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Economics
What Good Are Economists Anyway?
Why they failed to predict the global economic crisis—and why their help is still crucial to a recovery
May 1, 2009
Macroeconomics: Adjusting the Big Picture
Three experts weigh in on how to better handle, and even avoid, the next global financial crisis
May 1, 2009
Bigger U.S. Savings Than Official Stats Suggest
A closer look at BEA numbers shows that Americans reduced spending by 3.1% in the past year, indicating that the savings rate has risen to 6.4%
May 1, 2009
U.S. Trade Bubble Continues to Collapse
Goods imports are down 33% over the past year, but the U.S. trade deficit, a key part of the global financial crisis, needs to narrow further
May 1, 2009
Housing's Long-Haul Recovery
Despite recent good news, government help will fade, prices will keep falling, and the real estate bear market could go on for years
May 1, 2009
This Market Rally May Be for Real
Better policy and a shrinking trade deficit, in addition to clues from history, argue for muted optimism
May 1, 2009
The Dogfight Over Economic Stimulus
Why economists can't decide whether massive spending will be helpful or drive America further down
May 1, 2009
Irrational Exuberance Writ Large
George Akerlof and Robert Shiller on how psychological factors led to the bust and may impede a turnaround
May 1, 2009
The Big Job Engines: Education and Health
Spending on health care and education will be the fastest way to create jobs while other sectors recover
May 1, 2009
Economists Rush to Disagree About Crisis Solutions
Some economists say the stimulus plan will only make things worse. Others admit they don't know the right course
May 1, 2009
February Job Losses: Have We Hit Bottom?
The 651,000 jobs lost in February was not as bad as some feared, but it turns out December and January were worse than first thought
May 1, 2009
Job Data Expected to Point to a Deeper Recession
February's payroll decline will likely confirm fears of a prolonged recession. Some economists say stronger government action may be needed
May 1, 2009
Academic Endowments: The Curse of Hoarded Treasure
Universities are cutting budgets and shortchanging today's students to risk what's left of their endowments in financial markets
March 23, 2009
Buying Toxic Assets
Buying Toxic Assets
May 1, 2009
While New York Bleeds, Washington Thrives
At the same time Wall Street is losing jobs and prestige, the nation's capital is gaining steam as it ramps up to fight the recession
May 1, 2009
The Risk from Underwater Homeowners
Obama's $75 billion mortgage rescue plan doesn't address the danger that more homeowners whose equity has evaporated might just walk away
May 1, 2009
Stock Decline Hits Depression Levels
Money invested 10 years ago in stocks have lost half their real value, matching the worst ten years of the Great Depression
May 1, 2009
The End of the Trade Bubble?
Recent data from the U.S. and China hint at the bursting of a trade bubble, which may have been fueled by the credit bubble
May 1, 2009
What's Missing in Geithner's Bank Plan
The Obama Administration's Financial Stability Plan isn't a clean break with the past, because it doesn't spell out clearly who will lose
May 1, 2009
598,000 Jobs Lost in January
The job loss numbers were worse than expected, and those hit the hardest remain workers in the goods-producing sector
May 1, 2009
What Falling Prices Are Telling Us
The world is awash in goods—and government programs to spur spending won't be enough to balance supply and demand
May 1, 2009
The 'Bad Bank' Solution
It would relieve banks of $1 trillion or more in bad loans, but leave tough choices on the table
May 1, 2009
Stimulus: To Spend or Not to Spend?
Economists are engaged in a fiscal feud over Obama's spending plan and how much of a boost it will give the recession-wracked economy
May 1, 2009
The Fed Cranks Up Its Rhetoric
With no room to cut interest rates, Fed policymakers try persuasion
March 3, 2009
Can Obama Control Executive Pay?
