News
CNN Money | Spanish borrowing costs soar: 10-year hits 7%
Spain just can't catch a break. The yield on the 10-year bond topped 7% early Thursday, just one day after Spain's credit rating was slashed by Moody's.
Market Watch | U.S. Q1 current account gap widens to $137.3 bln
The U.S. current account deficit widened to $137.3 billion in the first quarter, or 3.6% of gross domestic product, from $118.7 billion in the fourth quarter, the Commerce Department reported Thursday.
WSJ | Moody's Cuts Spain to Brink of 'Junk' Territory
Moody's Investors Service downgraded its rating on Spain to the brink of junk territory and placed its ratings on review for possible further downgrade, and it also put Cyprus two notches deeper into "junk" territory, as the latest flare-up in Europe's sovereign-debt problems continue to worsen.
FOX News | May sees pickup in homes facing foreclosure risk
Lenders initiated foreclosure proceedings against more U.S. homeowners in May, setting the stage for increases in home repossessions and short sales — scenarios that could further weigh down home values in coming months.
CNN Money | Foreclosures spike 9% in May
Foreclosure filings in May spiked 9% compared with a month earlier, according to an industry group.
Market Watch | Deutsche Bank cuts China's 2012 growth outlook
Deutsche Bank said Thursday it was lowering its forecast for China's 2012 economic growth to 7.9% from its earlier view of 8.2%, citing weakness in second-quarter activity and a slowing U.S. economy.
Econ Comments & Analysis
Politico | We can do better on economy
We are living through the weakest economic recovery since the Great Depression. More than 20 million Americans cannot find work, have given up searching or have been forced to accept part-time jobs. We must do better.
WSJ | Italy's Reform Stall
If last weekend's bailout of Spain was supposed to reduce the risk of euro-contagion ahead of Sunday's elections in Greece, it hasn't had the desired effect. Yields on Spanish government debt have since hit a high of 6.78% on 10-year bonds.
The American | What Our Grandkids Actually Want
The question is not ‘how will our grandkids pay back all the debt?’ Rather, it is ‘How can we grow the economy such that paying the interest will be at least as easy for our grandkids as it has been for us?’
WSJ | Whose Fault Is Today's Bad Economy?
Claiming that the U.S. economy has slowed during the past couple of years because it was in poor shape when a new president took office in January 2009 makes no more sense than Smith's explanation of his disastrous sixth inning. Just as poor pitching by Smith doomed the home team, ineffective and counterproductive policies of the past three years have put us back on the brink of recession.
Real Clear Markets | Highway Construction As Stimulus? Not So Fast
President Obama is sending strong signals that he wants more stimulus spending to keep the American economy out of recession, even if the White House is not saying it explicitly.
Washington Times | Your money is safe and sound
Nothing - absolutely nothing - is more important to Americans’ financial security than knowing that their savings and investments are safe and protected. Yet to believe the naysayers in Washington, the latest financial headlines again stir doubts about the safety and soundness of our financial institutions.
Forbes | The Economic Insanity Underlying President Obama's "Private Sector Is Fine" Gaffe
President Obama committed a major gaffe during his press conference on June 8. However, the gaffe was not his statement that, “The private sector is doing fine.”
Blogs
Economist | Roiled
It was a "turbulent year" for global oil markets according to BP's Statistical Review of World Energy, published on June 13th. Libya's civil war and the Arab spring played a part in crimping supplies and prices rose by 40%.
WSJ | Consumers Are Facing Stronger Headwinds
Consumer headwinds are strengthening. Hiring is sluggish, incomes are barely keeping pace with inflation, future tax policy is uncertain. No wonder shoppers are taking a breather.
Coordination Problems | Lin's Last Word --- One Size Fits All Public Policy Would Be A Grave Mistake
Elinor Ostrom had a contribution planned for Project Syndicate that was published yesterday -- "Green from the Grassroots". Many will focus on the first word in the title, I would argue that the lasting message of her work is to be found in the last word in the title.
WSJ | Weak Retail Sales Trigger Downgrades to GDP Forecasts
May’s retail sales report showed that American consumers pulled back for the second straight month. The figures are the latest sign that the recovery remains tepid, and many economists reacted by trimming their second-quarter growth forecasts.
