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Recession Briefing 9.24: Super-Rich Now Thrifty

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

Even the super-rich and those with trust funds are cutting back as a result of the recession. They might not be going poor, but once high-flying socialites are finding that it’s either imprudent or in bad taste to spend the way they once did. (ABC News)

“We’re in one?” asked Texas Gov. Rick Perry recently when asked about the recession. He later said that the quote was taken out of context. (Houston Chronicle)

African Americans and Hispanics have lost more economic ground and done so more quickly than their white counterparts from the end of 2007 to the summer of 2009. (Center for American Progress)

Even with rosier economic forecasts for next year, a survey found employers to be less optimistic about the future this year than last year, with more planning to freeze salaries and hire fewer new workers. (Washington Post)

The Federal Reserve, in a move aimed at keeping interest rates low for home buyers through early next year, decided to extend and gradually phase out its purchase of mortgage-backed securities. (Wall Street Journal)

“There is no recovery until jobs are being generated,” writes Robert Borosage. “Before the leaders deal with what comes after the recovery, they better secure it. Pittsburgh should be first and foremost a summit on jobs.” (Huffington Post)

It’s what economists are calling the “New Normal”: a more frugal financial world in which investment risk will be dialed back, savings will be ramped up and more money will be stockpiled in banks. (USA Today)

The number of Americans filing for first-time unemployment insurance fell last week, the government said Thursday. There were 530,000 initial claims filed in the week ended Sept. 19, down 21,000 from a revised 551,000 the previous week. (CNN/Money)

“Just because Ben Bernanke says the recession is over doesn’t make it so,” writes John Zogby. “The chairman of the Federal Reserve may be technically correct that the economy is in recovery, but the average American is not impressed by slight upticks in the indicators.” (Forbes)

Congress is moving to extend unemployment benefits as about 1.3 million of the jobless are at risk of running out by the end of this year. But the extra coverage won’t initially be available in every state. (Associated Press)

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Tags: personal finance, politics, real estate, recovery, Spending and Saving, The Unemployed Life