News Headline

Economy's Fundamentals Still Weak

OurFuture.org Staff — Thu, 28 Aug 2008 11:06:41 -0400

The Commerce Department's report that the nation's gross domestic product grew at an annual rate of 3.3 percent during the second quarter sounds positive on the surface. But economists looking beyond the headline still see a fundamentally weak economy. The reason: The sharp uptick in the value of the nation's economic productivity was driven by a sharp increase in exports—the result of a falling dollar making American goods cheaper overseas—and economic stimulus rebate checks cashed by Americans. Meanwhile, weekly jobless claims remain at historically high levels—above 400,000 a week on average—and corporate after-tax profits fell more than 3 percent after a modest first-quarter increase.

Women Lawmakers Hammer Pay Equity Issue

OurFuture.org Staff — Thu, 28 Aug 2008 09:37:54 -0400

Key women legislators are gearing up to pass landmark legislation to crack down on wage discrimination. Recent economic studies not only signal continued stark differences in economic prospects for men and women, but show that under the Bush administration, women are falling further behind. For example, incomes for female heads of household declined 3 percent between 2000 and 2006, and women are losing their jobs at a faster rate than men. A "paycheck fairness" bill is headed to the Senate this fall, where conservatives are threatening to block it.

Fannie Mae Executives Out

OurFuture.org Staff — Thu, 28 Aug 2008 03:09:42 -0400

Mortgage finance giant Fannie Mae shook up its executive ranks, after shares in it and sibling company Freddie Mac rose for a third straight day as investors appeared less certain a government bailout of the two troubled companies is imminent. Fannie Mae, the largest buyer and backer of U.S. home mortgages, said its chief financial officer and two other top executives are leaving the company. Three current executives were promoted to replace them. Fannie Chairman Stephen B. Ashley said in a statement that board members remain "firmly committed" to Chief Executive Daniel Mudd.

Bankruptcies Reach 1 Million

OurFuture.org Staff — Thu, 28 Aug 2008 02:53:21 -0400

As things in the economy have gotten worse, the number of people and businesses heading to bankruptcy court has spiked. Bankruptcy filings surged 29 percent in the 12 months that ended June 30, according to government figures. Total filings rose to 967,831 from 751,056 a year earlier. Business filings jumped more than 41 percent to 33,822 from 23,889 in the year-ago period. Personal filings totaled 934,009, up 28 percent from last year.

High-Speed Train Advocates Hopeful

OurFuture.org Staff — Wed, 27 Aug 2008 11:44:13 -0400

American advocates of high-speed train travel have dreamed of a day when travelers in the U.S. would zip from city to city faster than they could drive and nearly as fast as they could fly. Those dreams were always dashed by financial realities and political impediments. That was before $4-a-gallon gasoline, ever-worsening highway traffic jams and financially strapped airlines cutting the number of flights. Advocates of high-speed rail say the nation is primed like never before to accept a kind of transportation that has never quite caught on in the land of the automobile. Surging gas prices, congested highways and airports, and soaring air fares all are contributing to an increasing demand for passenger rail, says Mark Yachmetz of the Federal Railroad Administration.

Railways Getting Crowded

OurFuture.org Staff — Wed, 27 Aug 2008 11:42:40 -0400

Rising costs of traveling by air and car, brought on by record oil prices, drew a record 2.8 million people onto America's cash-strapped passenger railway network in July, the largest of any single month in Amtrak's 37-year history and up nearly 14 percent from a year earlier. But as passenger numbers grow, so too are complaints of overcrowding and delays.

Investment Firms Eye Public Infrastructure

OurFuture.org Staff — Wed, 27 Aug 2008 11:36:28 -0400

Reeling from more exotic investments that imploded during the credit crisis, Kohlberg Kravis Roberts, the Carlyle Group, Goldman Sachs, Morgan Stanley and Credit Suisse are among the investors who have amassed an estimated $250 billion war chest — much of it raised in the last two years — to finance a tidal wave of infrastructure projects in the United States and overseas. Their strategy is gaining steam in the United States as federal, state and local governments previously wary of private funds struggle under mounting deficits that have curbed their ability to improve crumbling roads, bridges and even airports with taxpayer money.

World Poverty 'More Widespread'

OurFuture.org Staff — Wed, 27 Aug 2008 11:34:56 -0400

The World Bank has warned that world poverty is much greater than previously thought. It has revised its previous estimate and now says that 1.4 billion people live in poverty, based on a new poverty line of $1.25 per day. This is substantially more than its earlier estimate of 985 million people living in poverty in 2004.

Problem Banks List Grows

OurFuture.org Staff — Wed, 27 Aug 2008 11:30:27 -0400

The number of troubled banks on the government's watch list grew dramatically last quarter. The Federal Deposit Insurance Corp. reported that the number of firms on its so-called problem bank list grew to 117 during the second quarter — its highest level since the middle of 2003. There were 90 banks on the problem list in the first quarter. FDIC Chairman Sheila Bair expressed little surprise at the increase and warned that the number would grow. Problem banks typically face difficulties with their finances, or are suffering through operations or management issues that pose a threat to their existence. Banks included on the problem list are considered the most likely institutions to fail, although few institutions actually reach that point — just 13 percent.

Freddie Mac Debt Sale Eases Concern

OurFuture.org Staff — Tue, 26 Aug 2008 13:48:39 -0400

Shares of Fannie Mae and Freddie Mac soared after Freddie completed a $2 billion debt sale and a Wall Street analyst said a government bailout of the mortgage finance giants may not be inevitable. But a few regional banks with significant holdings in Fannie and Freddie preferred stocks followed the rest of the market down amid questions over whether federal regulators would step in to rescue the two government-sponsored companies.