Wall Street Journal, by Arthur Laffer  
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People can change the volume, the location and the composition of their income, and they can do so in response to changes in government policies. It shouldn't surprise anyone that the nine states without an income tax are growing far faster and attracting more people than are the nine states with the highest income tax rates. People and businesses change the location of income based on incentives. Likewise, who is gobsmacked when they are told that the two wealthiest Americans—Bill Gates and Warren Buffett—hold the bulk of their wealth in the nontaxed form of unrealized capital gains?
 
 
By: Jeff Cox
CNBC.com
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Stocks are likely to continue their aggressive decline and shed another 20 percent in value as the world economy weakens, noted economist Nouriel Roubini told CNBC.i

As the market slides into correction territory, Roubini said weakness in euro zone countries and a slowdown in the US and other developed countries will make things even more difficult for investors in the months ahead.
 
 
Associated Press, by Martin Crutsinger
Posted By: NorthernDog
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WASHINGTON -- The Treasury Department said Monday it will lose $1.6 billion on a loan made to Chrysler in early 2009. Taxpayer losses from bailing out Chrysler and General Motors are expected to rise as high as $34 billion, congressional auditors have said. Treasury said Monday that Chrysler repaid $1.9 billion of a $4 billion loan, which was extended before the company filed for Chapter 11. The government hopes to get another $500 million from the company that emerged from bankruptcy, Chrysler Group LLC.
 
 
Author: Mike Brownfield
Posted May 14th, 2010 at 9:05am in Enterprise and Free Markets, Ongoing Priorities
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House Majority Leader Steny Hoyer (D-MD) once said that the “most basic responsibility of governing is to pass a budget.” Yesterday it became clear that Congress has decided to shirk that responsibility, as word broke that the House likely will not pass a budget resolution for the first time since the modern budget process was created in 1974.
 
 
 
 
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Reuters, by Jonathan Stempel   
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NEW YORK - U.S. bankruptcy filings resumed their upward climb in the first quarter, nearly equaling their highest level since 2005, as high unemployment and a still-strained housing market squeezed consumers. There were 388,148 filings between January and September, up 17 percent from 330,394 a year earlier, according to data released Friday by the Administrative Office of the U.S. Courts. Consumer filings rose 18 percent to 373,541, while business filings edged up 2 percent to 14,607. Filings also rose 4 percent from last year's fourth quarter, the government data show.
 
 
 
 
 
 
Telegraph [UK], by Edmund Conway 
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Earlier this week, the Bank of England Governor, Mervyn King, irked US authorities by pointing out that even the world’s economic superpower has a major fiscal problem -“even the United States, the world’s largest economy, has a very large fiscal deficit” were his words. They were rather vague, but by happy coincidence the International Monetary Fund has chosen to flesh out the issue today. Unfortunately this is a rather long post with a few chunky tables, but it is worth spending a bit of time with – the IMF analysis is fascinating. Its cross-country Fiscal Monitor is not easy reading