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...quote Shepherdson again: "The epicenter of the recession has shifted from the consumer to the corporate sector." And it's possible that corporate cutbacks could lead to a relapse among consumers. "The main downside risk probably lies in sharper-than-expected multiplier effects via the dramatic deterioration in the labor market," warned Goldman Sachs economist Jan Hatzius on Monday after predicting that consumer spending would rise for the rest of the year. "Both the weekly and monthly labor market indicators still show an accelerating employment contraction...

Author: /time Magazine | Title: Is the Economy Starting to Recover? Or Just Less Bad? | 3/26/2009 | See Source »

...Labor was the party of Israel's socialist founders, and at the convention there were glimpses of the old stalwarts: sun-creased kibbutzniks, leather-capped union men, teachers and a few men and women of dogged ideals. But they were outnumbered by party apparatchiks, with their cologne and insipid handshakes, few of whom appeared ready to give up their cushy government posts and influence. Says Shelly Yachimovich, a hard-hitting ex-radio journalist who is now one of Labor's rising stars: "A strong motive was clinging to power and the good life. Some Labor people believe their genetic code...

Author: /time Magazine | Title: Can Labor and Likud Govern Israel Together? | 3/25/2009 | See Source »

...lost the vote, Barak, the diminutive ex-general and decorated war hero, would likely have been driven out as party leader, his political career at an end. This way Barak stays in power, and Labor will get the ministries of defense, agriculture, industry, trade and welfare. But the cost has been high. One respected columnist, Ben Caspit in Maariv, wrote, "The Labor Party signed its own death certificate...

Author: /time Magazine | Title: Can Labor and Likud Govern Israel Together? | 3/25/2009 | See Source »

...Netanyahu has finally pieced together a majority of at least 66 Knesset seats. But there are no guarantees that his coalition will last its four-year term. Members of his own Likud Party are grumbling that Netanyahu has given away too many ministerial portfolios to woo both Labor and the hard-right party Yisrael Beitenu of Avigdor Lieberman, who is likely to become the next Foreign Minister, despite his extreme anti-Arab views. (See a TIME video on Lieberman...

Author: /time Magazine | Title: Can Labor and Likud Govern Israel Together? | 3/25/2009 | See Source »

...support in mind, Netanyahu toned down his usual hawkishness, telling Israeli and Arab businessmen, "I'm a partner for peace." Next week Israelis will have a new Prime Minister and Cabinet, and a season or two of political stability. But Barak's opportunism may have set the historic Labor Party on a slide into irrelevance...

Author: /time Magazine | Title: Can Labor and Likud Govern Israel Together? | 3/25/2009 | See Source »

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