Senate Passes Bailout
By now everyone knows that the Senate passed the bailout. The bill has been sweetened in the hopes that it will pass in the House. Proponents say that it will free up credit and prevent us from going into another depression. Opponents say it only helps the Wall Street people who got us into this mess in the first place and puts taxpayers at risk. Whatever side you’re on, most people agree that something needs to be done.
Hormones, money, sex, and risk
The U.S. News and World Report recently reported on a study that claims “financial risk-taking is linked to testosterone.”
So… our country is in economic peril because of manly men?
Apparently. According to a new study the higher the testosterone level, the higher the financial risk.
The Evolution and Human Behavior journal claims that the new study is “the first study to directly examine the relationship between testosterone and financial risk-taking.”
The study included an investment game where 100 men (mostly Harvard students) were given money to invest.
The bottom line? Risk could be biological. The bigger the risk, the bigger the payoff, the more money you make, and the better your chances of finding a mate. So we’re about to spend $700 billion because a couple of pumped up traders want to get laid more? Interesting.
Jobless Rate at 7-Year High
It is not a good time to be looking for a job. The jobless rate is the highest it’s been in 7-years, and expected to grow.
Due to the weakening economy and Hurricanes Ike and Gustav (which added about 45,000 new claims), 497,000 new unemployment applications have been filed. This is the highest since the September 11 attacks. In addition to this, 3.59 million people continue to receive benefits—the highest total in 5 years.
The weakening economy and financial crisis will most likely cause even more job cuts. The banks that have just been bought will most likely have layoffs, and tightening credit means less spending money.
Jobless claims are at elevated levels even excluding the hurricanes. Weekly claims have now topped 400,000 for 11 straight weeks—a level that economists consider a sign of recession. A year ago, claims stood at 324,000.
The news is not good for the currently unemployed. If you’ve been looking for a job, expect more company coming to the unemployment line.