The wealth of nations, the [Social Trends Institute] report says, is inextricably associated with the health of families. And, amongst other factors, the global retreat from marriage and from family has depressed economic growth and has deeply hurt two generations of children.

“Evidence drawn from Europe and North America indicates that children who are raised in an intact married home are more likely to excel in school and be active in the labour force as young adults,” the report says. “An abundant social-science literature, as well as common sense, supports the claim that children are more likely to flourish, and to become productive adults, when they are raised in stable, married-couple households.” Yet, with the global decline of these households, “the sustainability of humankind’s oldest organization, the family ”“ the fount of fertility, nurturance and human capital ”“ is now an open question.”

The report cites studies that indicate that American children who are raised outside of “an intact married home” are two to three times more likely to suffer serious social and psychological problems….

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A letter from the Cathedral Vestry begins as follows:

For several years the Cathedral has been having difficulty meeting the expenses of our beautiful buildings. Declining membership and an inability to attract new members and pledges in sufficient numbers has added to the financial uncertainty.

The Cathedral has been on the verge of closing several times over the last five years as it has used up its reserves. During that period, several committees and working groups from the Cathedral and Diocese have looked at options and ideas for bringing in additional funds. The Cathedral has also reduced expenses dramatically in an effort to balance its budget.

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The Supreme Court on Wednesday (Oct. 5.) will hear one of most important religion cases in decades, centered on the degree to which religious institutions should be exempt from anti-discrimination laws.

The case started at a Lutheran elementary school in Michigan where a teacher claimed she was fired in violation of the Americans With Disabilities Act.

The question before the justices concerns the “ministerial exception,” a 40-year-old legal doctrine that protects churches and other religious institutions from government interference in their employment decisions.

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The 17 European Union nations that share the euro don’t have that much time, of course, to convince investors that they have a plan to hold the currency together and prevent a run on the Continent’s banks. Some analysts say they have less than five weeks, until the Group of 20 summit meeting in November; others say a bit longer.

But rapid action comes hard to a union that works in increments, with political agreement required at every step.

In the short term, Greece remains the central problem. Two bailouts have not been enough. Greek public debt continues to mount, and so does the pressure on the government to find more revenue and make more cuts. Europe’s strategy, to the extent it can be discerned, is to put off restructuring Greece’s debt as long as possible and build up enough backing for a bailout fund so that banks with large exposure to the sovereign debt of Greece and other troubled euro-zone countries, like Portugal, Ireland, Italy and Spain, can survive an all-but-inevitable Greek default.

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Money flows are even more out of kilter. Cross-border liabilities have jumped from $15 trillion to $100 trillion in fifteen years, or 150pc of global GDP. This creates a very big risk.

“Gross financial flows can stop suddenly, or even reverse. They can overwhelm weak or weakly regulated financial systems,” said Mr [Stephen] Cecchetti.

Well, yes, this is now happening. Did anybody think about this when they unleashed globalisation with its elemental deformity, free trade without free currencies?

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Greece’s government acknowledged Sunday that it will miss its deficit targets this year, but moved ahead with a controversial plan to slash thousands of public sector jobs to meet the demands of its international creditors.

“I want to repeat that we will be unswerving in our goal: to fulfill all that we have promised to ensure the credibility of our country,” Prime Minister George Papandreou told an extraordinary cabinet meeting called to approve the country’s 2012 draft budget as well as the job-cutting plan.

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Plenty of lawmakers are against tax breaks and so-called loopholes. Unless, of course, they personally helped create them.

The Senate Republican leader, Mitch McConnell, for instance, says he is open to ending tax breaks for special interests. But when it comes to a tax break he secured in 2008 for the owners of thoroughbred racehorses, he argues that the measure is essential for the protection of jobs in his home state of Kentucky.

Senator John Kerry, Democrat of Massachusetts, says he too wants to eliminate such breaks, except when it comes to beer. He is one of the main supporters of a proposal that would cut taxes for small beer makers like the Samuel Adams Brewery in Boston.

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We’re just stuck?

