Liberian Prez's Plea: Don't Let Global Crisis Kill African Gains

Johnson Sirleaf, Gbowee, Karman to share prize

(NEWSER) - This year's Nobel Peace Prize has been awarded to three women the Nobel committee wants to reward for "their non-violent struggle for the safety of women and for women’s rights to full participation in peace-building work." The prize will be shared between Liberian leader Ellen Johnson Sirleaf, who is Africa's first democratically elected female president; Liberian peace activist Leymah Gbowee; and Yemeni human rights activist Tawakul Karman. More»

With no consumer spending, economy keeps dragging

(NEWSER) - There are plenty of theories and explanations for the economic crisis that has afflicted the United States for years now, but they all miss the element of the continuing malaise—it's really about the bursting of the decades-long consumer spending bubble, writes David Leonhardt in the New York Times . "Discretionary service spending" (think education and entertainment) has never fallen more than 3% in a recession in decades—in this recession, it has fallen 7%. "If you’re looking for one overarching explanation for the still-terrible job market, it is this great consumer bust," says Leonhardt. 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»

Even household names like Sara Lee unlikely to survive

(NEWSER) - The economic crisis can be blamed for the death of quite a few large companies already—think Circuit City, Northwest Airlines, and Countrywide—so which ones can we expect to go bye-bye this year? Here are 10 American companies that seem unlikely to survive, from 24/7 Wall St. via Daily Finance :

• Office Depot: It can’t compete with Office Max or Staples, and is trying to manage 1,150 costly locations on very thin margins. A takeover by a rival or another chain like Target appears likely.
• Frontier Airlines: It was bankrupt when Republic Airways Holdings bought it in 2009, and is too small to compete with the larger airlines that are increasingly dominating the domestic carrier market.

Self-dealing artificially propped up market for CDOs

(NEWSER) - An extensive ProPublica investigation reveals what it calls “one of the greatest episodes of self-dealing in financial history.” Banks, most notably Merrill Lynch, set the stage for the economic meltdown by rewarding themselves for said “self-dealing” during the final two years of the housing bubble. They created “daisy chains” of collateralized debt obligations or CDOs—securities backed by mortgages that became increasingly difficult to sell. The result? Banks created fake demand by buying the CDOs themselves, thus ensuring their generous bonuses would be preserved. More»