Spain’s sickly economy faces a “crisis of huge proportions”, a minister said on Friday, as unemployment hit its highest level in two decades and Standard and Poor’s weighed in with a two-notch downgrade of the government’s debt.

Spain’s unemployment rate shot up to 24 percent in the first quarter, the highest level since the early 1990s and one of the worst jobless figures in the world. Retail sales slumped for the twenty-first consecutive month.

“The figures are terrible for everyone and terrible for the government … Spain is in a crisis of huge proportions,” Foreign Minister Jose Manuel Garcia-Margallo said in a radio interview.

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With Socialist leader Francois Hollande likely to become the next president of France, Europe’s hot populist anger is about to confront the cold austerity measures required by the euro zone, with a predictable result: a storm that rattles the foundations of the European economic house.

Financial traders and treasury ministers are debating this week just how much damage this political-economic collision will bring. Some argue that it could take down the structure entirely. Others insist that Germany, for all its insistence on austerity, will never let the structure collapse ”” and will make the necessary concessions to keep the common currency intact.

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Amanda Gooley andfiancé Andrew Faison are approaching their fifth anniversary ”” of being engaged.

They’ve had plenty of teasing from their friends about waiting so long ”” especially since they grew up in neighboring small towns in North Carolina and say getting married after high school or during college is “kind of what you do,” says Gooley, 24.

Before you click the link, guess the avergae cost of a wedding in 2011. Then read it all and find the answer.

Q: My cousin took us to her church when we visited her a few weeks ago, and the preacher said something about people today being just as idolatrous as people in ancient times. What do you suppose he meant by that, since we don’t worship idols like they did? — Mrs. J.Y.

A: No, we may not bow down to idols made of stone or metal as people did in ancient times (and some people in the world still do). But does that mean we don’t have our own “idols” today — that is, things we serve just as zealously as they did? I’m afraid we do….

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The UK is back in recession after a surprise 0.2% contraction in the economy in the first quarter of the year, official figures revealed today.

The decline in gross domestic product (GDP) was driven by the biggest fall in construction output for three years, while the manufacturing sector failed to return to growth, the Office for National Statistics (ONS) said.

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Apple started off the year with a bang, and that momentum has continued through its second fiscal quarter of 2012.

In fact, Apple saw its strongest March quarter ever, resulting in a net profit of $6 billion. iPhone and iPad sales continue to lead Apple’s fiscal success, delivering a combined revenue of $29.2 billion out of Apple’s total $39.2 billion in revenue Q2 2012.

iPhone sales have barely slowed since the debut of the iPhone 4S in early October….

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In a rare concession, the German Chancellor admitted that austerity alone would not solve the crisis but she insisted that the wave of political opposition to fiscal discipline was wrong.

“We’re not saying that saving solves all problems,” Ms Merkel said at a conference in Berlin. “[But] you can’t spend more than you take in. You can’t live your whole life this way. Everybody knows this.”

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For much of this year, Americans’ economic confidence has been threatening to break out of the range seen since Gallup began Daily tracking of economic confidence in January 2008. It actually did so by one percentage point when economic confidence reached a new weekly high of -17 in the week ending March 25. After pulling back in early April, confidence in each of the past two weeks is once again within two points of that previous weekly high.

The continued high confidence seen this past week is likely due, at least in part, to gas prices stabilizing and even showing signs of decline….

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When you write a post on Facebook about your sudden craving for blue cheese, an advertisement for gout prevention might suddenly pop up on your page. Post the phrase “bacon tidbits,” and you might get an ad for a book called “Forbidden Lessons in a Kabul Guesthouse.”

The robots are watching us. They’re announcing to the world that we just looked at Eames chairs on Pinterest and that we’ve listened to Taylor Swift and Conway Twitty on Spotify. They’re sending us ads labeled “Being Conservative in South Carolina” simply because we checked our e-mail in Charleston. They’re broadcasting the fact that we just read an article called “How to Satisfy Your Partner in Bed.” They’re trumpeting ”” with an undue amount of enthusiasm ”” that we just scored 6 points on Words With Friends for making the word “cat.”

