for tougher regulation of financial markets, but the measure is expected to face opposition in the Senate.

Summers told CNN that Wall Street should not be resisting Democratic efforts to impose new regulations.

"It was irresponsible risk-taking that brought the economy to the brink of collapse," he said.

"For firms that have benefited from taxpayer support to be complaining about the government burdening them is, frankly, a bit rich," Summers said.

After receiving so much public help, "now the financial community's got to think about its obligations to the country," he said.

Updated: 2:03 p.m.

Washington (CNN) – A top economic adviser to the White House said Sunday that the economy is beginning to show signs of a turnaround but cautioned that it could be some time before the unemployment situation begins to improve.

“It will take time,” for the national unemployment rate to drop, Lawrence Summers, the Director of the National Economic Council, said Sunday on CNN’s State of the Union.

“A year ago, the question was: would we have a depression? Today, everyone agrees that the recession is over and the questions are around how fast we’ll recover.”

Summers explained that economic recoveries typically begin with growth in gross domestic product. “We’ve seen that start to happen,” Summers told CNN Chief National Correspondent John King, adding that the economy then begins to create jobs on a net basis. “Most professional forecasters expect job growth by spring and I think that’s a reasonable judgment in an uncertain world,” Summers told King.

The former treasury secretary added that even once the economy begins to create jobs, it takes time to reduce the national unemployment rate “because when you start to create jobs, more and more people start looking for work because they’re encouraged.”

“But on the key measure” of job creation, Summers said, “we’re a lot closer than we were a year ago and the signs that are the first signs that things are turning . . . we’re now seeing progress.”

But, Summers quickly added that more needed to be done to improve the jobs outlook as the national unemployment rate sat at 10 percent.

Early indications of an economic turnaround were “not nearly enough, not nearly enough.”

“We’ve got to do a lot more,” Summers said Sunday, adding that “there’s no more important issue facing the country than job growth.”

Summers also told King that the administration’s $787 billion stimulus package will continue to play a role in the economic turnaround.

“The number of projects under the program… is going to be about twice as great over the next six months as it was over the last six months,” Summers said.

Larry Summers took issue Sunday with complaints from Wall Street about Democratic plans for more financial regulation.

Washington (CNN) – A top economic adviser to President Obama said Sunday that Wall Street should not be resisting Democratic efforts to impose new financial regulations in the wake of last year’s financial crisis.

“It was irresponsible risk-taking that brought the economy to the brink of collapse,” Lawrence Summers, the Director of Obama’s National Economic Council, said about Wall Street Sunday on CNN’s State of the Union. “It was their irresponsiblilty in many cases that brought the economy to collapse. And, frankly ... it wasn’t the first time.

Watch: Summers slams Wall Street

“And they don’t get, in some cases, that they wouldn’t be where they are today - and they certainly wouldn’t be paying the bonuses they’re paying today - if their government hadn’t taken extraordinary actions. Extraordinary actions, not frankly with the motivation of helping them, but with the motivation of helping the economy but of which they were nonetheless the beneficiary.”

Summers also told CNN Chief National Correspondent John King that it was “wrong” for Wall Street to be “complaining about serious regulation directed at making sure this never happens again.”

“For firms that have benefited from taxpayer support to be complaining about the government burdening them is, frankly, a bit rich,” Summers also said Sunday.

After receiving so much help from the public in the form of support from the federal government in the past year, Summers said “now the financial community’s got to think about its obligations to the country.”

Summers identified preventing another near-collapse of the entire financial system, improving the flow of credit, preventing foreclosures, and improving lending to small businesses as areas the president might discuss with the heads of some of the nation’s largest banks in a meeting set for Monday.

“The president is going to focus on what the bankers can do for their country, what obligations they should feel,” Summers told King.

Caucus Chairwoman Rep. Barbara Lee and Rep. Emanuel Cleaver wrote Obama to plead for help for minorities..

Washington (CNN) – Members of the Congressional Black Caucus called on President Obama Friday to address the skyrocketing unemployment rate facing minorities - especially African-Americans and Latinos - and greater economic conditions plaguing low-income communities.

"Our job is to make sure the legislation that gets to the president's desk responds to the degradation and the crisis in our community," said Rep. Sheila Jackson Lee, D-Texas, at a Friday news conference. "Our community is bleeding. And we are the worst hit."

According to the Bureau of Labor Statistics, the unemployment rate in November 2009 for blacks is at 15.6 percent - and 12.7 percent for Hispanics. In comparison, the rate for whites is 9.3 percent.

The latest job numbers show that a drop in the U.S. unemployment rate dropped from 10.2 percent to 10 percent in November.

"Our Nation has suffered substantial unemployment and underemployment over a prolonged period, which has imposed significant economic and social costs, particularly in communities of color," the December 9 letter, from Chairwoman Barbara Lee and Rep. Emanuel Cleaver to Obama, stated. "We appreciate your attention to these prescriptive measures and look forward to working with you."

Full Story:

Washington (CNN) – Americans are more concerned with lowering the massive budget deficit than boosting the ailing economy, according to a new national poll.

Fifty-six percent of people questioned in a CNBC survey released Friday morning say President Barack Obama and Congress should worrry more about keeping the budget deficit down even if that means delaying the economic recovery. That's 23 points higher than the 33 percent who feel boosting the economy should be the top priority, even if that means larger deficits now and in the future.

The poll also indicates that by a 54 percent to 33 percent margin, Americans prefer using the estimated $200 billion in leftover TARP funds for deficit reduction rather than for more stimulus spending.
TARP, or the Troubled Asset Relief Program, was created last year by the Bush administration to bail out American banks, financial institutions and auto makers that were in danger of collapsing in the recession. Earlier this week, Obama outlined a new proposal to boost jobs and give more help to consumers and small businesses, and possibly pay for such a plan with unused bailout funds. Congressional Republicans object to such a move.

A CNN survey conducted last month indicated that two-thirds of the public thinks the government should not run a deficit, even when the country's in a recession and at war.

"Only 30 percent say it's OK for the government to run a deficit in a time of war and economic turmoil," says CNN Polling Director Keating Holland. "Even among Democrats, 59 percent don't like the idea of federal deficits."

The CNBC poll was conducted December 1-3, with 808 adults questioned by telephone. The survey's sampling error is 3.5 percentage points.

–CNN Deputy Political Director Paul Steinhauser contributed to this story

Congressional leaders, including Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi, met Wednesday at the White House with the president.

Washington (CNN) - President Barack Obama called Wednesday for Republicans to work with his administration and Democrats in Congress on winding down the federal economic bailout program and creating jobs.

In a brief White House statement after meeting with congressional leaders from both parties, Obama said changing economic conditions since he took office called for new efforts to stimulate job growth.

Acknowledging "less than full bipartisan support" for his stimulus package and other steps "that have broken the free-fall of our economy," Obama said he hoped "we can move forward together."

One step would be ending the Troubled Asset Relief Program (TARP) from the previous administration that bailed out U.S. banks and automakers in danger of collapsing in the recession, Obama said.

"This program has served its original purpose and the cost has been lower than expected," the president said, adding that the savings would help pay down the federal deficit and invest in job creation.

Obama said he would work with congressional leaders from both parties on "how we can structure a plausible scenario to get to medium- and long-term debt reduction," saying such issues were neither Republican nor Democratic.

"I'm absolutely committed to working with anybody who is willing to do the job to make sure we can rebuild our economy," Obama said.

Sen. Mitch McConnell of Kentucky, the top Republican in the Senate, attended the meeting with Obama but signaled continued GOP resistance to the president's agenda, especially sweeping proposals such as health care reform and cap-and-trade energy legislation.

"We're willing to talk about some kind of job-creating measure, but the best thing we could do to get this economy rolling again would be to stop these measures from becoming law," McConnell said.

Such GOP intransigence sometimes bothers Obama, White House Press Secretary Robert Gibbs told his daily news briefing.

