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...pension crisis will likely aggravate an already bleak financial outlook for many companies, and may stimulate a debate about retirement policy in this country. Already, President-elect Barack Obama has moved swiftly to address the worsening economic and financial crisis. Now, a key question is how, or if, President-elect Obama delivers on his campaign proposal to require companies that don't offer employee retirement plans to enroll workers in a direct-deposit IRA account, which may help many low- and middle-income people participate in retirement programs for the first time. "You can't have companies going from...

Author: /time Magazine | Title: Pension Funds Take Another Pounding | 12/5/2008 | See Source »

...have been showing weakness this year as the price of commodities has plummeted. State finances tend to lag the national economy, so strength so far is no guarantee things will stay rosy. Of legislative fiscal officers surveyed, including one in Puerto Rico, 26 were pessimistic about the revenue outlook through next summer; last year at this time, none were. Of the remaining officers, 19 were concerned, 6 saw the outlook as stable, and none were optimistic...

Author: /time Magazine | Title: States' Financial Outlook: Getting Worse Fast | 12/5/2008 | See Source »

...current rate of 5.5%, would produce an additional 500,000 home sales in the next year. "We need to do this because the economy will not stabilize until home prices stabilize," says Yun. "The way to do that is to get buyers back in the market." (Read States' Financial Outlook: Getting Worse Fast...

Author: /time Magazine | Title: Treasury's Plan for Mortgage Rates Could Be Costly | 12/5/2008 | See Source »

...equipment in New England, folks ain't interested. Companies there reported double-digit sales declines since last winter, with some firms describing the market as "the worst they can remember." Nearly half of the manufacturers surveyed said they expect their profits to decline through the end of 2009. "The outlook," the Book notes, "is pessimistic." One Boston respondent told Fed officials that the economy's "bearish mood" has even spread to the higher-education sector. Staffing centers are gloomy on the East Coast; says one contact,"Everybody's spooked. There's no hiring going on at all." Even so, positions...

Author: /time Magazine | Title: The Fed's Bleak Biz Report | 12/4/2008 | See Source »

...difference in today's decision however was not just the size of the cut, but the message it sends about the central bank's thinking. Though the ECB remains more optimistic about the economic outlook than many economists, it seems finally to be coming to terms with economic reality. Just a few weeks ago, ECB president Jean-Claude Trichet justified the central bank's moderation in cutting rates by warning about continued high inflation. But speaking to reporters in Brussels, his emphasis was altogether different. "Overall, since our last meeting, evidence that inflation pressures are diminishing has increased," Trichet said...

Author: /time Magazine | Title: Is Europe's Central Bank Missing the Crisis? | 12/4/2008 | See Source »

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