Government’s Next Step to Pull U.S Out of the Recession

When Lehman Brothers announced bankruptcy and the economy went into a recession, the Fed did its best to avoid a 1930s like scenario. It pumped a lot of money into the economy to maintain liquidity and help businesses survive.

Now that the economy is recovering, the Fed will have to act in the opposite direction in order to control the surplus money in the system or we’ll have to face a period of high inflation. Several economists have emphasized the need for the Fed to act before it is too late. [Read more…]

Britain Shows the Way on How to Deal with Banks

During the recession, many British banks got substantial support from the government, which even acquired a stake in some of them. The government also introduced economic stimulus measures and special liquidity schemes that helped banks. More than one trillion pounds were invested to keep the banks afloat. [Read more…]

Jobless Benefits Deadlines Not Extended

Thousands of Americans who rely on extended jobless benefits would be disappointed to know that they might lose their benefits soon. This is because the government failed to extend the deadline for applications asking for unemployment benefits and the COBRA health insurance subsidy. [Read more…]

Government Considers Citigroup Stable Enough to Sell Stake

Following reports that the economic recovery is likely to be sustainable, the government has decided to withdraw its backing of Citigroup Inc by selling its stake in the company. The Obama administration stepped in with a massive bailout program to keep the bank afloat during recession, when there was a lot of pressure on many businesses and several were forced to close down. [Read more…]

Government Foreclosure Prevention Measures Changes Announced

In a bid to keep homeowners in their homes even if they are unable to meet repayments, the Obama government had unveiled foreclosure prevention measures a few months back. The expectation was that once the housing market is given a helping hand to stabilize, by preventing foreclosures and supporting homeowners, it would help the economy regain its footing too.

However, it appears as though the government’s foreclosure prevention measures will not achieve the targets originally set. [Read more…]

Unemployment Claims Drop for the Third Time in the Last Month

Although there is still no major dent in the unemployment numbers, there seems to be a slow but steady improvement in the situation. The latest weekly jobless data shows that the number of people claiming unemployment benefits had fallen for the third time in the last one month. [Read more…]

Stock Market Not Worried About Healthcare Reform

Ever since the discussions on the Healthcare bill started, critics have always argued that it is anti capitalism and against industry. However if the immediate reaction of the stock market is anything to go by, it does not seem that investors in pharmaceutical or insurance companies, or for that matter any other sector of the market, are too worried about the bill. [Read more…]

700 Banks Still Can’t Give Out Loans

The GDP numbers may show that the economy is out of recession and the worst of the crisis is behind us, but most of the banks in the country are not out of trouble yet.

According to the latest report on the health of the banking system from the Federal Deposit Insurance Corporation, or FDIC, more than half of the banks in the country are not being able to give out any new loans. The problem is that bad loans on the books of these banks are constantly rising. With their interest income drying up, they don’t have any money to lend to new customers and are just waiting anxiously for things to improve. [Read more…]

Government Could Take Over Student Loan System

If the Obama administration has its way, the government could soon take over the student loan system. The move has been criticized by many people, including Lamar Alexander, the U.S. secretary of Education from 1991 to 1993.

The administration’s proposal is that from July, about 19 million students who seek government backed loans for education should apply directly to the U.S. Education Department. This is in stark contrast to the current system where students and their educational institutions exercise their choice in deciding on lenders. [Read more…]

Get Paid for Reporting Tax Evasion

With the tax filing deadline just around the corner, you must already be trying to find ways to reduce your tax liability. But what you may not be aware of is that you can actually earn a reward by reporting a case of tax evasion to the IRS.

The Whistleblower Informant Award program of the IRS has been around for a long time but very few people have taken advantage of it. Under the program, you stand to earn a reward of as much as 15 percent of the amount that the tax cheat owes, as long as it does not exceed $10 million. Another program, which is targeted towards bigger tax cheats, awards 15 percent to 30 percent of the total amount that the IRS can recover. However, this is only applicable to cases where the amount owed exceeds $2 million. [Read more…]