Christine Lagarde, the IMF managing director, captured a sense of fragmentation last month when she spoke of a “three-speed” global economy. On this week’s evidence, however, there are even more speeds than that.

Falling commodity prices and a rising dollar show the broad picture: the global outlook is weakening a little and becoming more dependent on the US. For every country putting out good news, such as Japan, there are weaker data elsewhere – for example in China.

It is a global economy that lacks a strong source of demand growth.

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Filed under: * Culture-Watch • Globalization • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • * International News & Commentary • America/U.S.A. • Asia • England / UK • Europe

Barclays has "repeatedly let down society" and needs to clean up its culture in the wake of the £290m fine for rigging Libor, the Church of England said on Wednesday

The annual investment report by the Church Commissioners shows that the discussions with Barclays will be reviewed in July, a year on from the interest rate scandal that led to the departure of the chairman Marcus Agius, the chief executive Bob Diamond and chief operating officer Jerry del Missier.

In the report the commissioners, working with the Ethical Investment Advisory Group (EIAG), said they had "commenced an intensive engagement with Barclays seeking robust assurance that, having repeatedly let down society with its conduct, Barclays is making a determined and successful effort to effect a fundamental turnaround in culture".

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America's credit crunch is easing. For the past six years, consumers and businesses have struggled to borrow money, but slowly, things are getting easier.

Large U.S. companies are taking advantage of low interest rates to borrow record amounts of capital in bond markets. Banks are opening the spigots for commercial and industrial firms, and loans grew at an 11% annualized rate in the first quarter of this year, the sixth double-digit percentage increase in seven quarters, Federal Reserve data show. According to the Fed's survey of senior bank-lending officers released Monday, 28% of banks lowered the cost of credit lines early this year to smaller firms like Mr. Aaron's that have annual sales of less than $50 million. Residential lending began edging up last year, and even people with bad credit can get a loan to buy a car these days.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • Personal Finance • The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

(Please note that you may find an earlier discussion of the importance of U-6 as a measure of the real labor market situation in this blog post and discussion from Februaryl--KSH).

Voluntary plus involuntary part-time employment rose by a whopping 441,000 jobs. Take away part-time jobs and there is not all that much to brag about. Indeed, full-time employment fell once again, this month by 148,000.

Read it all and there is another article there. For the table of all six employment/unemployment measures, you may go there.

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Its surprising how many people still marry. As everyone knows, it’s a risky proposition; the divorce rate, though down from its peak of one in two marriages in the early 1980s, remains substantial. Besides, you can have a perfectly respectable life these days without marrying.

When the Pew Research Center asked a sample of Americans in 2010 what they thought about the “growing variety in the types of family arrangements that people live in,” 34 percent responded that it was a good thing, and 32 percent said it made no difference. Having a child outside of marriage has also become common. According to a report by the National Marriage Project at the University of Virginia, 47 percent of American women who give birth in their 20s are unmarried at the time.

And still, demographers project that at least 80 percent of Americans will marry at some point in their lives.

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Employers kept hiring at a steady pace in April and the government revised up job tallies for February and March, easing fears that the economy is tumbling into a spring slump and propelling blue-chip stocks to record highs.

Nonfarm payrolls rose by 165,000 last month and the jobless rate ticked down to 7.5%, the lowest level since December 2008. The Labor Department also significantly raised hiring estimates for the two prior months, by a combined 114,000 jobs.

But the job gains in April, which were tilted toward the retail and business-services sectors, come alongside mixed signals for the economy almost four years into the recovery. While the housing and auto sectors are accelerating after years of industry turmoil, other major sectors are showing signs of trouble. In short: The Federal Reserve is looking for more broad-based and sustained job growth before easing up on its easy-money policies.

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In the thirty or so years that I have been following EU affairs – or is it nearer 35 years now since I studied in French literature in Paris, and German philosophy in Mainz – I have never seen ties between Europe’s two great land states reduced so low.

The French Socialist Party crossed a line by lashing out at Chancellor Angela Merkel in person. It is one thing to protest “German austerity”, it is quite another to rebuke the “selfish intransigence of Mrs Merkel, who thinks of nothing but the deposits of German savers, the trade balance recorded by Berlin and her electoral future”.

There is no justification for such an ad hominem attack. German policy is indeed destructive, but that is structural. It is built into the mechanisms of EMU and the anthropological make-up of the enterprise.

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Justin Welby, the new leader of nearly 80m Anglicans around the world, has won a respectful hearing for his ideas on banking and the British economy. Even if they disagree with the details, people have generally not reacted by saying "this man hasn't a clue what he is talking about" or "he should go back to singing hymns."

On April 21st, the archbishop of Canterbury suggested that big, unhealthy banks should be broken up into regional ones, as part of a "revolution in the aims" of banks designed to make sure that they served society as well as their own narrow interests. That sounded very like the proposal made last month by Ed Miliband, the Labour leader, for local lenders modelled on the German system. It comes at a time when the government faces hard decisions about the future of the Royal Bank of Scotland after its rescue by the tax-payer. Given the immediacy of the issue, some people will accuse the archbishop (who lists his hobbies as French culture, sailing and politics) of making narrow political points rather than broad moral ones.

But he also had some longer-term ideas on the financial sector. Drawing on his experience as a member of a parliamentary Banking Standards Commission, he said senior positions in banking ought to form a regulated profession which required qualifications.

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To retirees, the offers can sound like the answer to every money worry: convert tomorrow’s pension checks into today’s hard cash.

But these offers, known as pension advances, are having devastating financial consequences for a growing number of older Americans, threatening their retirement savings and plunging them further into debt. The advances, federal and state authorities say, are not advances at all, but carefully disguised loans that require borrowers to sign over all or part of their monthly pension checks. They carry interest rates that are often many times higher than those on credit cards.

In lean economic times, people with public pensions — military veterans, teachers, firefighters, police officers and others — are being courted particularly aggressively by pension-advance companies, which operate largely outside of state and federal banking regulations, but are now drawing scrutiny from Congress and the Consumer Financial Protection Bureau.

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The U.S. economy expanded in the first quarter but failed to gather as much steam as expected, raising concerns of another year of sluggish growth.

Consumer spending advanced during the first quarter despite tax increases, but those gains were held in check by slowing business investment and government cutbacks.

The nation's gross domestic product, a measure of all goods and services produced in the economy, advanced at a 2.5% annual rate between January and March, the Commerce Department said Friday. Economists had forecast a 3.2% expansion.

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Culture change in financial services will not be achieved by "light touch" or "heavy touch" regulation, Archbishop Justin said at a Westminster discussion organised by the Bible Society.

Instead the banking sector must adopt "an aim of service to society and not mere rent-seeking, and a culture of virtue based in the realities of daily life and not a fantasy nirvana," he said.

Describing what this change of culture might look like, the Archbishop said it would require "a ruthless honesty and a deep willingness to be made very uncomfortable indeed through listening to things one does not want to hear".

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Speaking at a Parliamentary event on "finding long-term solutions to the financial crisis", Archbishop Welby said there needs to be a "revolution in the aims" of banks to ensure they serve society rather than "self-regarding interest" or even just shareholders.

“What we’re in at the moment isn’t a recession but some kind of depression,” he said. “It needs something very, very major to get us out of it, in the same way it took something very major to get into it.”

The Archbishop, who sat on the recent Banking Standards Commission but said his ideas were not those of the Commission, also called for professional banking standards to be introduced as a way of transforming ethical standards in banking.

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In March, 7.6 million Americans who want more hours were stuck in part-time jobs, about the same as a year earlier and three million more than there were when the recession began at the end of 2007.

These almost invisible underemployed workers do not count toward the standard jobless rate of 7.6 percent. A broader measure, which includes the involuntary part-timers as well as people who want to work but have stopped looking, stands at 13.8 percent.

“There’s nothing inherently wrong with people taking part-time jobs if they want them,” said Diane Swonk, chief economist at Mesirow Financial in Chicago. “The problem is that people are accepting part-time pay because they have no other choice.”

