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The NYT editorial says budget reconciliation should kick in if by a certain date in the fall bipartisan agreement is not reached. With budget reconciliation, the term for a expedited processs, health care legislation can pass by a simple majority vote. NYT says bipartisan agreement is a good thing, but more important is effective health care reform. And there is little evidence of Republican cooperation so far on any issue.

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WSJ's CEO council advocates a goal of 10% electric cars by 2020 and upto 50% of the fleet by 2030. Other top priorities of the CEO's from Google, Intel, Time-Warner, Fedex and other companies at a recent 1 day conference were obesity, a stimulus program in excess of $300 billion, and restarting the Doha round of talks for global trade.

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With 10.3 million workers unemployed according to the Bureau of Labor Statistics, and this includes 2.8 million added this year so far in 2008. Most of the people who lost their jobs also lost their health benefits. This increases the urgency for the Obama administration to come up with action in the health care area as the ranks of the uninsured will grow in 2009.

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In a new book, "Back to Work: Why We Need Smart Government for a Strong Economy," Bill Clinton says he would have done two things differently. He would have raised the debt ceiling in the first two years when the Democrats had majorities in both houses of Congress. He also thinks President Obama's criticism of Wall Street has been harsh and counterproductive. Clinton is strongly critical of the Republicans for their anti-government ideology.

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Mary Barra, 49, is appointed as the new leader of global product development at GM. Her background is in engineering, manufacturing and human resources. Barra is an electrical engineer who has been with GM for 30 years, was a vice president for global manufacturing and engineering, and manager of a Detroit assembly plant.

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Joel Peterson describes how he got his start at Trammel Crow, a real estate developer company, seeing an ad on the bulletinn board at school for somebody fluent in French to go and work in the south of France. He says a big part of his relationships with lenders and partners in the business was about trust. He describes trust as coming from listening from the heart, genuinely interested in what people have to say, not some listening techinque. Its also about you as a person, authenticity, openness, being able to see things as they really are, and being direct. Its listening without an agenda, because any sort of frame in the mind means one is thinking about one's response is to what someone said, and one needs to listen fully and process what someone says to listen well. He describes it as being allowed entry in that person's world, which helps to build trust.

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U.S. auto sales including cars and light trucks reached 17.5 million in 2015, a 5.7% increase over 2014. Larger vehicles including pickup tucks and SUV's account for about half of all auto sales in 2015, with gas prices below $2.00 a gallon in Jan 2016 in most parts of the U.S. The average transaction price was up to $34,428, according to Kelley Blue Book. Auto incentives were up to $3063 per vehicle compared to $2809 ten years earlier, according to Kelley Blue Book. Analysts say automakers will reduce margins to subsidize zero interest loans in 2016 to increase sales. Lower sales are forecast after 2017 as the market will have caught up with much of the pent up demand by then. A plus for the automakers is the lower cost of steel and other material costs, and the better cost structures after bankruptcy, and renegotiated lower union pay scales. Additional plus is new management at U.S. automakers and at Toyota, and the technological advances this management is pushing, including fuel efficiency. Ride sharing, and other services developed by Google, are seen as disrupting the traditional car model to a limited extent. Countering this new development are millenials who are accounting for a quarter of Toyota sales in the last quarter of 2015, according to a Toyota executive....

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Michael Gerson offers his assessment of president Obama's 7 years in office, saying that after this period the public has lost faith in American liberalism, that Obama held it all together through a self-centredness that is now replaced by public rage that has brought out other self-centred politicians in the Republican party, such as Donald Trump. Deutsche Welle summed up its view from Europe of the Obama presidency as a period that was little more than a transitional presidency. Gero Schliess writing in DW.com, says one of the tragedies of this presidency is that the much talked about change would come about only under a successor, in a best case scenario under a Democratic successor. Yet if Gerson is right Americans are losing faith in American liberalism after the Obama years, with the setbacks suffered by the white working class and the middle class in these years, and the political deadlock that has prevented action to help them. Speaker Paul Ryan recently convened a conference on this subject. In October 2014 Fed chairwoman Janet Yellen described the problem at the Federal Reserve Bank of Boston conference on economic opportunity and inequality, questioning whether the trends were "compatible with the values rooted in our nation's history, and the high value Americans tend to place on equality of opportunity."...

