News links of interest - 26 Jan
Credit crunch claims Iceland government after 'Household Revolution'
The global economic crisis claimed its first government yesterday when Iceland’s ruling coalition collapsed amid a cacophony of popular protest.
Bernanke Risks ‘Very Unstable’ Market as He Weighs Buying Bonds
Federal Reserve Chairman Ben S. Bernanke and his colleagues may try once again to cure the aftermath of a bubble in one kind of asset by overheating the market for another.
Fed policy makers meeting tomorrow and the day after are exploring the purchase of longer-dated Treasury securities in an effort to push up their price and bring down their yield. Behind the potential move: a desire to reduce long-term borrowing costs at a time when the Fed can’t lower short-term interest rates any further because they are effectively at zero.
Freddie Mac will ask government for another bailout to the tune of $35 billion
Freddie, which took $13.8 billion from Treasury in November, said in a securities filing today that its fourth- quarter operating losses will again drive its net worth below zero
More woe as 76,000 jobs axed in one day
Corporate bellwethers in the US and Europe slashed more than 76,000 jobs from their payrolls to confront the deepening economic downturn, marking one of the most brutal days yet for workers on both sides of the Atlantic.
Layoffs Spread to More Sectors of the Economy
Home Depot, Caterpillar, Sprint Nextel and at least eight other companies announced on Monday they would cut more than 75,000 jobs in the United States and around the world — a gloomy start to the workweek for employees anxious about holding their own as the economy sinks.
Senate votes 60-34 to confirm Timothy Geithner as Treasury secretary
Geithner's appointment, originally considered a slam dunk, got tangled up when it was learned he had failed to pay $42,702 in back taxes until after he was picked for the job by Obama.