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If Spain’s crisis deepens Europe’s recession, it could tip the entire world economy into a stubborn slump. The ramifications would be enormous, including: reduced odds of Barack Obama’s reelection, assuming a weaker U.S. recovery; less political cohesion and more social unrest in Europe (even now, the European Union’s unemployment rate is 10.2 percent); and growing pressures in many countries for economic nationalism and protectionism.

Spain is suffering a hangover from what economist Desmond Lachman of the American Enterprise Institute calls “the mother of all housing booms.”

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President Sarkozy, whose personal unpopularity dominated the campaign, is the first head of state to come second in a first-round poll since France switched to presidential politics 50 years ago. Even a barn-storming performance by Mr Sarkozy in TV debates with Mr Hollande in the next two weeks seems unlikely to save his presidency in the two-candidate, second round on 6 May.

In a speech to ecstatic supporters in his fiefdom in Tulle, south-west France, Mr Hollande said: “I am now in a position of strength to be the next President of the Republic…This vote is a disavowal of the policies, and the personal behaviour, of the outgoing candidate, whose campaign in recent weeks has finally served the interests of the National Front.”

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The college class of 2012 is in for a rude welcome to the world of work.

A weak labor market already has left half of young college graduates either jobless or underemployed in positions that don’t fully use their skills and knowledge.

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Back in 2004, as Google prepared to go public, Larry Page and Sergey Brin celebrated the maxim that was supposed to define their company: “Don’t be evil.”

But these days, a lot of people ”” at least the mere mortals outside the Googleplex ”” seem to be wondering about that uncorporate motto.

How is it that Google, a company chockablock with brainiac engineers, savvy marketing types and flinty legal minds, keeps getting itself in hot water? Google, which stood up to the Death Star of Microsoft? Which changed the world as we know it?

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With economic growth still anaemic and tax revenue down, governments are hoping that they can find additional funds by allowing more gambling.

In New York, Governor Andrew Cuomo is proposing to change the state Constitution in order to legalize commercial casinos.

In Michigan two separate casino development campaigns are under way to persuade voters, who have to approve new casinos, to allow a total of 15 new casinos across the state….

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The Congressional Budget Office said Thursday that 45 million people in 2011 received Supplemental Nutrition Assistance Program benefits, a 70% increase from 2007. It said the number of people receiving the benefits, commonly known as food stamps, would continue growing until 2014.

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Some of the same spoilers that interrupted the recovery in 2010 and 2011 have emerged again, raising fears that the winter’s economic strength might dissipate in the spring.

In recent weeks, European bond yields have started climbing. In the United States and elsewhere, high oil prices have sapped spending power. American employers remain skittish about hiring new workers, and new claims for unemployment insurance have risen. And stocks have declined.

There is a “light recovery blowing in a spring wind” with “dark clouds on the horizon,” Christine Lagarde, managing director of the International Monetary Fund, said Thursday….

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Here’s a breakdown of the numbers. The report, citing White House budget office figures, estimated $46 billion of costs under the Troubled Asset Relief Program to support struggling homeowners. It showed $2 billion of overall gains on the Treasury’s investments in various bailed-out companies, such as American International Group Inc. (AIG), some of which are held outside of TARP. Other Treasury programs to buy mortgage-backed securities and to guarantee money-market funds would produce $26 billion of gains, the report said.

Add up those categories, and the projected net cost so far is $18 billion. On top of that, there’s the current net cost of the government-sponsored housing financiers Fannie Mae and Freddie Mac, which the Treasury pegged at $151 billion. So how did Treasury project a potential gain overall?

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…the team around him has quietly started to have doubts about victory, and is debating the best strategy to try to overcome serious odds.

Mr. Sarkozy is in deep trouble and is looking, for now, as if he could be the first one-term French president since 1981. He appears to be running neck and neck with his main challenger, the Socialist candidate François Hollande, in the first round of voting on Sunday, when 10 candidates are competing. But all the opinion polls show Mr. Sarkozy losing to Mr. Hollande in a face-off two weeks later.

