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...than 3% in both the third and fourth quarters of 2008 - the steepest consecutive quarterly declines on record. As incomes shrink and America adopts a more frugal mind-set, some economists do not expect shoppers to return to free-spending ways for years - or perhaps generations. Economist Stephen Roach, chairman of Morgan Stanley Asia, says that "there is good reason to believe the capitulation of the American consumer has only just begun." U.S. consumer spending as a percentage of GDP reached 72% in 2007, well above the pre-bubble norm of 67%. Using that as a gauge, Roach says that...

Author: /time Magazine | Title: Losing Traction | 2/26/2009 | See Source »

...next stop 5,000 or 10,000? After Tuesday's 236 point gain, spurred on by Fed Chairman Bernanke's upbeat talk of an economic recovery in 2010, investors saw a glimmer of hope...

Author: /time Magazine | Title: Is The Stock Market Bottoming? | 2/25/2009 | See Source »

...greed and stupidity. Federal Housing Administration loans, which have more lenient credit and down-payment requirements, can help some low-income buyers scoop up some of those units. "But most of those homes will never be available to the people we serve," insists Lloyd Boggio, a Miami developer and chairman of the Florida Coalition of Affordable Housing Providers. Some communities are using federal Neighborhood Stabilization Program funds to buy up foreclosed homes and convert them into rental units, but they say it's hardly enough to fill the large gap. (See a video on facing foreclosure in Tampa...

Author: /time Magazine | Title: Despite the Crash in Prices, Affordable Housing Still Lacking | 2/25/2009 | See Source »

...think the Obama administration wanted someone who is squeaky clean, and certainly Gary is a Boy Scout." - Paul Berendt, former Washington State Democratic Chairman, on Locke's fairly boring past (he actually was a Boy Scout), Seattle Times...

Author: /time Magazine | Title: Commerce Secretary: Gary Locke | 2/25/2009 | See Source »

...Obama announced his selection of Devaney, currently inspector general at the Department of the Interior, as chairman of the new Recovery Act Transparency and Accountability Board. Devaney will work with Vice President Joe Biden to monitor for wasteful spending and issue periodic reports to the public. It's a familiar watchdog role for the long-time government servant. During his tenure at Interior, Devaney uncovered the shady dealings of disgraced ex-lobbyist Jack Abramoff, an investigation that eventually led to Abramoff's imprisonment and the resignation of Interior's no. 2, J. Steven Griles, for lying under oath about...

Author: /time Magazine | Title: Stimulus Watchdog Earl Devaney | 2/24/2009 | See Source »

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