US Risks 'Lost Decade' With Zombie Banks

Small savers are suffering, but giving financiers a free ride

(NEWSER) - America's financiers have driven the country into crisis with stunning recklessness, James Grant writes in the Wall Street Journal, but public anger seems strangely dormant. Populist politicians railed against Wall Street during past financial crises, Grant notes, but today's politicians appear largely uninterested in taking aim at the easy target. More»

Government urges return to traditional foods, for thrift and nutrition

(NEWSER) - Russia enjoyed the recent boom as much as any other country, as high gas prices funded quick economic expansion and citizens took a liking to Western foods such as burgers, pizza, and potato chips, Time reports. But with commodities cheap, credit crunched, and unemployment rising, Moscow is recommending a new diet, heavy on traditional Russian foods, to boost nutrition and save money. More»

Instead of predicting financial crisis, they hid it

(NEWSER) - The men who should have been warning us about the impending financial crisis were a wee bit off the mark at times. MSNBC rounds up some of the dumbest things said:

• "Subprime market problems seem likely to be contained."—Ben Bernanke, March 28, 2007
• "The fundamentals of our economy are strong."—John McCain, Sept. 15

(NEWSER) - James Rickards is far more pessimistic about the economic crisis and its global implications than most of his analyst colleagues, Politico reports. But he’s also well respected by US intelligence and defense services. Here are four of his nightmare scenarios.

• Terrorism: Al-Qaeda has long sought to disrupt the US economy; the current crisis would give any attack a "force multiplier effect"

Seeking to loosen credit, central banks plan another round of cuts

(NEWSER) - Central banks worldwide are slashing interest rates, attempting to stem the bleeding in financial markets as investors dump holdings, credit remains tight, and currencies spasm in value, the Washington Post reports. The Federal Reserve is set to cut rates for the second time in as many weeks tomorrow, while the EU plans to do the same next week. South Korea cut three-fourths of a point yesterday. More»