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At this time of year, when most Americans have just filed their returns, exasperation with the income tax system reaches a peak. Hardly anyone denies it's a complex mess. In 2010, calculating their taxes cost Americans $168 billion, estimates the Taxpayer Advocate Service of the Internal Revenue Service. That's about 15 percent of taxes collected — a heavy overhead. Almost 60 percent of taxpayers pay accountants or other tax preparers. Public esteem for the tax system is low; in a 2011 Pew poll, 55 percent judged it unfair. Disaffection was fairly even politically: 47 percent among Republicans, 58 percent among Democrats and 56 percent among independents.

So “tax reform” ought to be a cinch, right? Well, no.

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We have no way of knowing how this all ends. One problem is that the smartest solution—having Germany and perhaps a handful of other northern countries leave the euro for a new currency (the Deutche Mark 2.0, or a “neuro” for northern Europe)—would make life easier in the south. The south based euro would fall in value, but since debts and contracts are denominated in that currency, the adjustment would be the same as in a normal devaluation. This course would likely lead quickly to a new burst of growth in the south, though inflation and other problems would take a toll over time.

But the euro’s break up day would cause a lot of problems for Germany and its northern friends....

So we’re in an interesting situation. The crisis is crippling the south, but the south has no power to resolve the crisis. The crisis isn’t comfortable for the north but still looks less painful than the solution. So the north, which has the ability to resolve the crisis, doesn’t have the will to do it and the south, which has the will, lacks the ability.

Read it all (and please note that the Financial Times article by Wolfgang Münchau which is mentioned, entitled "The riddle of Europe’s single currency with many values," is indeed a must read as Mr. Read says).

Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Currency Markets • Euro • European Central Bank • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Foreign Relations • Politics in General • * International News & Commentary • Europe • --European Sovereign Debt Crisis of 2010

American workers are being fired or laid off less often than at any time in the last decade, the government reported this week. But companies are also less willing to hire than they used to be.

The Labor Department’s Job Openings and Labor Turnover Survey for February showed that during that month the total number of people who were either discharged or laid off totaled just 0.9 percent of all job holders in the United States. It was the first month since that survey began in 2000 that the figure dipped below 1 percent.

Over the most recent 12 months, the Labor Department figures show, only 15.1 percent of workers lost their jobs because of layoffs or discharges. Until this year, the lowest figure for any 12 months had been 15.3 percent, during the period ending in September 2006. That came as the economic boom was cresting before the recession that began at the end of 2007.

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At the end of 2012, buyers bought homes that were three times their annual income, up from 2.6 times before the housing bubble.

The disparity is stark in high-priced areas such as San Jose, where home buyers are purchasing homes for seven times their yearly salary. Meanwhile, in Detroit, the purchase price is typically just 1.5 times a buyer’s salary.

Homes appear more affordable because low mortgage rates are painting a distorted picture of the market, said Stan Humphries, chief economist at Zillow.

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American employers hired at the slowest pace in nine months in March, a sign that Washington's austerity drive could be stealing momentum from the economy.

The economy added just 88,000 jobs last month and the jobless rate ticked a tenth of a point lower to 7.6 percent largely due to people dropping out of the work force, Labor Department data showed on Friday.

Analysts polled by Reuters had expected a gain of 200,000.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Labor/Labor Unions/Labor Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government

The CBO forecast finds a persistent mismatch between tax revenue and spending over the coming decade. As the economy improves, tax revenue should rise to 19 percent of GDP for the period from 2015 through 2023, up from 15.8 percent in 2012, the report said. But federal spending, after an early-decade dip, will start rising persistently faster than revenues.

"After 2017, if current laws remain in place, outlays will start growing again as a percentage of GDP," the CBO said. "The aging of the population, increasing health care costs, and a significant expansion of eligibility for federal subsidies for health insurance will substantially boost spending for Social Security and for major health care programs relative to the size of the economy."

The CBO's current-law "baseline" calls for spending to reach about 23 percent of GDP in 2023 and, more worrisome, to be "on an upward trajectory."

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Update: An IBD article is also available on this, entitled "CBO Report Shows We're Still Headed Toward A Fiscal Cliff" and it may be found there.

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...the Labor Department’s latest jobs snapshot and other recent data reports present a strong case for crowning baby boomers as the greatest victims of the recession and its grim aftermath.

These Americans in their 50s and early 60s — those near retirement age who do not yet have access to Medicare and Social Security — have lost the most earnings power of any age group, with their household incomes 10 percent below what they made when the recovery began three years ago, according to Sentier Research, a data analysis company.

Their retirement savings and home values fell sharply at the worst possible time: just before they needed to cash out. They are supporting both aged parents and unemployed young-adult children, earning them the inauspicious nickname “Generation Squeeze.”

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The finances of the US’s multi-employer pension schemes have deteriorated so quickly over the past year that the body that insures them will almost certainly run out of cash in 20 years, according to a new report.

The chances of the Pension Benefit Guarantee Corporation – the publicly created but privately funded body that insures the nation’s occupational pension schemes – going bust went from 1 in 3 at the end of 2011 to more than 9 in 10 by the end of 2012, a report prepared for the PBGC and released on Tuesday said.

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On Christmas Eve, Irish Prime Minister Enda Kenny paid a graveside tribute to an ally who helped bring him to power amid the worst economic crisis in Ireland’s modern history.

Shane McEntee was a “true friend and confidante, who listened to other people’s problems and made them his own,” Kenny said in his speech, after 3,000 people attended the funeral of the food minister. Three days earlier, McEntee had taken his own life. He was 56 with four children.

While financial hardship has led to a spate of suicides in parts of austerity-hit Europe, the deaths of McEntee and the son of well-known restaurant owners less than a week later have turned the national spotlight onto the issue in Ireland.

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Filed under: * Christian Life / Church Life • Parish Ministry • Death / Burial / Funerals • * Culture-Watch • Psychology • Suicide • * Economics, Politics • Economy • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Politics in General • * International News & Commentary • England / UK • --Ireland

Top officials at the US Federal Reserve took months to realise that the 2007 financial crisis would rock the world’s largest economy, according to an embarrassing set of meeting transcripts released on Friday.

The transcripts reveal that some Fed policy makers viewed the market turmoil, which erupted in August 2007 on the back of problems in the market for subprime mortgage loans, as good news because markets were pricing in more risk.

The records of the Federal Open Market Committee’s 2007 meetings, which are released with a five-year delay, raise the question of whether the recession would have been less severe if the Fed had reacted faster instead of continuing to forecast steady growth.

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Update: A Washington Post article is here.

Filed under: * Culture-Watch • History • * Economics, Politics • Economy • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Federal Reserve

A large and growing share of American workers are tapping their retirement savings accounts for non-retirement needs, raising broad questions about the effectiveness of one of the most important savings vehicles for old age.

More than one in four American workers with 401(k) and other retirement savings accounts use them to pay current expenses, new data show. The withdrawals, cash-outs and loans drain nearly a quarter of the $293 billion that workers and employers deposit into the accounts each year, undermining already shaky retirement security for millions of Americans.

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Filed under: * Christian Life / Church Life • Parish Ministry • Stewardship • * Economics, Politics • Economy • Consumer/consumer spending • Labor/Labor Unions/Labor Market • Personal Finance • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • * Theology • Ethics / Moral Theology

My household has more than its share of student and credit card debt. I didn’t expect my salary to be frozen for half a decade, and I assumed the spending was a temporary solution to a temporary problem. Bad assumption. Two months ago, I got a notice from my student loan company telling me that my monthly payment was about to double. It took a minute, but I thought back to the day I agreed to those repayment terms. By the time my payment obligations spike, I remember thinking, I’ll be so flush that it won’t even be an issue....

There have been many far more serious victims of the Great Recession and the anemic recovery than me, of course — people who have lost their jobs, their homes, breadwinners who have lost a defining sense of self. Although I have never felt more than a step or two away, I still have a home and I still have a job.

But too often there has not been a distinction made between the victims and people, like me — among the majority of Americans who are not unemployed or underemployed, but didn’t act as prudently as they should have — who made poor decisions.

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Understanding the developing attitude of the central banks, and the effects of their actions, obviously remains central for investors in all financial assets. The “big picture” for global financial assets, involving very low government bond yields and a gradual shift of risk appetite into credit and equities, is unlikely to change until one of two events takes place.