His possible defeat carries implications that would radiate far beyond Paris. Mr. Sarkozy has had contentious but valuable relationships with Chancellor Angela Merkel of Germany, a fellow conservative, on European and euro zone issues; with the British on defense issues, including the Libyan war; and with President Obama on issues involving Iran and Israel, NATO and Russia.

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“Vocation of the Business Leader” may thus be that rarest of Vatican texts: Something that isn’t just dissected by vaticanisti and other denizens of the church’s chattering classes, but actually used out in the field. One can imagine, for instance, retreats for business leaders organized around the document, culminating in the examination of conscience it invites. One also hopes it becomes a cornerstone of business education, especially in Catholic venues. There are some 1,800 church-affiliated colleges and universities worldwide, roughly 800 of which have business programs, and this text would be a compelling addition to their curricula.

…the real novelty of “Vocation of the Business Leader” is that it manages to bring Catholic social teaching down to earth without actually floating a single concrete policy proposal. Instead, it asks hard questions and trusts people of intelligence and good will to figure out the right answers.

Socrates would be proud.

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A new revelation of young American soldiers caught on camera while defiling insurgents’ remains in Afghanistan has intensified questions within the military community about whether fundamental discipline is breaking down given the nature and length of the war.
The photographs, published by The Los Angeles Times on Wednesday, show more than a dozen soldiers of the 82nd Airborne Division’s Fourth Brigade Combat Team, along with some Afghan security forces, posing with the severed hands and legs of Taliban attackers in Zabul Province in 2010. They seemed likely to further bruise an American-Afghan relationship that has been battered by crisis after crisis over the past year, even as the two governments are in the midst of negotiations over a long-term strategic agreement.

The images also add to a troubling list of cases ”” including Marines videotaped urinating on Taliban bodies, the burning of Korans, and the massacre of villagers attributed to a lone Army sergeant ”” that have cast American soldiers in the harshest possible light before the Afghan public.

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Europe threw its weight behind Spain yesterday after a diplomatic war broke out between Madrid and Buenos Aires over Argentina’s decision to take over a multibillion-pound energy company.

In the wake of tensions between Britain and Argentina on the anniversary earlier this month of the Falklands invasion, President Cristina Fernández de Kirchner risked further alienation around the world by pushing ahead with the nationalisation of Yacimientos Petrolíferos Fiscales (YPF), in which Repsol, a Spanish energy group, has a majority shareholding.

In response, Spain launched a trade and diplomatic offensive against Argentina, rallying allies in Brussels and the G20 against the move to take over 51 per cent of YPF.

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U.S. unemployment, as measured by Gallup on a preliminary basis without seasonal adjustment, declined to 8.2% in mid-April from 8.4% in March. However, the government’s likely seasonal adjustment of 0.3 percentage points leads to a Gallup seasonally adjusted U.S. unemployment rate of 8.5% in mid-April, up from 8.1% last month.

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I fully intended to ignore Spain this week. Really, truly I did. I had my letter all planned, but then a few notes drew my attention, and the more I reflected on them, the more I realized that the inflection point that I thought the European Central Bank had pushed down the road for at least a year with their recent €1 trillion LTRO is now rushing toward us much faster than ECB President Mario Draghi had in mind when he launched his massive funding operation.

So, we simply must pay attention to what Spain has done this week ”“ which, to my surprise, seems to have escaped the attention of the major media. What we will find may be considered a tipping point when the crisis is analyzed by some future historian. And then we’ll get back to some additional details on the US employment situation, starting with a few rather shocking data points. What we’ll see is that for most people in the US the employment level has not risen, even as overall employment is up by 2 million jobs since the end of the recession in 2009. And there are a few other interesting items. Are we really going to see 2 billion jobs disappear in the next 30 years?