BW Chief Economist Mike Mandel draws a parallel between Barack Obama's public attack on excessive bank executive pay and Ronald Reagan's 1981 attack on the air traffic controllers' union
May 1, 2009
Executive Pay: Obama's PATCO Moment
The President has a chance to set a new direction on executive pay and Wall Street, just as Reagan did with organized labor
May 1, 2009
Obama's Stimulus Targets Health and Education
By directing more money to such "intangibles" than to manufacturing and construction, the plan rightly feeds the sectors that are growing
- Plus: Stimulus: Now the Real Action Begins
- Slide Show: Stimulus Spending, State by State
- Plus: The U.S. Economy's Best Bet: The Intangible Sector
March 3, 2009
How Much Will Fiscal Stimulus Help?
Chief Economist Mike Mandel discusses the intense economic dabate over the multiplier, the number that describes how much a fiscal stimulus plan like Obama's can boost the private sector
March 3, 2009
Davos and the Financial Crisis
As global, business, and political leaders meet in Davos, Switzerland, BusinessWeek Chief Economist Michael Mandel explains why they must avoid the temptation to push each other off the lifeboat
May 1, 2009
Economic Recovery: What the Economists Say
Harvard's Rogoff says economists deserve a portion of the blame for this crisis
May 1, 2009
What the U.S. Can Learn from Japan's Lost Decade
By studying how Tokyo dealt with its decade-long slump, Washington may be able to avoid Japan's mistakes and engineer a quicker recovery
May 1, 2009
A Broadband Stimulus Plan
Can government investments in Internet and wireless communications technology ignite a new wave of job growth?
- Plus: Bringing Broadband to the Urban Poor
- Plus: High Hurdles for Obama's Green Stimulus
- Plus: Can Obama Keep New Jobs at Home?
May 1, 2009
The Worst Predictions About 2008
Just about everybody got wrong-footed by 2008, but some people's mistakes were truly spectacular
May 1, 2009
Paulson: 'Orderly' Auto Bankruptcy May Be Necessary
"This is a time when it makes sense to be prudent" and rescue the automakers, the Treasury Secretary tells BusinessWeek Editor-in-Chief Stephen Adler
- Plus: Obama Finalizes Financial Team
- Plus: Madoff Losses Will Change Hedge Funds
- Plus: The Bailout Plan: Paulson's Pivot
May 1, 2009
The Fed's Fierce Battle Plan
In dropping rates to zero, Bernanke is attacking the recession head-on. And his approach may well lead to a recovery by late 2009
May 1, 2009
After the Carnage: Bargains and Opportunities in 2009
America has to rebalance its economy and shed its bad habits. The agony won't last forever
May 1, 2009
Deflation and the Economic Recovery
The combination of lower prices and large-scale government stimulus could trigger a self-sustaining economic rebound
May 1, 2009
Bernanke Attacks the Recession with Force
The Federal Reserve cuts the funds rate to 0.25% and announces unconventional measures to revive the economy
- Plus: Is the Jobs Panic Justified?
- Plus: Job Losses: 533,000 in November
- Plus: Is The Fed's $800 Billion Plan Cause for Concern?
May 1, 2009
Is the Jobs Panic Justified?
BusinessWeek asked economists from Wall Street to academia. Their job forecasts all depend on when they think the credit markets will start working again
May 1, 2009
Is Bad Jobs News Good News for the Stock Market?
Investors reacted to the distressing jobs report with feverish buying, with the thought that layoffs signal a preparation for higher profits and recovery
May 1, 2009
Job Losses: 533,000 in November
Employers cut record-breaking numbers of jobs across industries, from construction to finance to retail, according to this morning's Labor Dept. announcement
May 1, 2009
November Job Losses Could Be Worst in 28 Years
New figures may show 300,000 layoffs for the month, and possibly 400,000
May 1, 2009
Can Obama Keep New Jobs at Home?
Massive fiscal stimulus could wind up creating jobs offshore as funds are spent on imports
May 1, 2009
Is the Fed's $800 Billion Plan Cause for Concern?
