"GDP rise is fastest in nearly a year; But quarterly gain hardly means end to economic woes" by Associated Press | August 29, 2008
WASHINGTON - The economy pulled out of a dangerous rough patch in the spring, thanks largely to strong exports - but the rebound isn't expected to last. Economic slowdowns overseas could make exports tail off just as Americans are hunkering down after the impact of tax-rebate checks wanes, plunging the country into another rut later this year.Many expect consumers to pull back as unemployment rises, paychecks shrink, and their biggest asset - their homes - continues to sink in value.
"Income numbers paint less-than-rosy picture; Earnings show little growth" by Bloomberg News | August 29, 2008
WASHINGTON - Meager gains in earnings over the last year signal the US economy is in much deeper trouble than growth estimates indicate, economists said.
Gross domestic income - or the money earned by the people, businesses, and government agencies whose purchases go into calculating gross domestic product - rose 0.3 percent in the 12 months ended in June, after adjusting for inflation, according to Bloomberg calculations based on yesterday's Commerce Department growth report.
"The income side of the economy, with profits down for four straight quarters and employment falling, looks like a recession," said John Ryding, chief economist at RDQ Economics in New York.
NEW YORK - Lehman Brothers, the ailing Wall Street bank, plans to lay off as many as 1,500 employees, or nearly 6 percent of its workforce, before it reveals third-quarter results on Sept. 15, a person briefed on the plans said yesterday.
Lehman has already laid off 6,000 workers since June 2007, mostly in its mortgage origination and securitization businesses. It was not immediately clear what divisions would bear the brunt of the latest cuts.
A Lehman spokesman declined to comment. Top Lehman executives have been knocking on doors all over the world seeking a capital infusion, courting sovereign wealth funds and international investors. But a white knight has not emerged and another bad quarter - Lehman lost $2.8 billion in the second quarter and was forced to raise $6 billion in equity - will be difficult to manage.
Of course, even a shit economy is cause for cheers down at the agenda-pushing crappers: Cooler economy boosts freezer sales