Sub-Topics Budget Deficit Federal Stimulus Funds Living Wage Medicare Outsourcing Jobs Overseas Retirement Social Security Stimulus (ARRA) Wealth and Happiness Also Try Business Economy Archives Investments Lessons on the Economy Politics Game Budget Hero Game (AmericanPublicMedia.org) Provides a game that lets you spend the federal budget over the next 50 years and see the consequences. 09-08 Materials Cost of Living in Major Cities (Realtor.com) Provides average cost of living in major cities within the United States. 7-03 Minimum Wage Calculator (Economic Policy Institute) Provides an interactive tool to help a person determine the minimum wage for a single person or a couple, with or without children. 7-03 Minimum Wage Calculator (Solfopro.com) Provides an interactive tool to help a person determine the minimum wage for a single person or a couple, with or without children. 7-03 Minimum Wage Calculator for a Family of Four (NCCBUSCC.org) Provides minimum costs for a family of four. Shows that the poverty line, set at $18,100, is below the minimum. 7-03 Salaries by Profession and Location (Realtor.com) Provides salary range for professions by location within the United States. 7-03 Multimedia -09-21-08 Interview: Bloomberg Suggests a Bipartisan Solution to Rescue (MSNBC News) New York Mayor Michael Bloomberg recommends a bipartisan approach to fixing the Wall Street disaster. 09-08 Long-Term Green Strategy for the Economy (MSNBC News) Tom Friedman discusses his book, Hot, Flat, and Crowded, about a green technology revolution to handle global warming and boost the economy. 09-08 News -001 Budget for 2010 Proposed By the President (Office of Management and Budget) "Those of us who manage the public's dollars will be held to account—to spend wisely, reform bad habits, and do our business in the light of day—because only then can we restore the vital trust between a people and their government." 02-09 -001 Editorial: Are Big Profits for the Financial Sector Good for the Rest of Us? (Time.com) "The 1960s were by most measures the best decade ever for growth and widening prosperity in the U.S.; the past decade has been a bust. Yet the financial sector was relatively tiny in the 1960s and huge in the 2000s. Could this mean that good times for finance are bad for the rest of us? Philippon says it isn't that simple. The 1990s, for example, were good for both Wall Street and Main Street. His theory, which fits the historical evidence well, is that the financial sector's share of the economy should increase when there are fast-growing companies needing outside funding, like railroads in the late 19th century, manufacturers in the 1920s and tech firms in the 1990s. If financing wasn't in great demand in the booming 1960s, perhaps that was a warning sign of stagnation to come rather than evidence of the uselessness of financiers." "Over the past decade, though, reality took a detour from Philippon's theory. Corporate America's need for outside financing fell, but the financial sector refused to shrink; it pumped out ever riskier products until the system nearly collapsed. Why the refusal? Maybe the pay was too good." 10-09 -001 Editorial: Financial Institutions Become Wealthier--At Taxpayer's Expense (New York Times) "Even as the economy continues to struggle, much of Wall Street is minting money — and looking forward again to hefty bonuses." "Many Americans wonder how this can possibly be." "With interest rates so low, banks can borrow money cheaply and put those funds to work in lucrative ways, whether using the money to make loans to companies at higher rates, or to speculate in the markets." "A big reason for Goldman Sachs’s blowout profits this year has been the willingness of its traders to take big risks — they have put more money on the line while other banks that suffered last year have reined in such moves." 10-09 -001 Geithner: $2 Trillion More Needed to Save Economy (ABC News) "Treasury Secretary Timothy Geithner outlined a massive $2 trillion plan today that he said is meant to stabilize the nation's banking sector and restore the public's faith in the government's ability to handle the crisis." 02-09 -001 Obama Warns Nation Regarding Economy (ABC News) "President Obama warned today that the nation has 'inherited an economic crisis as deep and as dire as any since the Great Depression' and that 'we can no longer afford to wait and see and hope for the best.' " 02-09 -001 Senate Passes Stimulus Bill (CBS News) "The Senate has approved the $838 billion stimulus bill, which has solid Democratic support but is backed by only three Senate Republicans." "The bill now faces what could be contentious negotiations with the House, which passed a different version of the legislation, one that includes fewer taxes and more spending than the Senate version." 02-09 -001 Treasury Calls for Overhaul of Regulations (New York Times) "The Obama administration on Thursday detailed its wide-ranging plan to overhaul financial regulation by subjecting hedge funds and traders of exotic financial instruments, now among the biggest and most freewheeling players on Wall Street, to potentially strict new government supervision." 03-09 -01 Both Political Parties Blame Bush for Economic Disaster (New York Times) "These experts, from both political parties, say Mr. Bush’s early personnel choices and overarching antipathy toward regulation created a climate, that, if it did not set off the turmoil, almost certainly aggravated it." "The president’s first two Treasury secretaries, for instance, lacked the kind of Wall Street expertise that might have helped them raise red flags about the use of complex financial instruments that are at the heart of the crisis." 09-08 -01 Chaos in the Stock Market (New York Times) "The Standard & Poor’s 500-stock index soared 4 percent to 1,255.08, while financial shares rose 11 percent, in the busiest day of trading in the New York Stock Exchange’s history. The American International Group, which the government essentially took over, jumped 43 percent. Big banks like Bank of America and the Wachovia Corporation rose more than 20 percent." "But across Wall Street, many of the basic mechanisms of the marketplace broke down after the Securities and Exchange Commission announced on Friday morning that it would ban short selling in nearly 800 financial stocks, making it harder for people to bet against those securities, and that it also would force investors to disclose those trades." 09-08 -01 Democrats Want Protections for Taxpayers in Rescue (MSNBC News) "The Bush administration insisted on Sunday that Congress must move quickly to approve what one lawmaker called the 'mother of all bailouts' — a $700 billion proposal to buy a mountain of bad mortgage debt in an effort to unfreeze the nation’s credit markets." "However, Democrats said that the administration’s spare three-page plan must be expanded to include help for people on Main Street as well as the big Wall Street financial firms who have lost billions of dollars through their bad investment decisions." 09-08 -01 Editorial: What About the Rest of Us? (Time.com) "Again, I agree with the bailout but only if it is accompanied by heavy duty regulation of the financial services industry, a reinstatement of usury laws (limiting interest rates that can be charged), and criminal prosecution of those responsible for creating this horrific mess - including restitution to the American people for the milions of dollars they have sucked out of the economy and the financial ruin they have wrought on the American citizen for their personal profit." 09-08 -01 Editorial: What Brought Down Wall Street? (MSNBC News) "Lenders, for one, demanded lots more freedom. But they 'were a different kind of animal' from airlines and trucking firms, which the Carterites also deregulated, [Carter administration's aviation czar Alfred E.] Kahn says. 'They were animals that had a direct effect on the macroeconomy. That is very different from the regulation of industries that provided goods and services. ... I never supported any type of deregulation of banking.' " 09-08 -01 Editorial: What Caused the Need for the Bailout? (MSNBC News) "Once in the U.S., the redeployed Chinese savings allowed a multi-decade shopping spree to continue. U.S. consumers bought houses, cars and goods at a record clip earlier this decade, pushing consumer spending to a record 70% of economic activity in recent years. Meanwhile, Americans stopped saving altogether - the personal savings rate was negative for some years during the housing bubble, showing that U.S. consumers were outspending their income." "But this shopping spree - Americans have been spending some $700 billion annually more than they produce, borrowing the difference from overseas creditors - couldn't last forever. Once house prices stopped rising, consumers pulled back and the U.S. economy slowed. Nonfarm payrolls have now shrunk in eight consecutive months, and banks that only a few years ago were showing record profits are now bleeding red ink." 09-08 -01 Government Plans to Buy Bad Mortgages (MSNBC News) "The Bush administration is asking Congress to let the government buy $700 billion in toxic mortgages in the largest financial bailout since the Great Depression, according to a draft of the plan obtained Saturday by The Associated Press." 09-08 -01 How Sweden Handled a Similar Financial Crisis (New York Times) "The country was so far in the hole in 1992 — after years of imprudent regulation, short-sighted economic policy and the end of its property boom — that its banking system was, for all practical purposes, insolvent." " 'But Sweden took a different course than the one now being proposed by the United States Treasury. And Swedish officials say there are lessons from their own nightmare that Washington may be missing.' " "Sweden did not just bail out its financial institutions by having the government take over the bad debts. It extracted pounds of flesh from bank shareholders before writing checks. Banks had to write down losses and issue warrants to the government." 09-08 -01 Minimizing Your Own Risks in the Financial Chaos (New York Times) "Consider a few modest but concrete things you can do that could reduce your exposure to four of the big areas of risk — investments, job security, your mortgage and insurance — that have been front and center this week." "Some of these suggestions may have more impact for you than others, but they all can help you feel as if you’ve taken back some measure of control." 09-08 -01-02-09 Anti-Consumer Practices of Credit Card Companies (Consumer-Action.org) "National advocates working closely to end abusive and anti-consumer practices by the credit card industry today reacted to the release of a long-awaited GAO report documenting credit card fees, interest rates and disclosure practices from the six largest credit card issuers. According to Consumer Action, the Consumer Federation of America (CFA), Consumers Union and U.S. Public Interest Research Group (PIRG), the report points out the need for simplified pricing that consumers can better understand, and the importance of prohibiting abusive credit card pricing practices (such as two cycle billing, residual or 'trailing interest' and 'universal default.')" 01-08 -01-05-09 Auto Sales Plunge (MSNBC News) "General Motors, Ford and Toyota said Monday their U.S. sales plunged in December, as car and truck buyers continued to steer clear of showrooms due to the dismal economy." 