Econ 101: September 7, 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.

  • President Obama “plans to propose sparking job growth by injecting more than $300 billion into the economy next year, mostly through tax cuts, infrastructure spending and direct aid to state and local governments” when he speaks before a joint session of Congress tomorrow. [Bloomberg]
  • The centerpiece of Obama’s plan — “payroll tax relief for workers and perhaps their employers — is neither his first policy choice nor that of many economists. But it is the one that they figure has the best chance of getting Republicans’ support.” [New York Times]
  • Congressional Democrats “are urging President Obama to propose spending on a host of new public works and job programs in his speech to a joint session of Congress on Thursday.” [New York Times]
  • The credit rating agency Standard & Poor’s “held private meetings with large bond investors weeks before the firm’s historic U.S. debt downgrade, leaving some believing the chance of a credit-rating cut was higher than they previously thought.” [Wall Street Journal]
  • With its next meeting two weeks away, the Federal Reserve “is moving toward new steps aimed at lowering interest rates on mortgages and other kinds of long-term loans, without making another massive infusion of money into the economy.” [Washington Post]
  • As Europe grapples with its economic woes, “the greatest fear is that one of the Continent’s major banks may fail, setting off a financial panic like the one sparked by Lehman’s bankruptcy in September 2008.” [New York Times]
  • According to a study from the Federal Reserve Bank of Philadelphia, “U.S. banks that took part in a boom of megamergers from 1991 through 2004 benefited by more than $15 billion from perceived government support after being labeled “too-big-to-fail.” [Bloomberg]
  • A Senate Appropriations subcommittee will vote today “on legislation to increase funding for food safety by $40 million to $45 million next fiscal year.” House Republicans have approved bills to cut food safety funding. [The Hill]