The Federal Reserve's $800 billion plan to unlock credit markets boosts its assets to around $3 trillion. The bold move has its fans—and critics
May 1, 2009
Fighting the Global Slump: Less Is Dangerous
Amid a debt-deflation spiral, the governments' greatest risk is enacting stimulus measures that are too little to fight the slump
May 1, 2009
Is Deflation Good for Workers?
A key underlying cause of the financial crisis was a fall in real wages. A bit of deflation may be just what consumers need, says BW's Michael Mandel
May 1, 2009
Key Questions From the G-20 Summit
G-20 finance ministers must decide what to do about trade tensions, consumer spending, housing prices, and global coordination
May 1, 2009
Mandel: Paulson's Shift Is Just a Start
The Treasury Secretary's new focus on using bailout money to support frozen consumer loan markets acknowledges reality. But it's only a down payment
May 1, 2009
In a Downturn, Employers Cut Jobs Rather than Pay
Why employers facing a recession will eliminate jobs and slash benefits before they cut wages
May 1, 2009
Health Care: The Economy's Lifeline
The continued growth of jobs in health care appears to be the lone saving grace in an otherwise brutal employment picture
May 1, 2009
Is the Federal Home Loan Banking System at Risk?
It's lent billions to smaller banks like IndyMac. And if it fails, taxpayers are on the hook
May 1, 2009
The U.S. Economic Crisis: Three Growth Scenarios
The U.S. financial crisis is a symptom, not a cause, of global problems. The U.S. must solve its trade deficit and invest its credit wisely
October 29, 2008
Memo to the Fed: Pace Rate Hikes Carefully
When rate cuts end, BW chief economist Michael Mandel thinks, the Fed's inevitable hikes should be gradual, unlike the central bank's tightening spree
May 1, 2009
So Much for Buy-and-Hold Advice
You bet on stocks. You diversified. You lost a bundle. Should you get out? Experts disagree
May 1, 2009
Will Banks Lend, or Hoard, the Treasury's Money?
Treasury Secretary Paulson put $250 billion into banks to loosen the credit markets. Is that making loans easier to get?
May 1, 2009
Mandel: It's Not a Crisis of Confidence
The real problem with the economy is that long accepted patterns of cross-border technology transfer, trade, and finance are simply unsustainable
- Plus: Surviving the Storm
- Plus: How Will Paulson Pick Bank Winners and Losers?
- Plus: Paulson's $250 Billion Bank Buy
May 1, 2009
Commercial Real Estate: Ready to Tank
A new survey says the commercial real estate market is headed toward a bad year in 2009 and a lukewarm recovery in 2010
May 1, 2009
How to Get Growth Back on Track
Fixing the worldwide liquidity crunch has revealed a deep-seated and disturbing problem: What looked like fast growth in recent years was in part an illusion created by excess borrowing
May 1, 2009
The Sky Falls on Wall Street
The week started with hope for a U.S. plan to calm world stock markets. By Friday, investors wondered if anything could stop the slide
- Plus: The New Age of Frugality
- Plus: Financial Crisis: How to Stop the Panic
- Plus: The Next Meltdown: Credit-Card Debt
May 1, 2009
Financial Crisis: How to Stop the Panic
It is possible to calm the waters, but it'll mean unlearning our post-Depression lessons
May 1, 2009
Shared Sacrifice Will Ease the Credit Crunch
Foreign lenders will have to take a haircut while American consumers spend less and taxpayers take a hit
May 1, 2009
The Credit Crunch Spreads to Business
If companies around the globe are unable to borrow, they'll begin to cut jobs, cease investment, and default on their debt in larger numbers
May 1, 2009
Mandel: Expand FDIC Coverage, Now
BusinessWeek's chief economist argues that an increase in bank-deposit insurance is the fastest and clearest way for Congress to calm things down
May 1, 2009
The Trouble with Paulson's Bailout
The Treasury Secretary's $700 billion initial plan fails to give financial firms the incentive to reform and risks rewarding those who made the biggest mistakes
May 1, 2009
A Chance to Find Balance
A focus on education, infrastructure, and R&D could spur new growth
May 1, 2009
Is It the Dawn of the Reregulation Era?
