TOP NEWS: Economy: October 10th, 2012
Top Five News and Analysis Links (Excerpts Below)
- Welch: I Was Right About That Strange Jobs Report
- Schumer unveils proposals on tax code
- Fiscal Cliff May Be Felt Gradually
- Goldman Pushes on Volcker Rule
- Who would get the job if Romney wins?
Excerpts and More Top News and Analysis:
JOBS: I Was Right About That Strange Jobs Report - WSJ, JACK WELCH
The economy would need to be growing at breakneck speed for unemployment to drop to 7.8% from 8.3% in the course of two months.
JOBS: Jack Welch Could Help Improve U.S. Jobs Data – BLOOMBERG, J. ORSZAG & P. ORSZAG
Last week, Jack Welch questioned the credibility of the decline in September’s unemployment rate. He suggested that the Obama administration must have manipulated the bureau’s report.“These Chicago guys will do anything,” Welch wrote in a Twitter message, “can’t debate so change numbers.” Welch’s comments demonstrate a stunning degree of ignorance and recklessness, and impugn his own credibility.
JOBS: Wall Street Jobs May Shrink Further - WSJ
Wall Street has cut 1,200 jobs since the beginning of 2012 and could contract further over the remainder of the year, a report says.
JOBS/LABOR: So Many Apples, So Few Pickers – WSJ
Washington state is enjoying the second-biggest apple crop in its history, but farmers say they will have to leave up to one-quarter of their bounty to rot, because there aren’t enough pickers.
TAXES: Schumer unveils proposals on tax code - WP
The New York senator says policymakers should focus on cutting debt instead of lowering top tax rate.
TAXES: Equity in the Tax Code - NYT, TAKING NOTE
At the National Press Club, Senator Schumer said taxes on the rich must rise.
TAXES: Will Romney “Complexify” the Tax Code? - RCM, STEVEN MALANGA
In his latest proposal for reform that started out as a way to simplify our tax system, Romney would make it more complex. But it’s a stretch to call this tax reform as it’s generally understood.
FISCAL CLIFF: Fiscal Cliff May Be Felt Gradually, Analysts Say – NYT
If Congress fails to act, spending cuts and tax increases large enough to throw the country back into recession will hit in January. The impact would be powerful but gradual.
REGULATION: Goldman Pushes on Volcker Rule – WSJ
Goldman is lobbying federal regulators to exempt big investment vehicles known as credit funds from the so-called Volcker rule.
FED: Fed chief: Who would get the job if the Republican takes the White House? – WP
Many of the challenges Mitt Romney would face in choosing a Federal Reserve chairman, should he win the presidency, are the same as those that President Obama would encounter. But he would have an added challenge. Romney would need to decide whether he fully buys in to the arguments he has made in favor of a tighter money supply. Is he willing to put the nation’s money where his mouth is?
FED: Bernanke Meets RBI Officials - WSJ
Ben Bernanke, the first serving U.S. Federal Reserve chairman to visit the Reserve Bank of India, says New Delhi’s importance is increasing on the world stage.
FED/QE3: How to Think about QE3 - AMERICAN VIA RCM
Recently, I have encountered this “Murphy’s Law of economic advice” in the form of people asking me what I think of QE3, which is the name given to the Federal Reserve’s latest initiative to stimulate the economy by purchasing long-term debt instruments, including mortgage-backed securities.
ECONOMY: Partisan Bias and Economic Forecasts - NYT
Economists belonging to a political party often produce forecasts suiting the party’s needs, and that is especially evident now among Republicans.
MARKETS: How do skirts differ from computers? – FT
The arcane details of index construction make a big difference to pensions, tax allowances and repayment of index-linked debt, writes John Kay
CURRENCY: Free exchange: On the origin of specie - ECONOMIST
Theories on where money comes from say something about where the dollar and euro will go
DEMOGRAPHICS: The Baby Boom and Economic Recovery – NYT
Post-recession levels of employment may be affected as much by demographics as by the nation’s economic policies.
DEMOGRAPHICS: Sponging boomers – ECONOMIST
The economic legacy left by the baby-boomers is leading to a battle between the generations
MEDICAID: Want To Enrage a Lefty? Critique Aspects of Medicaid - RCM, SCOTT GOTTLIEB
Nothing ignites liberal ire like pointing out the problems plaguing Medicaid. On the political left, support of the program has the fervor of a new religion. But the actual coverage that Medicaid offers is often so eroded that the program falls short of progressive ideals.
TOTAL RECALL: Toyota Issues Global Recall - WSJ
Toyota is recalling 7.43 million vehicles globally, including 2.47 million cars and light trucks sold in the U.S., due to a potential fire hazard involving power-window switches.
DODD-FRANK: In the Post Dodd-Frank Derivatives World, October 12th Matters - RCM, HESTER PEIRCE
October 12 is a big day in the over-the-counter (OTC) derivatives world, as key provisions of Dodd-Frank’s derivatives framework are set to go into effect.
MORTGAGES: US cracks down on mortgage fraud - FT
Some 530 have been charged as a result of project focusing on crimes targeting homeowners behind on mortgages payments and facing foreclosure
BUSINESS NEWS & ANALYSIS
HOSPITALITY: A Building Boom in New York Hotel Rooms - NYT
Developers added a record 5.9 percent more rooms in 2011, and will increase the supply with boutique, new and renovated hotels opening in 2012 and 2013.
RETAIL: Wal-Mart Delivery Service Says to Amazon: Bring It - WSJ
Wal-Mart is testing a same-day delivery service in some markets, in its latest bid to take on Amazon.com.
BANKING: Suit takes aim at Wells Fargo’s lending practices - WP
Prosecutors allege the bank engaged in a long-standing practice of reckless and fraudulent lending that cost the government millions of dollars.
TECH: Spotify Signs TV Deal With Samsung - WSJ
South Korea’s Samsung Electronics unveiled a deal with Anglo-Swedish music streaming service Spotify, that will allow direct streaming of music from Samsung television sets.
COMMUNICATIONS:You’ve got (too much) mail - WP
Employees and employers weigh in on a communications curfew.
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