The first would be a decision by the central bankers themselves that the era of unlimited quantitative easing must end, either because of the risk of inflation and asset price bubbles, or because of concerns about fiscal dominance over the monetary authorities. The second would be a realisation by the markets that further action by the central bankers is irrelevant because they have run out of effective ammunition. Either of these events would probably remove the central prop from the equity bull market which began in March, 2009, but neither seems very likely in 2013.

There is certainly no sign that the central bankers themselves will call a halt to the extension of their balance sheets.

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Whether or not there is a deal, the weeks since the election have produced a stark display of political gridlock. "The government is not working," said Steve Bell, senior director of the Bipartisan Policy Center, who was a senior budget adviser to Senate Republicans for many years. "There is no doubt that the policy-making apparatus in this town has collapsed."

Following the tea-party wave in the 2010 election, the 112th Congress looks set to be the least productive in recent history. By the end of November, the House had passed 146 bills over the previous two years, by far the smallest number for any Congress since 1948. The Senate passed fewer bills in 2012 than in any year since at least 1992.

Rather than smoothing over differences, the November election appears to have hardened them. "We came out of the election with both sides thinking they won and had an equal mandate," said Ross Baker, a professor at Rutgers University who is now interviewing lawmakers on Capitol Hill for a book on bipartisanship. "One problem is we don't have a common narrative to guide us."

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I will take comments on this submitted by email only to at KSHarmon[at]mindspring[dot]com.

Filed under: * Culture-Watch • History • Psychology • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Taxes • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate • * International News & Commentary • America/U.S.A.

The actions on the eve of the Fed’s centenary year underscore Bernanke’s hallmark commitment to experimentation and forceful action, derived in part from his research showing too little monetary stimulus produced large economic costs for the U.S. in the 1930s and for Japan in the 1990s. He called the current state of the labor market, with unemployment at 7.7 percent, “an enormous waste of human and economic potential” and said the benefits of more bond buying outweigh the potential risks.

“Bernanke is pulling out all the stops to kick this economy back into a higher gear,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “They are buying everything in sight -- Treasuries, mortgage-backed securities -- and will keep rates low until everyone who wants a job has one.”

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Update: Brian Milner has some interesting thoughts on this there.

Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Labor/Labor Unions/Labor Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Federal Reserve

The Federal Reserve refashioned its bond-buying programs on Wednesday, extending its far-reaching effort to revitalize the jobs market and boost the economic recovery into 2013.

In addition, the Fed shifted its communications strategy by specifying the levels of unemployment and inflation that might prompt it to begin raising short-term interest rates, which are now near zero.

The central bank's policy committee, in its final meeting of the year, said Wednesday it would "initially" begin buying $45 billion of long-term Treasury bonds each month. The latest stimulus from the Fed will replace an expiring program known as "Operation Twist," in which the Fed has been buying about $45 billion of long-term Treasury bonds each month and selling about the same amount of short-term Treasurys.

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Financial adviser Jeffrey Smith recently watched a once-confident client scrawl his fears across a legal pad during a discussion of stock investments: "Congressional stalemate," "unemployment," "European crisis," "corruption."

The client, retiree Nicholas Zerebny, later recalled how his thoughts strayed to Edvard Munch's "Scream" paintings. In the middle of the page, Mr. Zerebny drew a crude version of the iconic screaming face.

"That's how I feel right now," he told Mr. Smith.

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Budget negotiations between the White House and Republican House Speaker John Boehner have progressed steadily in recent days, people close to the process said, breathing life into talks that appeared to have stalled.

Both sides still face sizable differences before any agreement might be reached by the end of the year, and talks could well falter again over such controversial issues as taxes and Medicare before any deal is ultimately reached.

The people familiar with the matter say talks have taken a marked shift in recent days as staff and leaders have consulted, becoming more "serious." Both sides have agreed to keep details private, according to the people, who declined to detail where new ground was being broken.

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This is not a good time to be starting out in life. Jobs are scarce, and those that exist often pay unexpectedly low wages. Beginning a family — always stressful and uncertain — is increasingly a stretch. The weak economy begets weak family formation. We instinctively know this; several new studies now deepen our understanding.

When the labor market operates smoothly, it creates an economic escalator. Just out of high school or college, young workers typically switch jobs frequently until they find something that fits their talent and temperament. Job changes often mean higher pay; people move to advance themselves. The more they succeed, the more confident they feel in marrying and having children.

The most startling evidence of the broken escalator is the collapse in marriages and births....

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Filed under: * Culture-Watch • Children • Marriage & Family • Psychology • Young Adults • * Economics, Politics • Economy • Consumer/consumer spending • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • Personal Finance • The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

America's employers added jobs at a slow pace in November, easing fears that uncertainty about U.S. budget policies would stifle hiring, but fueling concerns about the robustness of the economic recovery.

The Labor Department's latest snapshot of the job market said employers added 146,000 jobs last month. That is an improvement from the previous two months, but below the average job growth per month of about 150,000 over the past two years. Payroll growth in September and October also was revised down by about 50,000 jobs.....

...November's figures also show that jobs are growing too slowly to significantly lower unemployment or boost the economy's overall growth, which faces headwinds. To keep up with population growth, the economy needs to add about 120,000 new jobs every month just to keep the unemployment rate from rising.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Labor/Labor Unions/Labor Market • Personal Finance • The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

Since exploding onto the global stage in 2002 with his phenomenally successful book The Purpose Driven Life, Warren has been the warm and friendly face of ­evangelicalism—a welcoming, avuncular alternative to hellfire-and-brimstone finger waggers such as Pat Robertson and the late Jerry Falwell. With his goatee and dressed-down aesthetic (for our meeting he’s sporting jeans, a bright blue and ­robin’s-egg plaid oxford, and black slip-ons), 58-year-old “Pastor Rick” cultivates the casual, cool-dad aura of the boomer generation to which he belongs. (He has the Korean rap phenomenon “Gangnam Style” as his ringtone and, in classic ­SoCal fashion, shuns socks unless visiting wintery climes such as New York in late November). Warren’s ministry, similarly, presents Christianity in a relatable, user-friendly package, much in keeping with his book’s uplifting promise that every one of our lives has meaning.

These days, however, the aggressively upbeat Warren is increasingly disheartened by what he sees as a “malaise” afoot in the land. “I feel America is in the emotional doldrums,” he says sadly. The economy is sluggish, the political system is a disaster, and citizens are at each other’s throats. He observes, “I think America is more divided today—and it’s sad—than at any time since the Civil War.”

Warren voices special concern for younger generations. “There’s a lot of people in their 20s and even early 30s still waiting for their lives to start,” he observes. They can’t find jobs. They’re moving back in with their parents. “They’re like, where’s the American Dream for me?”

Bottom line, says Warren: “This nation is in desperate need of some direction and purpose and meaning. Somebody’s got to speak up now. And I thought, OK. If nobody else volunteers, I’ll step up.”

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Filed under: * Culture-Watch • Psychology • Religion & Culture • Young Adults • * Economics, Politics • Economy • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • * Religion News & Commentary • Other Churches • Evangelicals

[Crystal] Thompson made $18 an hour as a senior account executive at Daniel Island giftware manufacturer Davis & Small until March, and the 36-year-old single mother hasn’t been able to find suitable replacement work since.

She said she would simply work two jobs if she didn’t have children, but since she has to support her girls, she figures she needs to be paid at least $14 an hour.

“There’s so many people who are unemployed that they’re all going for the same jobs,” she said.

Thompson already moved in with her mother to save money, even though “it’s not emotionally healthy for me and my children.” And if no one hires her this month, it’s about to get rougher.

Thompson is one of 29,000 South Carolinians who will lose their federal unemployment benefits at the end of the year.

After several extensions of the federal Emergency Unemployment Compensation program to help out-of-work Americans ride out the recession the past few years, it’s over. Congress passed the Middle Class Tax Relief and Job Creation Act of 2012 in February, which cut off the benefits by Jan. 3, 2013.

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Filed under: * Culture-Watch • Children • Marriage & Family • Women • * Economics, Politics • Economy • Labor/Labor Unions/Labor Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • * South Carolina

The median net worth of American households has dropped to a 43-year low as the lower and middle classes appear poorer and less stable than they have been since 1969.

According to a recent study by New York University economics professor Edward N. Wolff, median net worth is at the decades-low figure of $57,000 (in 2010 dollars). And as the numbers in his study reflect, the situation only appears worse when all the statistics are taken as a whole.