"Has the president been frustrated about this? Absolutely," Gibbs said, citing a lack of Republican support for the stimulus package and other steps that helped prevent "another Great Depression."

Now, Gibbs said, Obama was proposing job creation measures previously advocated by Republicans, such as increased investment in infrastructure development, cutting taxes for small businesses and helping them get access to capital.

"But, again, if the president outlines ideas that the Republicans have previously supported, and then Republicans seem unwilling to support the ideas they (previously) supported ..., you can leave it up to others to judge why it is they don't want to participate in a solution that we all agree and we've said in the past would put people back to work," Gibbs said.

(CNN) – If you're a Democratic political adviser right now, you've got one major question heading into the 2010 midterm elections: Do voters worry more about the skyrocketing deficit or high unemployment?

The answer: unemployment.

In fact, according to a recent survey done by Democracy Corps, a Democratic research firm, Americans worry twice as much about jobs as the deficit: "...When forced to choose, voters embrace a bold jobs initiative over a long-term deficit reduction program by two-to-one."

Ipso facto, a new jobs bill is born.

Never mind that the first stimulus package has yet to truly kick in. Or that, within the next month, the Senate has to hold its nose and vote to raise the federal debt limit above its current $13 trillion level. That's a tough vote, even for big spenders.

Full story

Washington (CNN) - Mortgage company executives and government officials faced an angry congressional committee Tuesday concerning some of the problems with the administration's mortgage aid program aimed at avoiding foreclosures. Many of the complaints lodged by members of the House Financial Services Committee focused on the slow pace of converting trial mortgage modifications into permanent ones under the program.

While over 680,000 borrowers now have temporary adjustments which last for several months, only a small fraction of those people have been offered new permanent mortgages.

"We are terribly frustrated," Committee Chairman Rep. Barney Frank (D-Massachusetts) told the hearing.

"Why can't we do so something...I am frustrated," Rep. Emanuel Cleaver (D-Missouri) said.

In an attempt to dramatically raise the number of homeowners whose mortgages are permanently revised, the government last week announced new steps to pressure companies, including such steps as sending Treasury Department and Fannie Mae personnel to the largest 7 mortgage servicers to personally make sure applications are being processed efficiently; giving the companies specific targets and publishing more detailed information about the institutions' conversion rates.

"I think the banks have a long way to go to get up to their full potential," Assistant Treasury Secretary Herb Allison told the committee, adding the institutions recently made progress towards more conversions. "Lights need to be shine on each of these banks."

Those eligible for the $75 billion Making Home Affordable program are people who occupy the home as their primary residence; have a loan balance less than $729,750 and have a mortgage payment greater than 31 percent of their gross monthly income. Once the participants are deemed eligible they enter into the trial modification phase in which their payments are lowered and under which the customer has to make at least 3 payments. If everything goes well in that preliminary stage and their financial situation hasn't changed, their applications are evaluated for the permanent modification.

A preliminary report shows as of September 1, only 1,711 or 1.26 percent of all trial adjustments were made permanent after 3 months, according to the Congressional Oversight Panel, which is monitoring the government bailout programs.

Some members of Congress said more pressure needs to be applied.

"The banks thumb their noses at all of us," Rep. Maxine Waters (D-California) said.

In an effort to push the companies to put more eligible homeowners into permanent modifications, Treasury Department officials on Monday met in Washington with the 17 mortgage providers, including Bank of America, JPMorgan Chase, Morgan Stanley, CitiMortgage and Wells Fargo.

"Permanent modification numbers will be released on Thursday, so servicers are on notice that they must ramp up and provide sustained relief to struggling homeowners now," Assistant Treasury Secretary Michael Barr said in a statement.

Failure to send in needed paperwork is a major problem the banks and the government are both trying to solve. A Treasury Department official has said only a third of those homeowners who made at least three trial payments have submitted all necessary documents.

Two companies who testified Tuesday said they want the program to work, have added staff to help improve processing and are increasing outreach to customers.

"We fully share Treasury's commitment to convert successful trial modifications to permanent as quickly as possible. In support of that commitment Bank of America is focusing on assisting customers in providing all of the necessary documents for underwriting. Otherwise homeowners are at risk of missing this opportunity...an outcome none of us wants," Jack Schakett of Bank of America told the committee. For example, he said just last week it sent out by overnight mail another request to 50,000 people who face a Dec. 31 deadline and who have failed to submit key documents.

At the hearing Molly Sheehan, senior vice president for JPMorgan Chase, explained some of the efforts it has undertaken especially for the 51percent of borrowers who are paying but have not submitted all of their documents: "A coordinated program to call our customers 36 times, reach out by mail 15 times, and make at least 2 home visits if necessary to help complete documents, ordering key documents earlier in the process so they are ready when the borrower's documents come in to expedite underwriting...assigning specific pools of accounts to loan modification counselors to provide continuity in dealing with the customer."

Washington (CNN) - Two years into the current recession, Americans don't see economic conditions getting better any time soon, and the steady growth in optimism that previous polls measured throughout the year appears to have stalled, according to a new national poll.

A CNN/Opinion Research Corporation survey released Tuesday indicates that 34 percent of those questioned say that things are going well in the country today. That's 14 points higher than a year ago, but a dip of 3 points since November.

Full results (pdf)

"This the first time in Barack Obama's presidency that this number has gone down," said CNN Polling Director Keating Holland.

According to the survey, 39 percent of the respondents say the country's still in a downturn, up 6 points from last month. Nearly half of those questioned say the economy has stabilized and a small minority, 15 percent, think the country is starting to recover.

"The recession has hit blue-collar families the hardest," Holland said. "More than half of whites who never attended college say economic conditions are still in a downturn. Most whites who attended college say things have stabilized or are starting to get better."

The poll's release comes hours before President Barack Obama delivers a major speech on the economy at the Brookings Institution, one of the oldest and most prestigious think-tanks in Washington.

It's clear why Obama is again addressing the economy: Although more U.S. troops are headed to Afghanistan and the Senate is debating health care, most Americans continue to say that the economy is the most important issue for them. Four in ten say the economy is their top concern; 17 percent cited health care and 16 percent say that Afghanistan and Iraq are the country's biggest problems.

According to the poll, 84 percent of those questioned say the economy is still in a recession, with 36 percent saying it's a serious one and another 35 percent calling it a moderate one.

What about the chances of the recession turning into another Great Depression?

"Forty-three percent say that might happen in the next 12 months, slightly higher than the number who worried about a Depression a year ago," added Holland.

The CNN/Opinion Research Corporation poll was conducted December 2-3, with 1,041 adult Americans questioned by telephone. The survey's sampling error is plus or minus 3 percent for the overall sample.

–CNN Deputy Political Director Paul Steinhauser contributed to this report.

TOPICS: Economy, recession, most important problem

Full results (pdf)

Bernanke: Fed will make profit on bailout.

New York (CNNMoney.com) - Federal Reserve chairman Ben Bernanke said Monday he's confident the Federal Reserve will make money on the trillions ithas pumped into the economy since the start of 2008.

"I think we're in very good shape," Bernanke said, answering questions following a speech at the Economic Club of Washington. "I do believe we're going to get back all the money, and indeed we'll be showing for the taxpayers fairly significant extra income."

Bernanke was referring specifically to Fed programs - not the Troubled Asset Relief Program (TARP). The U.S. Treasury will likely lose money on TARP, though the Obama administration is expected to announce soon that losses will be $200 billion less than initially expected.

The Fed has actually pumped far more money into the economy than Treasury did through TARP.

Its balance sheet soared to $2.2 trillion currently, from less than $900 billion before the financial crisis began in 2008.

The book on some of that lending is already closed. For example the Fed has stopped extending money for commercial paper, a form of short term borrowing used by the nation's largest corporations. The Fed had nearly $300 billion in commercial paper on its balance sheet a year ago, but has only about $15 billion today.

The company that was the biggest recipient of help from the Fed was insurer American International Group, which at one point in October 2008 owed the central bank nearly $90 billion. While the firm has yet to start paying back that money in cash, the government has taken various assets and units of the company in lieu of payment. The Fed intends to sell those assets in the future when they have a better market value.