01-09 -01-07-09 CBO: Grim Predictions for the Economy (MSNBC News) "The U.S. federal budget deficit will hit an unparalleled $1.2 trillion for the 2009 budget year, according to grim new Congressional Budget Office figures." "The CBO estimate released Wednesday also sees the U.S. economy shrinking by 2.2 percent this year and recovering only slightly in 2010, and the unemployment rate eclipsing 9 percent early next year unless the Obama administration steps in." 01-09 -01-29-09 Editorial: Why Your Bank Is Broke (Time.com) "There's little hope that the type of shares the government is buying in banks as part of the Troubled Asset Relief Program (TARP) will plug the hole in the banking system's bucket. Paul Miller, an analyst at FBR Capital Markets who has written a number of reports on the capital issues of banks, says the only way to solve the problem is for the government to stop buying preferred shares and start taking direct ownership stakes. Of course, the issue with that approach is that the problem at the banks is so large, Uncle Sam may end up owning a good portion of the banking sector. Few seem to want nationalization. Unfortunately, that could be the only way out." 01-09 -01-30-09 Editorial: Is a 'Bad Bank' the Answer? (Christian Science Monitor) "With the financial crisis now midway through its second year, a central problem for the US economy remains: how to convincingly clear away a garbage-pile of bad debts at banks and move forward with a solvent industry." "A leading idea under review by the Obama administration is to set up a so-called "bad bank" as a holding pen for the risky assets that spawned the crisis. Administration officials have talked about this concept, and have said they want to avoid temporarily nationalizing some very large banks." 01-09 -01-31-09 The Story Behind Wall Street Bonuses (New York Times) "If you’ve never worked on Wall Street, it is hard to wrap your head around the idea that a company that lost nearly $19 billion in a single year, as Citigroup did in 2008, could still pay its employees billions in bonuses. It is probably even harder to believe that some of those employees grumble about it." 01-09 -011-01-09 CIT Group Files for Bankruptcy (CBS News) "CIT is the financier for about 2,000 vendors that supply merchandise to more than 300,000 stores, many of which are gearing up for the critical holiday shopping season. They rely on the lender to cover costs ranging from paying for orders to making payroll. Any disruption caused by bankruptcy could wreak havoc on their operations, Joe Alouf, a partner with Eaglepoint Advisors, a crisis management company that is partly owned by Kurt Salmon Associates." " 'CIT is the 600-pound gorilla in the industry,' Alouf said." 10-09 -011-03-09 Buffet Buying Railroad in His Biggest Purchase (Time.com) "Warren Buffett has made bets on railroads before, but now he's all in. The billionaire investor's Berkshire Hathaway Inc. on Tuesday agreed to buy Burlington Northern Santa Fe Corp., making a $34 billion bet on the future of the U.S. economy." "Burlington Northern, the nation's second-largest railroad, is the biggest hauler of food products like corn, and coal for electricity, making it an indicator of the country's economic health. The railroad also ships a large amount of consumer goods — including items imported from Asia — from big Western ports like Los Angeles and Seattle." 11-09 -011-03-09 Media Moguls (Time.com) "In The Curse of the Mogul, Jonathan Knee, Bruce Greenwald and Ava Seave say the biggest problem with media companies is the moguls, who have been seduced into believing that content is king, bigger is always better and talent — especially their own — is irreplaceable. So blinded are they, they have mismanaged their companies and shareholders have suffered." 11-09 -011-04-09 Cuomo Files Federal Antitrust Suit Against Intel (New York Times) "Following the lead of foreign regulators, New York’s attorney general, Andrew M. Cuomo, filed a federal antitrust lawsuit Wednesday against Intel, the world’s largest chip maker." 11-09 -02-03-09 U.S. Consumers Changing Behaviors (Christian Science Monitor) "Consumer behavior in America appears headed toward a new normal that includes less household debt, more saving, and cooler expectations about home prices in the future." 02-09 -02-04-09 Auto Sales Go from Bad to Worse (Time.com) "Auto sales plummeted again in January, falling to their lowest level in decades, as showroom traffic dropped by almost half and loans dried up even for interested consumers. The slowdown leaves the U.S. car industry at another historic crossroads. America has long served as the world's largest market for new cars. But Mike DiGiovanni, General Motors' director of global analysis, says more new vehicles were sold in China last month than in the U.S." 02-09 -02-05-09 The 25 Top Market Movers (U.S. News) Provides a description of 25 "market movers" selected by U.S. News editors. 02-09 -02-06-09 Employers Cut 598,000 Jobs in January (MSNBC News) "Recession-battered employers eliminated 598,000 jobs in January, the most since the end of 1974, and catapulted the unemployment rate to 7.6 percent." "The grim figures were further proof that the nation's job climate is deteriorating at an alarming clip with no end in sight." 02-09 -02-06-09 Panel: Treasury Overpaid $78 Billion in Bailouts (CBS News) "A congressional oversight panel recently took a look at the first $254 billion the government spent buying shares of the big banks to keep them afloat. After six weeks of number-crunching, what did they find? The Treasury Department substantially overpaid for those assets, by a whopping $78 billion." "Warrens said that if subsidization of financial firms is meant to be the government's policy about the use of public funds, then a public debate is required, one which didn’t happen." 02-09 -02-11-09 Shapiro Moves Swiftly at the SEC (Time.com) "Hoping to show she's got the right stuff, Mary L. Schapiro, 15 days on the job as chairman of the besieged Securities and Exchange Commission, took her first steps this week in shaking up the agency, while simultaneously securing an agreement with Bernie Madoff, working on tips for two more Ponzis, and waving goodbye to her chief enforcement officer, Linda Thomsen, who resigned." 02-09 -02-18-09 Auto Makers Ask for More Money (MSNBC News) "General Motors and Chrysler asked the government for an additional $14 billion in aid, a dramatic acknowledgment that conditions in the U.S. auto industry have grown significantly worse in just two months." 02-09 -02-23-09 Editorial: Who Caused the Economic Disaster? (Newsweek.com) "Well, the herd mentality of financial crazes has a long history. But compensation practices skewed so heavily toward bonuses based on annual profits make matters worse." " 'People self-select for careers. On Wall Street they self-select for the money,' says pay consultant Alan Johnson. 'Wall Street is a sales business—they sell bonds, securities, transactions, ideas … They're not paid to be long-term, philosophical, reflective.' The pressure is to do the next merger, sell more stocks and bonds, do more trading—whatever boosts current profits and bonuses, the long-term consequences be damned." 02-09 -02-23-09 Stock Market Indexes Hit 12-Year Low (CBS News) "Investors unable to extinguish their worries about a recession that has no end in sight dumped stocks again Monday. The Dow Jones industrial average tumbled 251 points to its lowest close since Oct. 28, 1997, while the Standard & Poor's 500 index logged its lowest finish since April 11, 1997." 02-09 -02-25-09 15 Things You're Spending Too Much For (U.S. News) "Here's a list of mostly not-so-obvious things you can eliminate from BillShrink.com, a money-saving tips site...." 02-09 -02-25-09 Banker Recognized for "Responsibility" (CNN News) "One person on the first lady's guest list was Leonard Abess Jr., a Miami banker who received a $60 million bonus from the proceeds from the sale of shares of City National Bank in Florida and gave it out to his 399 workers and 72 former workers." "During his speech, President Obama said Abess didn't tell anyone about his generosity, but when the local newspaper found out, Abess simply said, 'I knew some of these people since I was 7 years old. I didn't feel right getting the money myself.' " 02-09 -02-25-09 San Francisco Chronicle on the Brink (KTVU News) "There are concerns the San Francisco Chronicle may not survive the current recession after a Tuesday announcement by the Hearst Corporation that losses could force the paper to be sold or shut down." 02-09 -02-27-09 Consumer Reports: Chrysler and GM in Bottom Spots (USA Today) "Chrysler and General Motors (GM) took the bottom two spots, respectively, in Consumer Reports magazine's new automaker for reliability, even as the pair seek billions more in federal loans to stay afloat." 02-09 -02-27-09 Government to Boost Its Stake in Citigroup (USA Today) "Citigroup has struck a deal that allows it to shore up a key financial measure while giving the government up to a 36% stake in the beleaguered bank, vs. 8% now." "The deal is the government's third major effort to turn around Citigroup (C), the nation's third-largest bank by assets. Already, the government holds $45 billion of preferred shares in Citigroup and has agreed to share losses on $301 billion of troubled bank assets." "In the latest action, the government will exchange some of its preferred shares in Citigroup for common shares, matching the actions of private investors, including The Government of Singapore Investment Corp., Saudi Arabian Prince Alwaleed Bin Talal, Capital Research Global Investors and Capital World Investors." 02-09 -02-27-09 U.S. Economy Shrinks at Staggering Pace (CBS News) "The economy contracted at an incredible 6.2 percent pace at the end of 2008, the worst showing in a quarter-century, as consumers and businesses ratcheted back spending, plunging the country deeper into recession." 02-09 -03-02-09 Stocks Tumble (CNN News) "U.S. stocks tumble at the open as investors react to massive quarterly loss from AIG and bailout restructuring." 03-09 -03-03-07 Value of Top Financial Firms Drops (Bloomberg.com) "Goldman Sachs Group Inc., Merrill Lynch & Co. and Morgan Stanley, which earned a record $24.5 billion in 2006, suddenly have become so speculative that their own traders are valuing the three biggest securities firms as barely more creditworthy than junk bonds." 03-07 -03-04-07 Tardiness Wasts Billions (ABC News) "A recent survey found 15 to 20 percent of the U.S. population is "consistently late," especially when it comes to work." "Chronic lateness isn't just annoying — it's expensive." 03-07 -03-12-09 How Madoff Pulled It Off (CBS News) " It's easy, when you're inventing investment account statements out of whole cloth, to make yourself look like a financial wizard." "Or maybe it isn't. Bernard Madoff put quite a bit of work into it." "What's clear from the evidence against him is that Madoff never really invested a penny of the $65 billion investors trusted to him. It's not like the guy was skimming a little off the top of his transactons. He didn't buy or sell a share of anything on his investors' behalf. He just took the money and sent back made-up statements." 