TOP NEWS: Economy: September 28th, 2012
- Krugman: Europe’s Austerity Madness
- BofA to Pay $2.43 Billion to Settle Over Merrill Deal
- US Economy Still Weak, but More Feel Secure
- U.S. revises employment numbers up
- Consumer Spending Rises Along With Prices
Excerpts and More Top News and Analysis:
AUSTERITY: Krugman: Europe’s Austerity Madness - NYT, OPINION
PAUL KRUGMAN: Here’s why the protesters in Spain and Greece are right that inflicting more and more pain serves no useful purpose.
BANKING: BofA to Pay $2.43 Billion to Settle Class Action Over Merrill Deal - NYT
Bank of America announced on Friday that it would pay $2.43 billion to settle a class-action lawsuit related to its acquisition of Merrill Lynch.
BANKING: Bankers Must Wash Hands Before Returning to Work - BLOOMBERG, OPINION
Jonathan Weil: Here’s an idea for improving the regulation of banks: Treat them more like restaurants.
ECONOMY: United States Economy Still Weak, but More Feel Secure - NYT
A closely watched measure of consumer confidence surged to its highest level since February, even as job growth and the overall economy had weakened.
ECONOMY: The risk of easy money - WP, EDITORIAL
There are many better ways to help the economy than lowering interest rates.
ECONOMIC RECOVERY: Michael Bordo: Financial Recessions Don’t Lead to Weak Recoveries – WSJ, OPINION
The evidence since 1880 shows a faster pace of recovery. The Obama years are the exception.
EMPLOYMENT: U.S. revises employment numbers up - WP
The nation is likely to have created 20 percent more jobs in the economy’s third year of recovery than earlier estimated.
CONSUMERS: Consumer Spending Rises Along With Prices - WSJ
Consumer spending rose 0.5% in August, the biggest increase in six months, reflecting higher prices more than a willingness to spend. Personal incomes rose 0.1%.
TAXES: Poll: Most say all should pay taxes – POLITICO
A Fox News poll finds that 79 percent of Americans support everyone paying something in income taxes.
TAXES/DEMOCRATS: Higher taxes not enough - WP, OPINION
Ruth Marcus: A Democratic balanced-budget myth.
FED: How Bernanke Pulled the Fed His Way - WSJ
Ben Bernanke’s high-stakes plan to restart the lumbering U.S. economy took shape in an intense flurry of behind-the-scenes discussions between him and Fed colleagues in the days before a crucial September meeting.
SEC: Geithner to SEC: Get to Work, or We’ll Do It for You - BLOOMBERG, OPINION
Deborah Solomon: Only in the bureaucratic world of Washington could Treasury Secretary Timothy Geithner’s letter today urging regulators to strengthen their oversight of money-market mutual funds be viewed as progress.
ENTREPRENEURS: The Race for the World - WSJ, OPINION
David P. Goldman: To triumph in today’s winner-take-all market, entrepreneurs need deep pockets—and deep insights into technology.
FOREIGN INVESTMENT: Ohio mayor’s China push defies politics - FT
New investment at odds with presidential campaign rhetoric.
ECONOMISTS: Economists are as bad as the politicians – MARKETWATCHT
Commentary: Politicians waffle. Economists need to take a stand.
HEALTHCARE: Evan Bayh: ObamaCare’s Tax Raid on Medical Devices - WSJ, OPINION
The industry that gave us stents, replacement joints and defibrillators will get a dose of bad fiscal medicine.
APPLE: Tim Cook Apologizes for Apple’s Maps - NYT
Complaints and jokes about Apple’s new maps have not stopped since the company released a software update last week that replaced Google’s maps with its own. Now the company’s chief executive, Tim Cook, is apologizing.
HAGGLING: Lost Art of Haggling a Casualty of Retail Modernization - BLOOMBERG, OPINION
Wendy Woloson: Unless you find yourself at a flea market, rummage sale or some other place where second- hand goods are exchanged, you probably don’t haggle. Few of us would consider dickering about the price of goods in retail establishments, and bargaining is certainly out of the question at chain stores.
BUSINESS NEWS & ANALYSIS
ADVERTISING: Mobile Ads: What Works, What Doesn’t - WSJ
The rule book for what works in mobile advertising—ads on smartphones and tablets—is slowly being written. Ads pegged to Internet searches can get results, marketers say. Random “Spray and Pray” ads generally don’t
US POST: Postal Service to Default Again - WSJ
The U.S. Postal Service said it will default on a $5.6 billion obligation on Sunday, marking the second failed payment to fund future retirees’ health-care costs in two months. The missed payment won’t affect operations.
USDA: Corn, Soy Stocks Sharply Lower - WSJ
The amount of old-crop corn in storage on Sept. 1 was 12% less than a year ago and the lowest level since 2004, the USDA said Friday. Soybean stocks were down 21%.
GLENCORE-XSTRATA: Glencore-Xstrata Deal Hinges on Pay - WSJ
A planned $200 million in retention bonuses is threatening the $70 billion proposed combination of natural-resource giants Glencore and Xstrata.
OLYMPUS/SONY: Olympus, Sony Tie Up - WSJ
Olympus said it will raise $631.6 million by issuing new shares to Sony, sealing a deal that will help bolster a balance sheet severely weakened by a $1.5 billion accounting scandal.
The Common Good publishes a U.S. domestic news digest every weekday, available here.