July 3
Friday, 07/3/2009 - 8:50 am by Jason Selfe | Post a Comment
What you need to know to navigate today’s economic debates.
US bank Buy-Outs Get Tougher (FT)
To buy troubled banks, private equity must maintain significant capital levels and promise not to “flip” investments for at least three years under proposals by US regulators.
S.E.C. May Reinstate Rules for Short-Selling Stocks (NYT)
The controversial role of short-sellershas divided not only the financial industry, but also federal regulators.
Treasury’s Distressed Debt Plan Said to Begin With $20 Billion (BLM)
The program to spur purchases of mortgage-backed securities from banks with about $20 billion in public and private money, down from as much as $100 billion.
Treasury’s View of PPIP, an Update (Stash)
Noam Scheiber follows up with updates on the financial industry’s reaction to PIPP.
Joblessness Hits 9.5%, Deflating Recovery Hopes (NYT)
American economy lost 467,000 more jobs in June, challenging visions of a recovery already taking root.
Stagnant Pay Saps Consumers’ Ability to Spur Recovery (WSJ)
Average hourly earnings rose just three cents between April and June to $18.53, the smallest quarterly gain since at least 1964.
That ’30s Show (NYT)
In light of new unemployment data, Economist Paul Krugman argues a new stimulus is necessary.
Major Nations Should Back Dollar as Key Currency: Japan (Reuters)
The dollar should remain the key international currency, although emerging nations may discuss on the sidelines of the G8 summit a new global reserve currency.
California sends out IOUs (LAT)
Nearly $5 billion in vouchers could be issued through August. Some banks will take them until July 10.
An Emerging Split That Matters: Treasury vs. the National Economic Council (Economix)
Simon Johnson points to three areas of potential conflict between Lawrence Summers and Timothy Geithner.
