Greenspan: Recovery is taking a ‘pause’

Greenspan: Recovery is taking a ‘pause’

WASHINGTON

Former Federal Reserve Chairman Alan Greenspan says he thinks the economy is having a modest recovery, but right now there’s a “pause” in that recovery, so it feels like a “quasi-recession.”

Greenspan says long-term unemployment is pulling the economy apart even though large banks are doing much better and large companies are in excellent shape.

Greenspan predicts that unemployment will remain where it is, hovering around 9.5 percent, the rest of the year. Cheering the comeback of the stock market, Greenspan told NBC’s “Meet the Press” that a rising stock market will do more to stimulate the economy than any of the remedies now being discussed.

Greek truckers suspend strike

ATHENS, Greece

Greek truckers said Sunday they suspended their seven-day strike to enter talks with the government over opening up their closed-shop profession.

The strike caused major disruptions in fuel and food deliveries and led thousands of tourists to postpone planned holidays to Greece.

Truckers union president Giorgos Tzortzatos told reporters Sunday, “We will be behind the wheel again starting at 7 a.m. Monday.”

The strike fizzled over the weekend after the government began commandeering the strikers’ vehicles and using army trucks to deliver fuel supplies to airports, hospitals and power stations.

Airline: no hitch with carry-on fees

NEW YORK

Spirit Airlines says it is gaining ground in the fight against flight delays with its controversial move to charge for carry-on bags. With the new fees in place for the first time Sunday, Spirit spokeswoman Misty Pinson said the new approach appears to be working.

Since airlines started charging for checked luggage, more flyers have brought carry-on bags on board. Spirit’s new fee — the first in the industry — is aimed at discouraging passengers from stuffing the overhead bins because it often takes extra time to get bags settled and gate check those that won’t fit onboard.

Spirit is charging $30 at check-in for any bag that’s too big to fit under the seat. The price goes up to $45 for passengers who wait until they get to the boarding gate to pay, another step aimed at saving time. Members of Spirit’s special-fare club will pay only $20 for a carry-on. Umbrellas, camera bags, strollers and car seats are among the items that will remain free of charge.

UK Treasury chief to banks: Get lending

LONDON

Britain’s Treasury chief has said banks must increase lending to businesses rather than boosting bonuses and dividends now that they have weathered the worst of the credit crisis.

George Osborne told the Sunday Telegraph newspaper that banks “have an economic obligation to assist” small and medium-sized businesses.

British banks received billions in taxpayers’ money during the 2008 credit squeeze. Half-year figures released this week are expected to confirm that major institutions have returned to profit after two years of turmoil that saw them radically curtail lending.

Cuba to scale back

HAVANA

Raul Castro said Sunday that his government will scale back controls on small businesses, lay off unnecessary workers and allow more self-employment — significant steps in a country where the state dominates nearly every facet of the economy.

Cuba’s president, however, squashed notions of a sweeping overhaul to the country’s communist economic system in response to the financial crisis it faces.

Associated Press