Stories related to: economy

Hundreds of thousands of legal, taxpaying immigrants and their Americans spouses are among the unhappy few who won’t be getting a tax rebate check, AP reports. Taxpayers need a Social Security number to qualify—a rule intended to carve out illegal immigrants. Also inadvertently cut from the benefit are legal residents and American citizens—including US soldiers—who filed jointly with a spouse without a Social Security number, which can take years to obtain. More »

Even Toyota—with its array of popular gas-sipping vehicles—is struggling in a slumping global economy, according to the latest figures. The world’s No. 2 automaker today reported that earnings for the last quarter fell 28% to $3.05 billion from $4.2 billion a year ago, reports the AP. "We are facing a severe business environment," said Toyota's president. More »

Stocks zoomed downward today as oil topped $123 a barrel, hastening a sell-off by anxious investors. "You can still get a lot of nervousness when they see these daily moves in crude, along with follow-through in the stock market," an analyst tells the Wall Street Journal . The Dow ended down 206.48 to 12,814.35, the Nasdaq 44.82 to 2,438.49, and the S&P 25.69 to 1,392.57. More »

Barack Obama appears to be recovering—mostly—from the furor over his former pastor's incendiary remarks, according to the latest CBS News / New York Times poll. His lead over Hillary Clinton has increased from 8 points to 12 points—50% to 38%—among Democratic primary voters, who also approve of how he handled the flap over comments by Rev. Jeremiah Wright, 68% to 22%. There's still some negative residue, however. More »

Despite economic gloom spreading along Main Street, things on Wall Street are perking up, the New York Times reports—enough that analysts see a glimmer of hope for a turnaround beginning this year. The stock market rebounded almost 11% in recent weeks, junk bonds and other risky securities are rallying. More »

Like many 10-year-olds, the euro has had its ups and downs, but its current ascendancy is worrying, and not just to fans of the weakening dollar; some European states are chafing at the strength of their common currency, the New York Times reports. The German economic engine is causing high prices and ballooning debt in countries such as Greece, Italy, Spain, and Portugal. More »

The US Gross Domestic Product rose at a 0.6% annual pace in the first quarter, despite the widespread belief that the economy is in recession, Bloomberg reports. The number stayed positive thanks to a surge in inventories, which offset flagging consumer spending and business investment. “We think we're in recession, but I don't know that the GDP numbers are going to turn negative at all in 2008,” said one economist. More »

The first tax rebates designed to kick-start the economy should begin arriving in bank accounts today. The Treasury Department has begun sending electronic rebates to nearly 8 million people by the end of this week, and some 130 million checks will go out via snail mail in May. President Bush hopes taxpayers will spend the cash—up to $600 for individuals, $1,200 for couples—but economists say many will save it or pay off debts. More »

Wary investors appear to be returning to Wall Street, the Journal reports, buying back into higher-risk debt issues from the likes of troubled Citigroup and Merrill Lynch. “Risk taking has come back in the market,” said one expert. More »

The slumping economy will pummel state budgets in the next fiscal year, leaving them at least $26 billion short, according to a survey from the National Conference of State Legislatures. Payrolls fell drastically in March and consumer confidence is low, a double whammy for state tax revenue. "With a few exceptions, state finances are deteriorating, in some cases considerably,” the survey said. More »

Consumer confidence fell to a 26-year low in April, as the public fretted over inflation and housing, Reuters reports. The index fell to 62.6, surpassing the 63.2 analysts had predicted. Nearly 90% said the economy is in recession. Respondents also said they were unlikely to spend their stimulus or tax-rebate checks, planning instead to save them or pay down debt. More »

Only 28% of Americans approve of George W. Bush’s handling of the presidency, a new low for his administration, USA Today reports. In addition, his disapproval rate—69%—is the lowest in the 70-year history of the Gallup poll. Dissatisfaction over war in Iraq and the soured economy continue to pummel Dubya, whose 90% post-9/11 approval rating also set a record. More »

Prices on existing homes fell in March, but buyers stayed away, either unable to get loans, or betting on yet bigger drops, Bloomberg reports. Sales dropped 2%, to an annual rate of 4.93 million, as the median price fell to $200,700 from $217,400 last year. The number of available homes meanwhile swelled by 40,000, exacerbating supply problems. More »

Venture capitalists’ investments declined 5% in the first quarter to $7.1 billion, compared with $7.5 billion this time last year, suggesting entrepreneurial concerns over startups in a troubled economy, the AP reports. The change marks the first year-to-year dip since late 2005. Still, the figure was the fifth-largest for a single quarter since 2001. More »

Bellwether IBM posted a 26% spike in profits for the first quarter, proving that some tech companies are escaping the fallout from the economic downturn. The gains include a 6% increase in American revenue to $9.9 billion and are attributed to corporate customers buying products and services designed to improve productivity or cut costs, reports the Wall Street Journal. More »

John McCain is tied with Barack Obama and has a 5-point edge over Hillary Clinton in a Reuters poll out today—an improvement for the Democrats. On economic stewardship, the Republican had a 3-point margin over Obama and a 5-point margin over Clinton. The pollster said the Dems continue hurting each other, “and McCain is getting a free pass.” More »

Stores across the country are closing their doors, the New York Times reports, victims of a downturn in consumer spending. Retailers are often heavily leveraged, and as the economy falters banks are tightening credit. Several chains, including Sharper Image, have declared bankruptcy; others like Footlocker, Ann Taylor, and Zales are closing stores to stay afloat. “You have the makings of a wave of significant bankruptcies,” said a former Kmart executive. More »

Bank repossessions skyrocketed 129% over the 12-month period ending in March, and foreclosure filings rose 57% over the previous year, RealtyTrac announced today. March foreclosure notices rose 5%, after a 4% decline in February. All this “is ongoing fallout from people overextending themselves and using highly toxic loan products,” said a RealtyTrac VP. And it hasn't peaked yet. More »

As many Americans batten down the hatches, the über-rich are still living it up, the New York Times reports. Already this year, 71 New York apartments have sold for more than $10 million—compared to just 17 in 2007. The good times were so good, many say, they haven’t had to cut back on impulse purchases like yachts, Bentleys and dream celebrations. More »

The recession has begun to nip at the heels of New York's big law firms, reports the Wall Street Journal. S ome firms are beginning to lay off associates, rescind offers to those coming out of law school, and scale back summer associate programs. It's all due to a slowdown in work relating to mortgages, real estate transactions, mergers, and private equity deals. More »