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The recession and weak recovery appears to be keeping many adult children from getting a home of their own, and that could have implications for the housing industry’s recovery.

A Census Bureau report released Wednesday found that between 2007 and 2011 there was a steady increase in the percentage of adults living in someone else’s house – and that increase has mostly been driven by adult children moving in with mom and dad.

In 2011, Census Bureau researchers found that 17.9 percent of people 18 and older, or 41.2 million people, lived in a house in which they weren’t the head of the household or that person’s spouse or significant other. That’s up from 16 percent in 2007, before the nation went into recession.

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A steep decline in births among immigrant women hard hit by the recent recession is the driving force behind the record low U.S. birthrate, according to the Pew Research Center.

The annual number of births per 1,000 women ages 15 to 44 dropped 8% in the U.S. from 2007 to 2010 to 64 births per 1,000, according to a report released Thursday by the nonpartisan Pew center. The U.S. birthrate peaked during the baby boom, at 122.7 in 1957.

Immigrant women, both legal and illegal, still have a higher birthrate than the U.S. population as a whole. Yet the rate for foreign-born women dropped 14% between 2007 and 2010, to 87.8 births per 1,000 women ages 15 to 44, compared with a 6% decline for U.S.-born women, to 58.9 births. The birthrate plunged 19% for immigrants of Hispanic origin during that period; among Mexicans, the largest group among Hispanics, the rate plunged 23%.

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President Obama’s re-election and Democratic gains in Congress were supposed to make it easier for the party to strike a deal with Republicans to resolve the year-end fiscal crisis by providing new leverage. But they could also make it harder as empowered Democrats, including some elected on liberal platforms, resist significant changes in entitlement programs like Social Security and Medicare.

As Congress returned Monday, the debate over those programs, which many Democrats see as the core of the party’s identity, was shaping up as the Democratic version of the higher-profile struggle among Republicans over taxes.

In failed deficit reduction talks last year, Mr. Obama signaled a willingness to consider substantial changes in the social safety net, including a gradual increase in the eligibility age for Medicare and limits in the growth rate of future Social Security benefits. An urgent question hanging over the new round of deficit talks is which of those changes Mr. Obama and Congressional Democrats would accept today....

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U.S. households owe a bit less than they did at the peak of the bubble. But they still owe a lot: $11.4 trillion, give or take a few billion. Mortgage and home-equity debt is still by far the biggest chunk of that debt.

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Most of the increases would result from the expiration of Bush-era tax cuts, which would cause marginal rates to rise. Simultaneously, several temporary tax breaks pushed by President Barack Obamaafter the financial crisis also would end.

And most households—121 million in all—would be hit by an increase in the payroll tax that employees pay to 6.2% from 4.2%.

Also expiring at year-end is a provision to reduce the so-called marriage penalty, a set of tax provisions that require many couples to pay higher taxes when they file jointly. And millions more families' earnings this year would be subject to the alternative minimum tax. The AMT was originally intended to prevent the very wealthy from avoiding taxes but would apply to middle-class households if policy makers don't renew a provision that expired last year.

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[Moody's] said France’s long-term economic growth had been hit by its inflexible labour market and low levels of innovation eroding its competitiveness and industrial base.

Moody's also flagged up the country’s exposure to the continuing eurozone crisis.

It warned the “predictability” of France’s resilence of further shocks in the eurozone was diminishing while the country’s exposure to the highly indebted countries such as Spain and Greece was disproportionately high.

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The threat of the euro’s collapse has abated for the moment, but putting the single currency right will involve years of pain. The pressure for reform and budget cuts is fiercest in Greece, Portugal, Spain and Italy, which all saw mass strikes and clashes with police this week.... But ahead looms a bigger problem that could dwarf any of these: France.

The country has always been at the heart of the euro, as of the European Union. President François Mitterrand argued for the single currency because he hoped to bolster French influence in an EU that would otherwise fall under the sway of a unified Germany. France has gained from the euro: it is borrowing at record low rates and has avoided the troubles of the Mediterranean. Yet even before May, when François Hollande became the country’s first Socialist president since Mitterrand, France had ceded leadership in the euro crisis to Germany. And now its economy looks increasingly vulnerable as well.

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The eurozone's return to recession is particularly bad news because it is now hitting once strong economies like Germany. This means the recession will last longer and have a bigger impact on U.S. consumers and companies.

Figures released today showed that collectively the economies of the 17-country eurozone contracted by 0.1 percent between July and September. While this is a slight improvement over the second quarter of the year when it shrank by 0.2 percent, the definition of a recession is two straight quarters of contraction. Most analysts believe that the recession will continue at least until the end of 2012.

"The recession in southern Europe is slowly creeping to other countries," says Martin Van Vliet, an analyst with ING. "If you look at the indicators for the fourth quarter you see that even Germany many not grow again and that shows that the economy has an enormous need for a new impulse."

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The Federal Housing Administration is expected to report this week it could exhaust its reserves because of rising mortgage delinquencies, according to people familiar with the agency's finances, a development that could result in the agency needing to draw on taxpayer funding for the first time in its 78-year history.

Such a report would likely set off a political fight over the government's role in housing, as it raises the prospect of billions of dollars being added to the U.S. government's effort to stabilize the hard-hit sector in the aftermath of the 2008 financial crisis, which already includes $137 billion spent to bail out Fannie Mae and Freddie Mac. Together with Fannie and Freddie, federal agencies are backing nearly nine in 10 new mortgages.

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Police and protesters clashed in Spain on Wednesday as millions of workers went on strike across Europe to protest spending cuts they say have made the economic crisis worse.

Hundreds of flights were cancelled, car factories and ports were at a standstill and trains barely ran in Spain and Portugal where unions held their first ever coordinated general strike.

Riot police arrested at least two protesters in Madrid and hit others with batons, witnesses said, and in Rome students pelted police with rocks in a protest over money-saving plans for the school system.

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German Finance Minister Wolfgang Schaeuble has asked a panel of advisers to look into reform proposals for France, concerned that weakness in the euro zone's second largest economy could come back to haunt Germany and the broader currency bloc.

Two officials, speaking on condition of anonymity, told Reuters this week that Schaeuble asked the council of economic advisers to the German government, known as the "wise men", to consider drafting a report on what France should do.

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Talks to agree the EU's 2013 budget have collapsed, after negotiators from the EU and member states were unable to agree on extra funding for 2012.

The EU Commission and European Parliament had asked for a budget rise of 6.8% in 2013.

But most governments wanted to limit the rise to just 2.8%.

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...historically, voters have given a second term to incumbent presidents who preside over even modest economic growth during an election year.

That pattern appears to have held for Obama. If the economy is not exactly roaring ahead, it improved steadily over the course of the year.

"It was never going to be a landslide," said John Sides, a political science professor at George Washington University. "But it was always his race to lose."

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To those who were surprised that the European Union received the Nobel Peace Prize, I say: “Think twice.” This was not only a deserved award for Europe’s contribution to bringing peace and stabilizing democracies in the recent past. The Nobel Committee was also sending a clear warning to contemporary leaders. I could almost hear them saying: “On this difficult odyssey, don’t abandon ship. In today’s world, the EU is too valuable to squander.”

It was an indirect but powerful rebuttal to the dangerous nationalist and populist rhetoric some politicians have adopted when describing the recent financial crisis.

This message couldn’t have come at a better time.

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Since the Fresh & Easy grocery chain was founded five years ago, it has opened 150 stores in California and positioned itself as a hip, socially responsible company.

A cross between Whole Foods and Trader Joe’s, the company brags that its house brands have no artificial colors or trans fats, that two-thirds of its produce is grown locally and that its main distribution center is powered by a $13 million solar installation.

But in one crucial respect, Fresh & Easy is just like the vast majority of large American retailers: most employees work part-time, with its stores changing many of their workers’ schedules week to week.

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The middle class has been caught in an economic vise, trying to pay 2012 prices with paychecks that haven't grown since the good times went bust — or even earlier.

Across the nation, family income was down 8 percent last year from what it was in 2000. And in South Carolina, the median income last year was just over $40,000.

That's the lowest wages have been in the Palmetto State since 1985, according inflation-adjusted figures from the U.S. census.

