October 7

What you need to know about today’s economic debate.”

Day 3: Too Soon to Rethink? Assessing the Financial Crisis. (DealBook)
It’s day 3 of DealBook’s online round table, in which 13 participants, led by the Deal Professor, will debate how we arrived at the financial crisis — and where we should go from there.

A New Deal for Recovery (WP)
Break the cycle of high unemployment and income stagnation with public investment.

Bleeding Holders of Debit Cards Dry (NYT)
A nonpartisan research group confirms that the banks have grown addicted to the easy billions they reap from new overdraft fees on debit card holders.

Paralysis in the Debt Markets Is Deepening the Credit Drought (NYT)
The continued disarray in debt-securitization markets is making loans scarce and threatening to slow the economic recovery.

Support Builds for Tax Credit to Help Hiring (NYT)
The idea of a tax credit for companies that create new jobs, which the federal government has not tried since the 1970s, is gaining support among economists and Washington officials.

Prospects for a Small Business-Fueled Employment Recovery (FedMacro)
Financial constraints are a major contributor to the disproportionately large employment contractions for very small firms.

Finding a Route to Recovery and Reform Gets Tough Now (FT)
Rebalancing, reform and regulation are still needed, none of which will be easy during a recovery, writes Martin Wolf.

For Gun-Shy Consumers, Debit Is Replacing Credit (WP)
Worry about jobs, fear of fluctuating interest rates on credit cards and wariness about spending too much are making consumers pay more with their debit cards.

Retail and the Rise of the Frugal Consumer (WSJ)
A tally of outstanding borrowing, ranging from credit cards to auto loans, shows consumer credit contracted for six straight months through July, when it slid a record $21.6 billion to $2.47 trillion.

Fed Frets About Commercial Real Estate (WSJ)
Banks in the U.S. “are slow” to take losses on their commercial real-estate loans being battered by slumping property values and rental payments.

The Myth of the Man-cession(Reuters)
Christopher Swann finds the gender effect has been overstated.

Dollar’s Slide Gives Rise to Calls for New Reserve (WP)
The U.S. dollar continued its six-month slide amid a growing international chorus that wants the dollar replaced — or at least supplemented — as the world’s reserve currency.

E.C.B. Balances Support for Recovery With Demands of Its Master: Inflation (NYT)
The Fed has said it will keep rates low for “an extended period” to support the shaky U.S. economy, which is still shedding jobs fast, but the Fed’s counterpart in Frankfurt is signaling it may be willing to swallow a lower growth rate if the alternative is higher inflation.

ING to Sell Swiss Unit to Repay Bailout Funds (NYT)
ING Groep said Wednesday that it had agreed to sell its Swiss private banking unit to disposes of assets after receiving a 10 billion euro government bailout a year ago.