News

Recession Briefing: 3.19

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

The Federal Reserve said yesterday that it would pump $1 trillion more into the economy by buying Treasury bonds and mortgage securities. The move runs the risk of spurring inflation. (New York Times)

AIG chief Edward Liddy was grilled by lawmakers on Capitol Hill yesterday over the $165 million that was recently paid out in bonuses. He said he has asked bonus recipients to give back half. (New York Times)

A stunning photo essay looks at the recession’s effects: foreclosures, evictions, bankruptcies, layoffs, abandoned projects, and the people and industries caught in the middle. (Boston Globe)

The number of millionaires dropped by a quarter last year and is likely to drop again this year. Robert Frank asks an economic adviser what it’s like for so many people to be deported from the mindset of the wealthy. (Wall Street Journal)

Paul Smalera writes that if we don’t buy up banks’ toxic assets, the U.S. could end up resembles parts of Asia with stalled development, empty exurbs, and ghost towers. (The Big Money)

A video game company has come up with a new title called LAYOFF which “attempts to drive home the realities of the credit crunch and its effect on the average worker.” (Offworld)

“Big investment-grade companies appear to be hoarding cash in the face of economic uncertainty as they raise record amounts of debt in the bond markets while cutting dividends, share buybacks and capital expenditure.”  (Financial Times)

Need something new to get outraged about? Try this: bailed out Citigroup is spending $10 million on a new luxury suite for the company’s top executives. (Bloomberg)

Michael Hiltzik writes that one side effect of the recession is that the wealthy are no longer necessarily being seen as either admirable or indispensible. (Los Angeles Times)

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