If we don’t deal with it ”“ if we don’t proactively say we’re going to get our deficit under control ”“let me put it this way: My personal belief is that if we do proactively get our long-term budget issues under control, the bond market will say, “Okay, you’re credible and we will buy your bonds, because you have put yourself on a credible path ”“ whether it’s through cuts, whether it’s through tax increases, however you want to do it ”“ but you have to do it. But you have shown us a credible way to get to the place where the growth rate of your deficit is below the growth rate of nominal GDP.”

But if we don’t do that, my wine bottle of pain becomes a jeroboam and we end up downing it all at once.

That sounds ugly.

It is. It will force budget cuts; it will force tax increases of the magnitude that no one is ready to contemplate. We’re talking cuts in Medicare, cuts in education, in defense, in spending of all kinds. That would create a depression, a true depression that would last 4-5 years, push unemployment to 20%-25%….

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Check it out–heh.

Lehigh Acres, Florida–Joseph Reilly lost his vacation home here last year when he was out of work and stopped paying his mortgage. The bank took the house and sold it. Mr. Reilly thought that was the end of it. In June, he learned otherwise. A phone call informed him of a court judgment against him for $192,576.71. It turned out that at a foreclosure sale, his former house fetched less than a quarter of what Mr. Reilly owed on it. His bank sued him for the rest. The result was a foreclosure hangover that homeowners rarely anticipate but increasingly face: a “deficiency judgment.” Until recently, “there was a false sense of calm” among borrowers who went through foreclosure, Mr. Englett says. “That’s changing,” he adds, as borrowers learn they may be financially on the hook even after the house is gone. In Mr. Reilly’s case, “there’s not a snowball’s chance in hell that we can pay” the deficiency judgment, says the 39-year-old man, who remains unemployed. He says he is going to speak to a lawyer about declaring bankruptcy next week, in an effort to escape the debt.

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…Hopes are likely to fade, for three reasons. First, for all the breathless headlines from the IMF/World Bank meetings in Washington, DC, Europe’s leaders are a long way from a deal on how to save the euro. The best that can be said is that they now have a plan to have a plan, probably by early November. Second, even if a catastrophe in Europe is avoided, the prospects for the world economy are darkening, as the rich world’s fiscal austerity intensifies and slowing emerging economies provide less of a cushion for global growth. Third, America’s politicians are, once again, threatening to wreck the recovery with irresponsible fiscal brinkmanship. Together, these developments point to a perilous period ahead.

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The crowding has become so severe that county officials acknowledge something must be done. They are discussing adding inpatient beds and transferring more patients to other hospitals, among other steps.

“A nine- or 10-hour wait is never a good thing,” said Dr. Arthur Kellermann, a Rand Corp. expert on emergency medicine. “At the least, it is demeaning, frustrating, uncomfortable, and when tempers flare, it can be dangerous.”

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Households, after all, are far more reliant on paychecks (and government benefits) now than during the credit-fueled boom. Consumer credit as a percentage of personal spending, for example, rose from 18.4% in the early 1990s to a peak of 26.3% in December 2008.

It has since dropped sharply, notes Omair Sharif of RBS Securities. But with the level still at 22.8% as of July, “we’re probably not even halfway through” the household debt-shedding process, he says.

That has two broad implications for consumer spending and, in turn, U.S. growth.

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Bank of America, the nation’s biggest bank, said on Thursday that it planned to start charging customers a $5 monthly fee when they used their debit cards for purchases. It was just one of several new charges expected to hit consumers as new regulations crimp banks’ profits.

Wells Fargo and Chase are testing $3 monthly debit card fees. Regions Financial, based in Birmingham, Ala., plans to start charging a $4 fee next month, while SunTrust, another regional powerhouse, is charging a $5 fee.

The round of new charges stems from a rule, which takes effect on Saturday, that limits the fees that banks can levy on merchants every time a consumer uses a debit card to make a purchase. The rule, known as the Durbin amendment, after its sponsor Senator Richard J. Durbin, is a crucial part of the Dodd-Frank financial overhaul law.

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Chancellor Angela Merkel won her “own majority” for the bill, narrowly averting the collapse of her government, but only after pledging that there was no grand plan committing Germany to vast and unlimited liabilities.