03-09 -03-12-09 What Makes Cheaters Different? (Newsweek.com) "So it appears our inner moralist doesn't really want to cheat. Yet it also appears that dishonesty can be contagious—if we witness one of our own committing the public act of dishonesty. These findings point to a possible strategy for preventing a wave of unethical contagion. If cheating in general declines when cheaters are perceived as outlaws, then it should help to stigmatize public cheaters as just that—outlaws, bad apples. Of course, Bernie Madoff and the rest of Wall Street's alleged fraudsters have already done a lot of that work for us." 03-09 -03-13-07 Stocks Drop on News of Mortgages Report (CBS News) "Stocks tumbled Tuesday as news came that late mortgage payments shot up to a 3½-year high in the final quarter of last year and new foreclosures surged to a record high as borrowers with tarnished credit histories had trouble keeping up with their monthly payments." 03-07 -03-15-08 Americans Feeling Economic Pain (PBS.org) "Today, another quite a day, on top of a week of -- already we've seen a lot of turmoil in the economy. Today, David Wessel, the stock market fell almost 200 points. You had what is apparently an unprecedented bailout by the Federal Reserve of the nation's fifth-largest investment bank." "Is the economy even worse off than we thought a few days ago?" 03-08 -03-15-09 Jon Stewart and Jim Cramer Debate (PBS News) "Comedian and "Daily Show" host Jon Stewart held a high-profile sparring match with CNBC's Jim Cramer this week over the cable network's coverage in the lead up to the Wall Street meltdown. A panel of business writers weighs the media's role in the economic crisis." 03-09 -03-22-09 World's Cheapest Car Debuts (Time.com) "The Nano is going on sale at Tata's 470 outlets in India; the base model does indeed carry a sticker price of Rs 100,000 [$2,000]." 03-09 -03-26-08 Dollar Free Fall Is Ending (Christian Science Monitor) "The greenback has bounced back a bit after hitting a record low against the euro last week." 03-08 -03-30-06 Largest Firms in the World (BBC News) "An all-American top four still leads the latest annual Forbes Global 2000 list of the world's biggest companies." 03-06 -04-04-08 Poll: 81% Say Country Going in Wrong Direction (CBS News) "Americans' views on the economy and the general state of the country have hit an all-time low in the history of the CBS News/New York Times poll. Eighty-one percent of those polled say the country is on the wrong track, while only 14 percent believe it is heading in the right direction." 04-08 -04-07-09 Saturn Was Supposed to Save GM (Newsweek) "More than just a car, it would be a stand-alone subsidiary—using innovative technology by workers and managers engaged in unprecedented joint decision making. 'Saturn is the key to GM's long-term competitiveness, survival and success,' Smith said. Its mission: 'to develop and produce an American-made small car that will be fully competitive with the best of the imports … [and] affirm that American ingenuity, American technology and American productivity can once again be the model and the inspiration for the rest of the world.' " 04-09 -04-07-09 Why Don't We Have 50mpg Cars? (Newsweek) "It might seem ludicrous to you that there isn't a mass market right here and now for a 50mpg car." 04-09 -04-09-08 World's Largest Companies (ABC News) "In total, the global 2000 companies now account for $30 trillion in revenues, $2.4 trillion in profits, $119 trillion in assets and $39 trillion in market value. Around the world, 72 million people work for these companies." 04-08 -04-10-07 Forecast for Foreclosures (MSNBC News) "Colorado registered the second-highest rate in February, with one foreclosure for every 345 households, while Florida took third place, with one filing for every 382 homes. Others ranking among the country's top 10 states for foreclosures were Georgia, Michigan, Tennessee, Ohio, Texas, Arizona, and Indiana." 04-07 -04-10-07 HUD Auditors Find Widespread Fraud (MSNBC News) "Today, as inspector general for the Department of Housing and Urban Development, [Kenneth] Donohue is looking into fraud and abusive lending practices related to mortgages insured by the Federal Housing Administration." "Do you think the worst of the problem in the mortgage market is behind us?" "That’s a very good question. You almost have to have a crystal ball. Are we looking at the tip of the iceberg or the iceberg itself? It’s too soon to say." "I think there are things that need to be done. FHA has to realize that there has to be active oversight and enforcement. I don’t see it moving in that direction. My concern is that I see it moving in the other direction." 04-07 -04-10-09 Editorial: Best Cars for the Money (U.S. News) "Car shoppers face an uncertain economy and a shrinking ability to borrow. The key to surviving the current marketplace is to stretch your dollars as far as they'll go -- but that doesn't mean flocking to the biggest incentives. It means focusing on cars that are proven winners and offer a great value over the entire life of the car." 04-09 -04-15-09 Major League Baseball Gets an "A" for Racial Diversity (CBS News) "On the 62nd anniversary of Jackie Robinson breaking baseball's color barrier, the Major Leagues scored an "A" for its racial hiring practices, according to The Institute for Diversity and Ethics in Sport." 04-09 -04-16-09 Banks Balk at Selling Toxic Assets (Time.com) "Obama and Geithner may not be completely out of the woods even if they do force banks to sell their toxic assets. Some banks may be so deeply in debt that even the proceeds from the sales won't be enough to fill their capital needs. In that case, the stress tests may prove useful in another way. Geithner has only about $35 billion of TARP money left to plug the remaining holes for the 19 largest banks. After that, he has to go back to Congress for more money — at which point he'll need the stress tests to convince bailout-weary Representatives to shell out even more for the banks." 04-09 -04-16-09 How People Are Coping With the Recession (Time.com) Provides 17 stories, such as the "unemployed couple:" "The cell phones were canceled; so were all subscriptions and outside entertainment. We didn't go skiing this winter, and we won't be golfing over the summer. No more wine. We used our severance and some savings to pay off Kevin's 2008 Saturn and pay down the house. We debated whether to cancel the local newspaper, but in the end kept it for the Sunday coupons. We now eat every single item in the house until it's gone. If that means we have curly pasta and penne and spaghetti all mixed up, so be it." 04-09 -04-17-08 World's Largest Brokerage Reports Steep Losses (ABC News) "Merrill Lynch & Co., the world's largest brokerage, on Thursday said it would cut 4,000 jobs after more than $6.5 billion of fresh write-downs pushed it to a loss for the first quarter." 04-08 -04-17-09 Banks Have a "Good" Week (Time.com) "This week's positive results, which had been anticipated by a month-long rally in bank stocks, are certainly better than last year's multi-billion-dollar losses. But bank earnings are extremely sensitive to assumptions about the future, and whether the banks are actually on the road to recovery will depend to a great extent on how the economy performs in coming months." 04-09 -04-28-09 Home Prices Post 18.6 Annual Percent Drop (Time.com) "In another sign the housing crisis could be reaching the bottom, home prices dropped sharply in February but for the first time in 25 months the decline was not a record." 04-09 -04-29-09 Bank of America Ousts Chairman (New York Times) "Bank of America shareholders stripped Kenneth D. Lewis of his chairman’s title on Wednesday while allowing him to remain president and chief executive officer, in a vote that may mark the beginning of the end of his leadership at the embattled bank." 04-09 -04-30-09 Chrysler Bankruptcy (CBS News) "Chrysler will file for bankruptcy after talks with a small group of creditors crumbled just a day before a government deadline for the automaker to come up with a restructuring plan, President Barack Obama said Thursday." "The Obama administration said it had long hoped to stave off bankruptcy for the nation's third largest automaker, but it became clear that a holdout group wouldn't budge on proposals to reduce Chrysler's $6.9 billion in secured debt. Clearing those debts was a needed step for Chrysler to restructure by the Thursday deadline." "Chrysler will file for Chapter 11 bankruptcy protection in New York, giving Chrysler time to galvanize a partnership with the Italian car maker Fiat Group SpA. The government, which has already poured $4 billion in loans into Chrysler, would provide up to $8 billion more to carry the company through bankruptcy, said senior administration officials speaking on condition of anonymity. The government will also help appoint a new board of directors." 04-09 -04-30-09 House Passes Bill to Aid Credit Card Users (CBS News) "Riding a crest of populist anger, the House on Thursday approved a bill to restrict credit card practices and eliminate sudden increases in interest rates and late fees that have entangled millions of consumers." "The legislation passed by a bipartisan vote of 357-70 following lobbying by President Barack Obama and members of his administration." 04-09 -05-05-09 Bernanke: Signs Recession's Strength Is Waning (MSNBC News) "Federal Reserve Chairman Ben Bernanke told Congress Tuesday that the economy should pull out of a recession and start growing again later this year." 05-09 -05-06-09 Best and Worst Bailed-Out Banks (U.S. News) "If the 'market-to-bailout ratio, as we call it, equals 1.0, for example, that means investors driving the stock price up or down have a dim view of the bank's inherent value. 'The government injections basically amount to the common stockholders' entire value,' says economist James Barth of the nonprofit Milken Institute, which provided some of the data. To pay back the government injections, such banks would probably have to sell assets, which could worsen the situation." "Banks with a market-to-bailout ratio of less than 1 are in even worse shape, since investors are signaling that the banks' value is heavily dependent upon government aid." "The healthiest banks are those with a market-to-bailout ratio well over 2.0." 05-09 -05-14-07 U.S. Firm to Buy Chrysler Majority (BBC News) "US private equity firm Cerberus Capital Management is to buy a majority stake in car firm DaimlerChrysler's ailing US Chrysler arm." 05-07 -05-15-09 Banks Take Billions But Give Fewer Loans (ABC News) "Neil Barofsky, Treasury's special investigator assigned to keep an eye on how the TARP funds are being spent, said the bailout let banks lend more than they would have been able to otherwise, but has not increased lending the way some hoped." " 'If the goal of the program was to increase lending, well obviously lending has not increased.' " 05-09 -06-01-09 The 10 Largest Bankruptcies in the U.S. (Time.com) "It's official: Lehman Brothers filed the largest bankruptcy case in history on Monday, Sept. 15, as the storied investment bank fell prey to the credit crisis. According to Bankruptcydata.com, Lehman's assets before filing for bankruptcy were six to seven times the pre-filing assets of the second largest bankruptcy since 1980." 06-09 -06-03-09 Home Sales Rise in April (ABC News) "The number of U.S. homebuyers who agreed to buy a previously occupied home took the largest monthly jump in nearly eight years in April, but there are still plenty of danger signs for the U.S. housing market." 