TOP NEWS: Economy: May 29, 2012
Excerpts and more top stories
Leaving Euro a ‘Disaster’ for Greece - Julia Chatterly & Antonia van de Velde, CNBC
The euro is in the best interest of the Greek people despite the fact that Greece should have undertaken reforms a long time ago to be a viable member of the currency union, former Greek Finance Minister George Papaconstantinos told CNBC on Tuesday.
After Facebook, More Fear of Stock Market - Nathanial Popper, NY Times
The excitement surrounding Facebook’s initial public offering was enough for Alex Tsesis, a law professor, to give the stock market one more try. But after the company’s stock encountered technical problems then sputtered for three days, he sold his few hundred shares for a $2,200 loss and vowed to end his equity gambles for good.
Fed’s Plosser Warns On Discretionary Policy Decisions - Eva Kuehnen, Reuters
The debate over how the Federal Reserve can best articulate its policy actions grew on Friday as a top Fed official warned against discretionary decisions, and asked whether a more systematic approach was desirable.
JP Morgan Chase Sells $25bn in Securities to Offset Losses - David Henry, Huffington Post
JPMorgan Chase & Co has sold an estimated $25 billion of profitable securities in an effort to prop up earnings after suffering trading losses tied to the bank’s now-infamous “London Whale,” compounding the cost of those trades.
CBO Warns of a 2013 Recession - Seung Min Kim, Politico
What would happen if a deadlocked Congress did nothing? If the expiring Bush tax rates are allowed to lapse and the automatic spending cuts kick in next year, it could hurl the U.S. economy back into a recession, the Congressional Budget Office warned in a report released Tuesday.
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China Has No Plan For Long Term Stimulus -Bloomberg News, Bloomberg
China has no plan to introduce stimulus measures on the scale deployed during the global financial crisis to counter this year’s economic slowdown, the official Xinhua News Agency reported.
US Winds Down Longer Benefits for the Unemployed - Shaila Dewan, NY Times
Hundreds of thousands of out-of-work Americans are receiving their final unemployment checks sooner than they expected, even though Congress renewed extended benefits until the end of the year.
US Home Prices Inch Higher in March: S & P – Leah Schnurr & Chris Reese, Reuters
U.S. single-family home prices edged higher in March, the second month in row of gains, adding to signs the housing market is stabilizing, a closely watched survey said on Tuesday.
College Dropouts Have Debt But No Degree - Ylan Q. Mui & Suzy Khimm, Washington Post
As the nation amasses more than $1 trillion in student loans, education experts say a vexing new problem has emerged: A growing number of young people have a mountain of debt but no degree to show for it.
Flat US Wages Help Fuel Rebound in Manufacturing - David Wessel & James R. Hagerty, WSJ
The celebrated revival of U.S. manufacturing employment has been accompanied by a less-lauded fact: Wages for many manufacturing workers aren’t keeping up with inflation.
Tourists Also Tell Greece ‘No’ - Alkman Granitsas & Laura Stevens, WSJ
Greece’s tourism season was supposed to be a ray of sunshine amid the country’s political crisis and depressed economy. Instead, the outlook is cloudy: Greek-vacation bookings from Germany and the rest of Europe are down sharply, as would-be tourists take fright at the prospect of strikes and street protests.