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Stockton set to become largest US city to declare bankruptcy as
officials say mediation failed - (www.washingtonpost.com)
Stockton bankruptcy a hard
hit for city workers, retirees who will see health benefits slashed. When
Stockton becomes the largest U.S. city ever to file for bankruptcy, it will
strike a hard blow to residents, especially city employees and retirees whose
health benefits and pensions helped drive the city toward insolvency. City
Manager Bob Deis said late Tuesday that officials were left with little choice
but to recommend bankruptcy after failing to hammer out deals with creditors to
ease the city’s $26 million budget shortfall. Deis expects the city to file for
Chapter 9 protection by Friday. Stockton will join a number of other cities and
counties across the nation that have plunged into financial crisis as the
recession made it tough to cover rising costs involving current and former employees,
bondholders and vendors.
Dark clouds are gathering over corporate America - (www.telegraph.co.uk) Since hitting a low in the spring of 2009, the
Dow Jones Industrial Average has surged 93pc and the S&P 500 has managed an
even better 97pc gain. The Federal Reserve has had the back of the markets
throughout. Ben Bernanke, the Fed's chairman, made it clear that one aim of the
central bank's quantitative easing programme was to lift asset prices,
including equities. As the US rolls into another summer darkened by signs of
slowing growth, the officials at the Fed are facing renewed calls to embark on
another round. Investors have more than the Fed to thank for helping stock
markets rebound from the recession, defy a tepid recovery in the US and shrug
off Europe's historic debt crisis.
Consumer
Sentiment Hits Lowest Level of 2012 - (www.cnbc.com)
U.S. consumer sentiment
dropped to a six-month low in June as Americans' view of the economy soured, a
survey released on Friday showed. The Thomson Reuters/University of Michigan's
final reading on the overall index on consumer sentiment fell to 73.2 in June
from 79.3 in May. It was the lowest level since December and fell short of
economists' expectations for the index to hold at the same level as June's
preliminary reading of 74.1. The deterioration in consumers' attitudes came
mostly from households with incomes over $75,000; sentiment among lower-income
households was little changed, the survey said.
Britain's recession deeper than feared - (www.telegraph.co.uk) Britain's double-dip
recession has been deeper than first thought, according to official figures
that showed the economy shrank by 0.7pc in the six months to March. The Office
for National Statistics (ONS) confirmed the economy shrank by 0.3pc in the
three months to March, unchanged on its previous estimate, but revised the data
for the final quarter of 2011 from a contraction of 0.3pc to 0.4pc. The figures
also revealed the toll the double-dip has taken on families. Household
disposable income has fallen by 1.8pc in the six months of the recession, split
evenly between the first quarter of this year and the final three months of
2011 – causing consumer spending to drop 0.1pc in the quarter.
This
Is a Big Day for Millions With Student Loans - (www.cnbc.com) Congress was poised Friday to approve
compromise legislation to keep loan rates low for millions of students and to
fund transportation programs for two more years and maintain national flood
insurance. The bill came together this week, as lawmakers
calculated the election-year impact of gridlock on measures affecting soaring
consumer debt, jobs and help for people who need government underwriting for
flood risk to buy a home. "It has indeed been a very bumpy road to get to
this point," said Rep. John Mica, Republican chairman of the House
Transportation Committee, who led negotiations on the bill.
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