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Europe's economic woes are washing over U.S. multinational companies, contributing to a season of weak corporate earnings.

Domestic sales are growing, as the U.S. housing market and consumer confidence recover. But China's economy has slowed, robbing U.S. companies of their most reliable growth engine of recent years.

Almost uniformly, however, U.S. companies reporting third-quarter results identify Europe as the weakest link in the global economic chain.

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For the first time since the Great Recession hit, American households are taking on more debt than they are shedding, an epochal shift that might augur a more resilient recovery.

For two of the last three quarters, American households’ total outstanding borrowing on things like credit cards, mortgages and auto loans has increased after falling for 14 consecutive quarters before then. Some economists even see an end to the long, hard process of deleveraging — as they refer to the cutting of debt relative to income or the nation’s economic output. That process, they say, has been a central reason for the extraordinary sluggishness of the recovery.

“We’re at an inflection point,” said Kevin Logan, the chief United States economist for HSBC. “Debt is less of a burden” for households, he said.

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Deficit-reduction principles backed by more than 80 U.S. chief executive officers are so broad that anti-tax advocate Grover Norquist and an ally of President Barack Obama both claim their plans could satisfy the standards.

The Campaign to Fix the Debt, with more than $30 million in backing, announced an expanded list of supporters yesterday, including the leaders of Verizon Communications Inc. (VZ), Cisco Systems Inc. (CSCO) and Microsoft Corp. (MSFT) On the most vexing issue -- whether tax increases should be part of a deal -- the principles refer to lower tax rates and higher revenue, not higher taxes.

Read it all. You can also find the CEO Debt Concerns Press Release here.

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The financial markets have been notably calm of late. Stock indexes have ticked upwards and interest rates on sovereign bonds have drifted downwards. The euro has also remained relatively stable against the dollar. And investor panic seems to have dissipated.

But appearances can be deceiving, said German Finance Minister Wolfgang Schäuble on Tuesday. "I'm not so sure that the worst of the crisis is behind us," he said at a mechanical engineering conference in Berlin, warning that reform efforts needed to be re-doubled to ensure that trust in the euro returns.

His comments were echoed by Yves Mersch, a member of the European Central Bank Governing Council who was also present at the event. He warned that even if calm had returned to the markets, it could be deceptive. "The bleeding has been stopped, but the patient is not yet in the clear," he said.

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The federal government has filed another mortgage-fraud lawsuit against Bank of America, contending that defective loans generated by the bank's Countrywide Financial Corp. subsidiary caused mortgage finance giants Fannie Mae and Freddie Mac to lose more than $1 billion.

A statement Wednesday from the office of U.S. Atty. Preet Bharara in New York said that after the subprime mortgage market collapsed in 2007, Calabasas-based Countrywide devised a loan-processing system called "Hustle" to "process loans at high speed and without quality checkpoints."

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Taxes and government spending. Health care. Immigration. Financial regulation.

They are the issues that have dominated the political debate in recent years and have played a prominent role in this presidential campaign. But in many ways they have obscured what is arguably the nation’s biggest challenge: breaking out of a decade of income stagnation that has afflicted the middle class and the poor and exacerbated inequality.

Many of the bedrock assumptions of American culture — about work, progress, fairness and optimism — are being shaken as successive generations worry about the prospect of declining living standards. No question, perhaps, is more central to the country’s global standing than whether the economy will perform better on that score in the future than it has in the recent past.

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Americans in their late 30s are now the group most likely to doubt they will be financially secure after retirement, a major shift from three years ago when baby boomers nearing retirement age expressed the greatest worry.

The survey findings by the Pew Research Center, released Monday, reflect the impact of a weak economic recovery beginning in 2009 that has shown stock market gains while housing values remain decimated....

“My biggest fear is not being able to retire,” [37 year old Nicole] Gilliard said as she came out of the courthouse on Meeting Street after work Monday. “I have a 5-year-old, and my biggest fear is that I’m going to have to keep working to put her through school.”

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Filed under: * Culture-Watch • Psychology • * Economics, Politics • Economy • Personal Finance • Pensions • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Social Security

For 33 years, Sánchez Gordillo has been mayor of Marinaleda, pop. 2,700, another farming settlement about 100 miles west of Jódar. Like Jódar, Marinaleda is mostly inhabited by jornaleros. Over the decades, Sánchez Gordillo has transformed the poor village into an islet of social justice and relative prosperity, with almost full employment through communal farming, low taxes, a salary of €1,200 ($1,572), food and housing considered as rights, and “direct democracy” exercised through frequent general assemblies. Sánchez Gordillo and his townsmen launched their movement to build what he calls “a communist utopia” after the death of general and dictator Francisco Franco in 1975, occupying land owned by a member of the royal family and distributing it for communal ownership as well as taking over local airports.

His efforts in Marinaleda long ago earned him a regional following, but Sánchez Gordillo and his lieutenant, the 57-year-old Diego Cañamero, the SAT union’s national spokesman, have gained renown in recent months with a series of controversial protests against the austerity measures embraced by Prime Minister Mariano Rajoy and the Spanish government. On Aug. 7, the two led union members on raids on Carrefour (CA) and Mercadona supermarkets, leaving the stores with shopping carts full of “expropriated” food they gave away to the hungry poor.

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Filed under: * Culture-Watch • Law & Legal Issues • Poverty • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Credit Markets • Currency Markets • Euro • European Central Bank • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Politics in General • * International News & Commentary • Europe • Spain

An exit poll showed Mr. Rajoy's conservative party winning 39 or 40 of the parliament's 75 seats in his native Galicia, a gain of at least one seat over the Spanish Socialist Party and two smaller rivals. He had touted Galicia as a regional model for the economic-austerity program his government has pursued amid rising popular protest in the rest of Spain.

In the Basque Country, another exit poll showed a surprisingly strong second-place finish by a new radical separatist coalition, apparently enough to help a more-moderate nationalist party oust the ruling coalition between Mr. Rajoy's party and the Spanish Socialist Workers Party.

The exit polls, taken by the regional government-owned television networks in Galicia and Basque Country, are widely regarded as reliable.

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From an interview with the authors of the Simpson-Bowles reform plan and Goldman Sachs CEO Lloyd Blankfein:

"...We just met with -- a dozen of the largest high-tech company CEOs in the country. Not only are they hoarding cash. All their customers, all their suppliers are. They're scared to death we're going to go over this cliff and it could be a catastrophe...."

You can find a summary article to read there, it has briefer video links, but the best use of your time is to watch the full interview over here or read the transcript (about 42 1/2 minutes). Also, David Brook's piece on the debt indulgence is worth a careful revisit.

Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Credit Markets • Currency Markets • Taxes • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Budget • Federal Reserve • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • Senate

No matter who gets elected president next month, the United States economy in 2013 will have only tepid growth.

Does that sound like this year all over again? Yes, indeed.

At least that’s the view of 44 professional economic forecasters, members of the National Association of Business Economics, who on Monday released their outlook for the coming year.

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Canadian household debt has shot past the sky-high levels that foreshadowed the U.S. housing bust.

But it’s taken a statistical revisions by Statistics Canada to get there.

Canadians’ debt-to-income ratio reached 163.4 per cent in the second quarter, up from 161.7 per cent at the end of last year.

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We do not wish to distress you Only to appeal to you.

Blessed are those who are persecuted because of righteousness, for theirs is the kingdom of heaven.

We stand here as Occupiers, as women, Queers, disabled, grandmas, young, old, as women of all faiths and none in solidarity with all other groups who are marginalised by economic injustice.

Even when times are good women, along with our children, are usually those who suffer the most. In times of economic crisis our inequality is amplified but we refuse to be victims.

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Four women who chained themselves to the pulpit of St Paul's cathedral cut through the bolts after six hours on the advice of police, avoiding arrest...

he women wrapped chains around their waists after a prayer that Church officials had invited them to give. One, Josie Reid, chained herself to her wheelchair.

The action came on the anniversary of the Occupy protest last year when protesters took over the square outside.

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Filed under: * Anglican - Episcopal • Anglican Provinces • Church of England (CoE) • * Christian Life / Church Life • Parish Ministry • * Culture-Watch • Law & Legal Issues • Religion & Culture • Urban/City Life and Issues • * Economics, Politics • Economy • Corporations/Corporate Life • Stock Market • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • * Theology • Ethics / Moral Theology

A potentially serious complication has arisen in California's latest effort to avoid billions in spending cuts, which threaten the state’s education and welfare systems.

