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Nobel Economics laureate Edgard Prescott and Joseph Stiglitz warned Monday of a “lost decade” and a worsening of the global financial crisis in the short term during a forum in Sao Paulo, Brazil. The “lost decade” reference is to the stagnation of the economy as happened with Japan during the nineties.
US auto maker General Motors' top executive said Monday that it's more likely the company will file for US bankruptcy than meet a June 1 government deadline to restructure.
The US government has opted to retain a Bush-era rule that limits protection for polar bears from the effects of global warming. Environmental groups had been calling for the rule to be lifted, and the US Congress had given Interior Secretary Ken Salazar the power to do so. Mr Salazar said lifting the rule would create uncertainty and confusion.
The President Barack Obama administration has named a prestigious civil rights activist of Hispanic-Mexican origin as the next US ambassador in Argentina. Vilma Socorro Martinez, 66, will replace Ambassador Earl Anthony Wayne who has held the job for three and a half years.
US bank Wells Fargo has said it plans to raise 7.5 billion US dollars from selling new shares, a day after the US Treasury said 10 banks needed to boost reserves. Morgan Stanley is also hoping to raise 3.5 billion from share sales. Bank of America said it planned to sell assets and raise capital to secure the 33.9 billion it needs.
President Barack Obama has proposed outlawing offshore tax-avoidance techniques in a move that could hit US corporations with overseas divisions. His proposals would axe some tax deductions for firms that earn profits in countries with low tax rates.
Three more United States banks shut their doors Friday, according to the Federal Deposit Insurance Corporation, bringing the total number of failures up to 32 in 2009. The first failure was a wholesale banking operator in Georgia that served 1,400 other lenders across the US, became the fifth biggest bank failure in terms of assets.
United States car sales continued to struggle in April as cash-conscious consumers remained reluctant to buy new vehicles, and the industry faced turmoil. Chrysler saw a 48% drop in April sales from the same month a year ago, a day after seeking bankruptcy protection.
New York City Mayor Michael R. Bloomberg and Police Commissioner Raymond W. Kelly deployed on Thursday 40 marked and unmarked Nissan Altima hybrid patrol cars. The cars are part of the mayor's plan to slash city emissions by 30% by 2017.
Cuba reacted strongly on Thursday calling the US government an “international criminal” after Washington said it was keeping Cuba on a list of countries that allegedly support terrorism. The US State Department released a report lumping Cuba with Iran, Syria and Sudan on a blacklist as sponsors of terrorism.