Reuters Money

Margaret Atwood on debt and consequences

October 14, 2011

Margaret Atwood REUTERS/handoutWhat might be most surprising about the myriad economic problems around the globe right now is how many major world economies seem to have been taken by surprise by the concept of debt. Maybe they should have been reading more Margaret Atwood.

Medicare will cut Social Security’s “raise” in 2012

October 12, 2011

A girl tries to climb a snow-packed wall in a labyrinth at the Sapporo Snow Festival in Sapporo in northern Japan February 5, 2008.  REUTERS/Yuriko Nakao (JAPAN)After two years without an inflation adjustment, the Social Security Administration is expected to announce a 2012 cost-of-living adjustment (COLA) of more than 3 percent next week. That would be a sizable raise in this economy, and very welcome news to seniors hit hard by rising costs, slumping home equity and very low returns on fixed-income investments.

The rich respond to Obama’s “Buffett Rule”

September 21, 2011

Once the debt ceiling rancor faded, financial gurus and observers had little reason to think debate on taxing the wealthy would ignite again before Nov. 23. That’s when the 12-member congressional super committee issues its recommendations on finding at least $1.2 trillion in deficit reduction.

Fury brewing at ratings agencies as markets gyrate

August 9, 2011

Carnival revellers are silhouetted as they carry a burning wooden wagon in Liestal, near Basel, February 21, 2010.  REUTERS/Michael BuholzerSo let me get this straight.

Ratings agencies helped spark the financial meltdown of 2008-9, when they deemed that steaming piles of mortgage junk were brimming with triple-A goodness. They were wrong – and epically so.

Debt deal puts off tax decisions for another day

August 3, 2011

The legislation to lift the debt ceiling gives the country a framework for more than $2 trillion in budget cuts over 10 years and avoids default. But it also puts off discussion of taxes for another day — and it’s unlikely that we’ll see any movement on tax reform or significant tax changes until 2012.

The case for financial repression: Mild inflation, low interest rates

By Guest Contributor
August 1, 2011

Rick Ashburn is a chartered financial analyst and the founding Principal Chief Investment Officer of Creekside Partners, based in Lafayette, California. The opinions expressed here are his own.

Debt ceiling: 10 reasons not to move your money now

July 28, 2011
With the markets getting more and more nervous as the days tick by to August 2 without a debt deal, one thing that might be keeping the bottom from falling out is the calm of financial advisers. To borrow from former President George W. Bush, they are urging clients to “stay the course.” And behold, they cite many sensible reasons for doing so.

Reuters Money reached out to members of the financial community to see how they’re calming the folks they advise. An overwhelming majority expressed faith that lawmakers would broker a deal by the deadline, and markets would adjust regardless.

3 more gloomy bargains: How much the debt deal will cost you

July 22, 2011

No matter what plan Washington concocts to reduce the deficit, it’s going to cost you something. “Shared sacrifice” is in vogue, but your pain will be bigger if you’re unfortunate enough to earn wages or need social benefits.

5 ways a big deficit deal will whack your retirement

July 21, 2011

If Washington strikes a big deal on deficit reduction to avoid debt default, it’s going to be bad news all around for older Americans.

5 questions about Social Security and the debt ceiling

July 19, 2011

Social Security is a pawn in the negotiations to avoid a federal debt default, and that has stirred fear and confusion among current and future beneficiaries. President Obama has threatened not to make August benefit payments in the event of a default, and signaled that he is open to cutting Social Security if it helps him secure a big deficit-reduction deal with Republicans.