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This piece in the Economist says the men involved in sexual harassment in Cologne identifed so far were Moroccans and Algerians, not Syrians. The police in Cologne are seen as failing to identify sexual attackers and apprehend them on the spot. Tensions will exist because of the different values in the Middle East, and as in America, the Economist says the refugees must be required to adopt the values and norms of the new country. Because most of the refugees are men, this could skew the men to women ratio in some places which welcome refugees, and for this reason the men should be allowed to bring their spouses. So far German chancellor Merkel has acted firmly, calling the sexual attacks "disgusting," passing laws that would make it possible to quickly deport those migrants and refugees who break the law in Germany. This is the right way to tackle the problem. In the long run the immigration will help countries such as Germany tackle the problem of aging of the labor force, yet in the short run stronger action is needed to prevent any abuses to the humanitarian welcome offered refugees. The problem of economically motivated migrants remains- Britain, Germany and France all agree that these migrants should go back to their home countries, as prime minister Cameron and chancellor Merkel have already affirmed....

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Different constitutional law opinions on the option of the President citing the 14th Amendment to the U.S. Constitution to raise the debt ceiling. Former President Clinton says he would unilaterally invoke it "without hesitation, and force the courts to stop me." President Obama said recently, "I have talked to my lawyers, they are not persuaded that this is a winning argument." Section 4 of this Amendment was designed to assure creditors the Union debts after the Civil War would be honored and to say Confederate debts would not be honored. This part of the 14th Amendment says "the validity of the public debt of the United States, authorized by law, including debts incurred for pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned." Prof. Jack Balkin of Yale, says it provides a broader principle that the public debt cannot be held hostage for political purposes. His view is that this is something that could be an option when all other options are exhausted. Prof. Lawrence Tribe of Harvard, say the law courts have no plausible point of entry in such a situation. There is a sense that "popular constitutionalism" would play an important part if something like this happened- the meaning of the constitution is what popular sentiment says it is in the particular context and events. ...

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Libya's Oil and Finance Minister bridges the gap between the tribal factions, regional loyalties, and other divisions within the Transitional Council of Libya and within Libya. He brings a unique background of being expelled in the early 1970's because of his prodemocracy activism at Libyan universities. He studied at Michigan State University for a doctorate and taught at the University of Washington for 26 years. All the time he helped organize the Libyan opposition. His background makes it possible for him to talk to western officials with ease, and his activist attitude and manner has put him quickly at the centre of things in Misrata and Tripoli. He went by fishing boat to Misrata at the height of the siege and was the first of the Transitional Council members to be in Tripoli. He was recently appointed deputy chairman of the Executive Council and chairman of the Supreme Military Council for Tripoli because of earning the confidence of the Council leaders and the ability to be at the centre of the struggles in Libya. He is a direct and plain spoken person and talked to the Journal's Charles Levinson about oil fields and restoring oil supplies. He talks about plans to keep Tripoli as the capital and keep the Transitional National Council in Benghazi so that both regions of the country could play a role. ...

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The former CEO of GE (General Electric) says why he is skeptical about the decline in the unemployment rate to 7.8% as shown by the household survey of the Bureau of Labor Statistics. He says the economy has to have grown at breakneck speed for unemployent to drop from 8.3% to 7.8% in 2 months. The dozen companies he is working with are seeing third quarter 2012 results worse than the second quarter. The labor force participation rate declined to 63.5%, the lowest since Sept 1981- fewer people looking for work accounts for the drop from 8.3% in July to 8.1% in August 2012. Other numbers that look implausible are the BLS figures of federal state and local governments adding 602,000 workers to their payrolls in Aug and Sept 2012, the largest 2 month increase in 20 years. And the BLS figure of overall 873,000 workers being added in Sept. 2012, the largest one month increase since 1983. All this he calls implausible. Part of the problem is the way the data is collected because someone who for example says he got a job baby sitting for from anywhere in the range of 1 to 34 hours is a parttime worker, so that working 1-2 hours would be counted as employed parttime in the BLS methodology....

