G-20 Vows to Spur Lending

Slumping profits are 'payback' from Main Street whipped by bad practices

(NEWSER) - Those concerned about the nation’s banks should forget about the “softly, softly policy” of the Obama administration that has allowed Goldman Sachs to go back to business as usual in spectacular fashion. The real problem, Paul Krugman writes, is banks like Citi and Bank of America that are still floundering despite taxpayer largess. And the calculus remains the same: “Heads they win, tails the rest of us lose.” More»

(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"

(NEWSER) - Though it's no secret the country is weathering a financial calamity, the crisis still lacks a catchy handle. The New York Times takes a look at news organizations' so-far unsuccessful efforts to find one: Some obvious contenders such as “credit crunch” and “Wall Street crisis” have popped up, but none have truly crystallized the trouble. "Great Recession" seems to be gaining steam, but only time will tell. More»

(NEWSER) - The global economic crisis is raising the threat to national security, the Washington Post reports. Experts and intelligence officials worry that mounting inflation and unemployment in Third World countries could spark radical movements and destabilize friendly governments. What’s more, strained budgets in the West mean less money to spend on the military and technology to counter the new threat. More»

'Worst is yet to come' for US economy, economist warns

(NEWSER) - The credit-market slump could take a further toll on the largest US banks, a former chief economist of the International Monetary Fund tells Bloomberg. Claiming “the worst is yet to come,” Kenneth Rogoff says the financial sector “needs to shrink” before the economy will recover, and that institutions must be allowed to collapse as a matter of integrity. More»