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With 15.4 million homeowners under water and rising unemployment exacerbating the foreclosure rate, and no governement solution in sight, any recovery will be weak. This makes the debt reduction less likely, and weakens prospects for economic growth.
Linked Articles
Rising Interest on Nations’ Debts May Sap World Growth
New York Times 06/04/2009
Foreclosures: No End in SightNew York Times 06/02/2009
The first period of rising household debt ocurred with the credit card boom when the government promoted consumer spending as a way to stimulate the economy. By 2003 this became a serous problem and the government rescued a credit card issuer in 2003. Household debt is again a major problem in 2012 with the increasing number of companies in financial lending that are not regulated.
Linked Articles
Notes From Another Credit Card Crisis
New York Times 05/18/2009
S. Korea tries to curb mounting debt and avert a crisis - The Washington PostWashington Post 07/09/2012
The impact on Caterpillar, Volvo AB, Komatsu, John Deere, Cummins and domestic Chinese manufacturers of the smaller stimulus and selective investments in China in the years ahead. Manufacturers are exporting from China during this period of slowing sales in China.
Linked Articles
China Bets Sour for Heavy Equipment Firms
Wall Street Journal 08/16/2012
China's Stimulus Spurs U.S. BusinessWall Street Journal 04/30/2009
The debt load for American households is close to the total output of the American economy in 2008. The disappearance of easy credit, the rising unemployment, and reduced hours of work, and lower or stagnant wage levels, are serious constraints to consumer spending.
Linked Articles
Economist 04/23/2009
On Borrowed Time: Consumer-Led RecoveryWall Street Journal 06/10/2009
The movement among Americans like Mr Bailey in Boise, Idaho, to get debt free, is going to be as big a factor as the toxic assets at banks, and foreclosuresin housing, in the fundamental changes that are going on in the economy that will last for years, decades. These are conservative lending, government lending to make up, savings, less consumption and scrapping or sale of unneeded factory capacity (plant) to developing countries.
Linked Articles
Deleveraging: It's Not Over Till It's Over
Wall Street Journal 03/11/2009
Frugality Forged in Today's Recession Has Potential to Outlast ItWall Street Journal 04/06/2009
Linked Articles
In U.K., Getting Tough With Nationalized Banks
Wall Street Journal 02/09/2009
Royal Bank of Scotland to Slash Costs as Losses DeepenWall Street Journal 02/28/2014
The Obama economic action plan with large investments in infrastructure and green energy and in education and national competitiveness, and what neuroscience tells us about the part fear plays in making financial institutions and business not play the role they are otherwise able to play inleading economic activity.
Linked Articles
In Hard Times, Fear Can Impair Decision-Making
New York Times 12/07/2008
Obama Pledges Public Works on a Vast ScaleNew York Times 12/07/2008
The collapse of consumer debt market and the collapsing sales of automakers especially GM, and the need to revive the sale of consumer debt securites which in turn revives lending. But higher credit scores and consumer and bank fears may still keep demand in a contimuing slide.
Linked Articles
U.S. Consumer Loan Aid Will Trickle Only So Far
New York Times 11/27/2008
Fear Recedes in the Debt MarketsWall Street Journal 11/26/2008
Obama carried the Hispanic vote by large numbers and the Catholic vote by a 9 point margin.
Linked Articles
Democrats Gain With Religious Voters
Wall Street Journal 11/06/2008
Big Turnout of Latino Voters Boosted ObamaWall Street Journal 11/06/2008
Gordon Brown sees the ups and downs with equanimity but he must have the satisfaction that this crisis for Europe and the world has brought out the best in him.
Linked Articles
British Prime Minister’s Stock Rises as His Bank Plan Lifts Stocks Worldwide
New York Times 10/15/2008
U.K. Chiefs Repair Image With BailoutWall Street Journal 10/14/2008
GM will cut spending in many areas like ad spending and marketing so as to have less dependence on loans secured against its international operation.
Linked Articles
GM Plans Debt Offering To Accompany Cost Cutting
Wall Street Journal 07/16/2008
GM Plans $10 Billion In Cuts to Bolster CashWall Street Journal 07/16/2008
Pulitzer prize winning journalist for reporting from the Middle East and expert on Saudi Arabia, Karen Elliott House, describes the changes in Saudi Arabia with the huge young demographic, and what it means for Saudi society, U.S.-Saudi relations, meeting the aspirations of young people.
Linked Articles
As the Middle East Burns, the Saudis Ease Up at Home
Wall Street Journal 06/25/2014
Our Friends in RiyadhWall Street Journal 05/14/2008
Shifting investment from China as Taiwanese firms face higher wages and fewer tax rebates and more difficult cost environment.
Linked Articles
Taiwan Firms Look Beyond China
Wall Street Journal 01/28/2008
China’s Inflation Hits American Price TagsNew York Times 02/01/2008
Rising debt and weak bounce from manufacturing in a recovery.
