A shadow fell across America’s economic recovery on Friday, as the Labor Department’s monthly report showed that private sector job growth was considerably weaker than expected.

The headline numbers suggested a reason to be optimistic ”” employers added 431,000 jobs and the jobless rate fell to 9.7 percent from 9.9 percent in April. But the underlying numbers showed that almost all of the job growth came from the 411,000 workers hired by the federal government to help with the Census. Most of those jobs will disappear in a few months.

By contrast, the private sector created 41,000, far short of expectations of 150,000 to 180,000 jobs. And the number of long-term unemployed, those who out of work for 27 or more weeks, remained at its highest rate since the Labor Department began collecting such data in the 1940s.

“It’s a very, very grudging labor market,” said Joshua Shapiro, chief economists for MFR Inc. “A growing amount of evidence now points to this recovery taking a long time.”

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As they walk in hooded robes to the strains of “Pomp and Circumstance,” many students getting their doctorates this spring dream of heading to another university to begin their careers as tenure-track professors.

But when Elena Stover finished her doctorate in September, she headed to the poker tables. Frustrated with the limited opportunities and grueling lifestyle of academia, Stover, 29, decided to eschew a career in cognitive neuroscience for one playing online poker. She got the idea from a UCLA career counselor, who was trying to help her find employment.

“The job market is abysmal, especially within the academic system,” said Stover, who spent six years getting her doctorate at UCLA.

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Not so long ago, Memphis, a city where a majority of the residents are black, was a symbol of a South where racial history no longer tightly constrained the choices of a rising black working and middle class. Now this city epitomizes something more grim: How rising unemployment and growing foreclosures in the recession have combined to destroy black wealth and income and erase two decades of slow progress.

The median income of black homeowners in Memphis rose steadily until five or six years ago. Now it has receded to a level below that of 1990 ”” and roughly half that of white Memphis homeowners, according to an analysis conducted by Queens College Sociology Department for The New York Times.

Black middle-class neighborhoods are hollowed out, with prices plummeting and homes standing vacant in places like Orange Mound, White Haven and Cordova. As job losses mount ”” black unemployment here, mirroring national trends, has risen to 16.9 percent from 9 percent two years ago; it stands at 5.3 percent for whites ”” many blacks speak of draining savings and retirement accounts in an effort to hold onto their homes. The overall local foreclosure rate is roughly twice the national average.

The repercussions will be long-lasting, in Memphis and nationwide. The most acute economic divide in America remains the steadily widening gap between the wealth of black and white families, according to a recent study by the Institute on Assets and Social Policy at Brandeis University. For every dollar of wealth owned by a white family, a black or Latino family owns just 16 cents, according to a recent Federal Reserve study.

A long but important article–take the time to read it all.

The economy trudges ahead yet debt dogs many Americans, stressing them out even as they firm up their own financial foundations.

There are new jobs produced but old worries persisting for people despite belt-tightening and boosted savings, according to an Associated Press-GfK poll.

About 46 percent of those surveyed say they’re suffering from debt-related stress, and half of that group described their stress as “great deal” or “quite a bit.” On the other hand, about 53 percent say they feel little or no stress at all.

That’s in line with findings from last year, even though times seem better today: The economy is growing and generating jobs, and households have made progress in repairing their financial footing, trimming debt, watching spending and saving more.

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Like last week, with stocks lurching wildly with the headlines — up by triple digits one day, down the next. For the month, the Dow Jones Industrial Average dropped 7.9% and is negative for the year. The Nasdaq Composite and the Standard & Poor’s 500-stock index also are in the red for the year.

Some pretty smart people are cautious. Seth Klarman at Baupost Group is worried. John Hussman of the Hussman Funds says all sorts of warning lights have lit up across his screen. Even Ron Muhlenkamp of the Muhlenkamp Fund, who usually takes a sunnier view of things, says he has moved a big chunk of his mutual fund into cash in case there’s a plunge.

How far will it go? Mr. Hussman says the technical indicators have only been this bad 19 times before in the last half century — and on average the market plunged about 20% over the following 12 months. When markets were also high, like now, the picture’s even worse.

Ugh.

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The fear of losing benefits ”” of not being able to scramble back on to the lifeboat if you fall off ”” is a huge disincentive to change your circumstances, let alone report them. One in seven working-age households is dependent on benefits for more than half its income. More than half of all lone parents depend on the State for at least half their income. William Beveridge would be horrified to discover that the safety net he designed has become a trap, creating generations of worklessness and dwindling self-esteem. It is also creating a glut of unemployed, unwanted, unmarriageable men.

