Economy, Economic Crisis | featured news

Icelanders are set to reject the terms for repaying Anglo-Dutch debts in a referendum on Saturday, forcing new negotiations with creditors and delaying financial aid the country needs to fix its shattered economy.

Americans' outlook on the economy went into relapse in February. Rising job worries sent a key barometer of confidence to its lowest point in 10 months.

A Wisconsin dad drives all the way to Kansas each week to hang on to a job in tough times.

The social safety net was built for short-term gaps between jobs, but work may be scarce for years, even as the American economy shows signs of a rebound.

On the recession's front lines, governors are struggling to chart the road ahead for states staggered by unrelenting joblessness and cut-to-the-bone budgets even as Washington reports signs of economic growth.

"The worst probably is yet to come," warned Gov. Jim Douglas, R-Vt., chairman of the National Governors Association, at the group's meeting Saturday. He called the situation "fairly poor" in most states, adding that it "doesn't look too good."

Treasury Secretary Timothy F. Geithner said the government rescued American International Group Inc. to prevent a "catastrophic" blow to the U.S. economy, not to save any of AIG's counterparties.

Previewing key elements of his State of the Union address, President Barack Obama is announcing on Monday a series of initiatives aimed at calming some of the economic fears of struggling middle class families.

Central bank will return the money to the Treasury; bank's unconventional efforts to prop up the economy created windfall for the government.

Started at the height of the economic boom and built by some 12,000 laborers, the world's tallest building will open on Monday in Dubai as the glitzy emirate seeks to rekindle optimism after its financial crisis.

Despite a bad economy, the city is set to have the fewest number of homicides in a 12-month period since 1962.