TOP NEWS: Economy: October 22nd, 2012
Top Five News and Analysis Links (Excerpts Below)
- The Myth of Job Creation
- Why This U.S. Recovery Is Weaker
- The Right Way to Break Up the Banks
- Obama’s Been Good for Stocks
- Teetering on Another Cliffhanger
Excerpts and More Top News and Analysis:
JOBS: The Myth of Job Creation – NYT, EDITORIAL
Both President Obama and Mitt Romney have said government does not create jobs. But the government does in fact create jobs, millions of important jobs.
JOBS: Where the Jobs Are for Older Workers – WSJ
Changing attitudes among employers bode well for the 55-plus crowd. Promising fields include health care and education.
JOBS: When Hiring, It Pays to Have a Nurse’s Intuition – NYT
Maria K. Mitchell, president of Amdec, a partnership of New York medical research institutions, says her nursing background lets her “get a sense of somebody pretty quickly.”
ECONOMY: Why This U.S. Recovery Is Weaker - BLOOMBERG, Michael Bordo
There is a vigorous debate over whether the U.S. economy’s recovery from the recent deep recession and financial crisis is weaker than similar events in economic history.
ECONOMY: The Secret of Our Non-Success – NYT, PAUL KRUGMAN*
The Romney camp denies and distorts the evidence about how we recover from a severe financial crisis.
* Paul Krugman was a speaker at the Common Good last week. Details [HERE]
ECONOMY: How to Crash an Economy and Escape the Scene - BLOOMBERG, WILLIAM D. COHAN
Is it time to put the Great Recession behind us?
BANKING: The Right Way to Break Up the Banks – BLOOMBERG, BRAD MILLER
Daniel Tarullo, a respected and independent member of the Federal Reserve, has now concluded that the megabanks are too big and that Congress should do something about it.
BANKING: Asset-Backed Securities May Face Tougher Basel Bank Rules – BLOOMBERG
Banks trading asset-backed securities may face tougher capital requirements and stricter oversight from global supervisors amid concerns that regulation is failing to curb excessive-risk taking.
BANKING: Exposing Wall Street—Or Not - WSJ, MATT LEVINE
A banker confessional rehearses old scandals and the author’s disillusionment with the selfless firm of his dreams.
BANKING: Is Greg Smith Believable? – NYT
The book “Why I Left Goldman Sachs” by Greg Smith, a former Goldman employee, is about how the firm’s culture broke down. Yet it is oddly also a testament to some of the ways in which the Wall Street firm’s culture still works.
BANKING: Your Fees, Their Bank - NYT
Consumers would do well to pay more attention to what they pay in bank fees and to consider the more consumer-friendly approach of credit unions.
MARKETS: Wall St. May Not Cheer, but Obama’s Been Good for Stocks – NYT, JEFF SOMMER
Elections, of course, are not decided on economics alone. “Campaigns matter, at least a little,” said Thomas M. Holbrook, professor of political science at the University of Wisconsin, Milwaukee. “The issues and the candidates matter, at least a little.” Yet to the extent that the economy determines the election’s outcome, it’s possible that the stock market holds part of the explanation for Mr. Obama’s outsize electoral strength.
REGULATION/FISCAL CLIFF: Teetering on Another Cliffhanger – BARRONS, JIM MCTAGUE
Corporate America faces another challenge: a pending “regulatory cliff.”
ENVIRONMENT REGULATION: Obama environmental agenda: clean air – WP Juliet Eilperin
The president has put in place the most sweeping limits on air pollutants and greenhouse-gas emissions in U.S. history.
ENVIRONMENTAL REGULATION: Taking Note: Clean Water Act Turns 40 – NYT, ROBERT B. SEMPLE JR.
Congress is trying to dismantle the landmark law, which passed 40 years ago this Thursday.
ENVIRONMENTAL REGULATION: Fracking Needs Rules, Not Flawed Studies - BLOOMBERG, EDITORIAL
New York officials have again put off a decision on whether to allow hydraulic fracturing in the shale-gas-rich state, saying more research is needed to determine the public health effects.
