News

Recession Briefing 3.20

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

Iraq and Afghanistan war veterans are being affected harder than other workers by the recession: 11.2% of them are now unemployed. That’s significantly higher than the corresponding 8.8% rate for non-veterans in the same age group. (USA Today)

Seeking to quell populist anger over AIG’s bonuses, the House of Representatives overwhelmingly approved a 90% tax on bonuses paid this year to employees of firms that accepted large amounts of federal bailout money. (New York Times)

More than 60 million consumers are poised to dump their cellphone contracts and pare back on “extras,” such as texting and mobile Web access, according to a survey. 39% of Americans with cell phone contracts are likely to cut back on wireless service if the recession deepens. (USA Today)

The Administration’s plan to save America’s banks is being delayed again amid fears of an AIG-like backlash among potential private investors, and the difficulty of creating a model to price toxic assets. (Time)

A record 5.47 million people in the U.S. are now receiving unemployment benefits. And while the number of people filing new claims for jobless benefits fell slightly last week, all but one of the 372 metropolitan areas tracked by the Labor Department saw job losses. (Reuters)

The “guilt economy” is helping keep families afloat. It’s borne of the empathy that comes with knowing when you trim your budget, you’re hurting others who may be much closer to the brink. (Wall Street Journal)

A MetLife study released last week found that 50% of Americans said they have only a one-month cushion — roughly two paychecks — or less before they would be unable to fully meet their financial obligations if they were to lose their jobs. (Marketwatch)

Mortgage rates have fallen to their lowest level in decades: The national average rate on 30-year fixed mortgages was 4.94% on Thursday. (Los Angeles Times)

The government has approved $5 billion in financial aid for auto parts makers, signaling a continued interest in propping up the domestic car industry.  (Washington Post)

Starbucks is grappling with an existential crisis. In a recession, extravagances like $4 cups of coffee are the first  thing to go, so the chain is working to convince people that its coffee drinks aren’t so expensive after all. (The Big Money)