FROM David Shulman
A Recession on the Horizon? In the past few days, the word "recession" has worked its way out of the business sections onto the front pages of newspapers and the covers of magazines. "Everyone knows…another recession is inevitable sooner or later. Some indicators now suggest that it might be sooner." The New York Times, the Wall Street Journal and the Financial Times are headlining stories about a coming recession. Back in August, the Economist asked, does America need one? The sub-prime mortgage crisis and the end of easy credit are putting a damper on consumer spending, which has been driving the economy. Does that mean recession's inevitable? Could it be stopped or at least postponed? Would there be benefits to getting it over with sooner rather than later?
Economy Sheds Jobs in First Downturn in Four Years Economists expected some slowdown in the economy because of the turmoil in the mortgage and housing markets, but the news this morning was far worse than expected. The Labor Department said that job growth had not just slowed, but reversed course in August for the first time in four years. The country lost 4,000 jobs. The stock market swooned. Is a recession looming? David Shulman is a senior economist with the UCLA Anderson Forecast.
Home Loans and Easy Money, until Times Get Hard No less an authority than Alan Greenspan, former Chair of the Federal Reserve , called sub-prime mortgages a tool for democratizing credit. Sub-prime mortgages with no down payments are advertised as the road to home ownership for families who can't afford regular loans. They often gamble that they'll be able to re-finance after the house goes up in value, but before new interest rates and higher payments kick in. Now, with the housing market is cooling off, the formula is failing to work for more and more people. Foreclosures are up and they're likely to increase even more. Did stock analysts paint an overly rosy picture of the sub-prime mortgage market to generate investment? Do risky loans to millions of vulnerable borrowers threaten the whole economy? We hear from economists, consumer advocates, a state official who's going after shady lending practices, and John and Delia, two homeowners caught in the sub-prime squeeze.
Trump's 'America First' goes missing abroad In the Middle East, President Trump is changing some policies of the Obama Administration—and reversing his own campaign attacks on Islam as a religion that "hates us." We hear about his visit to Saudi Arabia and what's at stake for the rest of his foreign excursion.
White House budget proposal slashes and burns President Trump's first budget request is considered dead on arrival in Congress — a familiar development in Capitol Hill. We hear what it reveals about the priorities of the new administration. What's likely to die… and what might survive?
Will the Senate write a healthcare bill in secret? While Democrats and Republicans argue White House relations with Russia, another question is being decided behind closed doors: who gets help buying health insurance and who doesn't? We hear how the pros and cons are being shrouded in secrecy.
Trump's new look at civil rights and global warming President Trump is reportedly ready to pull the US out of the Paris Agreement on Climate Change. We look at the possible consequences. On the second half of the program, we hear about cuts in Obama-Era civil rights programs called for by the Trump Administration's first budget plan.