Economy | News-Opinion
TOP NEWS: Economy: August 23rd, 2012
- Investor Sentiment Looks Fragile for Stocks
- Signs of Revival, Slight but Sure, for Home Sales
- Stakes rise as US warned of double-dip
- Further easing ‘warranted soon’, Fed says
- Ending the Deficit Blame Game
Excerpts and More Top Stories:
MARKETS: Investor Sentiment Looks Fragile for Stocks - MarketWatch, Commentary
John Shinal: Market looks like it’s nearing the end of a tired rally
MARKETS/TECH: Another Tech Bubble Set to Burst – FT, OPINION
Philip Delves Broughton: Bubbles can pop with a bang or deflate with a long, slow hiss. There is a growing feeling that an eight-year boom is over.
MARKETS/GOLD: Some Gold Bulls See Bright Future – WSJ
Gold has been lackluster this year, but some high-profile fans say the future is brightening.
MARKETS/PRIVATE EQUITY: Buyouts Boom, But Not Like ’07 – WSJ
Private-equity buyouts are back but with a twist–they are smaller and less flashy than in past booms.
HOUSING SALES: Signs of Revival, Slight but Sure, for Home Sales - NYT
Sales of existing homes were up in July, continuing a trend of several months.
FISCAL CLIFF: Stakes rise as US warned of double-dip - FT
The Congressional Budget Office says if Congress takes no action – and tax increases and spending cuts take effect – the economy will fall into a double-dip recession
FISCAL CLIFF/RECESSION: CBO: Recession at bottom of ‘cliff’ – WP
The U.S. economy is hurtling toward a recession if Congress fails to avert a series of tax hikes and budget cuts due in January, the Congressional Budget Office said Wednesday, warning that a fiscal impasse would have consequences even more dire than previously forecast.
FED/Q3: Further easing ‘warranted soon’, Fed says - FT
Barring a sharp change in economic data, members of the rate-setting committee felt further action “would likely be warranted fairly soon”.
FED/MARKETS: Wall Street pares losses after Fed minutes - FT
Dollar falls and US stocks pare losses after FOMC minutes show many policy makers judged further easing was warranted ‘fairly soon’.
BUDGET DEFICIT: Ending the Deficit Blame Game - BLOOMBERG, OP-ED
Deborah Solomon: As the U.S. stands on the precipice of another recession, policymakers continue to quibble over what caused the ballooning federal deficit rather than taking steps to fix it.
FEDERAL DEFICIT: Reforming outmoded government - WP OPINION
Michèle A. Flournoy : Debt means federal agencies must adapt.
UNEMPLOYMENT: U.S. Jobless Claims Up Slightly - WSJ
The number of U.S. workers filing applications for jobless benefits rose by 4,000 to a seasonally adjusted 372,000, as labor markets continue to move sideways.al estate agents said was good news for the housing market.
BANKING: Don’t Break Up the Big Banks - NYT, OP-ED
William Harrison: Breaking up some big banks would hurt their customers, clients and the broader economy. It would actually inject new risks into the financial system.
MIDDLE CLASS: Last decade worst for US middle class - FT
The decline in net worth and wages during the 2000s underlines the challenges facing President Barack Obama as he seeks re-election.
MIDDLE CLASS: Plight of the Black Middle Class - Walter Russell Mead, American Interest.
REGULATION/MARKET FUNDS: Changes to Money Market Funds Stall - NYT
NATHANIEL POPPER: Attempts to make sweeping changes to money-market mutual funds, which played a destabilizing role in the 2008 financial crisis, have been derailed.
REGULATION: George F. Will: Why government needs a diet - WP OPINION
Because the possibility of effectively supervising government varies inversely with government’s size, so does government’s lawfulness.
REGULATION: SEC’s Schapiro Cancels Vote on Money-Fund Curbs - WSJ
SEC Chairman Mary Schapiro called off a highly anticipated vote on rules to rein in the money-market mutual-fund industry after losing a swing vote she needed to push them through.
REGULATION/MINING: Disclosure of government payments mandated - WSJ
Oil and mining groups with US listings will be forced to disclose details of their payments to foreign governments after US regulators efforts to water down the rules
REGULATION/OBAMA: Obama’s Unfortunate Regulatory Legacy - RCM
Thomas Hemphill: On January 18, 2011, President Barak Obama signed Executive Order 13563, Improving Regulation and Regulatory Review, which required a comprehensive review of all federal regulations by federal agencies under the authority of the executive branch. In his editorial in the Wall Street Journal, also published on January 18, 2011, President Obama explained the rationale behind Executive Order 13563
ENERGY/PIPELINE RULING: Texas judge rules in favor of TransCanada in eminent domain case - WP
The ruling rejecting farmowners’ claims removes one more potential obstacle for Keystone XL pipeline.
ENERGY/ROMNEY PLAN: Romney to Introduce Energy Independence Plan – CFR
Presumptive Republican presidential nominee Mitt Romney is expected to introduce an energy plan today that would approve the Keystone Pipeline, expand offshore drilling, and make the United States energy independent by 2020.