Regulation has been a dirty word in business—and in Washington—for decades. But government oversight is looking a lot better lately
May 1, 2009
How the Fed Can Ease the Crisis
There are limits to the Federal Reserve's power, but Bernanke still has lots of ammo left to stop the downward spiral
May 1, 2009
The Fed's Focus: Lending, Not Cutting
Bernanke and Co., seeing a rate cut as the wrong treatment for now, are stepping up as a lender of last resort to cash-hoarding banks—and AIG as well
May 1, 2009
Can America Invent Its Way Back?
"Innovation economics" shows how smart ideas can turn into jobs and growth—and keep the U.S. competitive
May 1, 2009
The Economy: Best- and Worst-Case Scenarios
Will the Fannie Mae/Freddie Mac bailout work? It pays to imagine the possibilities
May 1, 2009
Fannie, Freddie: Feds Step In
The historic takeover of the two mortgage giants affects taxpayers and investors. But will it stabilize the housing market?
May 1, 2009
Bernanke's Inflation Dilemma
By some measures, prices are soaring. By others, they're in check. What's a Fed chief to do about rates?
May 1, 2009
Cheaper Gas, Calmer Debate
With prices down at the pump, it may be easier for Americans to hammer out a wise energy policy
May 1, 2009
Commodities Are Down...Hooray?
Lower prices are welcome, but a global slowdown is a big part of the change, and that's no reason to cheer
May 1, 2009
The Fed Holds Steady
Falling oil prices help convince the Federal Reserve not to raise interest rates
May 1, 2009
Free Trade After Doha's Collapse
For U.S. trade negotiators, the breakdown of the Doha round of talks adds urgency to bilateral pacts with South Korea, Colombia, and Panama
May 1, 2009
Paulson: Housing Correction in 'Months'
The Treasury Secretary thinks it will take just months, not years, for house prices to stabilize and most excesses to be washed away
May 1, 2009
Now the Revival Can Begin
The Paulson-Bernanke support package could start the process of restoring the markets
May 1, 2009
The Future of Fannie and Freddie
Colossal and enfeebled, the two mortgage giants are now part of the problem. The case for an extreme makeover
May 1, 2009
In Praise of Oil Speculation
BusinessWeek Economics Editor Peter Coy responds to columnist Ed Wallace and his attack on oil traders
- Plus: Wallace: Oil Prices Are All Speculation
- Slide Show: Oil Inflation: It's Everywhere
- Plus: Oil Lifts Consumer-Product Prices, Too
May 1, 2009
How Strong Is the U.S. Consumer?
The way America measures Web commerce may be painting an overly rosy picture of the economy
May 1, 2009
The Housing Abyss
Why the worst may be yet to come as forces battering the market gain strength. And the remedy coming from Congress? It's likely to fall short of the mark
Featured Video
The Economics of Swine Flu
Just as the economy starts to shake off the impact of the financial crisis, along comes swine flu. A pandemic today -- however unlikely -- could dramatically hurt growth
Featured Video
What Good are Economists Anyway?
Economists mostly failed to predict the worst economic crisis since the 1930s. Now, they can't agree how to solve it. People are starting to wonder whether they can really help
In Your Face: Wall Street's Economic Crimes
Reader Andy writes:
"Should businesses be morally obligated to internalize risks, and how would that square with fiduciary responsibilities to shareholders to maximize returns?"
Tell Us: Wall Street Woes an Ethical Wake-Up Call?
Featured Special Report
The Madoff Scandal
Madoff: Is He Being Treated Unfairly?
The fraudster's lawyers are appealing for his release ahead of sentencing, but his guilty plea is likely reason enough to keep him locked up
Lessons from a Disaster
Madoff Pleads Guilty to Ponzi Scheme
What's the Right Penalty?
Madoff's Trickle-Down Victims
Former Investors Could Face Pinch
Mandel: Madoff and the Global Economy
Video: Victims React
BusinessExchange: Ponzi Schemes
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