06-9 -06-05-06 Stocks Plunge (CBS News) "But as CBS News correspondent Anthony Mason reports, the Dow has now lost almost 600 points since early May. What is happening is part of two larger concerns — only one of which is inflation." 06-06 -06-06-06 Ports Go Deeper (Christian Science Monitor) "In a bid to stay competitive, Boston and other ports consider plans to dredge 50-foot channels." 06-06 -06-08-06 Stocks Suffer Worst Week of the Year (USA Today) "Wall Street finished its worst week of the year with a moderate decline Friday as persistent unease over inflation and interest rates kept investors nervous about buying. The major indexes ended the week sharply lower." 06-06 -06-09-09 Fiat Buys Chrysler (ABC News) "Italy's Fiat is the new owner of most of Chrysler's assets, closing a deal Wednesday that saves the troubled U.S. automaker from liquidation and places a new company in the hands of Fiat's CEO." " 'Work is already under way on developing new environmentally friendly, fuel-efficient, high-quality vehicles that we intend to become Chrysler's hallmark going forward,' the new company said in a statement." 06-9 -06-09-09 Ten Banks to Pay Back $68 Billion in TARP Loans (CNN News) "But another reason Homan cites is his optimism for the solar industry's U.S. future." "Ten leading banks won approval to repay money from the government's controversial TARP program, regulators said Tuesday, which could represent approximately $68 billion in bailout funds returned to taxpayers." 06-09 -06-10-08 The Economy Is the Top Issue (CNN News) "The economy is the No. 1 issue on the minds of American voters, and Sens. John McCain and Barack Obama offer vastly different plans to improve it." 06-08 -06-11-06 Reasons to Worry About the U.S. Economy (New York Times) "In short, the federal government seems to have much larger unfinanced liabilities than official data imply. If you compare the present value of all projected future government expenditures, including debt-service payments, with the present value of all projected future government receipts, the gap is about $66 trillion, according to calculations by the economists Jagadeesh Gokhale and Kent Smetters. That's almost eight times the size of the official gross federal debt." 06-06 -06-14-06 GAO: FEMA Pays $1.4 Billion in Fraudulent Claims (ABC News) "Close to $1.4 billion worth of fraudulent charges were laid out today in a scathing report from the Government Accountability Office (GAO), the investigative arm of Congress." "To show just how easy it was to defraud FEMA, the GAO had an undercover agent use a bogus address to apply for rental assistance. And FEMA paid $2,348, even after the agency learned from its inspector the address was phony." 06-06 -07-10-08 FDA Execs Reap Lavish Bonuses (CBS News) "It's been a bad year for the Food and Drug Administration's top brass. The agency's been accused by Congress of mishandling health scares linked to pet food, Heparin, Avandia and now, tomatoes, CBS News correspondent Nancy Cordes reports." "But based on their bonuses, you would think it was a banner year at the FDA." 07-08 -07-10-08 Officials: Fannie and Freddie are Solvent (USA Today) "Top federal officials Thursday emphasized that mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE) were in no imminent danger of default, even while saying financial markets remained under considerable strain and calling on Congress to beef up regulation." 07-08 -07-10-08 Toyota to Build Prius in the U.S. (CBS News) "Toyota Motor Corp. will start producing the hybrid Prius in the U.S. for the first time as the Japanese automaker adjusts its U.S. manufacturing operations to meet customer demands for smaller, more fuel-efficient vehicles. "07-08 -07-24-09 Cash for Clunkers (CNN News) "Americans will get a new incentive to trade-in their gas-guzzling cars today when a government rebate program that offers cash vouchers to people who trade in their cars for new fuel-efficient vehicles officially start" 07-09 -07-26-09 Anti-Trust Comes Up Against Other Departments (Newsweek.com) " 'The struggles between the expert agencies and the Justice Department get to the heart and soul of exactly what the competition policy of the Obama administration will be,' said Mark Cooper, an antitrust expert and director of research at the Consumer Federation of America, an advocacy group." "He added: 'Now you have an antitrust division that cares about competition, and it is running up against the expert agencies that haven’t changed their attitudes yet.' " 07-09 -07-30-07 Foreclosures Rise 58 Percent in 2007 (MSNBC News) "The number of U.S. homes facing foreclosure surged 58 percent in the first six months of the year, the latest sign of mounting problems in the mortgage industry, a data firm said Monday." 07-07 -07-31-07 American Home Shares Fall 90 Percent (MSNBC News) "Shares of American Home Mortgage Investment Corp. plunged 90 percent Tuesday after the company raised fears it may become insolvent, renewing concern about worsening credit quality in the mortgage market and killing a Wall Street rally." 07-07 -07-31-07 US Credit Woes Ripple Across the Globe (Christian Science Monitor) "It's a good thing that the world economy had a head of steam going into this summer, because it now faces financial headwinds made in the USA." "On Monday, shares of the German industrial bank IKB plummeted as the bank announced its earnings would be hit hard by the rising default rate of American subprime home loans." 07-07 -08-07-07 A Theory of Affluence (New York Times) "For thousands of years, most people on earth lived in abject poverty, first as hunters and gatherers, then as peasants or laborers. But with the Industrial Revolution, some societies traded this ancient poverty for amazing affluence." "Historians and economists have long struggled to understand how this transition occurred and why it took place only in some countries. A scholar who has spent the last 20 years scanning medieval English archives has now emerged with startling answers for both questions." 08-07 -08-11-07 Subprime Contagion Is Spreading (Bloomberg.com) "The $2 trillion market for mortgages not backed by government- sponsored agencies is at a standstill. That's just the beginning. Other types of mortgages are suffering. So are firms and banks that package the debt for investors. The ripples were felt in Europe and Asia, where central banks offered cash to banks amid a credit crunch. And some corporations, from countertop makers to railroads, are blaming the mortgage meltdown and housing slump for earnings that fell short of analysts' estimates." 08-07 -08-12-07 How U.S. Credit Problems Went Global (Time.com) "Anyone who clinged to the notion that the risks lurking in America's mortgage pool were a local concern has now been proven wrong. The U.S. subprime mortgage market — turned sour by borrowers with poor credit struggling to meet payments as interest rates rise — is fast becoming a global worry. With huge chunks of this debt packaged up and sold to financial companies across the world, bad loans are roughing up banks and markets just about everywhere." 08-07 -08-26-08 FDIC May Borrow from Treasury (MSNBC News) "Federal Deposit Insurance Corp (FDIC) might have to borrow money from the Treasury Department to see it through an expected wave of bank failures, the Wall Street Journal reported." 08-08 -08-26-08 More Banks at Risk (MSNBC News) "The mortgage mess that has upended millions of homeowners’ finances is now taking a bigger bite out of the nation’s banking system." "And while depositors with insured accounts face little risk of losing their money, the insurance fund’s top regulator said it may have to borrow money from the Treasury to make good on that promise to consumers." 08-08 -08-31-08 Study: Workers Worse Off (MSNBC News) "This Labor Day finds workers in worse shape than they’ve been in years, according to a scorecard released Monday by Rutgers University." "In its first national labor scorecard, the Rutgers School of Management and Labor Relations said more than 10 percent of Americans are unemployed, discouraged from seeking work or underemployed. That is a nearly 25-percent increase from one year earlier." 08-08 -09-06-08 Government to Take Over Fannie and Freddie (MSNBC News) "The government has formulated a plan to put troubled mortgage giants Fannie Mae and Freddie Mac under federal control, dismiss their top executives and prop them up financially, federal officials told the two companies yesterday, according to three sources familiar with the conversations." "Under the plan, which could prompt one of the most sweeping government interventions in the workings of financial markets in U.S. history, federal officials would place the firms under a conservatorship, a legal status giving the government the option and time to restructure and revive the companies, the sources said." "In an effort to contain the most profound financial crisis in generations, Treasury Secretary Henry M. Paulson Jr., leaders of the Federal Reserve and other government officials have in recent months upended decades of precedent." 09-08 -09-06-08 Why Should You Care About Fannie and Freddie? (MSNBC News) "The fate of Fannie Mae and Freddie Mac is a big deal because these two mortgage companies have gotten so big. Between the two of them, they are involved in something like $5 trillion worth of mortgages — about half the mortgages in the U.S. The total is about the same as the entire amount of Treasury debt in the hands of investors, governments and other public holders. It's a big number." 09-08 -09-16-07 Greenspan Warns of "Turbulent" Times Ahead (ABC News) "Former Fed Chairman Alan Greenspan predicts in a new book out Monday that the Fed will have to raise interest rates to double-digit levels in coming years to thwart inflation." "In his 531-page book, the former Fed chairman sharply criticizes President Bush for not vetoing bloated spending bills and for continuing to focus on issues, such as adding prescription drug benefits to Medicare even though the budget surplus of just a few years ago had disappeared and deficits were mounting." 09-07 -09-19-07 How Lowering the Federal Interest Rate Impacts Us (PBS.org) "Reacting to a tough housing market, job losses and weak retail sales in August, the Federal Reserve cut its benchmark interest rate by a half point on Tuesday. The decision, which impacts the lending rate between banks, immediately cut the interest rate from 5.25 percent, where it has stayed since May 2006, to 4.25 percent. Our guest answered questions about how the rate cut and financial markets will affect your money." 09-07 -09-25-07 How the Falling Dollar Affects Americans (Christian Science Monitor) "US consumers' standard of living may drop as they pay more for foreign goods, but demand for American labor will rise, say economists." 09-07 -09-29-08 Citigroup Buying Wachovia (MSNBC News) "In the latest byproduct of the widening global financial crisis, Citigroup Inc. will acquire the banking operations of Wachovia Corp. in a deal facilitated by the Federal Deposit Insurance Corp." "Citigroup will absorb up to $42 billion of losses from Wachovia’s $312 billion loan portfolio, with the FDIC covering any remaining losses, the government agency said Monday. Citigroup also will issue $12 billion in preferred stock and warrants to the FDIC." 09-08 -09-29-08 Lessons of Europe's Biggest Bailout (Time.com) "In the largest financial services deal ever signed, Fortis — part of a consortium alongside the Royal Bank of Scotland (RBS) and Spain's Santander — put up $34 billion in return for ABN's Dutch banking business, among other assets." 