Today, the Fed has AIG loans of only $20.7 billion.

In his comments, Bernanke did not specify if the Fed will make money on
the AIG transaction itself, or if losses there will be covered by other actions by the Fed during the crisis.

Much of the Fed's efforts to pump money into the economy came through the purchase of mortgage securities backed by finance firms Fannie Mae and Freddie Mac, as well as the debt issued by those companies. It eventually plans to purchase $1.25 trillion of those mortgages and $175 billion of that debt. It has also purchased about $300 billion in U.S. Treasurys.

Most of Bernanke's speech was focused on the outlook for the U.S. economy, and he repeated his earlier forecasts of moderate growth through next year, dogged by continued high unemployment.

Bernanke said that the U.S. economy continues to face "formidable headwinds" that are likely to result in only a moderate recovery.

He said credit remains tight for consumers and small businesses and that the labor market remains weak, despite an end to the deep job losses earlier this year.

"Household spending is unlikely to grow rapidly when people remain worried about job security and have limited access to credit," he said.

Bernanke repeated earlier assurances that inflation is not a deep concern, despite the trillions of dollars the Fed pumped into the economy.

And he's confident that the changes being made in oversight of banks and Wall Street should prevent another crisis such as the one that hit financial markets a year ago.

Obama leaning towards support for TARP funds to pay for jobs bill.

Washington (CNN) - President Obama is leaning towards supporting a Congressional Democratic plan to craft a jobs bill by using untapped bailout funds, according to two senior officials familiar with the deliberations.

The officials stressed that no final decision has been made by the president, but they noted he is likely to flesh out more details on the emerging economic package next Tuesday during a speech at the Brookings Institution in Washington. This new package is expected to be much smaller than the original $787 billion stimulus plan because of cost concerns at a time of deep government deficits.

Democrats on Capitol Hill and at the White House are considering a jobs package that would include funding for infrastructure projects, direct lending to small businesses and aid to cash-strapped states.

Using the untapped TARP funds has become an attractive option for Democrats, because it would not increase the budget deficit since those funds are already allocated. Republicans have been attacking the president for already sharply increasing federal spending during his first year in office.

White House spokesman Robert Gibbs on Friday hinted to reporters that Obama is "likely" to discuss the use of untapped bailout funds in Tuesday's speech. "The President thinks we should and must do everything in our power to create an environment for job growth and job creation," he said.

In addition, Democrats are considering a separate emergency spending package that would increase the deficit because the money has not yet been allocated. That package would include extended unemployment benefits, COBRA health benefits for people who have lost jobs, and food stamps.

Washington (CNN) - House Democrats said Thursday they're planning to use money intended to bail out banks, Wall Street and other financial institutions to pay for their jobs bill, a package they aim to vote on by the end of the
year.

"I think the TARP funds are appropriately used to create jobs to reduce the deficit," Speaker Nancy Pelosi said at her weekly news conference, referring to the Troubled Asset Relief Program.

It's unclear if the proposal would tap unused TARP funds or money repaid to the Treasury by banks who got bailout money. Democratic sources say leaders are discussing those details with the Obama administration.

Pelosi and other Democratic leaders have been looking at a series of proposals to address the record unemployment numbers in recent weeks and are now focusing on an initial package that Congress could vote on before leaving for the holiday break.

But the speaker stressed that "this is not the be-all" and said Congress will work on a broader economic proposal early next year.

The major piece of the Democrats' jobs package is a continuation of the centerpiece of the stimulus bill enacted earlier this year - investments in infrastructure such as water projects, high-speed rail programs, and retrofitting buildings with energy-efficient technologies. But, Pelosi argued, "this is not my father's public works program."

House Republican Leader John Boehner immediately rejected the idea, saying that bailout money was meant only for emergencies. "This idea that we're going to take this money that's being paid back to the government and then turn around and spend it on useless government programs is a very big mistake," he said.

Democrats also want to funnel money to pay directly for local needs that struggling state governments have been unable to support, such as more police, teachers, and emergency response personnel, according to several Democratic leadership sources.

In addition to the infrastructure spending, Democrats plan to extend unemployment assistance, pay for food stamps, and renew health care benefits for Americans whose coverage is expiring at the end of the year. But while the bailout money would be tapped to pay for the new infrastructure and jobs program components, Democrats do not plan to use it to pay for the extension of these benefits, according to these sources.

House Democrats met Thursday morning to discuss the size of a package that they could pass this year but no decisions were made. Pelosi told members she was still talking to the White House about it. But representatives agreed that if they are to vote on it this year it would need to be tacked onto the must-pass spending measure that funds the government.

"There's real urgency in our caucus to do something before Christmas," said one Democratic leadership aide.

The vice president looked on as the president spoke about jobs Thursday.

(CNN) – President Obama called on business leaders Thursday to help the administration kickstart hiring as policymakers contend with rising unemployment that’s weighing down the economy.

Some 130 executives, economists, small business owners and non-profit officials are gathering for the afternoon jobs summit at the White House on the eve of the government's November unemployment report. The nation is expected to have lost another 114,000 jobs, with unemployment remaining at 10.2%, the highest in 26 years, according to an economists' survey.

"I'm not interested in taking a wait and see approach when it comes to creating jobs," Obama said.

The employment picture is certainly grim. Nearly 16 million Americans are out of work, one-third of whom have been unemployed for more than six months. There are now six workers competing for every job vacancy.

President Obama and some lawmakers are searching for a way to stem this unrelenting loss of jobs, which is casting doubt on effectiveness of many of his economic programs, from his $787 billion stimulus plan to his $75 billion foreclosure prevention initiative.

Just how much Washington can do to boost hiring remains to be seen.

Full story

Romney lays out his plan to fix the economy in an op-ed Thursday.'

Washington (CNN) – Mitt Romney says that like other presidents, Barack Obama inherited a recession. But the former Massachusetts governor feels unlike his predecessors, Obama has made the recession he inherited worse, not better.

In an op-ed in Wednesday's USA Today, Romney says what he calls the president's inability to "stem" the rise in unemployment should not be a surpise.

"With no experience whatsoever in the world of employment and business formation, he had no compass to guide his path. Instead, he turned over much of his economic recovery agenda to House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, themselves nearly as inexperienced in the private sector as he," says Romney.

The op-ed's release comes hours before the president holds a jobs forum at the White House. The nation's unemployment rate stands at 10.2 percent, the highest level in 26 years. November's job report will be released Friday.

In the article, Romney, a Republican presidential candidate in the 2008 election and a possible contender for the 2012 GOP presidential nomination, lays out advice he terms a ten point plan to help reenergize the economy.

See Romney's "10-point plan" after the jump.

My 10-point plan

The president's economists insist that technically, the recession is over. But double-digit unemployment was neither prevented nor has it ended. To get people back to work as rapidly as possible and to restore America's economic vitality, the nation must change course. Here's the advice I would give:

• Repair the stimulus. Freeze the funds that haven't yet been spent and redirect them to immediate, private sector job-creation priorities.

• Create tax incentives that promote business expansion and hiring. For example, install a robust investment tax credit, permit businesses to expense capital purchases made in 2010, and reduce payroll taxes. These will reignite construction, technology and a wide array of capital goods industries, and lead to expanded employment.

• Prove to the global investors that finance America's debt that we are serious about reining in spending and becoming fiscally prudent by adopting limits on non-military discretionary spending and reforming our unsustainable, unfunded entitlements. These are key to strengthening the dollar, reducing the threat of rampant inflation and holding down interest rates.

• Close down any talk of carbon cap-and-trade. It will burden consumers and employers with billions in new costs. Instead, greatly expand our commitment to natural gas and nuclear, boosting jobs now and reducing the export of energy jobs and dollars later.

• Tell the unions that job-stifling "card check" legislation is off the table. Laying new burdens on small business will kill entrepreneurship and job creation.