Horst Seehofer, leader of Bavaria’s Social Christians CSU, said his party would go “this far, and no further”, insisting any expansion of the rescue machinery was out of the question. “The financial markets are beginning to ask whether Germans can afford all this help. We must not risk the creditworthiness of the German state,” he said.

Norbert Lammert, the Bundestag’s president, said lawmakers felt they had been “bounced” into backing far-reaching demands and warned that Germany’s legislature would not give up its fiscal sovereignty to any EU body.

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The head of Europe’s markets regulator warned banks to be consistent in their valuations of sovereign debt amid concern some lenders have failed to record sufficient losses on Greek bonds.

Steven Maijoor, chairman of the European Securities and Markets Authority, likened the lack of transparency about banks’ individual holdings of government debt to the subprime mortgages that triggered the credit crisis.

“Lack of transparency regarding exposures to subprime mortgages created a situation of uncertainty about the financial positions of banks,” he said in a speech in Vienna today, according to a transcript released by ESMA on its website. Recently, “a lack of transparency from banks on their exposures to sovereign debt and related instruments are generating new suspicions about the conditions of individual banks and this requires similar answers in terms of transparency.”

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New Zealand’s largest insurer of churches and heritage buildings announced yesterday that it would stop offering earthquake coverage throughout the country.

The British-owned Ansvar Insurance suffered $700 million worth of losses in the Christchurch earthquakes, including losses on the Anglican and Catholic cathedrals and the Christchurch Arts Centre.

It is the first insurer to stop offering earthquake coverage nationally since the disasters, which are expected to cost insurers more than $15 billion.

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For students with their sights set on a private college, the anxiety comes as a one-two punch: first from competing with thousands of others for a precious few spots, then from trying to scrape together up to $50,000 a year to foot the bill.

Starting next year, Seton Hall University will try to ease that follow-up blow for early applicants with strong academic credentials, giving them two-thirds off the regular sticker price for tuition, a discount of some $21,000. For New Jersey residents, who constitute about 70 percent of Seton Hall’s undergraduates, that would make the cost equivalent to that of Rutgers University, the state’s flagship public institution; for those from out of state, the private school would be much cheaper than the public one.

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The Anglican Bishop of Blackburn has pledged church support for BAE Systems workers in Lancashire who are set to lose their jobs.

In Lancashire, 565 jobs will be shed from 3,970 at Samlesbury, and 843 posts will go from 6,537 at Warton.

Bishop Nicholas Reade said every Christian in the county should ask what they can do to help the BAE workers.

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The commission’s own research shows that such a tax would have a negative impact on growth: Algirdas Semeta, the European commissioner for taxation, said this week that it would cut GDP across the EU by about 0.5 per cent. At a time when Europe is struggling to grow at all ”“ and when growth is essential to dragging its economies out of the mire ”“ this would be a crippling reverse.

One would have thought that this assessment would be enough to kill the idea stone dead ”“ especially since the Government has made it clear that Britain will veto the plan, since such a tax would only make sense if it were introduced globally, to avoid a mass exodus of financial institutions from the area affected. Mr Barroso, however, has other ideas….

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German lawmakers approved an expansion of the euro-area rescue fund’s firepower, freeing the way for European officials to focus on what next steps may be needed to stem the debt crisis.

The lower house of parliament passed the measure with 523 votes in favor and 85 against, granting the fund powers to buy bonds in secondary markets, enable bank recapitalizations and offer precautionary credit lines. It raises Germany’s guarantees to 211 billion euros ($287 billion) from 123 billion euros. The main opposition Social Democrats and Greens said before today’s session in Berlin that they’d vote with Chancellor Angela Merkel’s government, assuring passage.

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There is an optimistic scenario for the U.S. economy: Europe gets its act together. The pace of world growth quickens, igniting demand for U.S. exports. American politicians agree to a credible compromise that gives the economy a fiscal boost now and restrains deficits later. The housing market turns up. Relieved businesses hire. Relieved consumers spend.

But there are at least two unpleasant scenarios: One is that Europe becomes the epicenter of a financial earthquake on the scale of the crash of 1929 or Lehman Brothers 2008. The other is that Europe muddles through, but the U.S. stagnates for another five years, mired in slow growth, high unemployment and ugly politics.

No one would intentionally choose the second or third, yet policy makers look more likely to stumble into one of those holes than find a path to the happier ending.

