News
WSJ | Inspectors Reject Some Cuts by Greece
Visiting international inspectors on Sunday rejected parts of Greece's proposed austerity plan, forcing the country's coalition government to seek fresh spending cuts to meet creditors' demands.
FOX Business | Selling $18B of AIG Shares, U.S. Stake to Fall Below 50%
The milestone is impressive considering the U.S. owned as much as 92% of AIG following a very unpopular government rescue worth up to $182.3 billion that was aimed at preventing a collapse of the financial markets.
WSJ | Portugal Adds New Austerity Measures
Prime Minister Pedro Passos Coelho said he would cut public employees' salaries, requires that all workers to pay more for social security, and raise taxes on the rich—the latest belt-tightening steps aimed at meeting Portugal's obligations under an international bailout program.
Econ Comments & Analysis
WSJ | The True History of Simpson-Bowles
One of the many ways Paul Ryan scandalized the media-political class in his Tampa convention speech was to criticize President Obama for walking away from the report of his own 2010 deficit commission co-chaired by Democrat Erskine Bowles and Republican Alan Simpson.
NY Times | Cutting the Deficit, With Compassion
Aside from the empty chair that Clint Eastwood debated, the main prop at the Republican convention was a debt clock, highlighting the federal deficit and the growing national debt. The importance of dealing with the deficit will clearly be a major Republican theme this fall.
Blogs
Neighborhood Effects | Fort Lauderdale issues a Pension Obligation Bond and adds to its debts
To fully fund its city pensions the City Council of Fort Lauderdale has voted to issue a $340 million pension bond. One problem with this plan is the city’s pension plans are underfunded to a far larger extent than the accounting recognizes.
