Fiscal cliff would drive the U.S. economy back into recession.

Fiscal cliff would drive the U.S. economy back into recession before end of 2013, a new report from the Congressional Budget Office said. Congressional Budget Office released a report showing that the most harmful consequences of the fiscal cliff, a fully armed and operational fiscal cliff would cost us 3.4 million jobs. Obama Fiscal Cliff Deal Risks Brush With Recession

WIRE: USA 'Bankrupt and We Don't Even Know It'

The U.S. is bankrupt. Neither spending more nor taxing less will help the country pay its bills...

China's billionaires lose a third of wealth in credit crisis

Plunging property and share prices knocked a third off the average wealth of China's billionaires in the first fall for seven years...

Recession deeper than gov't previously thought

The Commerce Department, in revisions issued Friday, estimates the economy shrank 2.6 percent last year...

Europe's prospects brighten as USA fades...

The U.S. "economy entered the second quarter with plenty of momentum but exited with very little,"

Study: Many of retirees' savings will run out too soon

A third of middle-income workers will likely run out of money after 20 years of retirement...

FDIC: Bank Failures to Cost Around $100B

Federal regulators expect bank failures to cost the deposit insurance fund about $100 billion in the next four years and the fund to fall to a negative balance this month..

Source: www.myfoxchicago.com

Risk-Taking Is Back For Banks

Risk-Taking Is Back For Banks 1 Year After Crisis

Unemployment spike wounds Dems

The economy could prove the issue that really hurts the Democratic party in the 2010 midterm elections...

CHINA THE NEW POWER: Holds $1 trillion in U.S. debt. $2 trillion in foreign reserves,

Success in winning China's help with global tasks like reviving the world economy or fighting climate change can depend on which China you're talking to: the established economic powerhouse or the developing country.

Source: www.reuters.com

"I collected unemployment for two months, and I felt incredibly guilty. I do feel guilty. I do…” Generation Y: The young and the jobless…

I heard New York has to borrow something like $100 million from the government to pay for everyone on unemployment,"

Read more collecting unemployment….

Source: www.msnbc.com

US deficit soars - $765 billion in 5 months

Lower tax revenue and massive government spending on the bank bailout pushed the federal deficit to $765 billion in the first five months of the budget year, well on its way to hitting the Obama administration's projection of a record annual imbalance of $1.75 trillion....

Read more US deficit soars

Source: www.economictimes.indiatimes.com

U.S. workers may be forced into shorter workweeks

Among U.S. employers trying to stave off layoffs, "furlough" is the buzzword. State and local governments, universities, architectural firms and concrete factories are begging workers, or in many cases forcing them, to take unpaid time off.

President Barack Obama has praised "the selflessness of workers who would rather cut their hours than see a friend lose their job."…

Read more shorter workweeks…

Source: iht.com

World stock markets hit another wall

Stock markets in the US and Europe tumbled on Thursday after Chinese authorities failed to deliver a stimulus package expected by many investors and European central banks slashed interest rates in response to a worsening recession.

The global turmoil combined with continuing concerns about US banks - Citigroup fell below $1 a share at one point - to send the S&P 500 skidding 4 per cent to its lowest level since September 1996. Germany’s Dax lost 5 per cent, France’s Cac 40 fell 4 per cent and the UK’s FTSE 100 dropped 3 per cent...

Read more Global stock markets tumble

Source: www.ft.com

Citi Thrown Another Lifeline

The Treasury Department hopes the third time is a charm, confirming Friday that Citigroup will convert $25 billion of prior taxpayer bailout money into active shares in the troubled banking firm. That means taxpayers could soon have a...

Read more Life or death for Citi

Source: Miami herald

Japan Industrial Output Hit Hard

Japan's industrial production fell by 10% in January - the biggest monthly drop since records began more than half a century ago, the government says...

Read more japan takes a dive....

Source: bbc news

Unpaid furloughs a trend for U.S. white-collar jobs

U.S. newspapers have done it. California police have too. Governments in California, New Jersey and Ohio say it will save the budget. Forcing workers to take unpaid time off is a new version of the American layoff…..

Read more furloughs a trend for U.S. white-collar jobs


Source: reuters

U.S. Stocks tumble to 1997 levels

US stocks pushed to levels not seen in more than a decade as complete risk aversion and the weight of a global recession led investors to either get out or bet against equities once again. Industrials and materials.....

Read more wall street stocks tumble, again..

Source: world news

When is a housing crisis like venereal disease?

“Preventing foreclosures has a lot in common with treating syphilis. In both cases, you help some who are undeserving, but – in an economic collapse or a public-health emergency – one acts nonetheless. ”

Just as in an serious epidemic, you’d take care of the problem and leave moral judgements to others, the right course of action is to take action to halt the housing crisis and leave the debate about moral hazard to economists, she wrote in a note to clients on Friday....

Read more housing crisis like venereal disease...

Source: reuters

Undercapitalized Bank List Grows

The number of banks considered undercapitalized per regulatory guidelines rose to 45 as of Dec. 31 from 38 in September, according to Highline Financial.

While that might not seem like a significant increase for this environment, there were 12 bank or thrift failures in the fourth quarter alone….

Read more Undercapitalized Banks

Source: the street