TAXES: Raise Taxes And Cut Government Spending To Reduce Debt? Not Really – FORBES, NATHAN LEWIS
There are two great examples in history of governments that got out of huge debt commitments without either defaulting or devaluing the currency, which is essentially another form of default. One was Britain after the Napoleonic Wars, ending in 1815; the other was the United States, after World War II. This was quite unusual. Most governments, when faced with excessive debts, have defaulted either legally or via currency devaluation.
MIDDLE CLASS: Hard times tighten middle-class squeeze – MSN MONEY, DAVID FRANCIS
After the Great Depression, the US made major policy changes to support average Americans. Is it time to launch such efforts again?
ENERGY: Hot air over wind power – FT
Some utilities risk having half of power generation profits wiped out.
HOUSING: The Tragic Demise of Fannie Mae – THE AMERICAN, ALEX J. POLLOCK
A new book offers an instructive lesson on the unhappy surprises caused by the government’s attempts to manipulate the
INDUSTRY: For Machinery Makers, Lifting Is Heavier – WSJ
Makers of machinery and heavy equipment, stars of the tepid economic recovery of the past two years, are running out of steam as they prepare to report quarterly earnings.
GOVERNMENT ASSISTANCE: The Trap of Supplemental Security Income - NYT, JULIE TURKEWITZ, JULIET LINDERMAN
If you are disabled, you can either work and not qualify for financial assistance, or you’re sick, and barred from earning any substantial income.
FARMING: Opinionator: A Simple Fix for Farming - NYT, MARK BITTMAN
An ignored but hugely important study shows that we can grow food on a large scale, profitably, with far fewer chemicals.
RECESSION: 25 Years Later: In the Crash of 1987, the Seeds of the Great Recession - TIME, CHRISTOPHER MATTHEWS
Twain, resonates with us for its pithy description of an irony we encounter everyday: In a world marked by rapid technological, political and social change, certain themes remain eternal.
INNOVATION: US immigration policy is killing innovation – FT
Vivek Wadhwa’s ‘The Immigrant Exodus’ shows the effects of closing the doors to talented foreigners.
HEALTHCARE: Peeling Away Health Care’s Sticker Shock - WIRED, ANDY GROVE
If there is ever an industry in need of a Sticker Price law today, it is health care, in which 1950s-era thinking still rules the day, and irrational and inexplicable pricing is routine
MORTGAGES: Show Them the Money – WSJ
States raid the $25 billion mortgage foreclosure settlement.
BUSINESS NEWS & ANALYSIS
ENTERTAINMENT: NBC Finds Itself in Unfamiliar Territory: On Top - NYT
NBC’s surprise top ranking among younger viewers is in large part a result of the poor performance of its network rivals, which have failed to deliver any hot new shows.
ENTERTAINMENT: Disney, Struggling to Find Its Digital Footing, Overhauls Disney.com - NYT
Figuring out the Internet is critical for all media companies, but Disney’s future in particular depends on a winning strategy.
ENERGY: BP set to sell its stake in joint venture - WP
BP reportedly has agreed to sell its half in a Russian venture to a state-controlled firm for $26 billion to $28 billion in cash and stocks.
SOFTWARE: Fresh Windows, but Where’s the Start Button? - NYT
A radical new design of Microsoft’s flagship operating system is likely to cause some head-scratching when Windows 8 goes on sale this Friday.
INTERNET: Permira to Buy Ancestry.com for $1.6 Billion - NYT
A consortium led by the European private equity firm Permira has agreed to buy Ancestry.com for around $1.6 billion.
PHARMACEUTICALS: Pfizer in Deal to Acquire NextWave - WSJ
Pfizer agreed to acquire NextWave Pharmaceuticals, a deal that includes the recently approved Quillivant XR—the first once-daily liquid treatment for attention deficit hyperactivity disorder.
INDUSTRY: Caterpillar Lowers Outlook - WSJ
Caterpillar posted a 49% increase in third-quarter profit as it benefited from an asset-sale gain, but the company lowered its 2012 outlook amid weaker-than-expected global economic conditions.
The Common Good publishes a U.S. domestic news digest every weekday, available here.