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Introducing a financial transaction tax across the European Union would wipe out or displace up to 90 per cent of derivatives transactions and hit the bloc’s economic output by almost 1.8 per cent over the long term, according to an official impact assessment.

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Update: “Trade groups hit EU’s ‘misguided’ transaction tax” has some early response, including this:

Julie Patterson, director of authorised funds and tax at the Investment Management Association, warned that such a tax would “penalize ordinary long-term savers” and would drive institutional fund managers out of Europe.
She said: “Ordinary European investors will get hit, while the very high net worth individuals and institutional funds will just move their business outside of Europe.

“The tax would happen at every level. It isn’t just the investment banks selling something and the fund or individual buying it. It’s on every party in the chain.”

At a time when many Americans say they’re having trouble getting good health care, a new survey of doctors said just the opposite.

A poll of 627 primary care physicians showed that nearly half believe their patients in their medical practice are getting too much unnecessary care, prompting the survey’s authors to call for reform of the industry.

The survey – published in the September 26 issue of the Archives of internal Medicine – showed that only 6 percent of doctors felt patients received too little care.

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In “Boomerang” Mr. Lewis captures the utter folly and madness that spread across both sides of the Atlantic during the last decade, as individuals, institutions and entire nations mindlessly embraced instant gratification over long-term planning, the too good to be true over common sense.

Greece, Mr. Lewis writes, ran up astonishing debts ”” from high-paying government jobs and generous pensions, as well as waste, bribery and theft ”” that came to “about $1.2 trillion, or more than a quarter-million dollars for every working Greek.” In just the last 12 years, he says, “the wage bill of the Greek public sector has doubled, in real terms” with the average government job now paying almost three times the average private sector job. Those who work in jobs classified as “arduous” can retire and start collecting pensions, he adds, “as early as 55 for men and 50 for women”; more than 600 Greek professions have somehow managed “to get themselves classified as arduous: hairdressers, radio announcers, waiters, musicians, and on and on and on.”

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When Angela Merkel, the German chancellor, met Pope Benedict in Berlin last week, it appears that their conversation focused more on Mammon than on God.

“We spoke about the financial markets and the fact that politicians should have the power to make policy for the people, and not be driven by the markets,” Ms Merkel said after the talks. “This is a very, very big task in today’s time of globalisation.”

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Nearly a third of the nation’s cities are laying off workers this year. More than half have canceled or delayed infrastructure projects. And two out of five have raised their fees.

The catalog of service cuts and fee increases comes as America’s cities are bracing for what they expect will be their fifth straight year of declining revenues, according to a survey of city finance officers to be released on Tuesday by the National League of Cities.

One of the main culprits is the property tax, which many cities and local governments rely on heavily. Property tax collections, which are usually quite resilient, are projected to fall by 3.7 percent this year ”” their second year in a row of declines ”” as tax assessments belatedly catch up with the lower property values left behind by the battered real estate market. Sales tax collections are projected to be slightly higher this year, but income tax collections are projected to be slightly lower, as unemployment and lower wages take their toll in many places.

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Boeing Co. handed over the key for its first 787 wide-body jet to All Nippon Airways on Monday after years of delays, marking a long-awaited milestone in the history of commercial flight.

Thousands of workers gathered for the ceremony at Paine Field, outside the building where the planes are assembled, with many finding shelter from the rain under the wings of two yet-to-be-delivered 787s. The actual first ANA 787 was nearby at the Future of Flight aviation center, where it was being prepared for a reception Monday night and its flight to Japan today. The plane goes into service in November.

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When the unemployment rate rose in most states last month, it underscored the extent to which the deep recession, the anemic recovery and the lingering crisis of joblessness are beginning to reshape the nation’s economic map.

The once-booming South, which entered the recession with the lowest unemployment rate in the nation, is now struggling with some of the highest rates, recent data from the Bureau of Labor Statistics show.

Several Southern states ”” including South Carolina, whose 11.1 percent unemployment rate is the fourth highest in the nation ”” have higher unemployment rates than they did a year ago. Unemployment in the South is now higher than it is in the Northeast and the Midwest, which include Rust Belt states that were struggling even before the recession.

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