• Don't allow a massive tax increase to go into effect in 2011 with the expiration of the 2001 and 2003 tax cuts. The specter of more tax-fueled government spending and the reduction of capital available for small business will hinder investment and business expansion.

• New spending should be strictly limited to items that are critically needed and that we would have acquired in the future, such as new military equipment to support our troops abroad and essential infrastructure at home.

• Install dynamic regulations for the financial sector — rules that are up to date, efficient and not excessively burdensome. But do not so tie up the financial sector with red tape that we lose a vital component of our economic system.

• Open the doors to trade. Give important friends like Colombia favored trade status rather than bow to protectionist demands. Now is the time for aggressive pursuit of opportunities for new markets for American goods, not insular retrenchment.

• Stop frightening the private sector by continuing to hold GM stock, by imposing tighter and tighter controls on compensation, and by pursuing a public insurance plan to compete with private insurers. Government encroachment on free enterprise is depressing investment and job creation.

The 10% unemployment crisis hangs like an albatross around President Obama's neck. Eventually, as with every recession and recovery, the economy will improve and jobs will be created, but those who were unnecessarily unemployed due to the president's faulty economic program will not forget. In order to most rapidly re-employ all Americans and to speed a strong recovery, the president must change course. If he does not, Republicans will bring a change of their own to Washington in the 2010 elections.

UPDATE: In a statement, the Democratic National Committee scoffed at Romney's ideas and claimed that Republicans have refused to offer their own plans to fix the economy.

"Now, instead of acknowledging, as leading economists and the independent CBO have, that the President's Recovery Act rescued this country's economy from the brink of disaster and has already saved or created 1.6 million jobs, Republican leaders like Mitt Romney and Eric Cantor are now offering 'plans' that are nothing more than a laundry list of the failed Bush-era economic policies that nearly destroyed our economy in the first place," said DNC national press secretary Hari Sevugan. "Mitt Romney's allegiance to Bush economics is one policy position he'd do well to flip-flop on."

White House is set to hold a jobs summit Thursday.

NEW YORK (CNNMoney.com) - With rising unemployment stymying the president's economic revival plans, the Obama administration is huddling with business leaders, academics and other experts Thursday to find a way to jumpstart hiring.

Some 130 people will gather for the afternoon jobs summit at the White House on the eve of the government's November unemployment report. The nation is expected to have lost another 114,000 jobs, with unemployment remaining at 10.2%, the highest in 26 years, according to an economists' survey.

The employment picture is certainly grim. Nearly 16 million Americans are out of work, one-third of whom have been unemployed for more than six months. There are now six workers competing for every job vacancy.

President Obama and some lawmakers are searching for a way to stem this unrelenting loss of jobs, which is casting doubt on effectiveness of many of his economic programs, from his $787 billion stimulus plan to his $75 billion foreclosure prevention initiative.

"We are going to be bringing together people from all across the country ... to explore how we can jumpstart the hiring that typically lags behind economic growth, but we don't want to wait," Obama said last week.

Full story

TOPICS: Economy, federal deficit, Obama economic policies

Full results (pdf)

The president spoke about the economy during a Cabinet meeting Monday.

Washington (CNN) - President Barack Obama cited progress toward economic recovery Monday, but said the pace remained slower than desired.

Speaking to reporters after his first Cabinet meeting since returning from last week's trip to Asia, Obama made clear that reversing the rising unemployment of the past year is the goal of his administration's economic recovery efforts.

"Our economy's growing again, for the first time in more than a year, and we know that economic growth is a prerequisite for job growth," Obama said. "But having said that, what I emphasize today is we cannot sit back and be satisfied, given the extraordinarily high unemployment levels that we've seen."

He called any progress so far "the first step in curing our economy and making sure that it is moving on the right track."

Business profits are rising, Obama said, but due to cost-cutting from the recession rather than increased demand.

"They have learned to produce the same amount of goods with fewer people," Obama said, adding that "all of these things contribute to challenges of creating jobs in this economy."

While the economy grew last quarter for the first time in a year and other indicators are turning positive, unemployment is above 10 percent and polls indicate most Americans are dissatisfied with current economic conditions.

Obama expressed confidence the economy will continue to strengthen and begin creating jobs, but he said the country needs policies now to "bridge" the period from the current difficulties to "that more prosperous future."

On his trip to Asia, Obama said, he discussed ways to increase U.S. exports to the region. Asian governments want more U.S. exports to help meet rising consumer demand in their growing economies, he said.

"If we can just increase our exports by 5 percent in that region, that means hundreds of thousands of well-paying jobs," Obama said. However, he cited regulatory issues and currency issues as obstacles to increased exports, adding that "we just haven't been as aggressive as we need to be."

At home, Obama said, polices to revamp infrastructure for a modern economy - including high-speed rail transport and clean energy technology - will help put people back to work. Those ideas and others will be discussed at the December 3 jobs summit he is holding in Washington, Obama said.

The president also acknowledged that at Thanksgiving, it's been a "very difficult year" for many Americans. Referring to his Cabinet sitting with him, he said: "We are extraordinarily blessed that we're in a position that we can make a difference in the lives of millions of people."

"We need to take advantage of that opportunity and redouble our efforts in the months and years to come," Obama said.

Washington (CNN) - Nearly two years into the recession, opinion about which political party is responsible for the severe economic downturn is shifting, according to a new national poll.

A CNN/Opinion Research Corporation survey released Friday morning indicates that 38 percent of the public blames Republicans for the country's current economic problems. That's down 15 points from May, when 53 percent blamed the GOP. According to the poll 27 percent now blame the Democrats for the recession, up 6 points from May. Twenty-seven percent now say both parties are responsible for the economic mess.

"The bad news for the Democrats is that the number of Americans who hold the GOP exclusively responsible for the recession has been steadily falling by about two to three points per month," says CNN Polling Director Keating Holland. "At that rate, only a handful of voters will blame the economy on the Republicans by the time next year's midterm elections roll around."

Thirty-six percent of people questioned say that President Barack Obama's policies have improved economic conditions, with 28 percent feeling that the president's programs have made things worse, and 35 percent saying what he's done has had no effect on the economy.

One reason for that, says Holland, may be the growing federal budget deficit: Two-thirds say that the government should balance the budget even in a time of war and recession.

The survey indicates that only 18 percent say the economic conditions in the country today are good, down 3 points from August. Eighty-two percent say economic conditions are poor.

"Some economic indicators may suggest that the economy has turned the corner - but try telling that to the American people," adds Holland. The number of Americans who say that the economy is in good shape - a number that grew steadily through the spring and summer - has now stalled, with fewer than one in five expressing a positive view of current conditions. More than eight in 10 say that economic conditions are in poor shape, with 43 percent calling them very poor.

The CNN/Opinion Research Corporation poll was conducted November 13-15, with 1,014 adult Americans questioned by telephone. The survey sampling error is plus or minus 3 percentage points.

Full results (pdf)

–CNN Deputy Political Director Paul Steinahauser contributed to this report

Follow Paul Steinhauser on Twitter: @psteinhausercnn

Washington (CNN) – A top House Democrat told reporters Tuesday that congressional Democrats are moving ahead with plans to vote before the Christmas holidays on legislation intended to create more jobs.

"Clearly 10.2 percent unemployment is unacceptable and is causing great pain to literally millions of people around the country." House Majority Leader Steny Hoyer said.

Hoyer said Democratic leaders are still deciding what components to include in the new jobs bill, but pledged they were on track to pass legislation before Congress breaks for the year. Several measures are under discussion, including additional unemployment assistance, extension of temporary health care coverage for those out of work, assistance for cash-strapped states, and tax credits for employers who hire new workers. Hoyer also indicated another federal infusion of money to build roads and bridges - a major component of the stimulus bill enacted in February - is likely to be a major focus.

But Hoyer insisted that the bill was not a so-called "second stimulus," because it would be more targeted than the $787 billion federal spending measure that is still being distributed for a wide range of projects around the country.