Gov. Jerry Brown's Proposition 30 intends to forestall "draconian" budget cuts by temporarily raising taxes, including sales taxes and income taxes on the wealthy. The initiative could largely determine his legacy, as well as the state’s fiscal health for at least a decade. Moreover, if successful, Prop. 30 could begin to shift the national conversation on taxes after decades of extreme antitax sentiment across the country.

Polls show that a thin majority of state voters support Prop. 30. But that support could be undercut by another proposition that aims to raise taxes for public education. Molly Munger, the millionaire behind the rival initiative, has even suggested she might start airing comparison ads arguing why voters should vote for her proposition, not Governor Brown's Prop. 30.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Taxes • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Politics in General • State Government

The greatest risk to US financial markets stems from other countries’ willingness (or lack thereof) to continue to hold dollar reserves as the value depreciates. If those nations suspect that the US cannot maintain the strength of our currency, they will begin to drain assets from American banks – seeking safer havens for their wealth. That could entail trading US treasury bonds for perceived “safer” currencies such as those of New Zealand or Canada or even switching to an entirely different asset class such as gold or silver.

While there may not be any significant signs of capital flight yet, just look east. The Chinese are the largest, external holder of US debt. And they’re already heading down this path – dropping the share of their portfolio comprised of US dollar assets from 74 to 54 percent in the last five years. It may very well be a harbinger of what’s to come.

Attempting to counter fears fanned by trends like this, Bernanke talks of a “soft landing...”

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Filed under: * Culture-Watch • History • * Economics, Politics • Economy • Credit Markets • Currency Markets • Labor/Labor Unions/Labor Market • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Federal Reserve • Foreign Relations • Politics in General

His job was to stand with customers in their back yards, suntanned and smiling, and look beyond the problems of the past several years to see the opportunities in every suburban cul-de-sac. How about a pool and a sauna next to the patio? Or a custom waterfall near the property line?

“The possibilities here are as big as you can dream them,” he liked to tell customers, gesturing at their yards.

In a country built on optimism, Frank Firetti was the most optimistic character of all: the American salesman — if not the architect of the American dream then at least its most time-honored promoter. He believed that you could envision something and then own it, that what you had now was never as good as what you would have next. Since the country was founded, it had climbed ever upward on the spirit of people like him, on their vision, on their willpower, on their capitalism. But now, when he traveled from house to house to sell his monuments to American success, he sensed that spirit waning....

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Filed under: * Culture-Watch • History • Psychology • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

The reality is that more than three years into this weakest of economic recoveries, 12.1 million Americans are still out of work—nearly 23 million by the broader definition that includes those who have stopped looking or can't find full time work—and the labor participation rate is still down to 1981 levels at 63.6%. Hooray!

Of the 114,000 new jobs, 104,000 were in the private economy, and all of the 86,000 in upward revisions for July and August came in government jobs. Job growth for 2012 has averaged 146,000 a month, which is down from 153,000 in 2011.

Manufacturing employment fell again (down 38,000 in the last two months) further dampening one of the few bright spots in this recovery. A still abysmal 40.1% of the unemployed in America have been jobless for six months or more. Such a job market is anemic by any historic measure for this stage in an expansion and reflects continuing slow GDP growth in the 1%-2% range.

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Filed under: * Economics, Politics • Economy • Corporations/Corporate Life • Labor/Labor Unions/Labor Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government

Greece is teetering on the edge of collapse with its society at risk of disintegrating unless the country's near-empty public coffers are shored up with urgent financial aid, the country's prime minister has warned.

Almost three years after the eruption of Europe's debt drama in Athens, the economic crisis engulfing the nation has become so severe that democracy itself is now imperiled, Antonis Samaras said.

"Greek democracy stands before what is perhaps its greatest challenge," Samaras told the German business daily Handelsblatt in an interview published hours before the announcement in Berlin that Angela Merkel will fly to Athens next week for the first time since the outbreak of the crisis.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Credit Markets • Currency Markets • Euro • European Central Bank • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Foreign Relations • Politics in General • * International News & Commentary • Europe • --European Sovereign Debt Crisis of 2010 • Greece

The U.S. unemployment rate fell sharply in September to its lowest level since January 2009, suggesting that summer job growth was stronger than previously thought and providing new fodder for a presidential race that has focused on competing views of the nation's economic health.

Data released Friday portrayed a labor market that has perked up a bit since the spring but is still growing modestly. The unemployment rate slid to 7.8%, the Labor Department said, falling below 8% for the first time since President Barack Obama's inauguration. The rate has fallen half a percentage point since July, when it was 8.3%.

Read it all. Mish did an excellent job in his analysis. Blog readers know I prefer U-6, which I consider the most representative rate--it stayed the same month over month--KSH

Filed under: * Economics, Politics • Economy • Labor/Labor Unions/Labor Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

Federal Reserve officials debated the risks of beginning an ambitious new stimulus policy before ultimately giving it a green light, according to minutes of the central bank’s September meeting released Thursday.

The minutes show officials concerned during their two-day meeting that without further action, the unemployment rate could remain stubbornly high. Officials were also troubled by signs of slowing growth abroad, including in China, and the possibility of a so-called fiscal cliff at home.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Federal Reserve

According to the non-partisan Tax Policy Center, the U.S. is on the threshold of one of the largest tax increases in history, a tax hike that could average $3,500 for every American household.

Without actions from Congress, the report says taxes will go up next year by 20 percent, or $536 billion overall. It will hit Americans at every income level including those living below the poverty line. For a middle income family making $40,000 per year, the tax increase is $2,000.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Personal Finance • Taxes • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Budget • The National Deficit • Politics in General • House of Representatives • Office of the President • Senate • * International News & Commentary • America/U.S.A.

"The Spanish were a bit hesitant but now they are ready to request aid," a senior European source said. Three other euro zone senior euro zone sources confirmed the shift in the Spanish position, all speaking on condition of anonymity because they were not authorised to discuss the matter.

German Finance Minister Wolfgang Schaeuble has said Spain is taking all the right steps to overcome its fiscal problems and does not need a bailout, arguing that investors will recognise and reward Spanish reforms in due course.

Privately, several European diplomats and a senior German source said Chancellor Angela Merkel preferred to avoid putting more individual bailouts for distressed euro zone countries to her increasingly reluctant parliament.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Credit Markets • Currency Markets • Euro • European Central Bank • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Foreign Relations • Politics in General • * International News & Commentary • Europe • --European Sovereign Debt Crisis of 2010 • Germany • Spain

Americans have poured record amounts of money into savings accounts even though interest rates are at historic lows, new federal data show, a sign that average people may be missing out on a booming stock market and recovering real estate sector.

The total amount in those accounts climbed nearly 5 percent to $6.9 trillion in the spring, the highest level recorded since the Federal Reserve launched its regular reports on the flow of money in the economy in 1945. At the same time, other data show that Americans are fleeing the stock market and avoiding the purchase of new homes.

The pattern suggests that Americans, wounded by the financial crisis and scared by an uncertain job market, do not want to take any risks with their money — even as the government is encouraging risk-taking.

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Filed under: * Culture-Watch • History • Psychology • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Federal Reserve • * International News & Commentary • America/U.S.A.

Support for Gov. Jerry Brown's plan for billions of dollars in tax hikes on the November ballot is slipping amid public anxiety about how politicians spend money, but voters still favor the proposal, according to a new USC Dornsife/Los Angeles Times poll.

The findings suggest that voters are leery of sending more cash to Sacramento in the wake of a financial scandal at the parks department, spiraling costs for a multibillion-dollar high-speed rail project to connect Northern and Southern California and ill-timed legislative pay raises.

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Filed under: * Economics, Politics • Economy • Taxes • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Politics in General • State Government

The Spanish government Saturday said the effort to clean up an ailing banking system will have a big impact on its finances, widening its budget gap and increasing its debt load.

Budget Minister Cristobal Montoro said the government forecasts its budget deficit will stand at 7.4% of gross domestic product this year. Excluding the impact of measures to help banks to digest a massive pile of toxic real-estate assets, he said Spain will comply with the deficit target of 6.3% of GDP for 2012 it has committed to with the European Union.