09-08 -09-29-08 Rescue Bill for $700 Billion Fails (MSNBC News) "The House on Monday defeated a $700 billion emergency rescue package, ignoring urgent pleas from President Bush and bipartisan congressional leaders to quickly bail out the staggering financial industry." 09-08 -09-30-08 Home Prices Continue to Tumble (MSNBC News) "A closely watched index released Tuesday showed U.S. home prices tumbling by the sharpest annual rate ever in July, but the rate of monthly declines is slowing." 09-08 -10-01-08 Financial Crisis Hurts State Pensions and Budgets (ABC News) "The financial crisis on Wall Street is causing waves in statehouses across the country, where various governors are grappling with budget deficits, dwindling finances and plummeting pension funds." "As the credit market shut down at midday Monday, Massachusetts was unable to borrow the final portion of a $400 million loan from Wall Street investors to make quarterly aid payments to cities and towns and had to dip into its own funds to make up the $170 million shortfall." 09-08 -10-01-08 Senate to Pass "Rescue" Bill (MSNBC News) "Congressional leaders said that adding tax breaks and increasing federal deposit insurance should improve chances a $700 billion financial rescue plan will pass the Senate Wednesday night, a message that didn’t resonate very much with a still-skidding stock market." Editor's Note: The "bailout" bill has been changed to a "rescue" bill. 10-08 -10-03-08 Job Loss Highest in 5 Years (CNN News) "Employers made deeper cuts in their payrolls in September, according to the Labor Department's monthly jobs report, as the economy experienced the biggest drop in jobs in more than five years." 10-08 -10-04-08 For the Bailout to Work, the Housing Market Must Mend (USA Today) "Washington's financial bailout plan is now law. So the credit spigot will start flowing again, banks will resume lending, and an economic recovery can begin, right?" "Wrong. Experts say the most important thing that needs to happen before the $700 billion bailout even has a chance of working: Home prices must stop falling. That would send a signal to banks that the worst has passed and it's safe to start doling out money again." Editor's Note: Huh? Wasn't the purpose of the bailout to create credit flow? If the bailout isn't creating credit flow, what is it doing? 10-08 -10-04-08 Is This Like Just Before the Great Depression? (Awesome Library) "Unlike during the Great Depression the government is now a huge part of the economy. And officials have moved quickly, if clumsily, to contain the crisis." 10-08 -10-04-08 Vetting McCain's Health Plan (Newsweek) McCain's "Tax credits would move people out of group plans and into individual policies where the benefits aren't as good." "Almost all of the subsidy goes to people who have health insurance already, says Sherry Glied, a professor of health policy at Columbia University. The Tax Policy Center figures that, after 10 years, the plan cuts the number of uninsured by only 1 million, out of 45.7 million now. Barack Obama's $1.6 trillion plan would take 34 million off the rolls of the uninsured." 10-08 -10-05-08 America's Credit Catastrophe (U.S. News) "If an imploding housing bubble and energy price superspike weren't damaging enough, our ailing financial system decided to slide into full cardiac arrest. And while the White House, Congress, and Federal Reserve have all shifted to DEFCON 1 to try to deal with the exploding credit crisis, even the perfect mix of fiscal and monetary policies seems unlikely to now prevent the worst recession in a generation." 10-08 -10-06-08 An Answer: Why the Financial Institutions Collapsed (CBS News) " 'These investment banks were not only selling the securities that turned out to be terrible investments, they were selling insurance on them?' Kroft asks." " 'Well, it made it easier to sell the terrible investments if you could convince the buyer that not only were they gonna get the investment, but insurance,' Greenberger explains." "But when homeowners began defaulting on their mortgages, and Wall Street's high-risk mortgage backed securities also began to fail, the big investment houses and insurance companies who sold the credit default swaps hadn't set aside the money they needed to pay off their obligations." "Editor's Note: "Credit default swaps" are fancy words for "insurance policies." 10-08 -10-06-08 The $55 Trillion Question (CNN News) "In just over a decade these privately traded derivatives contracts [of "credit default swaps" or CDS] ballooned from nothing into a $54.6 trillion market. CDS are the fastest-growing major type of financial derivatives. More important, they've played a critical role in the unfolding financial crisis. First, by ostensibly providing 'insurance' on risky mortgage bonds, they encouraged and enabled reckless behavior during the housing bubble." 10-08 -10-06-08 Treasury Investing $250 Billion in Banks (New York Times) "The Treasury Department, in its boldest move yet, is expected to announce a plan Tuesday to invest up to $250 billion in large and small banks, according to officials. The United States is also expected to guarantee new debt issued by banks for a period of three years, officials said." 10-08 -10-07-08 Most Americans Stressed by the Economy (CNN News) "s many as 80 percent of Americans are stressed about their personal finances and the economy, according to the annual survey conducted by the American Psychological Association." 10-08 -10-08-08 Global Interest Rate Cut (U.S. News) "Today's unprecedented decision by the world's central banks to cut interest rates around the globe is exactly what the market needs. Unfortunately, it looks more like admission of what's going wrong in the global financial system than a true solution." "Panic selling on Monday and Tuesday that sent the Dow below 10,000 was caused by consensus on Wall Street that the government's $700 billion bailout plan simply didn't address fears that the credit crisis is spreading like wildfire outside of America's borders. That hasn't stopped. If anything, it's gotten worse this week. Banks simply aren't lending. Investors are willing to hide out in treasuries even though they're offering no return." 10-08 -10-08-08 Treasury Prepares a TARP-and-Switch (Time.com) "Did anybody else notice that when Hank Paulson was describing in his press conference today what the Emergency Economic Stabilization Act enables Treasury to do, the first thing he listed was 'to inject capital into financial institutions' ?" "That wasn't how Treasury initially advertised its Troubled Asset Relief Program. It was sold as a way to get the market for mortgage securities moving (or, to use the jargon, liquid). Lots of academic economists objected that liquidity wasn't the problem, it was insolvency. What Treasury needed to do was recapitalize financial institutions and take equity stakes in return." 10-08 -10-09-08 What to Expect From the Economic Crisis (Time.com) "The pain will soon come to Main Street — in Beijing and Brussels as much as in Boise. Economists are already outlining the downward spiral that they predict will follow. Banks will cut back on their lending to households and businesses. Mortgages and car loans will become harder to get. That in turn will stifle consumer spending and crimp investment in companies, leading to production cuts and job losses. Judging by previous crises, it can take about 18 months to two years for a financial squeeze to spread to the rest of the economy, which means that 2009 is shaping up to be a bleak year everywhere." "If the global financial meltdown can be traced to an American export — the subprime mess — the U.S. will import the consequences. As the go-go economies of China and India hit the brakes, so too will demand for American goods and services." 10-08 -10-11-08 Editorial: Where Did the Trillions in the Stock Market Go? (Time.com) "If you're looking to track down your missing money — figure out who has it now, maybe ask to have it back — you might be disappointed to learn that is was never really money in the first place." "Robert Shiller, an economist at Yale, puts it bluntly: The notion that you lose a pile of money whenever the stock market tanks is a 'fallacy.' He says the price of a stock has never been the same thing as money — it's simply the 'best guess' of what the stock is worth." 10-08 -10-22-09 10 Things to Do While Your're Unemployed (U.S. News) "Sure, while you're unemployed, job No. 1 is to look for another job. However, job hunting should not be the only thing you do while out of work." "You should also devote a bit of time and energy to doing something interesting that you can talk about at job interviews." 10-09 -10-22-09 CNN's Top 40 Under 40 (CNN News) "Meet business's hottest young rising stars. They're innovators, value creators, and agents of change." 10-09 -10-23-08 Greenspan Admits 'Mistake' (MSNBC News) "Accused of contributing to the meltdown, but denying that it was his fault, Greenspan told a House panel the crisis left him — an unabashed free-market advocate — in a 'state of shocked disbelief.' " 10-08 -10-30-06 GAO Chief: U.S. Headed toward Economic Disaster (ABC News) "What they [politicians] don't talk about is a dirty little secret everyone in Washington knows, or at least should. The vast majority of economists and budget analysts agree: The ship of state is on a disastrous course, and will founder on the reefs of economic disaster if nothing is done to correct it." 10-06 -10-30-07 Merrill Lynch Searches for New Leadership (New York Times) "E. Stanley O’Neal, the embattled chairman and chief executive of Merrill Lynch, stepped down from the brokerage firm today, capping a tumultuous 10 days that included a significant quarterly loss and write-down." 10-07 -10-31-09 The U.S. Economy in Time Pictures (Time.com) Provides a summary of high's and low's in the U.S. economy since 1929. 10-09 -11-12-08 Paulsen Announces New Goals for the $700 Billion Bailout (Time.com) "Treasury Secretary Henry Paulson said Wednesday the $700 billion government rescue program will not be used to purchase troubled assets as originally planned." "He announced a new goal for the program to support financial markets, which supply consumer credit in such areas as credit card debt, auto loans and student loans." "Paulson said that 40 percent of U.S. consumer credit is provided through selling securities that are backed by pools of auto loans and other such debt. He said these markets need support." 11-08 -11-12-08 Pay of Top Executives (Economist.com) "Running a big company is a big job with a pay packet to match. But heading an American firm is far more rewarding than a leading a European business. Chief executives of America's 50 biggest companies are paid on average 75% more than their European counterparts, according to a new report by Hay Group, a consultancy." 