The Maryland Democrat refused to specify how much money would be needed or how long a period the legislation would cover. "It's clear that we need to act in a way that does get to the creation of job opportunities for people in the short term," he said.

House Republican Whip Rep Eric Cantor, R-Virginia, said he welcomed the news that Democrats wanted to pass a jobs bill.

But Cantor, who led the unanimous House GOP vote against President Barack Obama's stimulus package in February, questioned how serious Democrats are now about moving a bill targeted at job growth.

"We say it's about time. I say, you gotta be kidding me. They have for months now been about more spending, leaving a wake of deficits in their trail, and now they want to focus on what's important," Cantor said.

Cantor said he hoped Speaker Nancy Pelosi would include some of the GOP proposals, which focus primarily on business tax breaks aimed at reinvigorating the sluggish economy.

Asked about the public health insurance option contained in the House health care reform bill passed late Saturday night, and about the different variations of the public option that could still be included in the final version of the Senate bill, Virginia's governor-elect said he was not keen on having his state involved in government-provided health insurance.

"[T]he public option does not seem to be something that is going to help us in Virginia," McDonnell said Sunday on CNN's State of the Union.

"However they structure it," McDonell also told CNN Chief National Correspondent John King, "if it gives flexibility to states, I think that's a good thing." He added that he was "very concerned about turning this signifcant section of the American economy over to the federal government."

McDonnell also stood by his campaign promise not to raise taxes in his state.

"I think that's the worst thing you do in a recession is to raise taxes on - on the citizens. We're going to have hundreds of billions of dollars in new taxes at the federal level with this health care bill. When the tax cuts [passed under former Pres. George W. Bush] expire in 2011, it's going to be a crushing increase in new taxes."

"People want a better bang for their buck out of their government," McDonnell also told King, "and [they] don't want to have a tax increase every time we have an economic downturn."

Updated: 1:28 p.m.

Washington (CNN) - Mississippi Gov. Haley Barbour used the GOP's weekly address Saturday to argue that Tuesday's GOP victories in New Jersey and Virginia show that voters are more concerned about the economy and the jobs outlook than about health care reform.

Read Barbour's full address after the jump.

“Hi, I’m Haley Barbour, Governor of Mississippi, and I’m pleased to give the weekly Republican address.

“This past week’s been a momentous one in American politics. It marked the first anniversary of President Obama’s election.

“This week also saw the first big elections since this administration and its Democrat Majority in Congress took control of our federal government. The results made clear the American people don’t like where the Democrats are trying to take our country.

“Virginia and New Jersey elected new governors Tuesday, and in both cases, voters chose Republican governors to succeed the Democrats elected four years ago. Both are states that President Obama carried by large margins last year.

“Virginia’s Bob McDonnell, a conservative who focused his campaign on jobs and economic growth – the issues that concern most Virginia voters – won by nearly twenty points, as Republicans swept all statewide offices.

“In New Jersey, moderate Republican Chris Christie defeated incumbent Democrat Jon Corzine, despite several campaign visits by the President. Independents voted overwhelmingly for the Republican in both states.

“Independents, most of whom voted for President Obama only a year ago, are concerned where his policies are taking our country. Don’t take my word for it.

“Representative Jim Cooper, senior Democrat in Tennessee’s congressional delegation, called the election result ‘a wake-up call for Congress. A tidal wave could be coming,’ he said.

“Democratic Congressman Dan Boren of Oklahoma made his views plain, when he told the Wall Street Journal, ‘voters sent a clear message that the administration and the Congress need to focus on the economy. We need to focus on creating jobs right now, and you don’t do that by raising taxes on small businesses.’

“The Washington Post’s David Broder, dean of American political writers, identified a crucial factor in Tuesday’s voting. Broder wrote, ‘the more worried voters were about keeping or finding a job, the more likely they were to vote Republican.’

“Americans think economic growth and job creation are priorities one, two, three and four. Despite all the trillions of dollars in spending by this administration and Congress, voters see little progress on jobs.

“And, these elections came before it was announced that the unemployment rate had risen to 10.2 percent, the highest in 26 years.

“Americans’ concerns are greatly increased because Washington hasn’t been focused on economic growth and creating jobs. Instead, all the talk and attention has been on health care reform.

“And, now that the Democrat leadership has settled on a health care bill, what have Americans learned?

“This health care bill will cost another trillion-plus dollars. The bill will increase your health insurance premiums. It will cut Medicare spending for seniors by $500 billion dollars, and it will clobber small businesses, which creates most new jobs.

“Indeed, the National Federation of Independent Business, the organization of small businesses, projects the health care reform proposal pending in the House will mean 1.6 million fewer jobs – that’s right, it would cost 1.6 million people their jobs.

“Isn’t it easy to see why Americans sent that wake-up call on Tuesday?

“Now, the question is, did Democrats in Washington hear it?

“Will they listen to folks like Democratic Representative Michael Michaud of Maine who said after the elections: ‘People want jobs. We have to start focusing on jobs and the economy’?

“The best time to start’s now. The House Democrats’ health care bill should be withdrawn and reworked. There are many reforms that enjoy overwhelming bipartisan support in both houses of Congress.

“Great improvements can be made without a government-run health care system; without gigantic tax increases that fall primarily on small businesses; without a $500 billion cut in Medicare spending; without higher insurance premiums; and without costing 1.6 million people their jobs.

“Governors, including many Democrats, also realize this Democrat plan will result in tens of billions of dollars of state tax increases because it would greatly expand Medicaid and make state governments pay more than $30 billion that our states don’t have.

“Americans are a whole lot smarter than politicians give them credit for. Americans want and need jobs. Congress has been focused on health and energy legislation that will cost millions of jobs.

“Hopefully, Tuesday’s fire alarm will get Washington’s eye back on the ball: back on job creation and economic growth.

“I’m Governor Haley Barbour. Thanks for listening.”

(CNN) - Christina Romer, chair of the President's Council of Economic Advisors, released a statement Friday on the latest jobs report:

“Today’s employment report contained both signs of hope for recovery and painful evidence of continued labor market weakness.

Payroll employment declined 190,000 in October, continuing the steady trend of moderating job loss that began last spring. Furthermore, the employment loss in both August and September was revised down substantially. Importantly, employment in temporary help services, typically one of the first industries to see job gains, increased by 33,700. The motor vehicle industry also posted employment gains. These are hopeful signs that the unprecedented policy actions are working to stabilize the economy and put us on a path toward recovery.

The unemployment rate, however, rose four-tenths of a percentage point, to 10.2 percent. That this occurred despite the rise in real GDP last quarter reflects both the typical lag between GDP growth and unemployment decline, and the recent exceptional increases in productivity. Having the unemployment rate reach double-digits is a stark reminder of how much work remains to be done before American families see the job gains and reduced unemployment that they need and deserve.”

Republicans quickly responded to the latest jobs report Friday.

Washington (CNN) - The top Republican in the House of Representatives says the White House is "falling short" when it comes to battling unemployment.

"The president has said that job creation is the ultimate measure of economic performance. Today's report is yet another reminder that American families and small businesses are still struggling, and the White House response is falling short," said House Minority Leader John Boehner in a statement released Friday morning.

Boehner's statement was released just minutes after the Labor Department reported that the nation's economy lost 190,000 jobs in the month of October and the unemployment rate rose from 9.8 percent to 10.2 percent.

"A jobless recovery and double-digit unemployment are not what the American people were promised. Democrats pledged that the so-called 'stimulus' would create jobs immediately and keep the unemployment rate from going above eight percent. But since the 'stimulus' was signed into law, more than three million private sector jobs have been lost. Americans are asking 'Where are the jobs?' but all they've gotten from Democrats in Washington is more spending and more debt," adds Boehner.

Minutes after Boehner's comments, the Republican National Committee weighed in as well.