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Public opinion in Germany now senses that politicians including Angela Merkel are reluctant to tell Germans that debt reduction has to be part of the solution for Greece, that some of the billions are lost and never coming back. They sense that Merkel and the Christian Democrats are waiting till after the elections in 2013 to bring this up directly. Even people on the street in Berlin know that Greece can never get back on its feet on the basis of spending cuts without debt reduction. The loan instalment approved in Nov. 2012 reflects the new approach of debt reduction but the German government is reluctant to talk about it. Opposition parliamentary leader Frank-Walter Steinmeier of the Social Democrats told ZDF German television: "The debt cut has not been avoided, it has been postponed to a time after the parliamentary elections. We are realistic and try to tell the people honestly and sincerely whats going on. Schauble and the present government try once more to finagle their way around the truth." Greece's debt has already reached 170% of GDP and can only go up as the economy shrinks further in year after year of recession. Norbert Barthle, a senior Christian Democrat, says if the debt reduction takes place today it sends the wrong signal to all the program countries, reducing the pressure for reforms and changes....

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The authors of the book Red Capitalism, two bankers, Walter and Howie, describe the evolution of China's banking system from the early days of 1974 to the present day. The account shows a sophisticated system of markets and companies, but behind the facade, is a more primitive system with its good side and problem areas. Risk is hard to define or capture in this system as the system is for the most part closed, trading entirely with itself. State controlled banks deal with stae entities in ways that are not so transparent. This distorts external perception of China's solvency. state debt for example is low, about 20% of GDP by one measure, but when all government obligations are added together, the authors say it is 76%. The whole business of providing, receiving and regulating money involves different state entities. As the system trades with itself, critical information about liabilities and pricing is concealed or difficult to figure out. The lack of outside entities setting prices disrupts efficient capital allocation and lets excesses grow within the system, making for concern about the future of this system.This is especially true considering that with the Asian crisis of 1997, then the US banking crisis of 2008, and the current crisis in the Euro-zone countries banking systems, excesses eventually take root....

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James Pressley, in this review of Joseph Stiglitz's new book- "Freefall: America, Free Markets and the Sinking of the World Economy," says Stiglitz's advice should be taken into account by the new administration. Stiglitz, says, the Obama administration has so far offered no alternative vision of capitalism and is only "mudddling through." It is simply following the course the Bush administration had taken. And has retained as key economic advisors, Geithner, Ben Bernanke and Summers, all from previous administration's economic teams, thus largely removing the possibillity of serious change. And by doing so, says Stiglitz, the Obama administration has "squandered the opportunity," to fix things that needed to be fixed in the economy. Stiglitz, says Pressley, urges Americans to think what kind of America they want to see, what kind of society they want to make, and then what kind of economy will get them there. Stiglitz wants to see banks back to where they they only make loans, and act as an efficient payments system, and not engaged in risk taking. At a meeting of the American Economic Association, Stiglitz, presented a paper that suggested that between globalization for integrating world financial markets and keeping them separate, the latter is the better course. Financial markets he believes, need circuit breakers to not bring down the whole system....

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Overall consumer prices were up 4.4% higher in October 2010, than a year earlier, according to the National Bureau of Statistics. Most of the increase in prices was concentrated on food and energy. China is taking action to limit price increases. During previous rise in inflation in 2004 and 2005, the government has resorted to detailed price controls. China's cabinet of ministers, the State Council, has issued orders that local governments and other government entities provide temporary subsidies to help the needy cope with rising prices and to increase allowances for needy students. Chia fears social unrest if prices go much above 5%. The Food and Agriculture Organization of the UN warns that food prices have gone up by 10% in the poorer countries. According to economists, China is effectively printing its currency renminbi to buy $1 billon a day worth of dollars to keep the renminbi weak, so that its exporters retain an advantage in overseas markets. The central bank takes away some of this renminbi but not all from the system, by selling bonds to state owned banks and increasing the amount of reserves required at the central bank. To keep the renminbi from rising, China's central bank buys up the investment dollars that are coming into the country, as well as dollars coming into the country from the trade surplus....