These men were overlooked during a decade of prosperity that did nothing to change their lives. At the beginning of that decade, 5.4 million working-age adults were claiming out-of-work benefits. The same number were still claiming just before the recession struck. Almost a fifth of 16 to 24-year-olds were not in education, employment or training in 1997. The number was identical in 2006. These people stayed put in the Welsh valleys, in Liverpool, in Glasgow, while Eastern Europeans travelled a thousand miles to pick up work on construction sites in London. Immigration reduced the opportunities available to white British men whose poor education made them less attractive candidates, while the benefits system undermined their motivation.

The problem affects the whole of society because of the striking correlation between male joblessness and single motherhood, particularly in the old industrial cities.

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Company executives and top drill hands on the Deepwater Horizon drilling rig argued for hours about how to proceed before a BP official made the decision to remove heavy drilling fluid from the well and replace it with lighter weight seawater that was unable to prevent gas from surging to the surface and exploding.

One employee was so mad, the rig’s chief mechanic Doug Brown testified, that he warned they’d be relying on the rig’s blowout preventer if they proceeded the way BP wanted.

“He pretty much grumbled, ‘Well, I guess that’s what we have those pinchers for,’ ” Brown said of Jimmy Harrell, the top Transocean official on the rig. “Pinchers” was likely a reference to the shear rams in the blowout preventers, the final means of stopping an explosion.

Brown said in sworn testimony on Wednesday that the BP official stood up during the meeting and said, “This is how it’s going to be.”

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With the sudden drop in construction here, jobs disappeared. This shows another problem with a growth model built on construction: Employment swings up and down dramatically.

Professor JOAQUIN ARANGO (Director, Center for the Study of Migration and Citizenship, Ortega y Gasset Foundation): The Spanish economy is labor intensive.

GJELTEN: Joaquin Arango, of the Ortega y Gasset Foundation, points out that the economic boom in Spain brought more people into the workforce but mostly in low skill areas, like construction. A lot of the jobs could be filled by foreign-born workers. Arango, a sociologist, has documented the surge in the immigrant population that began with the economic boon in the last 1990s.

Prof. ARANGO: As a percentage of the population, at the beginning of that period, was two and a half percent or so. And now it is over 12 percent.

GJELTEN: Thats dramatic.

Prof. ARANGO: Yeah, spectacular.

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5. Nobody really understands the world economy.

Sad, but true. For all the math and the theoretical models, economics remains an intellectual discipline rather than a predictive science. That is unlikely to change. Just as all the computer models in the world can’t tell you what the stock market will do tomorrow, all the world’s economists working together can’t tell you when the next crisis will come ”” or what you can do to avoid it. At any given point of time there will be economists predicting a crash and economists predicting good times along with every variant in between; some of them are bound to be right but so far this looks more like timing and luck than the repeatable and testable result of demonstrably better methods. The economics profession is full of dogmatic and pompous heretic hunters of all stripes, but as a group they are no better collectively at prediction than a similarly dogmatic and contentious group of medieval clerics. This doesn’t mean that economics is bunk (any more than theology is bunk); systematic and rigorous reflection on human economic activity yields many useful insights and an education in basic economic ideas remains an essential piece of intellectual equipment for any serious person.

Economic outcomes remain hard to predict not because economists are stupid (they aren’t, by and large) but because the world economy is continually in flux. Facts change; China rises, new industries emerge, under the influence of new economic ideas, central bankers and investors change the way they behave. Investors and entrepreneurs have mood swings: too optimistic in 2007, too pessimistic in 2008. All this change feeds back into the world system in unpredictable ways. Economics can help us understand what is happening and give us more sophisticated tools for investigating the unknown ”” but it cannot protect us from uncertainty and risk. The “unknown unknowns” will always be with us.

This means, among other things, that we are no closer to eliminating panics and crashes than the Dutch were in the wake of the Tulip Bubble.

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This spring’s college graduates face better job prospects than the dismal environment encountered by last year’s grads. But that doesn’t mean the job market is thriving.

Average starting salaries are down, and employers plan to make only 5 percent more job offers to new graduates this spring compared to last spring, when job offers were down 20 percent from 2008 levels, according to a survey by the National Association of Colleges and Employers, which tracks recruitment data.

