News

Recession Briefing 12.15: Drugs Saved the Economy

Antonio Maria Costa, head of the UN Office on Drugs and Crime, said he has seen evidence that the proceeds of organised crime were “the only liquid investment capital” available to some banks on the brink of collapse last year. He said that a majority of the $352bn (£216bn) of drugs profits was absorbed into the economic system as a result. (The Guardian)

35 percent of American consumers plan to buy a farm grown tree for the holidays, compared to 9 percent who plan to buy an artificial Christmas tree. The Home Depot, the world’s largest retailer of Christmas trees, reports no decline in sales over last year so far. (Foxnews)

The bankers are treating President Obama like he’s just another politician who talks big but backs down from taking concrete action. And he will continue to get dissed as long as he behaves like one. (Portfolio.com)

A comScore survey asked people who have seen terms on their accounts altered if their charging habits have changed as a result. A total of 39 percent say they have either stopped using the card or closed the account, while 55 percent say they are using the card less. (Bizjournals)

Forty-nine percent of unemployed respondents in the survey say they’ve experienced major life changes as a result of the economic recession, twice the number of all Americans who said so in another Times/CBS News poll conducted last week. (NY Times)

The U.S. may have avoided the Japanese disease of prolonged stagnation only to end up with a dose of eurosclerosis: chronically high unemployment in a growing economy. (Business Week)

It’s not just bigger paychecks that have led to a growing wage gap—it’s the different levels of risk that executives and rank-and-file employees face in their retirement plans. (WSJ)

Despite a recession that has led to drops in nearly every category of consumer spending, box-office revenue is up 8.6% so far this year in the U.S. and Canada and is certain to ultimately top $10 billion, an all-time record. (LA Times)