Americans Worried Recession Could Last

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WASHINGTON -- Talk of banks failing and iconic automakers going into bankruptcy have Americans worried from Wall Street to Main Street.

In Washington, the debate over how to rescue the economy rages on.

Click the player to watch the report from CBN News Washington Correspondent John Jessup followed by Pat Robertson's comments on how Washington politicans are not fixing the economy.

If the current recession lasts just one more month, it will be the longest on record since World War II.

President Obama: Tough Days Ahead

In his weekly address, President Barack Obama said Americans will get through this crisis, though there will be tough days ahead.

"That's why we're moving forward with an economic agenda that will jump start job creation, restart lending, relieve responsible homeowners, and address the long-term economic," Obama said.

But not everyone agrees on the plan. Republicans say instead infusing banks like Citigroup with cash, the government should let them fail.

"When the stress tests are administered and you can see that this bank is a zombie, I think there's growing political will that we're not going to keep throwing good money after bad," said Sen. Lindsey Graham R-SC.

"Close them down, get them out of business," Sen. Richard Shelby, R-AL said on ABC's This Week. "If they are dead they ought to be buried. We buried some small banks. We ought to bury some big ones and send a strong message to the market."

Should General Motors Declare Bankruptcy?

The message is not just for financial firms on Wall Street. Some say it should apply to the auto industry as well.

Arizona Senator John McCain criticizes the administration's efforts to keep General Motors from going bankrupt.

"I don't think they made the hard decision, and that is to let these banks fail, to let General Motors go into bankruptcy and re-emerge and reorganize with new contracts with labor and others," McCain told FOX News. "I don't think they've made the tough decisions. Some of these banks have to fail."

With February's numbers reporting the worst sales in 27 years, Michigan Governor Jennifer Granholm says bankruptcy would only do more damage.

"A bankruptcy by GM would be terrible for the state of Michigan," she explained. "It would be terrible for the workers. It would terrible for, frankly, not just Michigan, but for the entire nation."

All the talk of bank failures and GM filing for bankruptcy not only has Wall Street investors nervous, it has families becoming more frugal with their finances. They are worried that the recession will worsen, digging in deeper and last longer.

"But poll numbers show that they have a great deal of faith in the President's plan, in the President's ability to get us out of this mess," Sen. Charles Schumer, D-NY told NBC's Meet The Press Sunday.

But with the other economic data on the decline, the question is how long will Americans faith in the President's plan last.

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CBN News
John Jessup

John Jessup

CBN News Washington Correspondent

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