Liam O’Reilly, who just graduated from the University of Maryland with a bachelor’s degree in history, said he had applied to 50 employers ”” to be a paralegal, a researcher for a policy organization, an administrative assistant ”” but he had gotten hardly any interviews. While continuing to search for something he truly wants, he has taken a minimum-wage job selling software that includes an occasional commission.

“Had I realized it would be this bad, I would have applied to grad school,” Mr. O’Reilly said.

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Expectations are growing that France is set to remove the right to retire at 60, as it embarks on a contentious reform of its debt-laden pension system and brings public finances back into line.

Christian Estrosi, industry minister, said on Sunday the government was “leaning towards an increase in the [retirement] age” in its talks with unions and employers’ federations, despite denials from cabinet ministers over the weekend of a decision being taken.

Although there has been much speculation that France’s legal retirement age of 60 ”“ one of the lowest in Europe ”“ would be abandoned, Mr Estrosi’s comments on national radio are the clearest statement yet of government intentions.

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Birthdays are fun; a birth itself is not. There’s a lot of screaming and groaning, and even in the easiest deliveries, there’s always the fear that something will go wrong.

The birth of a state is no less difficult. Indeed, what pessimists ”” including many here in Germany ”” see as an existential crisis for the continent is really just the latest stage in the birth pangs of a new country. While we should of course worry about Greek debt, we should also have hope that we are witnessing the end of the euro zone as an abstraction and the birth of the United States of Europe.

Europe’s movement toward unification has always been the product of crises.

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Nearly half of all Americans in the private sector work for a business with fewer than 50 employees. These firms have always struggled to provide health benefits. And as healthcare costs have skyrocketed in recent years, many have been forced to drop coverage.

Today, fewer than half of firms with 10 employees or less provide health benefits, according to a survey by the Kaiser Family Foundation and the Health Research and Educational Trust.

The new healthcare law is designed specifically to help small businesses, although not all businesses will qualify for the aid. Here are some of the ways the law may work out for employees and employers….

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In the month since Pelham Memorial High School in Westchester County advertised seven teaching jobs, it has been flooded with 3,010 applications from candidates as far away as California. The Port Washington District on Long Island is sorting through 3,620 applications for eight positions ”” the largest pool the superintendent has seen in his 41-year career.

Even hard-to-fill specialties are no longer so hard to fill. Jericho, N.Y., has 963 people to choose from for five spots in special education, more than twice as many as in past years. In Connecticut, chemistry and physics jobs in Hartford that normally attract no more than 5 candidates have 110 and 51, respectively.

The recession seems to have penetrated a profession long seen as recession-proof. Superintendents, education professors and people seeking work say teachers are facing the worst job market since the Great Depression. Amid state and local budget cuts, cash-poor urban districts like New York City and Los Angeles, which once hired thousands of young people every spring, have taken down the help-wanted signs.

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This past Sunday, hundreds of Siena College graduates donned lightweight black gowns and placed tasseled caps on their heads for their 9:45 a.m. commencement.

Given the bleak national outlook for post-collegiate hiring, perhaps they should have suited up in sturdier combat attire: They and their fellow graduates nationwide face a fierce battle just to secure a job interview, let alone full-time employment.

About 2.4 million students will graduate with bachelor’s and associates degrees as part of the Class of 2010, says the National Center for Education Statistics.

Those job-seekers will go head-to-head not only with fellow classmates but also with laid-off workers, financially strapped retirees and still-unemployed 2009 and 2008 grads. There are more than five job seekers for every opening, according to Bureau of Labor Statistics figures analyzed by outplacement firm Challenger Gray & Christmas.

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Senator Arlen Specter of Pennsylvania, who left the Republican Party a year ago in hopes of salvaging a 30-year career, was rejected on Tuesday by Democratic primary voters, with Representative Joe Sestak winning the party’s nomination on an anti-incumbent wave that is defining the midterm elections.

In Kentucky, Rand Paul, the most visible symbol of the Tea Party movement, easily won the Republican Senate primary and delivered a significant blow to the Republican establishment. His 24-point victory over Trey Grayson, who was supported by the most powerful Republican on Capitol Hill, Senator Mitch McConnell of Kentucky, underscored the anti-Washington sentiment echoing across the country.

The outcomes of both contests, along with a Democratic primary in Arkansas that pushed Senator Blanche Lincoln into a runoff election in June, illustrated anew the serious threats both parties face from candidates who are able to portray themselves as outsiders and eager to shake up the system.