11-08 -11-13-09 Why Small Businesses Are Against the Health Bills (Time.com) "When it comes to finding quality, affordable health insurance, few have it worse than small-business owners and their workers shopping for coverage on the open market. They are charged the most per person, have the least amount of choice and, as a result, are some of the most likely to be uninsured." "Some 70% of the nation's estimated 50 million uninsured are full-time workers or their dependents, many of whom work for small businesses. Just 39% of workers in firms with three to 24 staff are covered by job-sponsored insurance, down from 50% in 1999." "Business groups like the Chamber and the NFIB vehemently oppose the public option. The Chamber says it would pay below-cost reimbursement rates, leading doctors and hospitals to charge private insurers (and the employers who purchase coverage from them) more to make up the difference. But even if that were true — and there are many observers who say this fear is overblown — it's not clear that small-business owners would be the ones to suffer." 11-09 -11-15-09 Editorial: The Peril of Positive Thinking (ABC News) "Two years into the Great Recession, it's time to face the truth: optimism feels good, really good, but it turns out to be the methamphetamine of run-amok American capitalism. Meth induces a 'Superman syndrome.' Optimism fed into what Steve Eisman, a banking analyst who foresaw the crash, calls 'hedge-fund disease,' characterized by 'megalomania, plus narcissism, plus solipsism' and the belief that 'to think something is to make it happen.' The meth-head loses his teeth and his mind; the madcap optimists of Wall Street lost something like $10 trillion worth of pension funds, life savings and retirement accounts." 11-09 -11-24-08 Government Backs $308 Billion Bailout of Citigroup (MSNBC News) "Rushing to rescue Citigroup, the government agreed to shoulder hundreds of billions of dollars in possible losses at the stricken bank and to plow a fresh $20 billion into the company." 11-08 -11-29-06 Three Pillars of the Economy Drop (MSNBC News) "Three pillars of the economy — consumer confidence, orders for manufactured goods and home prices — showed surprising cracks on Tuesday, flashing signals that growth may slow more heading into the important holiday shopping season." 11-06 -12-05-08 Editorial: 10 Cars that Sank Detroit (U.S. News) "The global financial crisis is suffocating the Detroit automakers, but the problems at General Motors, Ford, and Chrysler have been festering for years—even when the mighty "Big Three" were earning billions. Aging factories, inflexible unions, arrogant executives and shoddy quality have all damaged Detroit. Now, with panicky consumers fleeing showrooms, catastrophe looms: Without a dubious federal bailout, all three automakers face the prospect of bankruptcy." 12-08 -12-05-08 Editorial: 7 Worst Ways to Fix Detroit (U.S. News) "There are many routes to a Detroit bailout, however, and some go straight through Follyville. Here's how the feds could mishandle the automaker rescue package:" 12-08 -12-05-08 Editorial: Grading the Automaker Bailout Plans (U.S. News) "There are many routes to a Detroit bailout, however, and some go straight through Follyville. Here's how the feds could mishandle the automaker rescue package:" 12-08 -Adversity Index (MSNBC News) "The Adversity Index, from msnbc.com and Moody's Economy.com, measures the economic health of 381 metro areas and all 50 states. Each area is in recession, at risk, recovering or expanding." (Click the map.) 05-09 -Economy Tracker (CBS News) Provides unemployment rates by state. 02-09 -Editorial: Obama's Economic Hope and the Public's Fear (U.S. News) "So credit remains very tight, and is even tightening more, in the midst of a harsh recession—the opposite of what is wanted or needed. Private behavior and the lack of confidence are neutralizing public policy. Having once had too little appreciation of risk, lenders now have too much. The willingness of lenders to lend and of borrowers to take on more debt, which is the basis for the creation of credit, is simply not there." "" 04-09 02-12-09 Study: We Mistake Confidence for Competence (Time.com) "If you have ever suspected that your boss isn't actually good enough at what he or she does to deserve the job in the first place, a new study published in the Journal of Personality and Social Psychology suggests that you might be right." "Repeatedly, the ones who emerged as leaders and were rated the highest in competence were not the ones who offered the greatest number of correct answers. Nor were they the ones whose SAT scores suggested they'd even be able to. What they did do was offer the most answers — period." 'Dominant individuals behaved in ways that made them appear competent,' the researchers write, 'above and beyond their actual competence.' Troublingly, group members seemed only too willing to follow these underqualified bosses. An overwhelming 94% of the time, the teams used the first answer anyone shouted out — often giving only perfunctory consideration to others that were offered." 02-09 Bernanke, Ben (Wikipedia.org) "Ben Shalom Bernanke[1][2] (born December 13, 1953) is the incumbent Chairman of the Board of Governors of the United States Federal Reserve. Bernanke succeeded Alan Greenspan on February 1, 2006." 09-08 Geithner, Timothy F. (Wikipedia.org) "Timothy F. Geithner (born August 18, 1961) is the 9th president of the Federal Reserve Bank of New York." 09-08 In Your 20's: See How Your Wealth Measures Up (MSN MoneyCentral) "Older folks who are nostalgic about their 20s often forget, or gloss over, how very, very broke many people are at this age:" 11-06 Orman: Pay off Credit Card Debt First (MSNBC News) "The best way to insulate yourself is to get out of credit card debt once and for all. If you pay off your balance, you don’t have to worry about the interest rate on your card. If you pay off your bal­ance, you are less likely to have your credit card limit reduced; and even if it is reduced, it will not have a negative impact on your FICO score." 01-09 Paulson, Henry ("Hank") (Wikipedia.org) "Henry Merritt "Hank" Paulson Jr. (born March 28, 1946) is the United States Treasury Secretary and member of the International Monetary Fund Board of Governors. He previously served as the Chairman and Chief Executive Officer of Goldman Sachs." 09-08 Where the 2009 Taxes Are Going (WallStats.com) Provides a wall chart. Place your cursor on the chart and you will get the option of zooming into and out of areas with "+" and "-" buttons; you can also drag portions of the chart. 04-09 Papers -10-02-08 Green Investment to Create Jobs (AmericanProgress.org) "Today, the Center for American Progress releases a new report by Dr. Robert Pollin and University of Massachusetts Political Economy Research Institute economists. This report demonstrates how a new Green Recovery program that spends $100 billion over two years would create 2 million new jobs, with a significant proportion in the struggling construction and manufacturing sectors. It is clear from this research that a strategy to invest in the greening of our economy will create more jobs, and better jobs, compared to continuing to pursue a path of inaction marked by rising dependence on energy imports alongside billowing pollution." 10-08 -11-20-06 Home Prices Drop (USA News) "Home prices fell in at least 45 metropolitan areas in the third quarter as the real estate slowdown spread beyond industrial cities, where job losses have taking their toll on housing, to inflated markets in Florida, California and Arizona." 11-06 -AIG Price Tag: $1,400 per Taxpayer Family (ABC News) "How much will each American family pay, on average, to bail out beleaguered insurance giant American International Group? Try more than $1,400." 03-09 -Bank Executives Warn of Consequences of Limiting Bonuses (CBS News) "Some bank executives warned yesterday that the government is forcing them toward a disastrous choice between accepting restrictions on compensation that could cripple their ability to compete with rivals, or returning billions in federal aid, which could retard lending and damage the economy." 03-09 -Crisis Altering Wall Street (New York Times) "There is an air of exodus on Wall Street — and not just among those being fired. As Washington cracks down on compensation and tightens regulation of banks, a brain drain is occurring at some of the biggest ones. They are some of the same banks blamed for setting off the worst downturn since the Depression." 04-09 -Derivatives and Funding for the SEC (U.S. News) "Despite the trillion-dollar meltdown now underway, the number of SEC enforcement personnel will decline from 1,209 this year to 1,177 in 2009. In all, the SEC expects to have 3,771 employees next year. For comparison, the Smithsonian Institution budget for 2009 includes funding for 4,324 employees." "Those pitiful numbers lead us to the innumerable problems posed by derivatives, the same financial instruments that led to the chaos at Enron, which before it failed operated a huge—and almost completely unregulated—derivatives exchange business. According to the Bank for International Settlements, the global derivatives market is now worth some $676.5 trillion. That's $676,500,000,000,000. That's a fivefold increase over the value of derivatives that were traded in 2003. Further, that $676.5 trillion is 51 times America's current gross domestic product." 09-08 -Editorial: 25 People Most to Blame for Meltdown (Time.com) "The good intentions, bad managers and greed behind the meltdown." 04-09 -Editorial: Economic Summit Fell Short (New York Times) "In normal times we don’t expect a lot from summit meetings. But with the global economy imploding, leaders at Thursday’s meeting of the world’s top 20 economic powers had an urgent responsibility to come up with concrete policies to fix the global financial system and restore growth. They fell short." "Where they fell dangerously short was their refusal to commit to spend the hundreds of billions of dollars in additional fiscal stimulus that the world economy needs to pull out of its frighteningly steep dive. With consumer spending and business investment collapsing around the world, rich countries are the only ones that have the resources to do what is needed." 04-09 -Editorial: Gold the Safest Investment? (Time.com) "There is no question that gold's price run up is purely speculative. Since the beginning of 2009, the number of outstanding shares in the SPDR Gold Trust (NYSE: GLD), the most popular exchange-traded gold fund, has already climbed about 33%. Demand for gold has increased significantly." 03-09 -Editorial: How China Is Capitalizing on the Economic Crisis (Time.com) "Once shy of making major foreign investments, Beijing has gone on the prowl for resources and underpriced assets across the globe. Cash-rich Chinese companies, backed by soft loans from state banks and re-energized by lower labor costs as jobs dry up, are descending on Central Asia, Africa and even Western Europe to snap up assets." 04-09 -Editorial: The Banking Crisis Is Over (Time.com) "What banks are earning from the difference between the cost of capital and the income from lending is now great enough for the banking system to be self-sustaining again." "What will happen at this point is that bank stocks will not go up much more, but they will not dive sharply down either. There is enough evidence in comments from the CEOs of Citi and B of A and in the Wells Fargo earnings to show that the idea that banks are insolvent and probably in need of nationalization is no longer part of the consideration of how the problems with the system will be settled." 