The federal deficit for 2008 would top $1 trillion if the government had to use the same accounting methods as private companies. And that doesn’t even account for the huge costs of the Wall Street bailout, which didn’t really start until the new budget year began on Oct. 1. The government is promising $49 trillion more than it can deliver on Social Security, Medicare and Medicaid over the next 75 years unless Congress steps in to shore up the system. Some combination of tax increases, benefit cuts or other policy changes is needed to stave off unsustainable deficits. The report, released by the Treasury Department and the White House budget office, found that under the accrual method of accounting used by businesses, the deficit for 2008 would have totaled $1 trillion — not the $455 billion reported in October under the cash system of accounting.
Mattel settles over lead-tainted toys
Toy maker Mattel Inc. will pay $12 million to 39 states, including Washington, to settle an investigation over Chinese-made, lead-tainted toys shipped to the U.S. in 2007, state officials said Monday. Mattel and its Fisher Price unit recalled more than 21 million Chinese-made toys last year, beginning in August, fearing the items were tainted with lead paint and tiny magnets that children could accidentally swallow. All the affected toys were pulled off shelves by December 2007. As part of the agreement, Mattel also agreed to lower the acceptable level of lead in toys shipped to the states to 90 parts per million down from 600 parts per million, which is currently the federal standard.
Chrysler loses another top exec
Chrysler LLC says Simon Boag, senior vice president for parts and service, has decided to leave the company, the second departure of a top executive in four days. A company statement says Boag will leave the company to pursue other interests. Boag’s departure comes just days after the exit of John Campi, senior vice president for purchasing. Chrysler said Friday he was leaving for health reasons. Boag’s duties will be assumed by Steven Landry, executive vice president of North American sales. Vice Chairman Jim Press said in a statement that Chrysler is grateful for Boag’s dedication and contributions
Boeing reports quarterly dividend
The Boeing Co.’s board of directors approved a quarterly dividend of 42 cents per share. That’s 5 percent, or 2 cents per share, higher than the previous dividend. The dividend is payable March 6, 2009, to shareholders of record as of Feb. 6.
Homebuilder sentiment still low
The National Association of Home Builders says its housing market index remained unchanged at a record low this month as the worsening U.S. economy, rising unemployment and foreclosures continued to dampen builders’ confidence. The ÂWashington-based trade association said Monday the index held at nine in December for the second month in a row. Index readings lower than 50 indicate negative sentiment about the market. Builders’ expectations for sales over the next six months declined two points to 16.
From Herald news services
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