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Herein lies the challenge: Small businesses, half of the private sector (and the most important part as far as jobs are concerned), have been heavily impacted by this credit crisis. Small businesses created 64% of new jobs over the past 15 years, but they have cut five million jobs since the onset of this credit crisis. Large businesses, by comparison, have shed three million jobs in the past two years.

Small businesses continue to struggle to gain access to credit and cannot hire in this environment. Thus, the full weight of job creation falls upon large businesses. It would take large businesses rehiring 100% of the three million workers laid off over the past two years to make a substantial change in jobless numbers. Given the productivity gains enjoyed recently, it is improbable that anything near this will occur.

Unless real focus is afforded to re-engaging small businesses in this country, we will have a tragic and dangerous unemployment level for an extended period of time. Small businesses fund themselves exactly the way consumers do, with credit cards and home equity lines. Over the past two years, more than $1.5 trillion in credit-card lines have been cut, and those cuts are increasing by the day….

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When Tim Ryan was called to an urgent meeting last year to discuss his duties as children’s minister at West Shore Evangelical Free Church, he knew something was amiss.

“This is really hard. I don’t know how I can do this,” said executive pastor John Nesbitt, who helps lead the 2,500 attendee megachurch in Mechanicsburg, Pa.

The church, part of the Evangelical Free Church of America, had been growing rapidly but giving was down and well below projections as the recession weighed on members. So Mr. Ryan was losing his job, as was another pastor.

While the economy appears to be recovering from the worst downturn in generations, more clergy are facing unemployment as churches continue to struggle with drops in donations. In 2009, the government counted about 5,000 clergy looking for jobs, up from 3,000 in 2007 and 2,000 in 2005.

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It was not the Christmas present that Julie Babikan had been hoping for. In December 2008, soon after buying a house, she was abruptly fired from her job as a graphic designer at an accounting firm in Chicago. “I had no clue that my position was about to be eliminated,” she recalls. Desperate to find work as the economy tipped into chaos, Ms Babikan scoured job ads to no avail. Eventually she decided to advertise for work on a service called Elance, which allows freelancers to bid for corporate piecework. She has since built up a healthy stream of online projects and reckons she will soon be earning more than she did in her previous job.

Like Ms Babikan, millions of workers are embracing freelancing as an alternative to full-time employment or because they cannot find salaried jobs. According to IDC, a market-research firm, there were around 12m full-time, home-based freelancers and independent contractors in America alone at the end of last year and there will be 14m by 2015. Experts reckon this number will keep rising for several reasons, including a sluggish jobs market and workers’ growing desire for the flexibility to be able to look after parents or children.

Technology is also driving the trend. Over the past few years a host of fast-growing firms such as Elance, oDesk and LiveOps have begun to take advantage of “the cloud”””tech-speak for the combination of ubiquitous fast internet connections and cheap, plentiful web-based computing power””to deliver sophisticated software that makes it easier to monitor and manage remote workers. Maynard Webb, the boss of LiveOps, which runs virtual call centres with an army of over 20,000 home workers in America, says the company’s revenue exceeded $125m in 2009. He is confidently expecting a sixth year of double-digit growth this year.

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Many of the jobs lost during the recession are not coming back.

Period.

For the last two years, the weak economy has provided an opportunity for employers to do what they would have done anyway: dismiss millions of people ”” like file clerks, ticket agents and autoworkers ”” who were displaced by technological advances and international trade.

The phasing out of these positions might have been accomplished through less painful means like attrition, buyouts or more incremental layoffs. But because of the recession, winter came early.

The tough environment has been especially disorienting for older and more experienced workers like Cynthia Norton, 52, an unemployed administrative assistant in Jacksonville.

“I know I’m good at this,” says Ms. Norton. “So how the hell did I end up here?”

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I used to think Europe had got it right. Let the US be a military superpower; let China be an economic superpower ”“ Europe would be the lifestyle superpower. The days when European empires dominated the globe had gone. But that was just fine. Europe could still be the place with the most beautiful cities, the best food and wine, the richest cultural history, the longest holidays, the best football teams. Life for most ordinary Europeans has never been more comfortable.

It was a great strategy. But there was one big flaw in it. Europe cannot afford its comfortable retirement.