Linked Articles
Rising Interest on Nations’ Debts May Sap World Growth
New York Times 06/04/2009
Once a Key to Recovery, Detroit Adds to PainNew York Times 06/01/2009
Linked Articles
Wall Street Journal 05/02/2009
Hopes of a Generation Ride on Indian VoteNew York Times 05/15/2014
How the Citigroup stress test conclusion does not match up with large pending losses in aworst case scenario. The ineffectiveness of the regulatory structure, as the FDIC is burdened with a large loss sharing agreement with Citigroup, but has not been able to get a change in the management at Citiigroup so that action is speeded up.
Linked Articles
Wall Street Journal 06/05/2009
The Stress Test ResultsNew York Times 04/26/2009
Krugman and Rosenfeld, in no uncertain terms, say the only solution is for government to seize insolvent banks and create clean banks, using its existing authority and government money. Rosenfeld outlines his solution which puts banks back in private hands quickly or at the earliest possible moment.
Linked Articles
New York Times 04/06/2009
Financial Policy DespairNew York Times 03/23/2009
Household debt at 96% of GDP is an additional problem that America faces in addition to toxic assets, that may make the American crisis worse than Japan's lost decade or two.
Linked Articles
Economist 02/12/2009
Frugality Forged in Today's Recession Has Potential to Outlast ItWall Street Journal 04/06/2009
Its not clear that the $250 million investment at 14% interest by Carlos Slim of Mexico will be enough as much of the repayment of debt of $1.1 billion comes due in the next couple of years.
Linked Articles
These Times Demand Tough Action
Wall Street Journal 01/20/2009
Billionaire Reaches Deal On Funding For Times Co.Wall Street Journal 01/20/2009
Mr Bailey's changing philosophy on life, happiness defined as debt free and able to enjoy life with his family. What this does to Savannah and Long Beach's port area.
Linked Articles
When the Downturn Sailed Into Savannah
New York Times 11/30/2008
Frugality Forged in Today's Recession Has Potential to Outlast ItWall Street Journal 04/06/2009
The Fed's need to act and the constructive efforts to unclog credit markets of October 2008 in consumer and mortgage credit. At the same time doubts about how much it will help contimuing slide in demand in the economy.
Linked Articles
Fed Aid Sets Off a Rush to Refinance
Wall Street Journal 11/26/2008
U.S. Consumer Loan Aid Will Trickle Only So FarNew York Times 11/27/2008
In Louisiana, Arkansas, Mississippi, Georgia and other states of the Deep South women's rights and civil rights for black people were a result of decades of effort by women like Linda Boggs and Rutha May Harris, hard work against entrenched prejudice with many setbacks and resilience towards adversity, compared to the soft work of campaign strategy, image making, polling and fund raising of today.
Linked Articles
A Time to Reap for Foot Soldiers of Civil Rights
New York Times 11/05/2008
Ex-Congresswoman Lindy Boggs Dead at 97Wall Street Journal 07/28/2013
Russia tones down its overreaction as 66% of Russians polled in June say Russian forces should not enter Ukrainian terrritory. Putin and Russians in the administration policy making may have underestimated the reaction in the U.S. as reflected in this WSH editorial saying Americans should remember the words of Gen. Lucius Clay during the Berlin Blockade and the subsequent airlift. This could be why analysts in Russia now maintain that good relations with the West must be maintained, and entry of Russian forces into Ukraine would have disastrous consequences for Russia in terms of western sentiment and foreign investor sentiment. In such a situation Germany would be likely to support the stronger U.S. position seeing this in terms of the language used in theBerlin Airlift of 1948. For Germany and Russia this would be reversing the hard won gains of building relations from the time of Brandtand Kohl till today, fifty years of effort to build better relations and economic relationships- just too much for sober heads in Moscow Paris, and Berlin to accept, and closing another chapter in Russia's interactions with the West.
Linked Articles
Wall Street Journal 08/13/2008
Seeing Cost of Saber Rattling in Ukraine, Putin Alters CourseNew York Times 07/11/2014
The evolution of the old management styles and attitudes as Ford brought in outside management and Bill Ford took a new tack, and at GM where old management plodded on inexorably in the old way. Which is quite different from what Alfred Sloan had advocated in his memoirs when he insisted on discussion and debate on critical decisions in board meetings for them to be worthwhile.
Linked Articles
BusinessWeek 05/15/2008
Bill Ford on Tipping Points and Thinking SmallBusinessWeek 07/31/2008
British debt is even worse than the American debt with household debt to income ratio at 1.62 in Britain compared to 1.42 in the USA. Continental cousins in Germany have a ratio of 1.09.
Linked Articles
Debt-Gorged British Start to Worry That the Party Is Ending
New York Times 03/22/2008
Frugality Forged in Today's Recession Has Potential to Outlast ItWall Street Journal 04/06/2009
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