"With so many families looking for work, it is time the Obama administration stop spreading their phony 'saved or created' talking points and start creating the dependable jobs America needs. President Obama promised jobs during his campaign for president, and the elections in Virginia and New Jersey on Tuesday were a clear referendum on his failure to deliver on this promise," said RNC Chairman Michael Steele in a statement.

WASHINGTON (CNN) – The U.S. unemployment rate rose to 10.2 percent in October, the Labor Department said Friday.

It's the first time the unemployment rate has surpassed 10 percent since 1983.

Full story from CNNMoney.com

TOPICS: Most important problem

Full results (pdf)

The number of Americans who say the economy is their top issue is on the rise, according to a new national poll.

Washington (CNN) - The number of Americans who say the economy is their top issue is on the rise, according to a new national poll.

Forty-seven percent of people questioned in a CNN/Opinion Research Corporation survey released Friday morning say the economy is the most important issue facing the country today. That's up 6 points from August.

Health care, at 17 percent, remains second on the list. But the issue is down a few points from August, indicating that the furor caused by the late summer town hall meetings may be fading somewhat on the minds of most Americans.

Full results (pdf)

"Third on the list are the wars in Afghanistan and Iraq, with indications that more Americans are concerned by that issue as President Barack Obama continues a lengthy debate over whether to send more troops into combat," says CNN Polling Director Keating Holland.

The federal budget deficit also makes it into double digits, followed by education, terrorism and energy in single digits.

The poll suggests a geographic divide on the economy. In southern and western states, roughly half say that the economy is their biggest concern. In the Northeast and Midwest, the economy remains the number-one issue, but only four in ten say it is their top priority.

The survey's release comes as the Labor Department unveils the unemployment report for October. It also comes as the president plans to quickly sign legislation just passed by Congress that will offer up to 20 additional weeks of unemployment insurance, according to senior administration officials.

CNN polling released earlier in the week indicated that 47 percent of Americans approve of how Obama is handling unemployment, with 52 percent disapproving of the job the president's doing on the issue.

The CNN/Opinion Research Corporation poll was conducted October 30-November 1, with 1,018 adult Americans questioned by telephone. The survey's sampling error is plus or minus 3 percentage points.

–CNN Deputy Political Director Paul Steinhauser contributed to this report.

Washington (CNN) - As the White House braces for new numbers coming out Friday that could show unemployment has reached double digits, senior administration officials tell CNN the president is planning to quickly sign legislationjust passed by Congress that will offer up to 20 additional weeks of unemployment insurance.

The legislation that will be signed Friday morning also aims to stabilize the housing market with a one-time extension of the $8,000 tax credit for first-time homebuyers. The bill also provides an additional tax cut for businesses still struggling in the uncertain economy.

The bill signing will come just three days after an off-year election in which voters in several key races said the sluggish economy was a major factor in their votes.

The House and Senate have both approved an extension of unemployment benefits.

NEW YORK (CNNMoney.com) - Unemployed Americans are set to get up to 20 additional weeks of jobless benefits, while new homebuyers are poised to see the $8,000 tax credit extended into mid-next year.

The House approved the measures by a 403-12 vote Thursday afternoon, a day after the Senate passed the legislation. The bill now moves to the White House for the president's signature.

The closely watched legislation would extend jobless benefits in all states by 14 weeks. Those that live in states with unemployment greater than 8.5% would receive an additional six weeks. The proposal would be funded by extending a longstanding federal unemployment tax on employers through June 30, 2011.

The measure would apply to those whose benefits run out by Dec. 31, which is nearly two million people, according to Senate estimates. Those whose checks have already stopped would be able to reapply for another round.

Full story on CNNMoney.com

NEW YORK (CNNMoney.com) - After weeks of partisan debate, the Senate voted on Wednesday to lengthen unemployment benefits by up to 20 weeks and to extend the $8,000 homebuyer tax credit.

The closely watched legislation would extend jobless benefits in all states by 14 weeks. Those that live in states with unemployment greater than 8.5% would receive an additional six weeks. The proposal would be funded by extending a longstanding federal unemployment tax on employers through June 30, 2011.

The measure would apply to those whose benefits will run out by Dec. 31, which is nearly two million people, according to Senate estimates. Those whose checks have already stopped would be able to reapply for another round.

The vote was 98 to 0.

The measure now moves to the House, which passed its own benefits extension in September, giving an additional 13 weeks in high-unemployment states. The two bills must now be reconciled, though the House is expected to support the Senate's version.

Full story on CNNMoney.com

(CNN) - What was on the minds of New Jersey voters as they voted for governor Tuesday?

More than a third of voters - 39 percent - said the quality they were looking for most in a candidate was the ability to bring change, and most of them said they had voted for the Republican Chris Christie, a former federal prosecutor, who CNN projects won the race. That's according to early CNN Exit Poll data.

32 percent of voters said the economy and jobs was the most important issue. Most of these voters said they voted for Democratic incumbent Governor Jon Corzine. Property taxes were the most important issue for 26 percent of voters. They voted in large part for Christie.

Updated 10:38pm ET

(CNN) - As voters went to the polls in Virginia Tuesday to elect a new governor, the economy was on their mind.

83 percent said they are very or somewhat worried about economic conditions, according to early CNN Exit Poll data. Those who are most worried voted overwhelmingly for Republican Bob McDonnell, who CNN projects won the race. Another 11 percent said they are not too worried about the economy. Democrat Creigh Deeds captured most of that vote. Just three percent said they're not worried at all about the economy.

Almost half of the respondents said the economy and jobs was the most important issue. A quarter said health care was the most pressing issue.

More complete data will be released later in the evening.

(CNN) - The economy and jobs are the number on issue on the minds of voters in Virginia, according to data from CNN exit polls Tuesday.

Forty-six percent of Virginian voting Tuesday, as Republican Bob McDonnell and Democrat Creigh Deeds faced off for the governor's mansion, say that the economy and jobs are the most important issue to their vote. One in four indicate that health care reform is their most pressing issue, 14 percent said taxes were upmost on their minds, and 8 percent suggest that transportation woes were most pressing.

"The economy as the number one issue probably bodes well for the Republicans in Virginia," says CNN Senior Political Correspondent Candy Crowley.

Those questioned in exit polls were asked their opinions after they voted, as they departed polling stations.

President Barack Obama warned Monday that more job losses should be expected in the months ahead.

WASHINGTON (CNN) - President Barack Obama warned Monday that more job losses should be expected in the months ahead despite recent signs of economic recovery.

He also called for "new models" of economic growth to help avoid a repeat of what he said was the debt-driven expansion of the past.

"We anticipate that we're going to continue to see some job losses in the weeks and months to come," the president said during a meeting with several of his top economic advisers.

There is "always a lag of several months between businesses starting to make profits again and investing again and them actually rehiring again."

Obama also said, however, he's confident "that having moved the economy on the right track ... there's no reason why we're not going to be able to not only create jobs, but the kind of sustainable economic growth that everybody's
looking for."

The White House has highlighted several indicators of economic stabilization over the past week. Among other things, administration officials have argued that the Democrats' controversial $787 billion economic stimulus program helped stave off a depression and spark 3.5 percent growth in the third quarter.

On Friday, the administration released a report claiming the program helped create or saved over 640,000 jobs.

Republicans questioned the validity of the White House report, saying it exaggerated the program's effectiveness. Each new job, critics charged, cost $248,000 to create.

The Commerce Department said construction spending rose unexpectedly in October by almost 1 percent. Economists surveyed by Briefing.com were anticipating a 0.5 percent decline.

Meanwhile, the National Association of Realtors reported pending home sales rose much more than expected, by 6.1 percent, in September. Analysts were looking for a 1.2 percent increase.

Unemployment, however, is currently close to 10 percent, and has continued to rise in recent months.

In his Crib Sheet, CNN's John King looks back at Sunday's talk shows and ahead to the topics that will be making news this week.

The state of the economy and of our politics dominated the Sunday conversation. To sum up the administration’s message in a sentence: We have hit the bottom, but it is choppy.

