News

Recession Briefing 2.17

What you need to know today to survive and thrive in the recession.

Credit crisis could crunch men’s testosterone: doctor (Breitbart.com)
Men made macho by boom times could lose their game as stress about the economy takes over.

20,000 jobs may go in California (BBC)
The state with an economy the size of Canada and Spain can’t pass a budget it likes, so Ah-nuld  has plans to cut 20,000 jobs to keep costs down in the meantime.

Employment Falls in Silicon Valley (WSJ)
More signs that tech is no longer economy-immune: Silicon Valley posted a drop in employment and recorded a decline in per capita income in 2008 for the first time in several years.

Outrage brewing over proposed 1,900% beer tax hike (KGW)
In Oregon, which must be a big beer-drinking state, lawmakers have proposed a tax that could help fill the government’s empty coffers.

Gov’s Hy-Pay-Crisy (NYPost)
While state agencies everywhere suffer, chief executives on Wall Street are being mandated to cut their pay and New York state has asked 130,000 to take 3 percent pay cuts in the face of a $15.5 billion deficit, Governor Patterson of New York is giving several of his immediate staff raises and asking them to keep quiet about it.

How the Financial Crisis Is Good for New York (New York)
Hugo Lindgren notes that Richard Florida’s latest look at cities’ temperament during downturns, including his conclusion that the squeeze in New York may invigorate its creative economy. Hear hear.

GM, Chrysler Finalize Plans To Restructure (Wash. Post)
Carmakers present a plan today curb production, cut jobs and pare brands in hopes of securing billions of dollars in additional federal aid.

Economy Strains Under Weight of Unsold Items (Wash. Post)
Shoppers are staying home, creating a build-up of inventory and forcing companies to consider massive restructuring in order to make it through the downturn and grow. Car dealerships have been among the hardest hit by lack of sales.

Failure to save East Europe will lead to worldwide meltdown (Telegraph)
The unfolding debt drama in Russia, Ukraine, and the EU states of Eastern Europe has reached acute danger point.

College Campuses Debate Administrators’ Lofty Pay (Business Week)
The next target of pay outrage? Deans and presidents at public universities, where the median pay during the last full school year was $427,4000.

Economic reality crashes dream weddings (AP/MSNBC)
Brides are downsizing their wedding plans, with plans to spend 6.5 percent less on weddings than last year, finding more economical ways to create a similar effect, using iPods instead of bands or deejays, buying dresses on eBay and handling the decorations themselves.

It’s Time to Treat America’s Homeowners as Well as We’ve Been Treating Wall Street’s Bankers (HuffPo)
Says Arianna Huffington: “The banks are too big to fail” has been the mantra we’ve been hearing since September. But when you consider the millions of American homeowners facing foreclosure, aren’t they also too big to be allowed to fail?

Cash-Rich Oracle Scoops Up Bargains in Recession Spree (WSJ)
The upside of the downturn for some companies, like Oracle, is that acquisitions, like the 10 it made in the last year, can be had for cheap.

Russian Billionaires an Endangered Species (Cityfile)
There are just 49 left. Related: Russian industrial output falls 20 percent. (FT.com)

Another Madoff Investor Commits Suicide (New York)
It’s time to consider adding “murder” to his criminal charges.

Fashion Week on a Budget (Forbes.com)
Designers like Vera Wang and Marc Jacobs are downsizing shows to cut costs.