US Economy Isn't Bouncing Back

And the future is looking bleak, say economists

(NEWSER) - Layoffs have climbed to their highest level in nearly a year—1.78 million workers were handed pink slips in May, the most since August 2010—increasing ever-present fears about the US economy. The Wall Street Journal highlights the latest casualties: Cisco Systems plans to slash 6,500 jobs; Lockheed Martin this week made a voluntary lay-off offer to 6,500; Goldman Sachs is getting rid of 1,000 jobs; even Cracker Barrel cut 60 employees. More»

(NEWSER) - Pawn shops are turning from the shady realm of the lower class to a place for rich people to get loans, the Wall Street Journal reports. The typical household income of a pawn shop customer is $29,000, but new middle- and upper-class clients are surging. One such client pawned a $9,000 fur coat to buy private-school uniforms. Some pawn shop owners are reporting 30%-40% increases in transactions. More»

Public should expect some reward for taking on Wall Street's bad debt

(NEWSER) - The impending bailout of beleaguered Wall Street behemoths should give the taxpaying public some protection and accountability, writes EJ Dionne Jr. in the Washington Post. The deal should allow the government to claim a stake in financial firms that make money from the bailout, giving taxpayers the chance to reap some rewards in exchange for taking such a large risk. More»

Lawmakers seek pay caps, homeowner help, as doubts mount

(NEWSER) - Congress and the Bush administration are edging closer to an agreement on a bailout for financial firms—but several major sticking points remain, the New York Times reports. Progress has been made on oversight for the $700-billion fund, but lawmakers are pushing for taxpayers to get an equity stake in firms they bail out, and the White House wants flexibility. Some are demanding a cap on the pay of top executives whose firms are rescued. More»

Studios scale back films, lose capital

(NEWSER) - When Steven Spielberg is feeling a budget pinch, you know the financial crisis is bad. His hunt for financing on a new studio deal gets tougher with each day of bad news from Wall Street, Time reports. With credit as tough to come by in Hollywood as everywhere else, many studios are “making a conscious decision to slow it down,” one exec says. More»