interest rates

That light at the end of our dark economic tunnel is a train. And it could roll over you this year.

Every day headlines scream the latest bad news about yet another company announcing massive layoffs. Household names such as Boeing, Pfizer, Home Depot, United Airlines, and hundreds of financial institutions are sending out pink slips by the millions. (No, that is not a misprint).

According to Yahoo News, the Labor Department reports that 21,137 mass layoffs took place last year, up from 15,493 in 2007. That's the highest annual total since 2001, the last time the economy was in recession, and the second-highest since the department began tracking mass layoffs in 1995.  read more »

The Fed’s decision to lower interest rates a half point to 1 percent Tuesday reminds me of a political story from not so long ago.

Back when the first President Bush was running for re-election against Bill Clinton in 1991, he made a brief appearance before the Society of Business Editors and Writers (SABEW) annual meeting in Washington. The economy was in terrible shape, and the Clinton camp was making full use of its now famous line, “It’s the economy stupid.” But President Bush was busy blaming the Fed for keeping interest rates too high. (He later blamed Fed Chairman Alan Greenspan for his eventual defeat.)  read more »