Credit card issuers boost rates ahead of tougher rules (L.A. Times)

Banks "are getting their shots in while they can," says a prominent observer. More: "For the three months that ended June 30, U.S. households on average carried a credit card balance of $7,987, down from a high of $8,529 in the third quarter of last year, according to Moody's Economy.com."

The Coming Recovery Will Most Likely Not Be Robust (Seeking Alpha, Tom Lindmark)

Parsing IMF Chief Economist Olivier Blanchard's prediction that the Great Recession has permanently damaged economic growth.

Time Warner, YouTube Reach Video, Ad Rev Agreement (WSJ)

Small picture: Google on the march to make its YouTube unit show a profit. Big picture: Latest in a series of pacts that will allow advertisers to make big footprints on the Internet. (See also "YouTube Pumps More Ads Into Lineup.") Bad news for network TV; great news for bloggers looking to spice up their sites. Even better news: Adult Swim clips will be available on YouTube.

US Life Expectancy Reaches All Time High (Medical News Today)

Is that good news or bad news? We're up to nearly 78, so we'll be even crankier for even longer and will cause more traffic accidents. We'll also require more health care for longer, and you'll have to pay for it.

Princeton, Harvard Share Top Spot in U.S. News College Rankings (Bloomberg)

Meaningless ratings (except for the huge PR value) by the ailing U.S. News & World Report yield the usual suspects. This account by Oliver Staley is an unusually thorough look at a highly (and humorously) flawed process during which schools are increasingly accused of "manipulating" their admission policies to impress an increasing irrelevant news magazine. More scary is that colleges are now judging prospective students by their "personalities," as the WSJ reports. (Mark me down for a trade school.)

MORE HEADLINES FOLLOW

White House to Cut Deficit Estimate for 2009 to $1.58 Trillion (Bloomberg)

An estimate that you cannot take to the bank. Even if the Obama crew is on target, the deficit would be 11.2 percent of the U.S. economy, the biggest share since 1945.

IRS Tax Probe Targets Lawyers, Banks as UBS Data Shred Secrecy (Bloomberg)

IRS Commissioner Doug Shulman talks tough — and colorfully: "Getting 5,000 names from one financial institution blows a big hole in bank secrecy." Shulman's crowing about the government's "access to a nook and cranny of the financial system" should make even those of us without Swiss bank accounts feel a little more threatened. Pressuring lawyers makes sense, because that should make those same lawyers to advise their clients to declare their assets and pay back taxes, instead of both evaders and lawyers facing criminal prosecution. More bad news for UBS: Swiss government is selling its big stake in the bank but quick, bailing out of its bailout.

Judge: 'Skanks in NYC' blogger may be unmasked

Ominous ruling that Google has to reveal a blogger's identity. Bad news for smart-ass bloggers who are too chickenshit to use their real names. If you're the person who described Vogue model Liskula Cohen as a "psychotic, lying, whoring...skank," you're in big trouble. And you can forget about dating her, unless she's into women.

Outplacement Firms Struggle to Do Job (WSJ)

Charitable headline soft-pedals the news that the huge industry that supposedly helps laid-off employees get new jobs is looking more and more like a racket offering little value to desperate customers. Specific horror stories in Midwest: "Phony job postings prey on those seeking work."

Retention bonuses back at Merrills (Telegraph U.K.)

Same shit, different day: Bankers at the BofA unit "will qualify for the awards regardless of performance so long as they are still with the company next year." A bonus for being there. And salaries have increased as much as 50 percent.

Rio Tinto Profits Plunge (WSJ)

Huge Australia-based mining firm, already in deep trouble with the Chinese government, sees first-half net profit drop 61 percent.

SEC Falls Behind in Tech Race (NYT)

This story intones: "The SEC faces a stern test as the complexity of modern markets may be outmatching its ability to regulate them." This isn't news. Everyone knows (and it's been heavily reported) that the SEC has long lagged in the "tech race." Madoff whistleblower Harry Markopolos pleaded with Congress during his highly publicized testimony last February to arm the SEC with more Bloomberg machines and other sophisticated equipment.

Hedge fund bets millions that gas price will triple (FT)

Rumbles in the commodities market as an undisclosed fund gambles on natural gas. Gas futures are at a seven-year low, so maybe these "lottery tickets" will pay off.

38 Reasons the Google IPO Isn't the Big Deal Some Are Making It Out to Be (Seeking Alpha)

Just a short little jab at Google and the business press.

Charities Hurt by Madoff May Have To Return Funds (Vos Iz Neias?)

Hadassah CFO got screwed by Bernie Madoff. Now Hadassah itself, which already was screwed by Madoff, faces a further screwing.

CIA Hired Firm for Assassin Program (WashPost)

The ultimate in outsourcing: Hiring Blackwater (which now carries the unpronounceable name Xe) in 2004 for millions of bucks to assassinate al-Qaeda leaders. Bad business move: Blackwater's most notable assassinations were of average Iraqi pedestrians and drivers while its security guards were guarding U.S. personnel.

AIG sued by policyholders hurt by Madoff fraud (Reuters)

Madoff victims contend that their homeowner insurance policies cover losses from Madoff's scheme. They already gambled with Madoff, so sure, why not ask AIG to bail them out? And why not target bailout-experienced AIG?

Miami hacker Gonzalez honed computer skills early (Miami Herald)

Background on the nerd accused of staging the nation's largest credit-card heist.