Blog Posts by Morgan Korn

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In late February Fed Chairman Ben Bernanke started warning lawmakers about the looming "massive fiscal cliff" that would bring the U.S. economy to its knees if Congress cannot agree on long-term fiscal decisions. Bernanke explained that the confluence of events happening Jan. 1, 2013 - the expiration of the Bush-era tax cuts and extended unemployment benefits, the $1.2 trillion automatic spending reductions and the end of the payroll tax holiday — will likely lead to a recession in the U.S.

Neither political party wants this worst-case scenario to come to fruition but lawmakers are likely to "kick the can down the road" instead of addressing these pressing policy issues before the November elections says Greg Valliere, chief political strategist at Potomac Research Group. Bernanke reiterated his concerns to a select group of lawmakers last week, escalating his rhetoric about the necessity of resolving these budget concerns sooner rather than later.

"I think [Bernanke] is worried, and people at the Fed are worried because this is such a dysfunctional group," says Valliere in the accompanying video. "And there's talk now of a government shutdown on Oct. 1 when the new fiscal year starts."

Bernanke's admonition was not lost on the senators who attended the vis-à-vis encounter. Bernanke probably told lawmakers "you guys got to get your act together because if we do nothing in December…the impact on GDP will be so adverse it will probably lead to a recession," Valliere says.

The economic recovery has proven to be tepid but many in Washington remain convinced the economy will be strong enough to dodge a recession. Recent data suggest otherwise.

The government reported economic growth in the first quarter slowed to 2.2 percent from 3 percent during the last three months of 2011. Employers hired fewer workers in April, adding a mere 115,000 jobs compared to 154,000 in March. Most economists agree that the economy needs to create at least new 200,000 jobs every month for several years to get back to pre-2008 levels. The pro-growth programs that expire at the end of the year could be the setback that triggers another recession. Bernanke verbalized these fears at an April 25 press conference.

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Facebook (FB), the social networking behemoth that will start trading as a public company this month, has become one of most highly anticipated IPOs to hit the market in recent years. The Facebook investing road show started this week and CEO Mark Zuckerberg made headlines for choosing his usual hoodie over a suit as he and other Facebook executives drummed up support for the company's public offering. (See: Surprise! Turns Out Mark Zuckerberg Is A Great CEO)

When the social networking site officially begins trading on the Nasdaq under the ticker symbol "FB" hundreds of thousands of investors will attempt to get their hands on the stock. The individual investor may have to wait until the dust (and hype) settles, but the question of becoming a Facebook shareholder remains. Is Facebook a smart investment?

The Daily Ticker posed that question to Steven Rattner, the Obama Administration's auto czar and chairman of Willett Advisors, which manages money

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No one likes to admit failure. The word represents defeat, disappointment and imperfection.

Rick Newman, the chief business correspondent at U.S. News & World Report, studied 12 successful, well-known people from various professions and determined that they all had one trait in common: failure.

These individuals suffered professional rejection, career setbacks and sometimes a debilitating blow to their self-confidence, but they all managed to rise above the challenges to attain greater success than they had ever imagined. Newman calls these individuals "rebounders" and he shares their struggles, hardships and remarkable comebacks in his new book "Rebounders: How Winners Pivot From Setback To Success."

In an interview with The Daily Ticker, Newman says readers of the book should view setbacks as a process, not defeat. He notes that eminent business leaders and scholars acknowledge failure cannot be avoided in life and often failure is what makes someone stronger and better able to deal with adversity and unwelcome detours.

Newman gives examples of famous people who "rebounded" from misfortune to resiliency, including:

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The U.S. economy is better off than it was in 2008, although you wouldn't know it from what you hear on television. It's a misperception that Dan Gross, co-host of The Daily Ticker and economics editor at Yahoo! Finance, aims to correct in his seventh book, "Better, Stronger, Faster."

Gross argues that the nation has bounced back from a near-death experience. However, many aspects of the economy continue to drag — most notably housing and jobs. While the housing sector may have hit bottom, "the U.S. has a very long way to go to make up for the lost ground in the economy," says Gross.

In an interview with The Daily Ticker's Aaron Task, Gross describes how the U.S. has transformed itself into one of the world's largest export-driven economies. Since hitting bottom in 2009, U.S. exports have grown 45 percent on a monthly basis, Gross says. The hundreds of thousands of manufacturing jobs that were shipped overseas severely blunted the manufacturing sector, yet a turnaround for the industry and American workers looks promising. The Institute for Supply Management reported that its index of U.S. manufacturing activity rose to 54.8 in April, the highest level since June 2011, as new orders, production and employment increased. Readings above 50 indicate expansion.