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The last major overhaul of the tax code took place when a Democratic Congress, working with Reagan, passed the Tax Reform Act of 1986. It simplified the code, decreased individual tax rates, increased corporate taxes and significantly reduced the number of exemptions, deductions, credits and loopholes. The reform also set the tax rate for capital gains at about 23 percent, which was reduced dramatically to around 15 percent as part of the Bush tax cuts.

Ever since the 1986 reform was passed, Congress has been systematically chipping away at the tax code, adding literally thousands of changes and additional tax benefits, exemptions and loopholes, junking up the tax code and making it more complicated and less fair.

“It’s out of control, says Eugene Steuerle, an Urban Institute economist. “They keep throwing junk in the tax code which adds to the deficit.”

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Investigators now suspect that as many as 21 prostitutes were brought by U.S. Secret Service and military personnel to the Hotel Caribe in Cartagena, Colombia, last week during a night of carousing, a dramatic increase in the number of women previously disclosed by government officials.

Officials said that 11 Secret Service and nine military personnel are suspected of the misconduct that took place in advance of President Obama’s trip to the country for an international economic summit. Initially reports suggested that the military personnel, some of whom were confined to their rooms after the scandal broke, had merely violated curfew, while the Secret Service members had engaged with prostitutes.

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Truro Anglican Church and the Episcopal Diocese of Virginia announced today a settlement that concludes five years of litigation that arose after Truro Anglican and other parishes left the Episcopal Church in 2006 to become part of what is now the Anglican Church in North America.

The settlement follows a January ruling in which the Circuit Court of Fairfax County held that all real and personal property held by the parishes at the time they left the denomination belongs to the Diocese.

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The current economic recovery is more of an uphill slog than any other since World War II for a simple reason: lots more debt.

Record-high debt levels are giving this recovery no chance to exhale. As soon as the economy climbs one hill, another ascent begins.

Combined U.S. household debt and government debt added up to more than $30 trillion, or 200% of GDP, at the end of 2011.
That’s $155,000 per working-age (18-64) adult. By that measure, debt was 50% higher in real terms at the start of this recovery than in 2001. Compared to the 1991 and 1982 recoveries, debt was, respectively, 88% and 230% higher.

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We ought to leave “happiness” to novelists and philosophers ”” and rescue it from the economists and psychologists who think it can be distilled into a “science” and translated into pro-happiness policies. Fat chance. Government can often mitigate sources of unhappiness (starvation, unemployment, disease), but happiness is more than the absence of misery. If we could manufacture happiness, we could repeal the “human condition.”

Somehow this has escaped the social scientists who want to make happiness the goal of government. They argue that economic output (gross domestic product) doesn’t measure everything that’s important in life ”” family, friends or religion, for example. True, but it doesn’t follow that “happiness” can be targeted as an alternative. No matter….

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For many years now, we’ve heard sombre warnings that the white countries’ easy dominance of the world would be eclipsed by the developing nations.

One day, we were told, the fast-growing economies of the poor countries would be bigger than those of the more sclerotic rich countries.

The Australian Treasury has now calculated this is no longer a looming prospect but that, on a key measure, it has already happened. The Treasury estimates the developing countries’ collective gross domestic product overtook that of the rich world last month.

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When researchers ask cohabitors…questions, partners often have different, unspoken ”” even unconscious ”” agendas. Women are more likely to view cohabitation as a step toward marriage, while men are more likely to see it as a way to test a relationship or postpone commitment, and this gender asymmetry is associated with negative interactions and lower levels of commitment even after the relationship progresses to marriage. One thing men and women do agree on, however, is that their standards for a live-in partner are lower than they are for a spouse.

Sliding into cohabitation wouldn’t be a problem if sliding out were as easy. But it isn’t. Too often, young adults enter into what they imagine will be low-cost, low-risk living situations only to find themselves unable to get out months, even years, later. It’s like signing up for a credit card with 0 percent interest. At the end of 12 months when the interest goes up to 23 percent you feel stuck because your balance is too high to pay off. In fact, cohabitation can be exactly like that. In behavioral economics, it’s called consumer lock-in.

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