SEC/COMMODITIES: SEC adopts rules on African ‘conflict’ minerals - WP
The measure is aimed at addressing brutality in Congo, where militias have benefited from the trade of minerals — gold, tin, tungsten and tantalum.
ROMNEY/DEFICIT PLAN: Romney and Ryan Seek a Mandate for Deficits - BLOOMBERG, OP-ED
Francis Wilkinson: Paul Ryan said the collapse of President George W. Bush’s Social Security privatization plan was not a result of bad policy, but of poor salesmanship.
ROMNEY TAX PLAN: Economic Growth Will Pay For Romney’s Tax Cuts – Forbes, OPINION ELECTIONS
Louis Woodhill: The critics of the Romney tax plan are missing the point. The only “tax base” that matters is GDP. The Romney tax plan will broaden the tax base by increasing GDP.
ROMNEY ENERGY POLICY: Romney to outline new energy agenda – WP
Mitt Romney says his plan would achieve North American energy independence by 2020 in part by allowing more offshore oil drilling.
MILLENIUM GENERATION: How a Whole Generation Put Babies on Hold - THE ATLANTIC
And what that means for the economy.
ECONOMY: Ambition Gets the Best of Larry Summers - RCM, OPINION
*Robert Samuelson: Larry Summers knows better. In an op-ed Monday in The Post, the Treasury secretary under President Bill Clinton and former economic adviser to President Obama shows why the federal government is destined to expand, regardless of what Mitt Romney or Obama suggests. So far, so good. But Summers doesn’t say what should be done about this. His silence is an instructive example of a larger problem: Our “public intellectuals” – opinion-makers – often censor themselves to advance their ambitions.
TAXES/LOTTERY: To Avoid Massive Tax Hikes, Privatize State Lotteries - RCM
Leonard Gilroy & Harris Kenny: As states continue to grapple with ongoing fiscal pressures, some are beginning to explore an innovative new lottery privatization model with the hopes of increasing revenue. To the extent that this trend could prevent tax hikes or cuts in core programs, it is worth applauding.
BUSINESS H-P, Dell Struggle on PC Sales - WSJ
Hewlett-Packard reported the worst-ever loss in its 73-year history, as a 5% revenue decline was compounded by $9.2 billion in write-downs.
GOOGLE/WOMEN: In Google’s Inner Circle, a Falling Number of Women - NYT
The search giant’s efforts to recruit and promote more women have resulted in more hires, but not in the executive offices.
BUSINESS: Wal-Mart, Target Avoid Mining Disclosure Rule -WSJ
Large retailers may largely escape a new rule requiring U.S.-listed companies to disclose whether their goods contain certain minerals blamed for fueling violence in central Africa.
BUSINESS: In Apple v. Samsung Patent Case, Expect Nobody to Win - BLOOMBERG
by Susan Crawfo: I remember a June evening when three complete strangers separately insisted on showing me their new mobile phones. It was 2007, I was on the subway in New York, and Apple Inc.’s iPhone had just been released.
BUSINESS/WALMART: Wal-Mart’s New Health Push - WSJ
Wal-Mart will start offering vaccinations for infectious diseases beyond influenza and pneumonia at 2,700 U.S. stores on Monday as the retailer continues edging into health-care services.
BUSINESS: FACEBOOK DEAL: FTC gives nod to Facebook-Instagram deal - WP
The Federal Trade Commission has okayed Facebook’s Instagram buy.
BUSINESS: HEALTH CARE: Health-care company buys McLean-based Sunrise Senior Living – WP
Sunrise Senior Living of McLean has agreed to be acquired by Health Care REIT, an Ohio-based health care property owner, in an all-cash deal worth $845 million.
FINANCIAL ADVICE: Terrible Financial Advice: Top 10 Tips You Shouldn’t Follow - TIME
MARTHA C. WHITE: Even widely-held beliefs can turn out to be clunkers, as this round-up from financial experts illustrates.
MORE BUSINESS STORIES:
BUSINESS: Qantas Cancels Boeing Aircraft Worth $8.5 Billion - WSJ
Qantas Airways, reporting its first annual loss in nearly two decades, canceled orders for 35 of Boeing’s more fuel-efficient 787-9 aircraft in a bid to save billions.
BUSINESS: PayPal Teams With Discover - WSJ
PayPal announced a deal with Discover that will allow shoppers to tap into their PayPal accounts at the cash register.
BUSINESS: Diageo Still in Jose Cuervo Hunt - WSJ
Diageo said it remains in talks over the acquisition of Mexico’s Jose Cuervo, the world’s largest tequila brand, and recorded a rise in profit driven by emerging markets growth as well as a U.S. recovery.
BUSINESS: Sony Mobile to Cut 1,000 Jobs - WSJ
Sony Corp. said it plans to cut some 15% of the business’s workforce, or about 1,000 jobs, to reduce costs and accelerate its push into the growing smartphone market.
The Common Good publishes a U.S. domestic news digest every weekday, available here.
