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Ian Shepherdson of High Frequency Economics explains to the NYT's Gretchen Morgenson why growth will be sluggish in 2010, below 2%. He says the debt overhang over consumers and banks is resulting in afree fall in bank lending. He sees troubling signs in recent NFIB data,(National Federation of Independent Business) which shows credit tightness peaked this fall for small businesses. This is where jobs growth takes place and where tens of millions of people work. He says bank credit peaked at $7.3 trillion in October 2008 and is down to $6.72 trillion, he says banking sector loan and lease assets have to fall by another $2 trillion and that will take several years. He says the Fed's asset purchase program i about trying to prevent acollapse in the money supply. When the Fed buys assets it creates deposits, which in turn help offset a credit contraction which he estimates would be 1% a month in the absense of the Fed actions.

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Full Yield is a startup in Boston that is trying to help address the nation's obesity problem by introducing healthier foods and meals in cafeterias. It plans to introduce a line of Full Yield branded food made from fresh items and natural ingredients for sale in corporate cafeterias and prepared food sections of local supermarkets. It is based on a simple idea that if you eat healthier food you will be healthier. A study in the Jan-Feb issue of journal Health Affairs says 75% of the $2.5 trillion in health care spending deals with obesity, Type 2 diabetes, heart disease and cancer. And how much of this traceable to obesity and bad eating habits, smoking and lack of exercize? This study says most of the cases are preventable by changing these behaviours. Dr. Kenneth Horpe, chairman of the department of health policy and management at Rollins School of Public Health, Emory University, shows that if trends continue U.S. annual health care costs related to obesity would reach $344 billion by 2018, which is 20% of total health care spending. In 2009 it accounts for 9%. Thorpe says if even the 1987 levels of obesity were reached it would free up enough money to cover the uninsured population today. For American companies the problem has grown to alarming proportions and yet no nationwide coordinated plan bringing together companies, government, universities, public interest organizations, and other groups exists in the U.S. The CEO of U.S. grocery chain Safeway, Steven Burd, says Safeway was spending $1 billion to cover health care insurance for workers by 2005, with costs rising 10% a year- this meant putting out twice in health care insurance than Safeway's earnings and hitting another $500 million by 2010. Between 2004-2009 the costs of insurance surged 31%, making this the fastest growing single corporate expense, according to Towers Perrin. This reduces incomes of workers as companies pass on part of the extra cost, and reduces the profits that can be put back in new investment for economic growth....

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A congressional oversight panel reported in October 2009 that fewer than 2000 of 500,000 loan modification applications in progressunder the Making Homes Affordable program of the Obama adminsitration had become permanent. When Treasury reports on the program in December 2009 its expected to report that the number of permanentloan modifications are in the tens of thousands out of 650,000 borrowers in the program. Mortgage companies are collecting lucrative fees on long term delinquencies so there is not enough incentive to make permanent loan modifications according to lawers defending homeowners.