TOP NEWS: Economy: May 11, 2012
- JPMorgan $2 Billion Loss – Morning After (Summary)
- Gas prices: Down and headed lower
- High Unemployment the New Normal
- Easy Useless Economics (Krugman)
- Consumer sentiment at 4-year high in early May
Excerpts and more top stories
JPMorgan $2 Billion Loss – Morning After – Staff, The Common Good
Updated summary of top news related to JPMorgan’s $2 billion dollar loss, announced yesterday.
Gas prices: Down and headed lower - Chris Isidore CNN Money
Just in time for the start of the summer driving season, U.S. drivers are enjoying some relief at the pump, much sooner than past years.
High Unemployment the New Normal - Anthony Randazzo, Reason Magazine
Compared to an unemployment rate that was well above 10 percent in the early part of the Obama Administration, 8.1 percent sounds nice. But it is a moral victory at best. The reality is that the labor market stinks.
Easy Useless Economics – Paul Krugman, New York Times Op-Ed
A few days ago, I read an authoritative-sounding paper in The American Economic Review, arguing at length that the nation’s high unemployment rate had deep structural roots and wasn’t amenable to any quick solution.– O.K., there’s something I didn’t tell you: The paper in question was published in June 1939.
Consumer sentiment at 4-year high in early May – Jason Lange and Leah Schnurr, Reuters
U.S. consumer sentiment rose to its highest level in more than four years in early May as Americans remained upbeat about the job market, a survey released on Friday showed.
China’s Big Banks Look More Like Paper Tigers - Jonathan Weil, Bloomberg
After spending time combing through the financial reports of China’s biggest publicly traded, state- owned banks, I now understand what Jim Chanos, the famous short- seller, means when he keeps saying they are “built on quicksand.”
The draconian hidden penalty on student loans - David A. Kaplan, Fortune
If you default on your payments, the federal government may hit you with a 25% sledge-hammer. And it’s entirely legal.
Costly Liabilities Lurk for Gas Giant - RUSSELL GOLD, Wall Street Journal
Embattled Chesapeake Energy Corp. has saddled itself with about $1.4 billion of previously unreported liabilities over the next decade through off-balance-sheet financial deals.
Where Has All the Stock Trading Gone? - Matthew Philips, BusinessWeek
Since January 2008 the share of trades executed off public exchanges has increased, to 32 percent from 26 percent, according to market research firm Tabb Group. Nasdaq and NYSE “are getting a smaller bite of a shrinking pie,”
Facebook Instagram deal delay threat - April Dembosky, Financial Times
A competition probe into Facebook’s $1bn acquisition of photo-sharing service Instagram threatens to postpone the closure of the deal beyond the second quarter, the target set by the company in its initial public offering documents.
To Make Fracturing Safer – EDITORIAL, New York Times
There is little doubt that natural gas, which is plentiful and cleaner than coal, could help with the country’s energy and climate problems. [...] The hope is that a strong set of federal rules will provide a standard governing drilling everywhere.
Francois Hollande’s Election Epitomizes Sorry State of Democracy – Mark Hendrickson, Forbes
Either the binge stops—that is, government spending and promises of future benefits are trimmed back—or the system breaks down.