Bank of England Cuts Interest Rate

'Policy-makers are in denial'

(NEWSER) - You know that recovery officials promise is underway? It's not happening, scoffs Paul Krugman, and he blames federal officials' reluctance to take responsibility. "This isn’t a recovery, in any sense that matters. And policy-makers should be doing everything they can to change that fact," he writes in the New York Times . The GDP is rising, but not nearly fast enough to bring down "sky high unemployment," he warns. "All of this is obvious. Yet policy-makers are in denial. Tim Geithner says, 'We're on the road to recovery.' No, we aren't." More»

For those who can't remember 1981, rates are headed up

(NEWSER) - There's a generation of consumers out there that can't fathom 8% interest, much less 1981's peak of 18.2%, but the days of free or cheap money are coming to a rapid close. With national debt ballooning, inflation looming, and government props that suppressed interest rates ending, the cost of credit is headed for a long upward climb, reports the New York Times . More»

Beware the 'tight-money people' who fear short-term spending

(NEWSER) - Paul Krugman assesses the economic mess in Greece and sees "no good answers" for them but an important lesson for America. Namely, "steer clear of deflation," a horrible process that Greece must now endure because it's stuck with the euro. We don't have that problem, so let's "stop all this "grandstanding and penny-pinching over short-term spending to help a distressed economy," he writes at the New York Times . More»

Figures spark renewed fears that feds are at a loss

(NEWSER) - The US bank lending rate has fallen its fastest in history, sparking renewed fears that the government hasn't done enough to prop up the economy and that America's troubles are far from over. Lending has plummeted $100 billion just since January, which amounts to a 16% annualized drop. Some $740 billion of bank credit has evaporated since the credit crisis began, a record drop of 10%, reports the Telegraph . More»

Don't make the same mistakes as Nicolas Cage and Annie Leibovitz

(NEWSER) - Celebrities really are just like us: During these financially stressful times, they’re suffering, too. On Huffington Post, Manisha Thakor points out the takeaway from four high-profile meltdowns.

• NBA Player Antoine Walker: Squandered away his $110 million fortune by age 33. The lesson? If you have a variable income, don’t spend based on peak earnings—spend based on average earnings.