Dumbest Gaffes on the Economy

Economists, builders, mortgage analysts fear 'lost decade'

(NEWSER) - Even more bad economic news from a report released today: Housing prices will remain depressed for years, dropping by an expected 2.5% this year and rising only 1.1% each year through 2015, according to the survey of more than 100 economists. Since the 2005 peak, housing prices have dropped 31.6%, so if this forecast plays out, prices will recover little of what has been lost—leading to what the Wall Street Journal calls a “lost decade.” In order to get the housing market back on its feet, the economy needs to add jobs, but that’s a difficult prospect when the economy, in turn, needs a job boost housing would typically provide. More»

Increasingly, 20somethings wait for their 'real' career

(NEWSER) - Stephanie Kelly graduated in 2009 with a degree in advertising; instead she works as a part-time secretary and writes freelance for an online “Secret Santa Organizer.” Amy Klein has a degree in English lit from Harvard, but the 2007 grad has been touring the country in a minivan as part of a punk rock band. Stephanie Morales graduated from Dartmouth and ended up waiting tables for $2.17 per hour. They’re part of the group of highly-educated 20-somethings with dead-end jobs that the New York Times calls “Generation Limbo,” and not all of them are unhappy with where they are in life: “I can cook and write at my own pace,” says Kelly. “I’m fulfilling my artistic goals,” says Klein. More»

No, although a couple were charged and some were embarrassed

(NEWSER) - The government could soon prosecute a few Wall Streeters who allegedly played a role in the financial crisis, and the commission that uncovered those at fault was modeled on a similar probe after the Great Depression. So did anyone who precipitated that collapse ever go to jail? Nope, writes Brian Palmer in Slate ’s Explainer column: “The rampant speculation and eventual crash of 1929 weren't caused by fraud or illegality, but by unreasonable optimism and loose financial regulation.” More»

Uncertainty is the 'new normal' in America

(NEWSER) - For many Americans, "recovery" feels a lot like recession—and it may take a decade for that to change, finds the New York Times . At the current rate of job creation, for instance, it would take nine years to recapture jobs lost thus far. Home prices, meanwhile, are down 20% since 2005; even assuming 2% inflation, it would take 13 years for the market to reach pre-crisis levels. Everywhere, offices sit empty. More»

Blame our culture of entitlement, victimhood, and greed

(NEWSER) - These days, America seems defined by a near-ubiquitous “simmering resentment, frustration, and anger,” writes Charles Hugh Smith on his Of Two Minds blog. Why is that? Smith blames:

• A culture of entitlement: From Social Security recipients to Wall Street welfare queens, “most of us have to elbow our way to the crowded public trough” for government cash.
• A culture of victimhood: We reward victimhood, and punish thrift and carrying one’s own load. And so we all feel inclined to get our claim on victimhood.