G-20 at Least Pretending To Make Economic Progress

The main story across the business press comes out of Pittsburgh, where the G-20 has actually made some real news. A disparate consortium of countries has agreed to work in concert to create global economic standards on everything from executive pay to financial regulation. The agreements are not binding, but they are a step forward for a global body that could never figure out how to balance individual approaches with a communitarian mindset. The United States “will be expected to increase its savings rate, reduce its trade deficit and address its huge budget deficit,” according to the Times. And all the countries who signed on agreed to submit their policies to other countries’ and the International Monetary Fund for a peer review. But before we start dreaming of a new era of economic utopia, it’s worth heeding the Washington Post’s caution: “What made the agreement so easy to sign was that countries that do not abide by its principles face no penalties.”

After several days of exhaustive debate on health care, the Senate finance committee has packed up for the weekend. They’ll return on Tuesday to continue wrestling Sen. Max Baucus’ bill into shape, sorting through the remainder of the 564 potential amendments to the bill. Some of the most contentious issues have been deferred into next week, says the Times, including the debate over the public option, which is scheduled to happen Tuesday. Thus far Democrats have retained the general principles of Baucus’ plan, but Republicans have made some in-roads, especially regarding elderly care. Across the Hill, meanwhile, the House is discussing whether to include a tax on comprehensive, expensive health-insurance policies in their version of the legislation. The Wall Street Journal reports that a 40 percent tax on these insurance plans is in the Senate finance committee’s version of the bill.

The New York Times has a story that we’ve seen so many times it’s getting old. "New Signs That Recovery May Come in Dribs and Drabs" is the headline for the latest article telling us it’s going to be a slow recovery. This time the trope is inspired by a mix of consumer sentiment, home sales, and manufacturing data. We, the people, are feeling better than we have since early 2008, according to new consumer polling, and home sales are up yet again in August for the fifth straight month. Rejoice! Except not. Durable goods orders—computers, transportation equipment, electrical supplies—were down unexpectedly in August. And that homesale data? Charmingly positive until you read the report that sales of previously owned homes were actually down. All of it means “that recovery is likely to be jagged, marked by high unemployment and questions about whether consumer or business spending will bounce back or remain subdued.”

Another Friday, another bank failure. As usual, the FDIC announced the resolution of another bank after close of business on Friday, and this time it’s Georgian Bank. The Atlanta-based outfit is the 95^th bank to fail this year. The FDIC has already found a steward for Georgian; CNNMoney.com reports that First Citizens Bank and Trust will purchase almost all of the $2 billion of Georgian’s assets. Tune in next week to see who will get the emergency MedEvac next. Wholesome entertainment for the whole country!

Despite the video game industry’s torrid growth in the last decade, industry executives sure sound nervous. It's all Steve Jobs' fault. The New York Times writes a feature on the effect the iPhone has had on console game companies, and it’s a testament to just how quickly things can change in technology sectors. Sales have stalled in the industry, so a new question has been raised: What will make consumers spend $60 on a game when they can spend $1 on one of comparable quality and take it with them wherever they go? The article is full of surprisingly desperate quotes like this one from Square Enix’s president: “The next breakthrough in gaming is not going to be in hardware. It’s going to be in how to create a successful business model.” For an industry that has thrived on graphics and gadgets, it’s a startling admission that the culture of gaming is changing.

The first victim of the fall season has wilted off the vine, and unsurprisingly Mischa Barton is involved. The former OC It Girl’s new vehicle, The Beautiful Life, has been axed by the CW for poor ratings, per E! Online. It pulled only 1.5 million viewers for its premiere, a third of which didn’t bother to show up for the second episode. Even for the CW those numbers are too low, especially compared with the 4 million who watched The Vampire Diaries.