‘Our Stimulus is Making the Unemployment Rate Higher‘ – The Atlantic
“Statistically on average, we know that the intensity of search picks up when you’re about to run out of benefits,” Reynolds told me. The evidence is overwhelming that the stimulus added at least two percentage points to the unemployment rate by keeping Americans at home rather than pushing them to work, he told me…
Young Adults Fret Over Jobs, Haven’t Lost Hope – The Wall Street Journal
Some 60% of 18- to 29-year-olds said they were worried about paying their bills and meeting other obligations in this economy as fear of job loss still looms large, a new poll by Harvard’s Institute of Politics shows. Nearly half, 46%, said they’re concerned about losing their jobs.
Are unemployment benefits no longer temporary? – The Washington Post
About 11.4 million out-of-work people now collect unemployment compensation, at a cost of $10 billion a month. Half of them have been receiving payments for more than six months, the usual insurance limit. But under multiple extensions enacted by the federal government in response to the downturn, workers can collect the payments for as long as 99 weeks in states with the highest unemployment rates — the longest period since the program’s inception.
IBM invents Earth-friendly plastic made from plants – Raw Story
The breakthrough promises biodegradable plastics made in a way that saves on energy, according to Chandrasekhar “Spike” Narayan, a manager of science and technology at IBM’s Almaden Research Center in Northern California.
Public Pension Funds Are Adding Risk to Raise Returns – The New York Times
“In effect, they’re going to Las Vegas,” said Frederick E. Rowe, a Dallas investor and the former chairman of the Texas Pension Review Board, which oversees public plans in that state. “Double up to catch up.”
(this seems like a bad idea.)
Bank of America to End Debit Overdraft Fees – The New York Times
Bank officials said that effective this summer, customers who try to make purchases with their debit cards without enough money in their checking accounts will simply be declined.
Hold Your Applause for Bank of America’s Overdraft Announcement – The Atlantic
Bank of America’s press release gloats that this shows its “commitment to provide more control, choice and clarity for its customers.” Pardon my skepticism.
Can California Declare Bankruptcy? – Slate
Say the state can’t make its debt payments, and no one will lend it any more money. In that case, the federal government can step in and put the state into receivership. This would involve the assignment of an accountant to manage the state’s debt, overseen by a judge. It would be a lot like bankruptcy, except instead of following a structured set of steps—informing creditors, appointing creditors’ committees, a 120-day window to file a plan, etc.—a receiver has the authority to force creditors to renegotiate loans in a speedy fashion. However, the accountant in charge would not have the power to make decisions about the state’s budget, such as which programs needed to be cut and which taxes had to be raised. (No state has ever gone into receivership.)
Europe eyes ban on CDS contracts used against Greece – Telegraph, Ambrose Evans-Pritchard
Europe’s leaders have launched a concerted attack on financial speculation, blaming the crisis in Greece on the use of debt derivatives by hedge funds.
Barney Eats Seconds – Or Blows Smoke – Or Both – Bruce Krastin
“Large numbers of these second liens have no real economic value.”g
Obama Foreclosure-Prevention Plan Lagging, New Data Shows – HuffPo
Only about a third of the homeowners who have successfully completed the trial period of the Obama administration’s mortgage modification program have been offered permanent relief, according to new federal data obtained by the Huffington Post.
Two more years to a bottom in housing prices:
http://www.youtube.com/watch?v=oPdosno-VA0&feature=player_embedded
