Topic: Martin Feldstein

Stocks plunge: four factors behind investor pessimism

The stock market is tanking. At midday Aug. 4, the Dow had fallen 300 points. The bond market is also beginning to growl like a bear. Investors are buying long-dated bonds while eschewing shorter-term securities to protect their assets, a clear indication that they feel the economy is likely to weaken further. High-profile economists are also turning gloomy. Former Treasury Secretary Lawrence Summers put the chances of another recession at 1-in-3; Harvard economist Martin Feldstein put it at 1-in-2. What's behind all the pessimism? Here are four big factors that are weighing on stocks and could determine the course of the global economy in the coming months:

Inside Job: movie review

Matt Damon narrates 'Inside Job,' a meticulous exploration of what led to the crash of 2008.

To avoid the double-dip, (1) lower taxes, (2) raise taxes. Huh?

Some economists propose lowering payroll taxes and then raising marginal rate taxes. Here's another perspective.

Feldstein says don’t make the Bush tax cuts permanent

Conservative economist Martin Feldstein argues that extending the Bush tax cuts for two years would provide time for a reexamination of the tax code before 2012. The Obama administration should take note.

Is comparing medical treatments akin to 'rationing' care?

Bills in Congress call for panels to conduct 'comparative effectiveness research.' Opponents say it could be the first step to government allocation of healthcare resources.

Palin misses mark on cap-and-trade critique

How stimulus bill reignited the partisan divide

Deficit projection 'stuns' Congress

Red-ink forecast could make it a lot harder to craft an economic stimulus package.

Obama's case for action

Spending big on the economy is less risky than doing too little, he asserted Thursday.

Defense spending as 'stimulus'?

Pentagon's generous budget is not likely to see cuts soon, even if Iraq war starts to wind down.

Who advises candidates on economic crisis?

Both pick mainstream experts, but Obama’s are more interventionist.

How economy looks to the man who wrote the book

Nobel laureate Paul Samuelson blames crisis partly on 'fiendish' financial engineering on Wall Street.

Imports fall, improving U.S. trade balance

The shift reflects consumer stress, but it could help boost US manufacturers.

Profile of a (maybe) recession

Some analysts think the slowdown may be confined largely to the housing market.

Now, economy tops war in election

Indicators like high oil prices and the slumping stock market have voters concerned.

As economy lags, what levers to pull?

Pressure is mounting for the US government to act soon to prevent a recession.