04-09 -Editorial: What About the Auto Workers? (MSNBC News) "What will a solution look like? It will almost certainly have to involve major subsidies for the new industries to locate in the worst hit regions of the country (and that will mean making sure the new employers hire ex-union workers, as many new concerns have been unwilling to do). It will hopefully involve a real effort to transform major universities like the University of Michigan into tech-industry centers; they will never be Silicon Valley, but they can be small tech centers of the kind that have developed around Boston and Los Angeles." 03-09 -Editorial: Why We Have a Crisis and What's Next (CNN News) "This is because the credit crisis reflects something more fundamental than a serious problem of mortgage defaults. Global investors, now on the sidelines, have declared a buyers' strike against the sophisticated paper assets of securitization that financial institutions use to measure and offload risk." "In recent years, our banks, borrowing to maximize the leverage of their assets at unheard-of levels, produced mountains of financial paper instruments (called asset-backed securities) with little means of measuring their value. Incredibly, these paper instruments were insured by more dubious paper instruments." "Therefore, the housing crisis was a mere trigger for a collapse of trust in paper, followed by a de-leveraging of the entire global financial system. As a result, we are experiencing the painful downward reappraisal of the value of virtually every asset in the world." "Most banks are leveraged by more than 10 to 1. Translation: The U.S. financial system will have a whopping $15 trillion to $20 trillion less credit available next year than was around a year and a half before. The cost of money is rising and the availability shrinking." "We need a private/public global bank clearing facility. The bankers don't trust each other. The central banks, working with the private institutions in providing enhanced data, need to begin to refashion the world's financial architecture." 10-08 -Five Steps to Survive the Financial Crisis (U.S. News) "It would be nice if the average American was prepared for ups and downs in the economy, but many simply aren't. More than a third of Americans have less than $10,000 in total savings and investments outside of their home and retirement plans, according to the Employee Benefit Research Institute. Meanwhile, the median credit card debt for the average U.S. household in 2008 was $7,066 according to CardTrak.com." 03-09 -Goldman Sachs to Return Bailout Money (USA Today) "Goldman would be the largest, if it follows six smaller banks, including Signature Bank (SBNY) and IberiaBank, (IBKC) who have already repaid the government with interest." "But analysts are cautioning that the repayments should not be viewed as an indication that the economy is rebounding; rather as a sign of how worried bankers are about legislation that imposes limits on banks that take TARP money." 04-09 -How Much of Citigroup (or AIG) Could the Government Take Over? (Time.com) "FDIC chairman Sheila Bair doesn't think a full government takeover of Citigroup and other multinational financial institutions is practical or even possible. Here are her reasons, as summarized by Pete Davis:" "1. The legal authority to take over large banks does not currently extend to multinational financial conglomerates; 2. The FDIC lacks the funding to conduct such a massive bailout; 3. Other countries have regulatory oversight of these financial conglomerates too, and they may object to a U.S. takeover." 03-09 -Recession Impact: Closing the Life-Saving Clinics (CBS Today) "The economic crisis is hurting society's most vulnerable. For some people these days - especially cancer patients - losing a job and health insurance could mean losing life-saving care as cash-strapped public hospitals are forced to cut critical charity care." 04-09 -Separating Toxic Assets from Legacy Assets (Time.com) "When treasury secretary Tim Geithner rolled out his long-awaited plan for buying up toxic mortgage loans and securities on March 23, reaction was split." "One simple explanation for this divide is that the Geithner plan — which calls for Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation to finance the bulk of up to $1 trillion in toxic-asset purchases by private investors — is a great deal for the investors and a big risk for the taxpayers. The math calls for the government to take on most of the downside risk while evenly sharing the rewards with hedge funds, money managers and other buyers. In the loan-buying program, private investors would put up 7% of the capital for a shot at close to 50% of the gains." 03-09 -Taxing the Wealthy (Christian Science Monitor) "In the history of taxation, the wealthy have always paid a higher rate. But rates have swung wildly over time. Economists studying past rate changes have had trouble identifying clear effects." "Perhaps the best analog to Obama's plan is the 1993 tax hike under President Clinton. Congress raised rates to the same levels Obama is proposing for Americans making at least $250,000 a year. An economic boom followed Mr. Clinton's move." "That doesn't mean, however, that the two were necessarily related, says Joel Slemrod, an economist at the University of Michigan and the former editor of the National Tax Journal." " '[Obama's] proposal is to move back to top rates [that] the country had not that long ago, and it's hard to find evidence that they had a noticeable deleterious effect on the economy,' Professor Slemrod says. 'Having those tax rates then and knowing the economy did well doesn't prove what the role of tax rates was. It could be true that performance would have been even better without them.' " 04-09 -Unsustainable Deficit Is Projected (USA Today) "President Obama's budget would generate unsustainably large deficits averaging almost $1 trillion a year over the next decade, according to new estimates released Friday." "The dismal deficit figures, if they prove to be accurate, inevitably raise the prospect that Obama and his allies controlling Congress would have to consider raising taxes after the recession ends or else pare back his agenda." 03-09 Ask the Economist (Federal Reserve Bank of San Francisco) Provides answers to commonly asked questions about the economy. 9-04 Bankruptcy Rules Toughen (Christian Science Monitor) "For better or worse, the use of personal bankruptcy to make a fresh start is about to be sharply curtailed." "Legislation moving through the Senate this week is, to backers, a long overdue tightening in an era of rising indebtedness and bankruptcy declarations." 3-05 Budget of the United States for 2005 (Whitehouse.gov - Bush) "Budget of the United States Government, Fiscal Year 2005 contains the Budget Message of the President, information on the President’s budget and management priorities, and budget overviews organized by agency, including assessments of their performance." 2-04 Budget of the United States for 2005 (Whitehouse.gov - Bush) "Budget of the United States Government, Fiscal Year 2005 contains the Budget Message of the President, information on the President’s budget and management priorities, and budget overviews organized by agency, including assessments of their performance." 2-04 Budget of the United States for 2005 - Overview (Whitehouse.gov - Bush) Provides a short summary of President Bush's budget, including charts and graphs. According to the President, "The President’s 2005 Budget continues to support and advance three overriding national priorities: winning the war on terror, protecting the homeland, and strengthening the economy." 2-04 Bush Tax Plan Created Jobs Overseas Instead of USA (Washington Times) "The job market slumped back into stagnation last month with the unemployment rate stuck at 5.6 percent and only 21,000 jobs created, a development that spells trouble for President Bush's re-election effort."   "The president sought to jump-start a job recovery with $350 billion in tax cuts last year but the response has been only weak and dwindling job gains." " 'The tax cut gave a big increase to spending, but when folks go to Wal-Mart, they buy imported goods so the job growth goes to China' and other countries, he [Morici] said." 3-04 Consumer Price Index and Other Leading Indicators (ACCRA) Provides the CPI and other leading indicators of the health of the economy, such as increase or decrease on Unemployment Rate, Payroll Employment, Average Hourly Earnings, PPI, ECI, Productivity, and the U.S. Import Price Index. 12-02 Cost-of-Living Calculator (American Institute of Economic Research) Provides a map with labor statistics in each state. 12-02 Credit Card Traps (PBS.org) "Every credit card for a credit card company is like a lottery ticket. They're just waiting to see who's going to maybe stumble a little. Maybe get into trouble on a car loan. Maybe nothing at all except they just look vulnerable. They're just in the right zip code. They're just the right profile for people who won't be able to run any place else. And those are the ones you slam. Those are the ones you hit with the 29 percent interest rate, the 35 percent interest rate, the new fees. And then, because of course if you can't pay it, then you get hit with a fee for not paying or for paying late, for going over limit. And the game is afoot. With any luck at all from the credit card company's perspective, these people will become little annuities that will just keep generating profits for the credit card companies for months, for years, maybe forever." 12-08 Currency - A History (Federal Reserve Bank of San Francisco) Provides a history of currency within the United States. 9-04 Debts - Consumer Debt (CBS News) "Consumer debt has more than doubled in the past 10 years to record levels, making it hard for many families to cope." "Consumer debt hit a record $1.98 trillion in October 2003, according to the most recent figures from the Federal Reserve. That debt — which includes credit cards and car loans, but not mortgages — translates to some $18,700 per U.S. household." 1-04 Defining a "Living Wage" (TomPaine.com) Describes efforts to define and then promote a "living wage" as the minimum that government workers and others should be paid. 7-03 Don't Try to Hide from IRS (MSNBC News) " 'The worst thing you can ever do with the IRS is ignore them,' said Jackie Perlman, an analyst with the Tax Institute at H&R Block. 'They don’t like to be ignored.' " 04-09 Editorial: Outrageously Overpaid CEOs (MSNBC News - Brush) "Here’s the pantheon of execs whose paychecks soar while their companies suffer. Also: 5 who produce stellar results for a comparative pittance." 8-05 Editorial: Price Gouging With Gas - Worry Later (Slate.com - Goolsbee) "If gas prices did not rise across the country now, in fact, the short-term impact would be disastrous. Demand would vastly exceed the current supply. As people continued to buy as much or possibly more gas, stations around the country would run out because wholesalers would refuse to supply them at the lower price. Families who'd driven off on Labor Day trips would still be stuck out on the highway, looking for a place to fill up." "Somehow, hunts for gas gougers always seem to start at the wrong time." 9-05 Editorial: The End of American Capitalism? (MSNBC News) "The worst financial crisis since the Great Depression is claiming another casualty: American-style capitalism." 