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Harvard professor, Benjamin Friedman, reviews journalist Timothy Noah's book "The Great Divergences: America's Growing Inequality Crisis and What We Can Do About It." Friedman says, Karl Marx got it wrong when he predicted greater inequality based on the situation he saw in Europe and the U.S. in the late nineteenth century. Inequality actually decreased in the U.S. and Europe with industrialization, technological progress, higher educational and income levels by the early part of the twentieth century. Similiarly Simon Kuznets, Nobel Laureate, also got it wrong when he extrapolated from what he saw in the early postwar period, assuming greater equality and better opportunities in future decades. The approach Noah and Friedman advise is to look at individual factors that promote or discourage less divergence in income levels, opportunities and upward mobility. And based on this shape policy and action agenda for better outcomes. A whole range of issues fall in this range- promoting manufacturing and higher wage jobs, immigration policy, investments in education to upgrade skills, better educational opportunities, vocational training, upgrading education to keep up with new technology, and investments in research and new technologies for new industries that would create better opportunities. Because inequality is increasing worldwide, and countries are focussing on improving competitiveness as well as preserving the social fabric in a global economy, this is an issue facing all countries that seek a better future....

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Moody's Ratings company downgraded banks in the U.S. and Europe on June 21, 2012. Morgan Stanley, J.P. Morgan Chase, Goldman Sachs, Citigroup were downgraded two notches. Morgan Stanley managed to stave off a three notch downgrade. Credit Suisse was downgraded three notches. Bank of America was down one notch, and Wells Fargo which has only a small trading operation was not reviewed. This is the first time since 2007 that Moody's has conducted a sweeping downgrade of banks. About 100 banks were reviewed by Moody's. Banks being downgraded have large trading operations or investment banking business that is subject to higher risks. Greg Bauer, a managing director of global banking at Moody's said in his statement: All of the banks affected by today's actions have significant exposure to the volatility and risk of outsized losses inherent to capital-markets activities." For Moody's the main issue was that the capital bases of banks are maintained, considering that government support is less likely than before, according to Mr. Wassenberg, Moody's managing director for European banks. The impact on banks will be fewer opportunities for trading revenues for some banks, and will raise borrowing costs for banks. Moody's also cut the ratings of large European banks with significant trading operations. This includes Deutsche Bank, Barclays, HSBC, RBS, BNP Paribas, Credit Agricole, Societe Generale, UBS, and Royal Bank of Canada....

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Fiat plans to pay Chrysler $1.27 billon to increase its stake to 46%. This will happen after Chrysler refinances $7.1 billion in U.S. and Canadian debt to pay off government loans. A debt offering is expected in coming weeks. Fiat's Sergio Marchionne sees this as critical to the next step forward for Chrysler- the speedy approval of $3.5 billion or more in low interest loans from the U.S. Department of Energy for projects that increase fuel efficiency. Marchionne would like to leverage as much as he can from DOE as they will be essential to Chrysler's investments in improving the fuel efficiency of its vehicle lineup. Chrysler paid $1.2 billion in interest on its debt in 2010. Much or all of the $1.27 billion from Fiat will be used by Chrysler to reduce government debt. Chrysler will not use any unused funds from the government. Chrysler is also planning to add a revolving line of credit for $2 billion. By the end of 2011 Fiat will add another 5% stake to bring its stake up to 51%, and make it the majority owner. Fiat and Chrysler are operating as an integrated company. Marchionne says it makes little sense to have separate legal entities for Chrysler and Fiat, as the two companies are already developing, building and selling vehicles as one company. The Chrysler financials will be consolidated with Fiat's....