News

Recession Briefing: Outlook Bleak for Long-Term Unemployed

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

Economists fear that the nascent recovery will leave more people behind than in past recessions, failing to create jobs in sufficient numbers to absorb the record-setting ranks of the long-term unemployed. (New York Times)

Bernard Madoff’s top lieutenant may get “extraordinary” leniency from prosecutors for his help in unraveling the largest Ponzi scheme on record. In a letter released on Friday, federal prosecutors in New York praised the efforts of Madoff associate Frank DiPascali in providing “substantial assistance to the government in its investigation and prosecution of others.” (Reuters)

Both domestic mobility and immigration were sharply down in 2007 to 2009 from the levels recorded during most of the decade. (The American)

While economists say the Great Recession has ended and numbers out of Washington say the economy is growing at a robust pace, there are currently 20 people vying for every open job in New York. (New York Post)

Charles Munger offers a parable about how one nation came to financial ruin. (Slate)

New ad campaigns are trying evoke elements of the dire days of the Depression to signal to consumers an understanding of what they are going through today – as well as to reassure them that current difficulties, like the Depression, will be history someday. (New York Times)

As the jobless rate hit 26-year highs and fewer people headed to work, fast food breakfast sales have declined. “Typically, if you’re unemployed, you’re not getting up at six and not going through the drive-thru,” said Jeffrey Bernstein, an analyst at Barclays Capital. “There is a direct correlation between unemployment and breakfast sales.” (Washington Post)

Economists expect the recovery to remain “firmly on track” over the next two years though job growth is likely to remain slow, according to a survey. The latest outlook from The National Association for Business Economics, released Monday, sees regular job gains resuming this quarter but no drop in unemployment below 9% for another year. (USA Today)

Big changes are here for the credit card industry. The CARD act goes into effect today and consumers finally get some relief from such practices as “double-cycle billing” and arbitrary rate increases. (CNN/Money)

Timothy Geithner’s role in calming the financial crisis landed him the coveted job of Treasury secretary last year. That same resume is now dogging him. His dilemma: The bank rescues he helped engineer averted economic collapse. Yet to some lawmakers, Mr. Geithner looks weak. (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: eating, jobs, Madoff, personal finance, recession, recovery, The Unemployed Life