“Back to basics” seems to be the watchword among consumers trying to hold on to their checkbooks, as they worry about pink slips, credit card cancellations, and dropping home values. Sales at thrift stores are up; sales at Saks are down. more

Just about everyone has an opinion on the proper role of banking institutions as we go forward in the new economy. One intriguing proposal comes from Laurence Kotlikoff and Christophe Chamley, both professors of economics at Boston University. The duo advocates that banks return to their original functions of lending money and facilitating payments and leave riskier activities, like buying and selling subprime mortgages, to others. more

With the Senate’s 61-37 vote in favor yesterday, President Obama’s $838 billion economic recovery plan now moves on to possibly contentious House-Senate negotiations. The bill’s tax incentives for businesses have emerged relatively unscathed from the Senate’s scrutiny, and since they coincide at many points with those of the House bill, the chances are good that corporate taxpayers will see at least some benefit from the legislation.

Here are some of the major business tax provisions, based on the Senate Finance Committee’s summary of the amended bill: more

Yesterday, UK bank leaders were publicly flayed.

Today, U.S. bank titans face the music, and MSNBC is covering it live. more