Economics

The alarm over potential bank runs in Greece and Spain this week has highlighted an often-overlooked fact: Europe's debt crisis is also, in many ways, a major banking crisis. In capitals such as Athens, Madrid and Rome, large portions of the sovereign debt racked up by spendthrift governments are owed to the countries' own banks, locking governments and the banks in an embrace so tight that disaster for one would almost certainly spell doom for the other. International bailouts for Greece, Ireland and Portugal have helped to keep not just their governments but also their banks afloat, as well as financial institutions in other parts of Europe with large exposure to those nations' debts.

New home sales are up. The unemployment rate is falling. Companies are buying one another, signaling confidence in the economy. But investors are turning their back on positive economic signs, looking nervously at Europe's seemingly never-ending debt troubles and Facebook's flat IPO, wondering whether the global economy is beginning yet another deep dive. "Although better economic data did not go unnoticed, investors look forward and not backward," said David Dietze, president and chief investment strategist at Point View Wealth Management in Summit, N.J. "All eyes are looking across the pond and seeing a bit of a meltdown in terms of the European sovereign debt crisis.

With his wide-eyed scholarly enthusiasm, youthful good looks and penchant for world travel, is doing his best to become the Indiana Jones of economics. Certainly the Harvard professor, economist, historian and bestselling author has become something of a poster pundit for the continuing global economic crisis. The publication of "The Ascent of Money: A Financial History of the World" seems a miracle of perfect timing and comes complete with a four-hour documentary that will air on PBS this year.

LONDON - With investor confidence draining away and the value of the euro plunging, Europe struggled anew Wednesday to come up with a united game plan to keep its currency union intact and its economies from collapsing. Competing visions embraced by the continent's political heavyweights, France and Germany, clashed at an informal summit of European Union leaders with little chance of reconciliation even as fears grew that Greece could be forced out of the Eurozone and into a chaotic default.

Great crises have a way of reminding us that acting as though we know perfectly well what the future holds almost always leads to disaster. That's especially true in economics, which tends to underscore the murkiness of the real world by dealing out surprises one after another -- booms, crashes, bubbles, you name it. It's fitting, therefore, that the recent economic meltdown has begun to restore that great apostle of uncertainty, John Maynard...

The media's role Re "9 more killed in Afghan protests," April 3 I was touring in Egypt last September when the Koran-burning story was originally reported. The story was being continuously repeated on cable news channels. I wanted to cringe when I was out in public; what must these people think of us? The media blitz was still on when I returned home. U.S. generals, politicians and State Department officials all expressed the view that the Rev. Terry Jones' irresponsible actions could have deadly consequences.

What those critics of the bishops and many others fail to realize is that the bishops, as Christians, tend to view things in what appears to be a rather narrow and unrealistic perspective. It's not a question of being a socialist, communist, liberal, conservative, or belief in free enterprise; but rather of having a Christian outlook and a Christian mentality concerning social issues. Christian teachings have always seemed impractical to the vast majority, and indeed they are if one considers politics, economics and material goods more important.

Robert Fogel and Douglass North were jointly awarded the Nobel Prize in economics Tuesday by the Royal Swedish Academy of Sciences. Both professors were singled out as leading figures within the field of new economic history. Robert W. Fogel Born July 1, 1926, New York City Ph.D Johns Hopkins University, 1963 Director of the Center for Population Economics at the University of Chicago Key accomplishments: Has argued that slavery was economically efficient, though admitting it was deeply immoral.

Your editorial did not mention the other side of the equation that comprises supply-side economics. When Art Laffer drew his famous curve on a napkin in a restaurant in Washington, he stressed both sides as more or less of equal importance. Of course the easiest part to put into effect, legislatively, was a tax reduction. This tax reduction has the exact effect that Laffer projected, i.e greatly spurring economic growth. The second part of supply-side economics, which Laffer also stressed, was to eliminate transfer payments to the upper and upper middle class (goodies if you will)

Question--If 20 of the 32 Nobel awards in economics went to economists from the U.S., how come we are in an economic gridlock? ALEX SHAMES Escondido

WASHINGTON - The Congressional Budget Office warned that the country could be thrown into a recession if Congress tries to reduce the nation's deficit quickly with a combination of budget cuts and higher taxes scheduled to take place at the end of the year. The nonpartisan budget office laid out the stark choices Tuesday over what has been called the coming fiscal cliff as congressional leaders square off in an expected partisan showdown from now through December. The office warned that the growth of the nation's gross domestic product - the value of goods and services produced - would slow to just 0.5% next year if Congress did nothing.

It's become one of the core questions in a presidential reelection year - are you better off now than you were four years ago? For President Obama, a new poll has an ominous answer.   Thirty percent of respondents in a ABC News/Washington Post survey said they are not as well off financially now than they were when Obama became president, compared with 16% who said they are better off. More than half said things are about the same.   It's no wonder Obama has tried to reframe the question.

President Obama beats Mitt Romney on controlling healthcare costs, Romney wins on dealing with the deficit, and they are essentially tied on who can better attack unemployment, according to a new USA Today/Gallup poll that assesses how voters view the two presidential candidates on economic issues. Not surprisingly, the voter preferences match up well with the candidates' respective campaign narratives. When asked which candidate would be more capable of handling specific issues, Obama led on the cost of healthcare by seven points while Romney boasted a 15-point hold on the budget deficit and debt.

CAMP DAVID, Md. - In a significant political victory for President Obama, the leaders of Germany and other European nations endorsed a policy of economic growth over austerity and emphasized that Greece, which is trying to battle its way out of a crippling debt crisis, should remain in the Eurozone. Meeting on the cloistered grounds of the presidential retreat here, the leaders of the Group of 8 industrialized nations said in a joint statement that Eurozone economies should work to narrow deficits through "fiscal consolidation" and that each country must decide for itself the best mix of policies for promoting economic recovery.

WASHINGTON - Whatever else they achieve, back-to-back summits of world leaders this weekend hosted by President Obama will showcase the perks of incumbency. An American president with sagging approval ratings on the top campaign issue - the anemic economic recovery - will stand in the spotlight as a seasoned world leader. On Friday, Obama welcomed leaders of the major industrialized nations, the so-called G-8, for an overnight economic gathering at Camp David, the presidential retreat in western Maryland.

When Germany'schancellor, Hannelore Kraft, met France's president, Francois Hollande, in a sunny Berlin earlier this week, they agreed on a compelling strategy to save the Eurozone. With no elections due in any Eurozone country for the next two years, they were able to stretch the austerity timeline for Greece, Spain and Italy, add some elements of growth stimulus but also keep up the essential pressure for fiscal discipline and structural reform. As a result, even devastated Greece began to glimpse light at the end of the tunnel.

Doing in evil-doers Re "Another feather for Obama the hawk," Oct. 21 Despite the Republicans' continued sniping, President Obama has proved himself as commander in chief. Both Osama bin Laden and Moammar Kadafi have been killed, with no loss of American lives and minimal impact on the local civilian populations. Compare these facts with the costs of removing Saddam Hussein and our continued, seemingly pointless wars in Iraq and Afghanistan, and it seems obvious which president (and which political party)

YOUNGSTOWN, Ohio -- Vice President Joe Biden brought the Obama campaign's Bain Capital offensive to Ohio Wednesday, framing the election as a choice between economic philosophies that would have stark consequences for the middle class. Speaking at a local manufacturer, Biden said there was "life and hope in the heartland" as a result of the administration's pro-manufacturing policies, which he said would do more to build a lasting economy than the profit-at-all-cost approach of firms like the one Mitt Romney headed.