There was also a Republican promise to have a detailed health care proposal – complete with a scoring from the Congressional Budget Office – by the end of this week.

And a lot of talk about whether the conservative-Republican divide in a special New York congressional election is a healthy struggle, or a sign of festering internal tensions that will carry over and hurt the GOP’s chances in next year’s midterm elections.

A lot to digest, so let’s get right to the best Sound of Sunday:

ECONOMY AND JOBS

Vice President Joe Biden, speaking with CNN’s Ed Henry earlier in the week
“I’m confident we’ve hit bottom, the question is, look, we’re not going to be satisfied Ed until I’m able to sit in front of you and say look, this month we grew jobs. The net effect is growing jobs. It doesn’t say a lot to people to say, you know, there would have been a million more or six million more jobs lost but for this (stimulus).”

House Minority Leader Rep. John Boehner (R-OH) on CNN’s “State of the Union”
“I don't think anybody knows whether we've hit bottom. The one thing I do know that there's no model for estimating how many jobs could have been saved or created as a result of the stimulus package. All I know are the facts. The president said that when he signed the bill that unemployment would not exceed 8 percent. Now we have unemployment nearly 10 percent. He also said that jobs would be created immediately and the fact is, they haven't.”

House Minority Leader Rep. John Boehner (R-OH) on CNN’s “State of the Union”
“Three million Americans have lost their jobs sense the stimulus was signed into law. And yes, the economy grew last month. But after $1 trillion of an economic stimulus plan was spent, probably another $7 trillion or $8 trillion that the fed has pumped into the economy, I would hope that we've seen some economic growth. But Americans all around the country continue to ask the question, where are the jobs?”

Treasury Secretary Timothy Geithner on NBC’s “Meet the Press”
“This is going to be a different recovery than the past because Americans are going to have to save more. A lot of damage was caused by this crisis; it's going to take some time for us to grow out of this. Could be a little choppy, it could be uneven. And it's going to take a while, but I think this is encouraging signs.”

Treasury Secretary Timothy Geithner on NBC’s “Meet the Press”
“Unemployment is worse than almost everybody expected. But growth is back a little more quickly, a little stronger than people thought and growth is a necessary condition. With growth, jobs will come but growth has to come first.”

The treasury secretary also said the administration was “going to have to make some hard choices” to restore fiscal discipline to federal spending and make inroads in cutting the deficit. But he was coy when pressed on whether those “hard choices” might include additional tax increases.

Treasury Secretary Tim Geithner on NBC’s “Meet the Press”
“Right now we're focused on getting growth back on track. And we're not at the point yet where we have to decide what it's going to take. And I just want to say very clearly, he (President Obama) was committed in the campaign and he said very clearly he wants to make sure we do this in a way that is not going to add to the burden of people making less than $250,000 a year. Now it's going to be hard to do that, but he's committed to doing that. And we can do that.”

Leader Boehner walked into our “State of the Union” studio in the middle of a workout of sorts: lugging the 1,990 page House Democratic health care bill.

What he was not carrying was a comprehensive GOP alternative, but he told us there would be one in the week ahead.

HEALTH CARE AND THE GOP
House Minority Leader Rep. John Boehner (R-OH) on CNN’s “State of the Union”
Boehner: “We are going to have a proposal.”

Boehner: “We do not raise taxes, do not cut Medicaid or Medicare, and do not have mandates on individuals or businesses.”

Independent Sen. Joe Lieberman held fast in his threats to block health care legislation if it contains any form of public option.

WHAT ABOUT THE PUBLIC OPTION?
Sen. Joe Lieberman (I-CT) on CBS’ “Face the Nation”
“I feel so strongly about the creation of another government health insurance entitlement, the government going into the health business, I think it’s such a mistake, that I would use the power I have as a single senator to stop a final vote.”

White House Senior Adviser David Axelrod on CBS’ “Face the Nation”
“I think both the House and Senate are going to move forward on bills that will likely have a public option. The president believes the public option is valuable to create competition within the insurance industry. In this – among this group of people who don’t have insurance today, it will reduce costs and it will be a positive thing.”

White House Senior Adviser Valerie Jarrett on ABC’s “This Week”
“This has been an unusual process, it's been open, it's been transparent, often times the sausage making in Washington is a little off- putting, but look how far we've come. Five different committees have approved health care. It's not being debated and all of those five committees have, the content of those bills is consistent with what the President put forward.”

Tuesday’s elections were a hot topic, and a good deal of time was spent on NY 23 – the congressional race in upstate New York. The endorsed Republican candidate, Dede Scozzafava, dropped out of the race Saturday, leaving Democrat Bill Owens in a battle with Doug Hoffman, who is the Conservative Party’s candidate.

The race has become a national debating point because some prominent conservatives and conservative organizations backed Hoffman, including former Alaska Gov. Sarah Palin.

Now, the question is whether their actions send a broader signal that moderates are not welcome in the GOP, or, as most conservatives argue, whether this was an isolated race with peculiar circumstances and should not be considered a leading indicator of future behavior.

TUESDAY’S STAKES
House Minority Leader Rep. John Boehner (R-OH) on CNN’s “State of the Union”
“This is a pretty unusual situation. You had seven county chairmen who chose Dede to be our nominee. And clearly, she would be on the left side of our party. We accept moderates in our party and we want moderates in our party. We cover a wide range of Americans.”

White House Senior Adviser David Axelrod on CBS’ “Face the Nation”
“I think we've seen an interesting development over this weekend in a special election in upstate New York in a congressional district. The Republican candidate withdrew because of the strong third-party movement behind a very right wing conservative. Certainly Mr. Limbaugh and others were behind that. I think it sends a clear message to moderates within that party that there's no room at the inn for them.”

Gov. Haley Barbour (R-MS) on CNN’s “State of the Union”
“The state party chairman who left office, instead of having a primary where all the Republicans could have a voice in who they wanted, instead they let a handful of people pick somebody who is not just a liberal Republican, she's more liberal than many of the Democrats. But that's not the issue. The issue is that people didn't get a choice and so they didn't feel beholden to this state representative.”

Other Sunday Flashpoints:

AFGHAN ELECTION TURMOIL
House Minority Leader Rep. John Boehner (R-OH) on CNN’s “State of the Union”
“Dr. Abdullah's exit from this race, I think, really says more about the fact that he knew he wasn't going to win. But that should not hamper our decision with regard to Afghanistan.”

PRESIDENT OBAMA’S VISIT TO DOVER AFB
Radio Talk Show Host Rush Limbaugh on “Fox News Sunday” “It was a photo op. It was a photo op precisely because he's having big-time trouble on this whole Afghanistan dithering situation. He found one family that would allow photos to be taken. None of the others did. And, of course, when you have sycophantic media, following you around able to promote and amplify anything you want. Then he can create the impression he has all this great concern.”

White House Senior Adviser Valerie Jarrett on ABC’s “This Week”
“He wouldn't have done it in public if the families had objected. So the first and foremost thing is what's important to the families, and I think it's for us all to recognize what's at stake, and so when you talk about numbers like 40,000 troops as I said a minute ago, I think it's a reminder about how deep the sacrifice is, and it's something that's open and transparent, and it's a way for him as President to convey to those families, on behalf of the American people, how much we appreciate that enormous sacrifice we have made.”

Enjoy the rest of your Sunday and the week ahead,

John King

Washington (CNN) - Economic growth and job creation remain the government's top priorities, despite a federal deficit that is "too high," Treasury Secretary Timothy Geithner said in an interview broadcast Sunday.

Geithner called the latest report of economic growth in the third quarter "good news," but in the interview taped Saturday with the NBC program "Meet the Press," he stopped short of declaring the recession over.

The Obama administration's two "central imperatives" were restoring sustainable economic growth and creating jobs, Geithner said. Lowering the deficit could then occur as the economy recovers fully, he said.

The deficit will "have to come down; it's too high," Geithner said.

