European Central Bank (ECB) chief Jean-Claude Trichet has urged the government of Greece to follow Ireland's example of taking tough decisions to bring its budget deficit down. Forecasts suggest both countries will run deficits close to 12 percent of GDP this year, the highest amongst euro area members. The figures compare poorly to an EU average forecast of 6.9 percent. The Irish government has won praise in financial quarters however by taking a number of drastic steps to tackle the problem, including an emergency budget in April that doubled income tax surcharges and slashed spending.
Forecasts suggest both countries will run deficits close to 12 percent of GDP this year, the highest amongst euro area members. The figures compare poorly to an EU average forecast of 6.9 percent.
The Irish government has won praise in financial quarters however by taking a number of drastic steps to tackle the problem, including an emergency budget in April that doubled income tax surcharges and slashed spending.
As the U.S. economy pulls out of a recession and the biggest banks return to profitability, mounting defaults on commercial property may keep regional lenders from repaying bailout funds until at least 2011. Unpaid loans on malls, hotels, apartments and home developments stood at a 16-year high of 3.4 percent in the third quarter and may reach 5.3 percent in two years, according to Real Estate Econometrics LLC, a property research firm in New York. That's a bigger threat to regional banks, which are almost four times more concentrated in commercial property loans than the nation's biggest lenders, according to data compiled by Bloomberg on bailout recipients. The concentration makes regulators less likely to let regional lenders like Synovus Financial Corp. and Zions Bancorporation leave the Troubled Asset Relief Program, analysts said. Smaller banks would remain stuck in TARP, while bigger lenders, including Bank of America Corp., repay the government and free themselves to set their own policies on executive pay.
Unpaid loans on malls, hotels, apartments and home developments stood at a 16-year high of 3.4 percent in the third quarter and may reach 5.3 percent in two years, according to Real Estate Econometrics LLC, a property research firm in New York. That's a bigger threat to regional banks, which are almost four times more concentrated in commercial property loans than the nation's biggest lenders, according to data compiled by Bloomberg on bailout recipients.
The concentration makes regulators less likely to let regional lenders like Synovus Financial Corp. and Zions Bancorporation leave the Troubled Asset Relief Program, analysts said. Smaller banks would remain stuck in TARP, while bigger lenders, including Bank of America Corp., repay the government and free themselves to set their own policies on executive pay.
Would've hit even if they'd pay workers better these days.
Though there's an argument (which I like) that the bubble wouldn't have been as big in the first place if there hadn't been as much capital slushing around relative to median incomes.
Unfortunately that would have benn incompatible with the fervent US worship of social Darwinism, which believes in the inalienable right of the banking industry to impoverish people, and then punish them for being poor.
... but in reality they face far greater challenges ...
I'm curious about the "they". Do you mean the power elite or the average citizens? In the end, might makes right. Nothing has changed since the caveman.
The Obama administration, buoyed by a resurgent Wall Street, plans to cut the projected long-term cost of the Troubled Asset Relief Program by more than $200 billion, in a move that could smooth the way for the introduction of a new jobs program. <...> The Treasury now estimates that over the next 10 years TARP will cost $141 billion at most, down from the $341 billion the White House projected in August. The reduction stems in large part from faster-than-expected repayments by some of the nation's largest banks, as well as less spending on programs to help shore up the financial sector. <...> President Barack Obama is expected to raise the idea of using repaid TARP funds for a jobs bill in a speech he plans to give on Tuesday. On Friday, White House press secretary Robert Gibbs acknowledged that repaid bailout money is "certainly being looked at" for a jobs bill. Many Republicans are opposed to recycling TARP funds for a jobs bill, calling instead for the money to go toward reducing the deficit. House Minority Leader John A. Boehner (R., Ohio), on Bloomberg television Friday, called it "the worst idea" he had ever heard.
The Obama administration, buoyed by a resurgent Wall Street, plans to cut the projected long-term cost of the Troubled Asset Relief Program by more than $200 billion, in a move that could smooth the way for the introduction of a new jobs program.
<...>
The Treasury now estimates that over the next 10 years TARP will cost $141 billion at most, down from the $341 billion the White House projected in August. The reduction stems in large part from faster-than-expected repayments by some of the nation's largest banks, as well as less spending on programs to help shore up the financial sector.
President Barack Obama is expected to raise the idea of using repaid TARP funds for a jobs bill in a speech he plans to give on Tuesday. On Friday, White House press secretary Robert Gibbs acknowledged that repaid bailout money is "certainly being looked at" for a jobs bill.
Many Republicans are opposed to recycling TARP funds for a jobs bill, calling instead for the money to go toward reducing the deficit. House Minority Leader John A. Boehner (R., Ohio), on Bloomberg television Friday, called it "the worst idea" he had ever heard.
Although the US economy is improving, it is too early to say that the recovery will last, Federal Reserve chairman Ben Bernanke has said.Unemployment could stay "elevated", although inflation is likely to remain "subdued", he said in a speech to the Economic Club of Washington. Interest rates were likely to stay low for "an extended period", he added. Following Mr Bernanke's comments, the dollar lost recent gains it had made against the euro. The euro rose by more than one cent to $1.4883 after Mr Bernanke's remarks, before falling back to $1.4821.
Although the US economy is improving, it is too early to say that the recovery will last, Federal Reserve chairman Ben Bernanke has said.
Unemployment could stay "elevated", although inflation is likely to remain "subdued", he said in a speech to the Economic Club of Washington.
Interest rates were likely to stay low for "an extended period", he added.
Following Mr Bernanke's comments, the dollar lost recent gains it had made against the euro.
The euro rose by more than one cent to $1.4883 after Mr Bernanke's remarks, before falling back to $1.4821.
Forget the supercars and green machines. At this year's Los Angeles Auto Show, the emphasis is on affordable small cars and minivans. The auto industry, trying to climb out of its worst sales slump in decades, wants the spotlight on vehicles it can sell -- now. Last month's tepid U.S. car sales only underscored the industry's need to focus on getting consumers to buy cars, instead of trying to impress the auto critics. So the big global debut at this year's L.A. show, which begins Friday and runs through Dec. 13 at the Los Angeles Convention Center, is a redesigned Toyota minivan. And much of the pre-show buzz has surrounded mass-market economy cars such as the Ford Fiesta and the Chevrolet Cruze. "It's a very straightforward way of doing things," said Dave Thomas, senior editor at auto website Cars.com. "A Toyota Sienna minivan? That's not the type of thing you would normally debut at the L.A. Auto Show. It's certainly not a sexy car, but it's a big deal for Toyota."
Last month's tepid U.S. car sales only underscored the industry's need to focus on getting consumers to buy cars, instead of trying to impress the auto critics. So the big global debut at this year's L.A. show, which begins Friday and runs through Dec. 13 at the Los Angeles Convention Center, is a redesigned Toyota minivan. And much of the pre-show buzz has surrounded mass-market economy cars such as the Ford Fiesta and the Chevrolet Cruze.
"It's a very straightforward way of doing things," said Dave Thomas, senior editor at auto website Cars.com. "A Toyota Sienna minivan? That's not the type of thing you would normally debut at the L.A. Auto Show. It's certainly not a sexy car, but it's a big deal for Toyota."
