Midwest Memo: Cause of Stalled Economy May be End of Consumer Bubble

Three stories making news across the Midwest today:

1. Burst of the consumer bubble. David Leonhardt of The New York Times has heard every conceivable explanation for the nation’s prolonged recession. But he argues in a Sunday opinion piece that the underlying cause of the stalled economy is the end of a consumer bubble that had “been decades in the making.” He makes the case that it’s time for the nation to transition to an economy not as dependent on consumer spending.

2. Liquidation nears for Borders. A Sunday deadline has passed, and no new bids for Borders Group have emerged. The Ann Arbor, Mich.-based bookseller will likely continue take bids up until its bankruptcy auction scheduled for Tuesday. On Sunday, The Wall Street Journal reported that Books-A-Million Inc., a Birmingham, Ala.-based bookstore chain could be a potential suitor.

3. Ohio governor vetoes Great Lakes water bill. A state bill that would have allowed businesses to withdraw as much as 5 million gallons of water per day from Lake Erie without a permit has been vetoed by Ohio governor John Kasich, reports our partner station Ideastream. It is the first bill he has vetoed during his term. Environmentalists – and former Republican governors – argued the bill violated terms of the Great Lakes Compact, an agreement between seven states and two Canadian provinces that governs water usage from the Great Lakes.

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