Asked how to lower the deficit, Geithner acknowledged that the government faces "hard choices" but wasn't ready to decide on raising taxes. He reaffirmed President Barack Obama's campaign pledge against increasing the tax burden on those making less than $250,000 a year.

"We're going to have to bring our resources and our expenditures more in balance," he said, adding that economic growth is a pre-condition for job creation and eventual budget balancing. "Right now we're focused on getting growth back on track."

Geithner cited the need to open more credit for small businesses, warning that financial institutions accused previously of taking on too much risk now may be too cautious.

"The big risk we face now is that banks are going to overcorrect and not take enough risk," he said.

Asked about unemployment, Geithner said the situation would continue to worsen before it gets better. He said economic growth was the necessary pre-condition for job creation that would reverse the continuing increase in jobless numbers.

Geithner also said it was too soon to know if a second economic stimulus package was needed, but he supported plans before Congress to extend unemployment benefits and the homebuyers' tax credit that originated under the previous stimulus package.

The economic discussion allowed Geithner to advocate health care reform legislation before Congress, saying deficit reduction was dependent on bringing down health care costs.

"The best way to add to a long-term deficit and add to the burden is not reforming health care today," Geithner said.

NEW YORK (CNNMoney.com) – The Obama administration said Friday that stimulus has created or saved 640,000 jobs so far.

But what does that mean exactly? Have that many people been hired? Here's a quick guide to understanding just what those numbers mean:

1) How are the jobs calculated? It isn't as simple as "one person hired equals one job created," or even "one person retained equating to one job saved."

The government instructed stimulus recipients to report jobs created or saved as "full-time equivalents." If that sounds complicated ... it is.

Full-time equivalents are calculated by adding up the total number of man hours being funded by stimulus for the duration of the contract. That number is then divided by the total number of hours a regular full-time employee would work during the same time period.

For example, say a contractor received a one-year stimulus contract and used those funds to hire a technician for 40 hours a week and an electrician for 20 hours a week for the full year. In addition, the contractor hired a surveyor to work 40 hours a week for six months. In the end, the three employees worked a combined average of 80 hours a week over the course of the year, so the company would have reported that it created two jobs.

Keep in mind, the government's tally only includes those jobs created directly as a result of stimulus projects and activities. It does not include any jobs that may have been saved or created from the Recovery Act's $288 billion of tax relief. The total also excludes jobs indirectly created by stimulus, like companies that make materials for a stimulus-funded bridge.

2) How long do the jobs last? Some of the jobs last for the complete duration of the stimulus contracts, which vary in length from a month to several years. But many of the jobs are temporary positions and last for just weeks.

A number of jobs were already in place before the Recovery Act was signed, and stimulus recipients reported that they were able to save those jobs as a result of the stimulus money. Most of those jobs don't have a fixed timeframe, and those positions could be retained after the stimulus money runs out if the employers are able to keep the saved employees on their payrolls.

In the end, it depends on the nature of the job and the stimulus project to determine how long the jobs will last.

3) What kind of jobs has stimulus created or saved? The full reports have not yet been released, but an early glimpse at the data show that stimulus has created or saved jobs from a wide variety of industries.

For private companies that received money directly from the government, most of the jobs that were saved or created were construction jobs for highway, building or nuclear facility dismantling projects. But some of the biggest non-construction job creators came from other fields, like people hired to process and deliver turkey to food banks or oceanographers in the Gulf of Mexico.

4) Who reports the data? Any business, state or local government that has received stimulus funds directly from the federal government is required to report on how many jobs they saved or created.

Those "prime recipients" of stimulus funds often send the money to "sub-recipients." In the case of stimulus money that went to state and local governments, those sub-recipients include schools, construction companies and hospitals. In most cases, the prime recipients report on job creation on behalf of the sub-recipients, but in some cases both report separately.

The government is not allowed to change the reports in any way in order to maintain a certain level of transparency. If errors are found in the data, the government agencies can suggest that changes be made, but cannot actually change the data themselves.

5) What is the cost breakdown? The whole Recovery Act is $787.2 billion. That breaks down into two broad categories: spending and tax relief. Of the $499 billion in spending provisions, $150 billion has been spent so far. Of the $288 billion in tax relief, $189 billion has made its way out the door.

Since the jobs reporting only comes from the spending portion, it is impossible to know the true cost to taxpayers for each job created or saved. But based on the spending portion, taxpayers paid about $234,000 per job created.

WASHINGTON (CNN) – In an exclusive interview with CNN, Vice President Joe Biden said Friday he believes the economy has "hit bottom" and he's confident the stimulus package is helping to put the economy back on track.

"Oh I'm confident we've hit bottom," Biden said. "The question is look, we're not going to be satisfied, Ed, until I'm able to sit in front of you and say, 'Look, this month we grew jobs.'"

The vice president acknowledged that with unemployment at 9.8 percent across the country right now, it is hard to convince the American people the nation is coming of out of recession. Biden made his comments on a day in which he released a new report claiming the stimulus has created or saved somewhere between 640,000 and one million jobs.

"The net effect is growing jobs," said Biden, though he quickly acknowledged: "It doesn't say a lot to people to say, 'You know there would have been a million more ... jobs lost but for this [stimulus]. My grandpop used to have an expression... We lived in Scranton, Pennsylvania.

He said when the guy in Dixon City, a suburb, is out of work it's an economic slowdown. When your brother-in-law's out of work, it's a recession. When you're out of work, it's a depression. And it's a depression for millions of people."

Biden added there's a "necessary disconnect when people are out of a job," but he asserted that the recent report showing that the Gross Domestic Product has grown 3.5 percent in the last three months shows the recovery plan is working.

"Every expert out there has said... - and you know this - is that in a large part is attributable to the stimulus package," said Biden. "Put another way, without the stimulus package, the economy wouldn't have grown this last quarter."

TOPICS: Economy

Full results (pdf)

The number of Americans who think the country's economy is currently in very poor shape is on the rise.

WASHINGTON (CNN) - The number of Americans who think the country's economy is currently in very poor shape is on the rise, according to a new national poll. But the CNN/Opinion Research Corporation survey released Thursday also indicates that a growing number of Americans think the worst of the recession is over.

Forty-two percent of those questioned in the poll say they rate the economic conditions in the country today as very poor. That's an increase of seven points since August. That figure had been dropping steadily since the spring. According to the survey, 16 percent rate the current economic conditions as good, a drop of 5 points from August. That figure had been steadily rising since the spring.

But the poll also indicates that a third of Americans think the country's still in a downturn, a drop of 7 points from June. Half the people questioned say the economy's stabilized, an uptick of 2 points from June, with 17 percent feeling the country is starting to recover, up 5 points from June.

"Americans don't like where the economy is, but they seem to be hopeful about the direction it is headed in," says CNN Polling Director Keating Holland. "Two-thirds think the economy has stabilized or has started to recover. That doesn't mean they think it's in good shape now - but it might be in the foreseeable future."

The survey's release comes as the number of first-time filers for unemployment insurance rose last week, snapping two weeks of significant declines, according to a government report issued Thursday.

The latest Federal Reserve snapshot of regional economic conditions reports that the economy has shown signs of stabilizing or modestly improving in recent weeks, especially the housing market and manufactoring activity.

"Reports of gains in economic activity generally outnumber declines," the Fed said Wednesday in the most recent edition of its Beige Book. "But virtually every reference to improvement was qualified as either small or scattered."

According to the survey, 43 percent think that President Barack Obama's policies, such as the federal stimulus program, have already had a positive impact on the economy. Another 13 percent say the president's plans aren't working yet, but will make the economy better in the future, and 42 percent say Obama's programs won't help at all.

"Skepticism about Obama's economic program is highest in rural areas and in the Midwest," says Holland. "That's where we may see some real battles for House seats next year."

The CNN Opinion Research Corporation Poll was conducted October 16-18, with 1,038 adult Americans questioned by telephone. The survey's sampling error is plus or minus 3 percentage points.

Full results (pdf)

Follow Paul Steinhauser on Twitter: @psteinhausercnn