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Newspaper
Odessa American
Location
Odessa, Texas, United States of America
Date
Sep 27, 1990
Page
5
AP reports that personal incomes rose 0.3 percent at an annual rate in August, the slowest in four months, while consumer spending climbed 0.5 percent at an annual rate, the smallest gain in three months. Incomes reached a seasonally adjusted $4.68 trillion, up $13 billion from July, and spending totaled $3.69 trillion, up $16.7 billion.
Washington lawmakers press a sweeping reform to the deposit insurance system. Sen. Donald W. Riegle Jr. proposes ending the blanket guarantee for large banks and imposing losses on deposits over 100000. Rep. Henry B. Gonzalez backs similar measure, citing FDIC data showing widespread protection of deposits in past failures.
Washington faces a looming budget crisis as Congress must agree on taxes and cuts by Monday or trigger automatic reductions. Potential effects include FAA flight cuts, weather-station closings, subsidies trimmed, Medicare payments cut, and staffing reductions across federal agencies, with the White House seeking to avert a full shutdown. Experts warn the impact could be severe and politically painful.
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