News

Recession Briefing 12.22: No Time for Crime

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

High unemployment. More people needing government vouchers for food. Fewer owning their homes. Yet for all the signs of recession, something is missing: More crime. (Associated Press)

The recession’s jobless toll is draining unemployment-compensation funds so fast that according to federal projections, 40 state programs will go broke within two years and need $90 billion in loans to keep issuing the benefit checks. (Washington Post)

A growing number of community banks that got federal bailouts are failing to pay quarterly dividends they owe to the government, including two banks that got aid after congressional intervention on their behalf. (Washington Post)

The economy grew at a much slower pace than initially thought in the third quarter, restrained by weak business investment and a slightly more aggressive liquidation of inventories, according to the latest data. (Reuters)

It should come as no surprise that fewer troubled borrowers will redefault if their loan payments are lowered in a mortgage modification. Now, there’s federal data that shows this is true. (CNN/Money)

2009 was a year of payback for having lived beyond our means — from Wall Street bankers who devoured risk they couldn’t manage to ordinary Americans living in homes they couldn’t afford with mortgages they didn’t understand. (Bloomberg BusinessWeek)

A closely watched bond-market measure of investor optimism hit a record Monday, amid signs the U.S. economy’s recovery is strengthening. (Wall Street Journal)

Ford Motor Co. said on Monday it is offering its 41,000 U.S. factory workers buyouts and early retirement offers in a bid to reduce its payroll costs as it aims to return to profit by 2011.  (Reuters)

Companies like Citigroup, Wells Fargo and Bank of America are returning their federal bailout money and raising new capital to replace it. And that means big fees for all the banks that will hawk these new shares for themselves and their rivals. (New York Times)

High unemployment is spreading in New York City beyond the poorest neighborhoods to once-secure middle-class enclaves, where some residents are falling behind on rent and mortgage payments. (Wall Street Journal)

If you come across a good article or blog post about the recession pass it on. To receive Recession Briefing in your inbox, subscribe to our daily email.

Tags: banks, economy, News, politics, The Unemployed Life, Wall Street