The new budget projections come at a time of uncertainty about the country's solvency amid soaring borrowing costs. Many analysts expect the government's effort to lower a budget gap to below the 3%-of-GDP limit for EU countries by 2014 to go off track also because of a deep recession that is pushing the unemployment rate to a record high of almost 25%.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Credit Markets • Currency Markets • Euro • European Central Bank • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Foreign Relations • Politics in General • * International News & Commentary • Europe • --European Sovereign Debt Crisis of 2010 • Spain

...Rajoy is the victim of his electoral success: his majority government, ironically, is weaker for not including regionalist partners. The Catalan government sees the dissatisfaction with Madrid’s handling of the crisis as an opportunity: it may give the regionalists enough of a boost at the polls to force Madrid to hand them more autonomy, in other words, control of taxes. If Catalonia had control over its own taxes, the argument goes, the region would not have needed a bailout.

Rajoy’s choices are limited: he either refuses Catalan demands for more autonomy and risks enflaming Catalan nationalist sentiment, or agrees to increased autonomy, and risks enflaming Spanish nationalist sentiment.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Credit Markets • Currency Markets • Euro • European Central Bank • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • Stock Market • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Foreign Relations • Politics in General • * International News & Commentary • Europe • --European Sovereign Debt Crisis of 2010 • France • Germany • Greece • Spain

(Please note that you can find a map of all New Jersey counties here. You may know that I grew up in Lawrenceville, which is in Mercer County--KSH).

Just 30 minutes outside Philadelphia, amid the rolling farmland that produces some of the nation's largest peach and bell pepper crops, more Gloucester County parents are seeking help to feed their children, while others live in tents in the wooded areas near major shopping centers.

From 2010 to 2011, the rate of child poverty in Gloucester County more than doubled, a shocking statistic in a county where the median income is more than $72,000, according to census data. In 2011, 7,395 children in Gloucester County were living in families earning about $22,000 a year or less, up from 4,687 children in 2010, according to census figures.

"Gloucester County is a distinctly middle-class place," said Assemblyman John Burzichelli (D., Gloucester). "When you see those kind of numbers, it's a reflection of what's happening with the national economy."

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Filed under: * Anglican - Episcopal • Episcopal Church (TEC) • TEC Parishes • * Christian Life / Church Life • Parish Ministry • * Culture-Watch • Children • Dieting/Food/Nutrition • Marriage & Family • Poverty • * Economics, Politics • Economy • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Politics in General • City Government

States saw little relief from poverty in the past year, especially among children, the unemployed and those in the lowest income brackets.

The latest Census figures show that 17 states had increases in the number of people living in poverty between 2010 and 2011. Only one state, Vermont, had a decrease; the other 32 showed no change.

Although the national poverty rate has been steady at 15.9%, the Census data show pockets of increases by geography and among demographic groups. The data reflect the economy's slow recovery and anemic job growth, policy analysts say.

"The problem is high unemployment," says Chuck Sheketoff, executive director of the Oregon Center for Public Policy....

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Filed under: * Culture-Watch • Poverty • * Economics, Politics • Economy • Labor/Labor Unions/Labor Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Politics in General • State Government

Citing the European churches’ “strong commitment over the past century to the ecumenical movement and fellowship in Europe,” WCC general secretary Rev. Dr Olav Fykse Tveit urged their direct engagement in the current financial and social crisis in and beyond Europe.

Their past commitment “has changed the realities of Europe. It has borne much fruit on other continents. That can, and should, happen again,” he added.

Tveit shared this message at the General Assembly of the Community of Protestant Churches in Europe (CPCE) on 21 September in Florence, Italy.

Read it all and note the link to the full text of his remarks at the bottom.

Filed under: * Christian Life / Church Life • Parish Ministry • * Culture-Watch • Religion & Culture • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Credit Markets • Currency Markets • Euro • European Central Bank • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • * International News & Commentary • Europe • --European Sovereign Debt Crisis of 2010 • * Religion News & Commentary • Ecumenical Relations • * Theology • Ethics / Moral Theology

An overwhelming majority of Greeks believe new austerity measures the government has promised its international lenders in exchange for more financial aid are unfair and hurt the poorest sections of society, a poll showed on Saturday.

Near-bankrupt Greece needs the European Union and International Monetary Fund's blessing on measures worth nearly 12 billion euros ($16 billion) to unlock its next tranche of aid, without which it faces default and a potential exit from the euro zone.

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Filed under: * Culture-Watch • History • Psychology • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • Taxes • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Foreign Relations • Politics in General • * International News & Commentary • Europe • --European Sovereign Debt Crisis of 2010 • Greece

Gov. Jerry Brown of California announced when he came into office last year that he had found an alarming $28 billion “wall of debt” looming over the state, which had to be dismantled.

Since then, he has slowed the issuance of municipal bonds, called for spending cuts and tried to persuade the state’s famously antitax voters to approve a tax increase this fall.

On Thursday, an independent group of fiscal experts said Mr. Brown’s efforts were all well and good, but in fact, the “wall of debt” was several times as big as the governor thought.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Taxes • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Politics in General • State Government

After hitting $54,489 in 2007 (inflation adjusted), median household income has dropped by nearly $4,500:

2007 - $54,489
2008 - $52,546
2009 - $52,195
2010 - $50,831
2011 - $50,054

Median household income is defined by the U.S. Census Bureau as "the amount which divides the income distribution into two equal groups, half having income above that amount, and half having income below that amount."

Read it all and you can find the full census report there.

Filed under: * Culture-Watch • History • * Economics, Politics • Economy • Personal Finance • The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

While the front pages of our newspapers have been dominated the Olympics and Paralympics, the business pages continue to reflect the human and economic costs of a business ethos that culminated in the financial crisis and subsequent loss of trust in banking and business.

Four years or more after the crisis broke, we are still talking of the lessons to be learnt – but not much nearer identifying what exactly they are, let alone applying them.

I was encouraged by several prominent business leaders to explore whether the Church was able to provide a forum for further reflection on this situation, so we could together move on.

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Filed under: * Culture-Watch • Law & Legal Issues • Psychology • Religion & Culture • * Economics, Politics • Economy • Corporations/Corporate Life • Stock Market • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • * International News & Commentary • England / UK • * Religion News & Commentary • Other Churches • Roman Catholic • * Theology • Ethics / Moral Theology

When history books trace the evolution of the euro crisis, September 2012 will mark the beginning of a new chapter. Recent days have seen decisive moves from Europe’s notoriously incremental policymaking machinery. On September 12th Germany’s constitutional court backed the European Stability Mechanism (ESM), the euro zone’s permanent rescue fund, removing the last big hurdle to its launch. The same day, the European Commission laid out a blueprint for joint European banking supervision, the first step to a banking union. Days earlier the European Central Bank (ECB) announced that, under certain conditions, it would buy unlimited amounts of the bonds of troubled euro-zone countries.

Taken together, these actions mark a big change. At best, they constitute the foundations of a more sustainable monetary union. The euro zone now has a plan for bank supervision. It will be haggled over and watered-down, but the record of European diplomacy suggests that once proposals exist, something, eventually, tends to be agreed on.... Most important, the euro zone now has a central bank committed to being a lender of last resort. Yes, the commitment is conditional on countries securing help from, and adhering to, a rescue plan. But the ECB has made clear, for the first time, that it is willing to intervene without limit if need be.

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Filed under: * Culture-Watch • Law & Legal Issues • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Credit Markets • Currency Markets • Euro • European Central Bank • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Foreign Relations • Politics in General • * International News & Commentary • Europe • --European Sovereign Debt Crisis of 2010

Cash-strapped officials in Europe are looking for a way to ease their financial burden by upending centuries of tradition and seeking to tap one of the last untouched sources of wealth: the Catholic Church.

Thousands of public officials who have seen the financial crisis hit their budgets are chipping away at the various tax breaks and privileges the church has enjoyed for centuries.

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Filed under: * Christian Life / Church Life • Parish Ministry • * Culture-Watch • Law & Legal Issues • Religion & Culture • * Economics, Politics • Economy • Housing/Real Estate Market • Taxes • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • * Religion News & Commentary • Other Churches • Roman Catholic

The Federal Reserve’s announcement Thursday is a big deal.

