A couple weeks ago, TIME Moneyland ran a piece about what could happen to regular Americans if the U.S. government defaults. At the time, most of us here thought an actual default was unlikely and that Congress and President Obama would find some solution to raise the debt ceiling. But with the Senate and the House still unable to reach …
The Economy
Derivatives to the Rescue? How ‘Betting Against’ the U.S. Could Prevent A Default Crisis
Wednesday’s plunge in the markets signaled that the impasse over the debt ceiling, if it continues, will eventually trigger a substantial market sell-off. Until now, there had been surprising complacency among investors, who seemed to assume that after all the noise and haggling there would, of course, be a deal. That belief itself …
Why is Obama Opposed to a Short-Term Debt Deal? Politics
As the tortuous debt ceiling debate continues, with plot twists that even the most diehard political junkies are having a hard time keeping straight, one aspect continues to bedevil the process: the staunch refusal of both …
Oh, the Irony! To Get a Job, You Must Already Have a Job
Last summer, a few disturbing job ads surfaced requiring that candidates “must be currently employed” to be considered for the openings. Nowadays, the practice of hiring only those who already have jobs is commonplace.
Great Recession Drives Financial Wedge Between Whites, Minorities
It’s no secret that the Great Recession has shattered the financial dreams of millions of Americans. It’s not just the 9.2% of Americans who are unemployed, or the 18.2% who are underemployed (that number includes part-time …
The U.S. Will Not Default on August 2
The only thing that matters for global markets over the coming days is whether a deal can be struck in Washington over the debt ceiling. That said, there is one major misconception – fostered by politicians – about what the …
Apple Does it Again: Why Companies Win While Economies Lose
As Washington continues to skate perilously close to the economic abyss, 3,000 miles away in Cupertino, California, this week Apple released its results for the second quarter. To no one’s surprise but to almost universal …
5 Reasons Borders Went Out of Business (and What Will Take Its Place)
Forty years ago, when Borders opened its first store in Ann Arbor, Michigan, the book industry was a different place. But for years, Borders acted like it wasn’t, culminating in the announcement this week that it would …
Our Real Debt Problem
On Friday, I posted a piece on the U.S. debt and how we are creating a false crisis given current interest rates and our ability to manage that. Judging from the responses, you would have thought I was penning a piece in defense …
The U.S. Is Not Drowning In Debt
In case you haven’t noticed, Washington is currently consumed in an acrimonious debate over whether to raise the debt ceiling. There is no agreement about whether to do so or how, but both parties appear to accept the logic …
The Rebirth of the U.S. Auto Industry? Not So Fast
Over the past year, story after story has touted the rebirth of the U.S. auto industry. Ford Motors, which unlike General Motors and Chrysler survived the 2008-2009 crisis without taking bailout money from the federal government, …
What Would a U.S. Government Default Feel Like For the Average American?
A compromise between the budget proposals being batted around by President Obama and House Speaker John Boehner will, hopefully, be reached before the federal government defaults on any debt.
But what if the August 2 deadline to …