Greece’s financial crisis is, unfortunately, an extreme example of a broader European problem. Investors have been looking nervously at debt-levels and budget deficits in Spain, Portugal and Ireland for months. But even Europe’s big four ”“ Britain, France, Italy and Germany ”“ are hardly immune from concern. Italy’s public debt is about 115 per cent of gross domestic product. Some 20 per cent of this needs to be rolled over during the course of 2010. Britain is currently running a budget-deficit of nearly 12 per cent of GDP, one of the largest in Europe. George Osborne, who is likely to end up as chancellor of the exchequer in the new government, has described Britain’s official economic forecasts as a “work of fiction”. The French government has not produced a balanced budget for more than 30 years. And one of the reasons for the deep bitterness in Germany at bailing out Greece, is the knowledge that Germany is already struggling to balance its own books.

It is true that the citizens of Latvia and Ireland have already swallowed actual cuts in wages and pensions. But these are both countries that have experienced real poverty in living memory, followed by massive and unsustainable booms. They know that the last few years have been a bit unreal.

As the riots on the streets of Athens illustrate, however, not all Europeans will react so stoically to deep cuts in spending.

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The tattoo on Christian Berrios’ right forearm says “Knowledge is Power.” For a high school dropout in a city with shuttered textile plants and 18% unemployment, he needs all the knowledge he can get.

Berrios will graduate in June from YouthBuild, one of many national service programs that got an infusion of federal aid under last year’s economic stimulus law. He’ll get his high school equivalency degree as well as “green” construction skills to help him navigate a difficult job market.

“It’s tough out there,” says Berrios, 22, who wants a college degree in psychology. “I feel we got a better chance at scoring a better job.”

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We often say that investors can be bullish, bearish, or not enough of either. “Our debt is clean, we will not have to ask for help,” said Elena Salgado, Spain’s finance minister, on April 30th, appealing to the bulls. That is, if there are any bulls left in sovereign debt.

Currently, there is no shortage of bearish sentiment regarding global sovereign debt issues. In recent weeks, Greece, Portugal, and Spain have all had their credit ratings downgraded, with Greece taking on junk status. Yet despite this flurry of negative news, I would submit that investors are still not bearish enough, particularly on Spain.

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More than a decade after it was first introduced, an on-again off-again bill to protect employees’ religious expression in the workplace is attracting renewed attention that could lead to action on Capitol Hill in coming weeks.

The Workplace Religious Freedom Act would revise and strengthen the existing requirements imposed on employers to accommodate the religious practices of their employees.

“The bill will be introduced to Congress soon in a fashion that will eliminate the concerns some folks had since its inception,” said Richard Foltin, the director of national and legislative affairs for the American Jewish Committee.

Touted in certain circles as the “WRFA god,” Foltin co-chairs an unusually broad coalition of almost 40 religious groups, from Sikhs to Seventh-Day Adventists to Southern Baptists, who support the bill’s religious freedom expansions.

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Two years into a merciless downward spiral, Antonio Moore was threatened with living on the street.

He had lost his $75,000-a-year job as a mortgage consultant, his three-bedroom house with a Jacuzzi, his Lexus sedan. He could no longer pay even the rent on his cramped studio apartment ”” not on his $10-an-hour part-time job as a fry cook at a fast food restaurant.

Faced with eviction, he was staring last month at the imminent prospect of joining the teeming ranks of the homeless. His last hope was a new $1.5 billion federal program aimed at preventing that fate. Within days of applying, a check for $775 was on its way to Mr. Moore’s landlord, enabling him to stay ”” at least for now.

Much like the Great Depression, when millions of previously working people came to rely on a new social safety net for their sustenance, a swelling group of formerly middle-class Americans like Mr. Moore, 30, is seeking government aid for the first time. Without help, say economists, many are at risk of slipping permanently into poverty, even as economic conditions improve.

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Michael Sinclair knows that in a few months, his stint in the marketing department of a health care manufacturing company here north of Atlanta is set to end.

He has been with the company for only six months, but he is not dismayed. In fact, he actually prefers his life as an independent contractor ”” constantly being laid off and rehired, sometimes juggling multiple jobs ”” to his old corporate position.

“I think it’s far less risky than being in a full-time job somewhere and cut at will and left with nothing,” Mr. Sinclair said. “I see this as the way more people will work in the future.”

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Americans are an optimistic lot. If there is one thing they believe in above all, it is the ability to move ahead. In poll after poll, a majority reject the notion that success is determined by forces beyond their control. In early 2009, hardly a sunny period, 71% still agreed that hard work and personal skill are the main ingredients for success. A high degree of social mobility has always defined American culture, from the work of Alexis de Tocqueville and Horatio Alger to the remarkable story of Barack Obama himself.

