Economy AM

NBC News Channel
Published: December 29, 2008

It was a dismal holiday for retailers.

Stores sales plunged as much as 8% and online sales dropped for the first time since they’ve been recorded.

Now, we’re waiting for the latest word on home prices.

A report due out tomorrow last recorded a 17% drop in September.

President-elect Barack Obama is in Hawaii working on an economic plan that includes an immediate middle class tax cut.

Senior Obama Advisor David Axelrod said “it’s vital people are, are—need money in their pockets to, to spend. That’ll help get our economy going again.“

The stimulus is expected to include federal help for state projects to create or save three million jobs at a cost of $6 to $775 billion.

One nobel-prize winning economist worries that’s too small.

Paul Krugman says “even these enormous numbers we’re hearing about are probably enough to mitigate, but by no means to reverse the slump we’re headed into.“

Republicans are willing to do something but they’re worried a cash handout to states won’t help.

Tennessee Senator Bob Corker says “whatever we do, again, let’s make sure that it’s productive, it actually consists of things that need to be done, and actually move our economy ahead.“

What started in housing may now be moving to commercial real estate.

As shopping slows and stores close or struggle to stay open malls are seeing more empty spaces.

Their stock, expected to close down 60% for the year.

And many economists say we’re still months from seeing the real estate market bottom out.