It’s a big deal because of what they’re doing. They’re buying $85 billion in assets every month through the end of the year, and then they’re potentially going to keep doing it in 2013. They’re promising to keep interest rates low through the recovery, and then keep them low after the recovery strengthens.

But it’s a bigger deal because of what they’re saying. Thursday, the Federal Reserve said, finally, that they’re not content with 8 percent unemployment and a sluggish recovery, and they’re willing to actually do something about it. If you’re an investor or a business owner trying to decide what the market is going to look like next year, you just got a lot more optimistic.

Read it all and there is more (with reasons for concern) there.

Filed under: * Culture-Watch • Globalization • History • Psychology • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Federal Reserve

Shoppers are not the only ones feeling the squeeze of rising food prices.

Shelves are going bare in food banks and pantries as more market demand for food means the federal government is buying less produce, meat and dairy products to give to the needy.

As a result, food banks and pantries nationwide say they are giving out less food, even as record numbers of families turn to them.

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Filed under: * Culture-Watch • Dieting/Food/Nutrition • Poverty • * Economics, Politics • Economy • Personal Finance • The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

Germany should leave the euro zone if it is not prepared to take a more decisive lead in helping the euro zone's weaker nations escape a spiral of increasing indebtedness and economic decline, veteran financier George Soros said on Saturday.

Soros said Europe faced a prolonged depression and an acrimonious end to the European unification project if steps were not taken to help its southern nations grow their way out of the debt crisis by collectively assuming some of their debt and relaxing its German-led insistence on austerity.

"Germany should either lead in developing a growth policy, political union and burden-sharing, accept the cost of leadership, or leave through an amicable arrangement," Soros said in an interview with Reuters television in Vienna.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Credit Markets • Currency Markets • Euro • European Central Bank • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Foreign Relations • Politics in General • * International News & Commentary • Europe • --European Sovereign Debt Crisis of 2010 • Germany

Greeted with initial fanfare by investors and economic officials, the unlimited bond-buying plan that the European Central Bank president, Mario Draghi, announced Thursday ran into immediate political problems in the crucial countries of Germany, Spain and Italy.

In Germany, despite Chancellor Angela Merkel’s support for Mr. Draghi and the independence of the Central Bank, political and news media reaction was scathing, with accusations that the bank, in seeking to stabilize the euro currency union, was subverting its mandate to fight inflation and forcing debt upon euro zone members.

“A Black Day for the Euro,” “Over the Red Line” and “Pandora’s Box Opened Forever” were some of the German headlines, with the normally sympathetic Süddeutsche Zeitung headlining an editorial: “The E.C.B. Rewards Mismanagement.” Even the German Bundesbank, officially part of the European Central Bank, put out a statement commenting acidly that the plan was “financing governments by printing bank notes.”

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Filed under: * Economics, Politics • Economy • Credit Markets • Currency Markets • Euro • European Central Bank • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Foreign Relations • Politics in General • * International News & Commentary • Europe • --European Sovereign Debt Crisis of 2010 • Germany • Italy • Spain

U.S. job growth slowed in August, a sign of a slack recovery that could mute any postconvention momentum for President Barack Obama and spur the Federal Reserve to take further steps in an effort to stimulate the economy.

U.S. payrolls increased by a seasonally adjusted 96,000 jobs last month, the Labor Department said Friday. The politically important unemployment rate, obtained by a separate survey of U.S. households, fell to 8.1% from 8.3%.

Economists surveyed by Dow Jones Newswires expected a gain of 125,000 in payrolls and an 8.3% jobless rate.

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Filed under: * Economics, Politics • Economy • Corporations/Corporate Life • Labor/Labor Unions/Labor Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government

Euro-zone youth unemployment will remain elevated for at least the next half-decade, the International Labor Organization said Tuesday, forecasting a small reduction in the jobless rate will come from young people withdrawing from the labor market instead of stronger hiring activity.

The Geneva-based agency of the United Nations projects that 15-to-24 year-olds in the 17-member economic bloc will face jobless rates of nearly 22% in 2013 that will dip modestly to 21.4% in 2017. In the U.S., youth unemployment is forecast to fall from 17.4% this year to 13.3% in 2017.

Long-term youth unemployment has long-term consequences for young people and for businesses, according to the ILO and other labor market experts.

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Filed under: * Culture-Watch • Young Adults • * Economics, Politics • Economy • Labor/Labor Unions/Labor Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • * International News & Commentary • Europe • --European Sovereign Debt Crisis of 2010

Check it out.

Filed under: * Economics, Politics • Economy • Labor/Labor Unions/Labor Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007--

The Fed chairman said the central bank intends to be “forceful . . . in supporting a sustainable recovery.” With Europe’s financial crisis and the United States’ looming budget cuts and tax hikes posing major risks for the recovery, he said, economic growth is “far from satisfactory,” and he pledged the Fed will take additional steps to help the economy as needed.

As is common of Fed pronouncements, Bernanke hinted but offered no certainty of action to come. Still, the urgent tone of his remarks will leave investors disappointed if the Fed does not launch new stimulus at its Sept. 12-13 policymaking meeting. Investors seemed hopeful, with stocks trending up by about 1 percent in the early afternoon.

“We must not lose sight of the daunting economic challenges that confront our nation,” Bernanke said. “The stagnation of the labor market in particular is a grave concern, not only because of the enormous suffering and waste of human talent it entails, but also because persistently high levels of unemployment will wreak structural damage on our economy that could last for many years.”

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Filed under: * Culture-Watch • Globalization • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Federal Reserve • * International News & Commentary • Europe • --European Sovereign Debt Crisis of 2010

The economy continues to weigh on pastors, with a new survey showing that nearly two-thirds say it has affected their churches negatively.

LifeWay Research asked 1,000 pastors about the economy’s effect on their churches and found that 56 percent described it somewhat negatively and 8 percent very negatively. Nine percent reported a positive effect on their churches and one-quarter said the economy was having “no impact on my church.”

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Filed under: * Christian Life / Church Life • Parish Ministry • Ministry of the Ordained • * Culture-Watch • Religion & Culture • * Economics, Politics • Economy • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • * International News & Commentary • America/U.S.A.

In June, it seemed as if any day might bring about the collapse of the Greek economy and with it, the entire euro zone and its decade-old currency. Then in July and August, it seemed as if everyone was on vacation. Now they’re back — finance officials and political leaders have been flying all over Europe to meet with one another — and along with them the crisis that has been raging for the last two years. Here is a guide to the new season’s most intriguing (and terrifying) [seven] story lines....

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Filed under: * Culture-Watch • Globalization • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Credit Markets • Currency Markets • Euro • European Central Bank • Stock Market • The Banking System/Sector • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Foreign Relations • Politics in General • * International News & Commentary • Europe • --European Sovereign Debt Crisis of 2010

What's the fiercest rivalry in American politics today? There's Obama-Romney, of course, but try O'Malley-McDonnell—neighboring governors battling across the Potomac River over how best to resuscitate a moribund economy.

Martin O'Malley, Maryland's liberal Democratic governor, is competing for jobs, businesses and tax dollars with Bob McDonnell, Virginia's conservative Republican chief executive. Both are rising stars considered potential presidential hopefuls in 2016. Both are Irish Catholics—Mr. McDonnell playfully calls Mr. O'Malley "the big Irishman to our north"—and each leads his party's association of governors. The two regularly spar on the Sunday talk shows, on the pages of Washington-area newspapers, and over the radio.

Each man seems obsessed with proving that his economic model has outperformed the other's....

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • Taxes • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • Politics in General • State Government • * Theology • Ethics / Moral Theology

Many workers are nervous about their livelihoods despite the economic recovery — and for good reason, it turns out.

Among those workers who lost a good job because of the struggling economy over the past three years, roughly one in four found a job that pays as well, according to data released Friday by the Labor Department.

The others remained unemployed, stopped looking for work or accepted jobs at lower wages.

“This data is telling a story of unemployment inflicting long-term damage for a lot of people,” said Michael Mandel, an economist at the Progressive Policy Institute, a centrist think tank. “This won’t turn around until wages overall start rising — and so far, we haven’t seen any strong signs of that.”

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Labor/Labor Unions/Labor Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007--