Gross traveled across the country, meeting with small business owners and executives in various industries and sectors to get a firsthand look at how businesses and individuals have adapted since the 2008 crisis.

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The $1 trillion student loan crisis will be a top priority for President Obama and senior administration officials this week. The president will discuss ways to prevent undergraduate subsidized loans from doubling July 1 with student government leaders from across the country on Monday. Vice President Biden meets with students and higher education representatives about the skyrocketing costs of college later in the week and several high-ranking members of the Cabinet including Secretary of Labor Hilda Solis are expected to weigh in on the issue at various events planned by the administration.

The costs of attending college and the amount of outstanding student loan debt have become key issues in this election season. Both Obama and presumptive Republican presidential nominee Mitt Romney agree that the interest rate on government subsidized Stafford student loans should be extended for one more year. The 3.4 percent rate, which only applies to new student loans, was temporarily lowered in 2007 but will increase to 6.8 percent in less than two months. It costs the federal government about $6 billion a year to subsidize the interest rate. More than seven million students benefited from the reduced rate in the 2010-2011 school year and they could face an additional $2,800 in interest if the rate doubles.

Republicans have come under intense pressure to agree to a rate extension. Last month the House voted on a bill that would keep the rate unchanged for one more year and use savings from cuts to Obama's Affordable Care Act to pay for the subsidy. The bill will likely fail in the Democratic-controlled Senate and President Obama has already issued a veto threat. Democrats will vote May 8 on their bill that would extend Stafford loan rates by closing a tax loophole on wealthy Americans.

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Legions of Berkshire Hathaway investors, Warren Buffett acolytes and news organizations (including Yahoo!) will converge in Ohama, Nebraska this weekend for the company's annual shareholder meeting. "Woodstock for Capitalists," as the widely-attended event has come to be known, offers attendees the opportunity to get a glimpse of perhaps the most famous investor in the world.

But as Bloomberg points out in an article Thursday, Berkshire Hathaway stock (BRK-A) has trailed the S&P 500 Index (GSPC) for the last three years. Since May 5, 2009 shares of Berkshire, the conglomerate Buffett has built up over the past 40 years, have gained just 32 percent compared to 60 percent for the S&P 500. Bloomberg reports that Berkshire's growth has slowed as Buffett became more focused on takeovers in industries as diverse as railroads and machine tools.

The more pressing issue weighing on the company and shareholders involves Buffett's succession plan. Last

Obesity has become not only a national health threat, but also a major public health challenge in the U.S. More than one-third of American adults and 17% of the nation's youth are obese, according to the Centers for Disease Control and Prevention. The CDC defines an "obese" adult as having a body mass index (BMI) equal to or greater than 30.

BMI is calculated as the weight in kilograms divided by height in meters squared, rounded to one decimal place.

Obesity-related conditions, such as heart disease, stroke, type 2 diabetes and certain types of cancer, are the leading causes of death in the U.S. In 2010, 12 states had obesity rates of 30% or more. As Americans become bigger, some businesses are struggling to deal with the expanding waistlines. The popular "Harry Potter and the Forbidden Journey" attraction at Universal Studios in Florida cannot accommodate all Harry Potter fans. Specifically, those weighing more than 265 lbs. are too heavy for the seats and therefore are excluded from the ride. An obese customer of White Castle sued the hamburger chain in 2011 when he could no longer fit in its booths.

David Kirchhoff, the president and CEO of Weight Watchers, joined The Daily Ticker to discuss America's obesity problem -- a problem he says could cost the government billions of dollars every year.

"We'll spend $200 billion this year treating diabetes, which is significantly driven by obesity," Kirchhoff tells Aaron Task at the Milken Institute Global Conference. "Twenty-five million Americans are diabetic, and there are another 78 million Americans who are pre-diabetic. We have an entire generation of people who are going to be less well as a result of lifestyle."

Investor T. Boone Pickens has made a fortune over the years running an energy-oriented hedge fund, and in recent years he's been placing big bets on the natural gas and wind industries.

The 83-year-old founder and CEO of BP Capital has been one of the most fervent supporters of natural gas, promoting its usage throughout the country and trying to convince lawmakers, including President Obama, that natural gas could be the energy solution that ends the nation's dependence on foreign oil.

The U.S. has an abundance of natural gas, which is found in rock and shale formations. Booming production and growing investment in the field has led to a natural gas supply glut, pushing the price down nearly 50% over the past 12 months. A new government report found that natural gas held in storage is 55.4% above the five-year average. Although natural gas prices have rallied more than 20% in the past week, prices are still down 19% since Jan 1. Pickens predicts that the downward spiral may finally be over.

"It's pitifully low, but we have probably seen the bottom," he tells Aaron Task at the Milken Institute Global Conference in Los Angeles.