US Economy Isn't Bouncing Back

Downsizing on the rise, whether consumers notice it or not

(NEWSER) - Food prices are rising, but thanks to some chicanery on product labels, many Americans may not realize it. Instead of raising prices, manufacturers are slimming cereal boxes, juice cartons, and bars of soap, and they’re doing it very quietly. If asked, they’ll say it offsets rising fuel and commodity costs, but most keep quiet and hope consumers don’t notice. Time goes shopping. More»

Firm seeks to calm fears of another Bear Stearns disaster

(NEWSER) - Lehman Brothers is selling $3 billion in new shares to allay fears after its stock dropped 42% this year, Bloomberg reports. "We still maintain that we don't need capital, but we've realized that perception is the dominant issue in today's markets,'' said CFO Erin Callan. Lehman fell up to 48% this month on rumors that it lacked cash and faced a Bear Stearns-style meltdown. More»

Lack of increase means Fed has an open door to a big rate cute next week

(NEWSER) - Consumer prices were flat for February, pleasantly surprising economists who expected a 0.2% increase, reports the Wall Street Journal. This morning’s consumer price index eases concerns that inflation is accelerating as the economy slows, and it gives the Federal Reserve more reason to float a large interest rate cut next week. A drop in energy prices was credited with the inflation relief, likely to be short-lived as this month's record oil and gas prices are factored into the next reports. More»

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»