Part of the problem with the job market is that the people who don't have jobs don't have extra money to spend. So, in turn, other companies who wouldn't normally not be having problems are also suffering because spending is down. Then, the other companies have to lay people off, and then there is less money and spending to go around to the rest of the companies. It is a slippery slope. A business' objective is always to look for more money, and when the general population isn't spending, they have to cut costs. No one is spending so all business are going to cut costs. Which then means less jobs.
I was a casualty of this situation. Charter Communications has filed for bankruptcy. I lost my job in early February. Remember "Bloody Monday" when like 75k people got laid off around the country. I was one of those people. When I was working, I had a serious spending problem! I would go shopping and spend way more than I should just because I had the money. Now that I'm unemployed, I've fallen into the trap of conservation, effecting more businesses.
If Obama was to let all of the poorly managed businesses, specifically, the auto industry collapse, Michigan would become a ghost town quickly. There aren't a whole lot of good paying jobs already, especially in Saginaw, and the good ones we have are quickly drying up. If the auto industry fails, all the other businesses are effected and more people are laid off subsequently.
The hard part is waiting for things to get better, but we need to stabilize before we can repair. And that is what Obama is currently trying to do. Stabilize the economy, attempting to keep it from getting worse. Obviously things won't change over night, but I feel confident knowing that someone is actually trying to FIX the problem, rather than letting it burn out of control as we did for the last 8 years. These are fundamental problems that have gotten out of control and it will take years to be repaired.