Simon Johnson, the former chief economist at the International Monetary Fund, is the co-author of “13 Bankers.”
The United States and Europe seem to be competing hard this summer for the title of biggest economic problem. Based on the latest news coverage, Europe might seem to be experiencing something of a resurgence, as last week the euro zone agreed on a deal involving mutual support and limiting the fallout from Greece’s debt problems.
In contrast, the United States seems to be mired in a political stalemate that becomes more complex and confused at every turn.
Today’s Economist
Perspectives from expert contributors.
But rhetoric masks reality on both sides of the Atlantic. The euro zone still faces an immediate crisis: the can was kicked down the road last week, but not far. The Uni
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WASHINGTON – The Apps Against Abuse challenge, a national competition to develop an app that provides young adults with tools to prevent sexual assault and dating violence, was launched recently by Vice President Joe Biden, the White House Office of Science and Technology Policy and Health and Human Services (HHS) Secretary Kathleen Sebelius.
“Just as technology is changing the way young people communicate with each other every day, it’s also changing the way young people can protect themselves and their friends from becoming victims of sexual violence,” said Vice President Biden in a statement. “This challenge is a chance to empower a new generation to take a stand against violence.”
Young women aged 16-24 experience the highest rates of rape and sexual assault – one in five will be a victim of sexual assault during college. Many of these
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Zurich Life Australia has reduced the premiums on its death, trauma and permanent disability products for older consumers.
Premiums for older consumers have traditionally increased as they age due to higher mortality rates and this is leading to them cancelling policies or reducing their cover levels.
Zurich Life CEO Colin Morgan says the cost of cover has fallen in recent years but there has been a need to address the problem of premiums increasing as people age.
“The fact that people feel they can no longer afford cover at the time they are most likely to need it is worrying, and has contributed to Australia’s underinsurance problem,” he said.
“Our new pricing structure will make cover more affordable for older age groups, which we hope will encourage more Australians to keep or take out life protection.”
Mr Morgan says the fact consumers are working longer and carrying larger debts in later life is another reason to encourage consumers to keep their cover.
“A decade ago it was still the norm for people to be paying out their mortgage in their early 50s,” Mr Morgan said.
“Fresh research shows that today people are carrying mortgages all the way up to retirement, in many cases needing their superannuation to pay off the last remnants of their home loans.”
The new pricing is already in effect.
Italian bonds fell for a second day, increasing the yield spread over German bunds, after the nation’s borrowing costs rose at a sale of 10-year debt and Standard & Poor’s said Greece risks further defaults.
Italy’s 10-year yield surged to the most in more than a week amid speculation a probe into a former aide of Finance Minister Giulio Tremonti may force him to step down. German yields fell to a five-month low versus their U.S. counterparts as American lawmakers pushed conflicting plans to raise the nation’s debt ceiling. S&P also said lower borrowing costs for Ireland and Portugal may boost their debt sustainability.
“The negative picture developed after the auction and we see spreads widening,” said Norbert Aul, a European rates strategist at RBC Capital Markets in London. “The auction looked good. The problem is the fragility in the market. Tremonti basi
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