10-08 Editorial: Why Gas Prices Are High (MSNBC - Markman) "Refineries are large, smelly, unattractive plants that “crack” crude oil’s hydrocarbons into the stuff that makes modern life go, such as heating oil, kerosene, jet fuel, the feedstock for plastics, diesel and automotive gasoline. Few U.S. states have ever wanted these noxious beasts on their coastlines, so the ones built in loosely regulated Louisiana half a century ago make something like half of all the refined crude oil products in the country. When Katrina blasted through, her high winds and storm surge knocked these plants for a loop, and the partial shutdown caused 10% of the nation’s entire supply of gasoline to vanish in a weekend." 9-05 Essay - Defining a "Minimum Wage" (AlterNet.org) "The current minimum wage of $5.15 an hour is lower than the real minimum wage of 1950 ($5.71)." "It would take $8.45 to match the minimum wage peak of 1968 in 2003." "Plenty of employers know how to make a profit without ripping off their employees. In-N-Out Burger ranks first among fast food chains in quality, value and service." "The starting wage is $8.25 an hour, with paid vacations, food at work, and the option of participating in a 401(k) with a company match." 7-03 Essay - Why Johnny Can't Choose (Federal Reserve Bank of Minneapolis - Dahl) Provides six concepts are the foundations to understanding the economy. 1-03 Federal Reserve System (Federal Reserve Bank of San Francisco) Describes the Federal Reserve System for college undergraduates. 9-04 Getting Ahead Harder for Twenty Somethings (MSN MoneyCentral) "Many parents wonder why their kids can’t just grow up, buy a home, start a family and live without debt. They don’t realize how much the economic context has changed." 02-06 Greenspan: Reduce Social Security Benefits (CNN News) "Federal Reserve Chairman Alan Greenspan urged Congress on Wednesday to deal with the country's escalating budget deficit by cutting benefits for future Social Security retirees rather than raising taxes." "In testimony before the House Budget Committee, Greenspan said the current deficit situation, with a projected record red ink of $521 billion this year, will worsen dramatically once the baby boom generation starts becoming eligible for Social Security benefits in just four years." "In his prepared testimony, Greenspan said pushing taxes up enough to meet future spending promises under Social Security and Medicare might pose a risk to the overall economy." " 'We are going to be confronted ... in a few years with an upward ratcheting of long-term interest rates which will be very debilitating for long-term growth,' Greenspan told the committee if the deficit problem is not addressed." 2-04 Labor Statistics by State (U.S. Department of Labor) Provides a map with labor statistics in each state. 12-02 Labor and Economic Statistics (U.S. Department of Labor) Provides comprehensive information on the economy. Includes the Consumer Price Index, Inflation Calculator, Contract Escalation, Producer Price Indexes, Import and Export Price Indexes, Consumer Expenditures, Price Index Research, Wages, Earnings, and Benefits, Wages by Area and Occupation, Earnings by Industry, Employee Benefits, Employment Costs, State and County Wages, National Compensation Data, Collective Bargaining, Productivity and Costs, Multifactor Productivity, International Comparisons, Injuries and Illnesses, Fatalities, International Import and Export Price Indexes, Foreign Labor Statistics, International Technical Cooperation, Occupational Outlook Handbook, Occupational Outlook Quarterly, Employment Wages by Area and Occupation, Injuries, Illnesses, and Fatalities, Employment Projections, Standard Occupational Classification (SOC), Demographic Characteristics of the Labor Force, Geographic Profile of Employment and Unemployment, Consumer Expenditures, Injuries, Illnesses, and Fatalities, Longitudinal Studies, and more. 9-05 New $50 Bill Released (CBS News) "Security features include an embedded thread that glows yellow when exposed to an ultraviolet light; ink that changes color - from copper to green - when the note is tilted; watermarks visible when held up to light; and hard-to-replicate microprinting. In one spot, the tiny words 'United States of America' appear on Grant's collar, under his beard." 9-04 New $50 Bill Released (MoneyFactory.com) Provides copies of new $50 and $20 for students and others to study. These copies were provided by the U.S. Treasury for this use. 10-04 Poverty and Uninsured Ranks Swell (MSNBC News - Wolk) "The nation’s poverty rate rose for a third straight year in 2003 and the ranks of the uninsured swelled, the Census Bureau said Thursday in a report sure to fuel election-season debate over President Bush’s handling of the economy." "The poverty rate has risen from a recent low of 11.3 percent in 2000, meaning an additional 4.3 million people are living in poverty as defined by the government." "Based on the census numbers, real income has fallen by about $1,500 per household over the past three years, and the ranks of the uninsured have risen by more than 5 million, Kerry said." 8-04 Small Children Die from Poverty (WashTimes.com) "The World Health Organization (WHO) says nearly 11 million children under age 5 die each year from easily preventable and cheaply cured diseases — including pneumonia, diarrhea, malaria and complications during the first year of life." "It costs just 2 cents for a six-month supply of vitamin A supplement, 15 cents for a five-day course of antibiotics to treat pneumonia and $15 to immunize a child against the six main childhood diseases, according to the U.S. Coalition for Child Survival."  "A bed net, treated to kill and repel malarial mosquitoes, costs less than $10." "The United States spent $1.7 billion on global health, education and population programs in 2001, according to rough calculations based on figures from the Organization for Economic Cooperation and Development. France was the second-biggest spender, with $1.1 billion in aid, followed by Germany at $1 billion and Japan at nearly $800 million." 9-03 Some May Save $.30 a Gallon on Gas (MSNBC News) "Car manufacturers -- especially GM, Ford and Chrysler -- have put literally millions of what are known as flexible-fuel vehicles on the road. These cars and trucks can burn either plain old gasoline or a mixture of gasoline and ethanol, a type of alcohol. The mix is known as E85." 10-05 States in Economic Crisis (MSNBC News) "With the economy in a slide and the housing market in crisis, states are collectively rolling up tens of billions of dollars in budget deficits in one of the worst financial crunches in the U.S. since the 1970s." 07-08 Stock Market Meltdown: Some Advice (US News) "Wall Street might be in a panic, but here's how you can keep calm and maybe even profit" 08-07 Technology Meets Drive-Thru (CNN News) "To help cut the waste from leftovers, Pittsburgh-based Hyperactive Technologies developed a computer system that tells managers how much food they need to prepare by counting vehicles in the line and factoring in demand for current promotions and popular staple items." "The system, called Hyperactive Bob, cuts preparation time and eliminates up to 60 percent of waste, said Joe Porfeli, the company's chief executive, who said two major national chains use the service. He declined to give their names." 01-06 Tennessee to Reward Companies for Not Outsourcing (USAToday.com) "The new law asks state procurement officials to give preference in bids for such services to contractors employing workers only in the United States. It was approved overwhelmingly by lawmakers last month and signed into law last week." 5-04 The Coming Generational Storm (MIT Press - Kotlikoff) Provides predictions on the future of the U.S. economy. Kotlikoff claims that the U.S. is currently bankrupt and that its actual debt is over 50 trillion dollars. 11-04 The Trillion-Dollar Solution to the Credit Shortage (New York Times) "The result has been a drastic contraction of the amount of credit available throughout the economy. By one estimate, as much as $1.9 trillion of lending capacity — the rough equivalent of half of all the money borrowed by businesses and consumers in 2007, before the recession struck — has been sucked out of the system." "Banking chiefs, who have come under sharp criticism for not making more loans even as they have accepted billions of taxpayer dollars to prop themselves up, say it is the markets, not the banks, that are squeezing American borrowers." "The Obama administration hopes to jump-start this crucial machinery by effectively subsidizing the profits of big private investment firms in the bond markets. The Treasury Department and the Federal Reserve plan to spend as much as $1 trillion to provide low-cost loans and guarantees to hedge funds and private equity firms that buy securities backed by consumer and business loans." 02-09 Three Trillion Dollar War (Democracy Now) "One week after President Bush rejected charges the war in Iraq has hurt the US economy, a new book puts a conservative estimate of the war’s cost at $3 trillion so far. In their first national broadcast interview upon their book’s publication, Nobel laureate and former chief World Bank economist, Joseph Stiglitz, and co-author Linda Bilmes of Harvard University say the Bush administration has repeatedly low-balled the cost of the war—and even kept a second set of records hidden from the American public." 03-08 U.S. Infrastructure in Disrepair (CBS News) "America's infrastructure is full of cracks, leaks and holes and is getting worse, according to an analysis by civil engineers that gives the nation's transportation, water and energy systems an overall grade of D-plus." "A report by the American Society of Civil Engineers released Thursday said the condition of 12 categories of infrastructure hasn't improved in the past two years.""Schools received the worst grade — D-minus — from the engineers, who said three out of four school buildings are inadequate. They estimate it will cost more than $127 billion to build new classrooms and modernize outdated schools." 9-03 Why AIG Stumbled and Taxpayers Own It (CBS News) "Of all the corporate bailouts that have taken place over the past year, none has proved more costly or contentious than the rescue of American International Group (AIG). Its reckless bets on subprime mortgages threatened to bring down Wall Street and the world economy last fall until the U.S Treasury and the Federal Reserve stepped in to save it." 05-09 Women Now Give More Than Men (U.S. News) "Analysis of Internal Revenue Service data by Grant Thornton shows that for the first time, women gave more money than men in 2005, according to the latest publicly available tax return data. " "Justin Ransome, a partner in Grant Thornton's national tax office, says he's noticed a similar trend among his clients. 'Women tend to give without trying to seek a benefit in return,' he says, while most of his male clients try to give as part of their estate tax plan." 09-08 Projects Consumer Price Index - Definition and Examples (Federal Reserve Bank of Minneapolis) Provides exercises on working with the consumer price index (CPI). 10-04 Discussions About Money (Federal Reserve Bank of Minneapolis) Provides discussion questions and resources. 1-05 Learn About Money (Federal Reserve Bank of San Francisco) Provides a game or project where children learn about how money works in Fedville, a small town. 9-04 Ten meals for $10 or Less (CNN News) Provides 10 recipes. 02-09

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