But the reality for most Americans is becoming more complicated. The recession came at the end of a period marked by record levels of inequality. Many Americans, lacking true upward mobility, bought its trappings, such as a bigger house or better car. Disaster duly followed. As a result, American optimism has been pierced by doubt. In a new poll for The Economist by YouGov, 36% of respondents said they had less opportunity than their parents did, compared with 39% who thought they had more. Half thought the next generation would have a lower standard of living, double the share that thought living standards would rise. As the country recovers, two problems cloud its future. Rates of social mobility are unlikely to grow. Inequality, however, may widen even further.

These trends have been building up for years. In 1963 John Kennedy declared that a rising tide lifts all boats. Indeed, in 1963 this was true. Between 1947 and 1973, the typical American family’s income roughly doubled in real terms. Between 1973 and 2007, however, it grew by only 22%””and this thanks to the rise of two-worker households. In 2004 men in their 30s earned 12% less in real terms than their fathers did at a similar age, according to Pew’s Economic Mobility Project. This has been blamed on everything from immigration to trade to declining rates of unionisation. But the driving factor, most economists agree, has been technological change and the consequent lowering of demand for middle-skilled workers.

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[Kai] Ryssdal: All right, so explain it to me. How does Unvarnished work?

[Peter] Kazanjy: So, essentially what Unvarnished is trying to do is take how professional reputation works in the off-line world and bring it online. Right now, professional reputation information, it exists in the minds of all of our colleagues, and that information is kind of very fractured and not accessible. And what we’re seeking to do is surface that information in such a way that it makes it much more accessible and much more valuable — much the same way that Web sites like Trip Advisor has done for hotels and Yelp has done for restaurants and dentists and doctors and plumbers and individuals as well.

Ryssdal: And all of those things, I get, right — hotels and travel experiences and even dentists. But somehow, this idea of professional reputation being open to such interpretation, it’s a tricky thing, isn’t it?

Kazanjy: Well, I think it is, but I think that a lot of times people say, they immediately go to thinking about themselves being reviewed, as opposed to “Wow, it would be great for a forum where I can express my opinion and give great credit where credit is due, and also feedback where needed.” And also, great to have a resource where I could actually get the inside scoop and figure out who’s great to work with, who’s good to work with and who maybe I want to avoid.

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The U.S. economy added 162,000 jobs in March. That sounds impressive until you look more closely. At least a third of them were temporary government hires to take the census””better than no job but hardly worth writing home about. The 112,000 real new jobs were fewer than the 150,000 needed to keep up with the growth of the U.S. population. It’s far better than it was””we’re not hemorrhaging jobs as we did in 2008 and 2009””but the bleeding hasn’t stopped.

Since the start of the Great Recession in December 2007, the economy has shed 8.4 million jobs and failed to create another 2.7 million required by an ever-larger pool of potential workers. That leaves us more than 11 million jobs behind. (The number is worse if you include everyone working part-time who’d rather it be full-time, those working full-time at fewer hours, and people who are overqualified for the jobs they’re in.) This means even if we enjoy a vigorous recovery that produces, say, 300,000 net new jobs a month, we could be looking at five to eight years before catching up to where we were before the recession began.

Given how many Americans are unemployed or underemployed, it’s hard to see where we get sufficient demand to support a vigorous recovery. Outlays from the federal stimulus have already passed their peak, and the Federal Reserve won’t keep interest rates near zero for very long. Although consumers are beginning to come out of their holes, it will be many years before they can return to their pre-recession levels of spending. Most households rely on two wage earners, of whom at least one is now likely to be unemployed, underemployed or in danger of losing a job. And even households whose incomes have returned are likely to be residing in houses whose values haven’t””which means they can’t turn their homes into cash machines as they did before the recession.

Read it all from the Wall Street Journal.

The central Nigerian city of Jos is at the crossroads of the country’s Muslim-dominated north and the mainly Christian and animist south. In recent months, renewed clashes between Muslim and Christian communities there have left hundreds dead.

Nigerian authorities are under mounting pressure to prosecute those behind the unrest. Nighttime curfews and an increased military and police presence are maintaining order ”” for now.

But observers warn that while religion may be the fault line for a decade of periodic fighting, underlying grievances in Jos go much deeper. The area is plagued by poverty, joblessness and fierce competition over land and scarce resources.

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