Rich Camp: Teaching the Wealthy About Money

A growing number of big banks and private-wealth-management firms are offering seminars for rich people to teach them how to handle their money following the global financial collapse and the Bernie Madoff scandal.

Why Some Millionaires Want Their Tax Cuts to End

Meet the millionaire cofounder of Seventh Generation who is part of a growing movement of wealthy people urging Congress to let the Bush tax cuts expire. For them, it isn’t just a moral question; they say financially the government cannot afford to let them pocket that money.

How Do You Measure a Complex Bank's Risk?

Can all of a bank’s many operations be boiled down to a single measure of overall risk? And—given the ripple effect that a bank failure has on the economy—can that measure be corrected if it gets too high? The FDIC wants to find out by the end of the year. The agency is examining 105 banks with assets of more than $10 billion and creating for each a scorecard based on categories like earnings and heavy exposure to credit. The plan is to charge each institution based on the threat it poses to the global financial system—in theory, deterring future crashes. It’s a tricky task—one the American Bankers Association calls too new and subjective. “It was rolled out amid troubles in the industry. There hasn’t been a long-enough period to know what would work,” says James Chessen, the industry group’s chief economist. Then there’s the perennial question of how government regulators can ever keep up with private bankers’ complex inventions. “We all thought mortgage-backed securities were fine...

Summers Leaving Obama's Economic Team

Lawrence Summers plans to leave the White House at the end of the year, making Treasury Secretary Timothy Geithner the president’s lone remaining high-profile economic adviser.

Young Adults Shying Away From Stock Market

One byproduct of the recession has been a change in the investing habits of 18- to 34-year-olds, according to a new study by Merrill Lynch. Can you blame a generation whose financial coming-of-age was bookended by the dotcom bubble and the subprime-mortgage meltdown?

Who's the Next Christina Romer?

In a speech Wednesday, Christina Romer, who will leave her position as President Obama’s top economic adviser Friday, lamented that the recession has proved so hard to understand. Whoever inherits her position may feel the same sense of helplessness.

New Unemployment Numbers Better Than Expected

The number of people filing new unemployment claims dropped this week, but the four-week average remains the highest it has been since November 2009. On the heels of other bad economic data, what does this mean for the economy?

Surviving Subservience

With a national unemployment rate of 9.5 percent, many recent college graduates may have to suck it up and take jobs answering phones or opening people’s mail. A writer offers tips on making it at that first gig.

5 Key Questions About the Housing Market

Can the government worm its way out of the messy housing market? A group of Treasury officials, economists, mortgage-company executives, and bankers will gather in Washington on Tuesday to talk about the big policy questions surrounding housing finance. NEWSWEEK informally polled a few economists and academics to pinpoint the five basic questions the group needs to ask.

Are Fed-Up American Workers Getting Their Gumption Back?

Is it any wonder the average employee is in a bad mood? "There's more of a divide in terms of compensation between senior executives and the average worker now," says Thomas Kochan, a professor of management at MIT. "This will have a lasting effect and lead to lower trust and lower confidence in management."

Banks Compete for Asia's New Millionaires

Asia now has 3 million millionaires, 26 percent more than a year ago, according to Merrill Lynch Wealth Management and Capgemini, a French consultancy. The region controls more wealth than Europe and is closing in rapidly on North America. Signs of opulence are hard to miss: one of India’s richest men built a 27-story skyscraper as his home, while Chinese millionaires spent $830 million on fine art in 2009.

Economic Growth Stalls On Lack of Consumer Spending

How soon will the economy recover, and are we headed for a double-dip recession? The answers to both questions became more nuanced -- and possibly worrisome Friday -- when the Commerce Department reported that the country’s economic growth had slowed this quarter, largely due to consumers’ reluctance to spend money.

How to Change L.A.'s Sprawling Commutes

What will our cities look like in 20 years? Already, roughly 36.4 million Americans work flexible schedules, according to the U.S. Bureau of Labor Statistics. The fixed 9-to-5 schedule no longer suits the round-the-clock demands of finance, business, and professional services.

Three Big Ideas for Solving Unemployment

Even if the Senate passes a bill to provide unemployment-insurance benefits this week, the country still needs to figure out a smart way to create jobs for millions of people whose industries and livelihoods have altogether disappeared. So, how should we put 15 million unemployed Americans back to work? Here’s a quick look at the big ideas for solving the jobs crisis.

Depressing Unemployment Numbers Forecast Long, Slow Recovery

The private sector added a meek 83,000 jobs to the economy during the month of June, according to new data from the U.S. Bureau of Labor Statistics—a figure that fell short of economists’ predictions and that’s far below the 150,000 to 200,000 jobs that must be created each month to bolster the economy....

Tip Sheet on Financial Reform

Where, oh, where is our financial reform? It’s locked up in Congress, as House Financial Services Committee chairman Barney Frank and Senate Banking Committee chairman Christopher Dodd try to secure the 60 votes needed for the bill to avoid a filibuster in the Senate. Here's what you need to know.

The Rise and Fall of Bear Stearns

Alan “Ace” Greenberg, the defiant former CEO of Bear Stearns, discloses his regrets, his beef with mortgage brokers, and why he thinks financial reform isn’t necessary.

Five Reasons Why Tesla Will Never Make Money, According to Tesla

The SEC filing for Tesla Motors, Inc.’s public offering reads like a laundry list of how and why the company will never make money. Tesla announced Tuesday that it would publicly sell 10 million shares for $14 to $16 a piece on June 29. The “risk factors” section alone clocks in at 42 pages.

A Tale of Two Recessions

One hallmark of this recession has been the disparities in how the unemployment rate has affected different groups of people.

Richard Florida: Rethinking Blue-Collar Jobs

Following the release of his latest tome, The Great Reset: How New Ways of Living and Working Drive Post-Crash Prosperity, NEWSWEEK’S Nancy Cook asked Florida about his vision for “upgrading” the service economy. Excerpts:

Economic Troubles May Have Driven Shahzad to Terror

Five days after the attempted car bombing in New York City's Times Square, new details have emerged about the alleged attacker's troubled financial life, as well as the government's slow response in tracking him. According to The New York Times, Faisal Shahzad hit a rough patch during the recession. JPMorgan Chase foreclosed last summer on the Shelton, Conn., house he shared with his Colorado-born wife and their two children, while the Los Angeles Times reports that the couple tried to sell broken furniture and used clothes for extra cash. Several media outlets from ABC News to the Times make the intellectual leap that these economic troubles fueled Shahzad's radicalization and his anger toward the U.S. His financial problems prompted him to spend several months in Pakistan, including Peshawar and Waziristan, two areas known for their strong Taliban presence. ...