deficit

Obama to Work With Congress on Tax-Cut Agreement

President Barack Obama, who has disagreed with Republican Congress members on whether to extend George W. Bush-era tax cuts for wealthier Americans beyond this year, said Tuesday that he will work with U.S. senators on finding some sort of tax-policy agreement by the end of the year.

Greenspan: Deficit Fears Could Trigger Bond Market Crisis

The U.S. must act to rein in its massive budget deficits or face the risk of a bond market crisis, former Fed Chairman Alan Greenspan said Sunday. If deficits begin to frighten the bond market, interest rates will rise, undermining the recovery, and possibly causing a double-dip recession.

The High Price of Extending the Bush Tax Cuts

Before the GOP power surge on Tuesday, President Obama had steadfastly refused to consider extending the Bush tax cuts -- due to expire at the end of the year -- for America's wealthiest taxpayers. Now, he says he's willing to compromise.

VAT Would Put 850,000 People Out of Work: Industry Group

Introducing a value-added tax would cost the American economy 850,000 jobs in its first year, according to The National Retail Federation. Policymakers are considering a VAT as a possible way to reduce the federal deficit, which is currently at its highest as a share of GDP since World War Two.

Greenspan Says U.S. Deficit Is 'Scary'

The U.S. fiscal deficit is "scary" and the government should slash entitlement spending, former Federal Reserve Chairman Alan Greenspan said. "We%u2019re involved in a dangerous game," Greenspan said, according to Bloomberg News.

Euro-Zone Countries Should Be Ready to Cut Debt, ECB Says

Euro-zone countries should prepare to implement more measures aimed at cutting "excessive deficits" if economic growth disappoints, the European Central Bank said. The 16 members of the euro-zone should "be prepared to accelerate consolidation where necessary to correct their excessive deficits," the ECB said, according to The Wall Street Journal. "If previously overly optimistic macroeconomic forecasts fail to materialize, countries should swiftly adopt additional consolidation measures to ensure that commitments are fulfilled."

Economists: Boost Growth Now, Fix Deficit Later

The National Association for Business Economics released its semiannual Economic Policy Survey Sunday, and nearly 60% of respondents said they support the Fed's monetary policies. But only 39% feel the administration's fiscal stance is appropriate, and 75% oppose another stimulus package.

Austerity Could Push Europe Back into Recession, Stiglitz Says

Joseph Stiglitz, a Nobel Prize-winning economist, said Europe risks falling back into recession as governments slash spending in a bid to narrow their budget deficits. "Cutting back willy-nilly on high-return investments just to make the picture of the deficit look better is really foolish," Stiglitz said today, according to Bloomberg News.

Boehner: Time to Fire Treasury Chief Geithner

House Minority Leader John Boehner will call on President Barack Obama to fire Treasury Secretary Timothy Geithner and adviser Lawrence Summers in a speech today. In a speech in Ohio due at 8am today, Boehner will attack Geithner and Summers as promoting "19 months of government-as-community organizer," Politico reported.

Most Americans Believe We're Still in a Recession

More than 70% of Americans think that the country is still in a recession, according to a new Bloomberg survey. Only 17% of those surveyed believe they are better off now than when President Obama took office.

U.S. Trade Deficit Unexpectedly Rises in May

May%u2019s unexpected rise in the U.S. trade deficit to $42.3 billion isn%u2019t likely to resolve the tug-of-war between the economic bulls and bears. Imports and exports both grew, but imports grew marginally faster.

Tesla's Shiny New Stock
Runs Out of Juice

Electric car maker Tesla's Roadster has amazing acceleration, but the rise and fall of the company's stock after its high-profile IPO was even faster. Tesla debuted on the public market last week at $17 a share and shot up 79% to $30.42 in two days. Now, it's back below the IPO price.

Soros: German Budget Cuts Could Cause Euro Failure

Ahead of the G-20 summit in Toronto this weekend, billionaire investor George Soros is warning that Germany's policy of fiscal austerity is a danger to Europe that could destroy the euro and fracture the European Union.

U.K. Budget Would Levy New Tax on Banks, Hike VAT

In laying out a new budget to tackle Britain's fiscal mess, newly appointed Chancellor of the Exchequer George Osborne has proposed a multibillion-pound bank levy, which will apply to the balance sheets of U.K. banks, as well as a hike in the value-added tax.

Obama's Deficit Commission Is Short on Funding

Sounds like a joke, but, no, it's just politics: President Obama's National Commission on Fiscal Responsibility and Reform, which is tasked with developing a plan to get the deficit under control, is itself being starved of the funds it would need to operate effectively.

Spain Cuts Government Pay, U.S. Raises It: Who's Right?

Among the steps Spain is taking to reduce its budget deficit are cutting government salaries, postponing pension increases, and dropping subsidies. The U.S. approach to its economic troubles? Spend more to jump start the economy. So - who should be taking lessons from whom?

Spain Outlines Plan to Slash Deficit

Spain will cut civil servants' salaries this year as part of a deficit-reduction plan to ease worries the country will slide into a debt crisis like that of Greece, the prime minister said Wednesday.

The City of Angels Is About to Run Out of Cash

There may be signs of an economic recovery, but times are still tough in Los Angeles: Unless the mayor and city council approve a transfer of $90 million from an emergency reserve fund into the city's general fund to cover basic expenses, Los Angeles will run out of cash as early as May 5.

Moody's Sends a Ratings Warning to Triple-A Governments

Moody's has sounded the alarm on triple A-rated sovereign debt from the U.S., the U.K., France and Germany due to strains on those governments' finances. It says the ratings are fine for now, but they could be downgraded if debt and deficits aren't brought under control.

Stiglitz Calls for More Government Spending, Debt

Nobel Prize winner Joseph Stiglitz says the U.S. government needs to borrow even more money for additional stimulus, and it needs to do so now. Stiglitz argues that additional spending would pay for itself over time if done prudently.