Econ 101: August 8, 2011

Welcome to ThinkProgress Economy’s morning link roundup. This is what we’re reading. Have you seen any interesting news? Let us know in the comments section. You can also follow ThinkProgress Economy on Twitter.

  • About 45,000 Verizon employees went on strike yesterday “after failing to reach a new union contract in one of the biggest labor actions in the United States in recent years.” [Boston Globe]
  • Several major U.S. corporations “are making big plans to expand overseas even as some of them announce new layoffs at home.” [Los Angeles Times]
  • Insurance giant AIG “is planning to sue Bank of America over hundreds of mortgage-backed securities, adding to the surge of investors seeking compensation for the troubled mortgages that led to the financial crisis.” [New York Times]
  • President Obama reportedly views S&P’s decision to downgrade the U.S.’ creditworthiness “as unjustified, contending that it was based on a flawed process, a message he intends to convey to Americans in coming days.” [Wall Street Journal]
  • The credit rating agency S&P showed “terrible judgment” in lowering the U.S. credit rating, Treasury Secretary Timothy Geithner said yesterday. “They’ve handled themselves very poorly. And they’ve shown a stunning lack of knowledge about the basic U.S. fiscal budget math.” [Associated Press]
  • The Treasury Department announced yesterday that “Treasury Secretary Timothy Geithner will stay at his post through the fall and President Barack Obama’s reelection campaign,” rebutting reports that Geithner was going to step down. [Politico]
  • “With a growing number of states rebelling against the No Child Left Behind law and stalled efforts in Congress to reform it,” the Obama administration says it will grant waivers to some states, freeing them from the law’s requirements. [Washington Post]
  • According to economists, President Obama’s new tax credit meant to spur hiring of military veterans is well-intentioned, “but does not appear broad enough to attack the deeper problems in the job market.” [The Hill]
  • According to a new report, “top Pentagon brass should craft plans so the Defense Department is ready if a so-called trigger in the debt-ceiling law is pulled, a move that would return the annual military budget to the 2007 level.” [The Hill]
  • The deal that Congress approved to raise the debt ceiling may force cuts to the Head Start program. [Education Week]