Social Security recipients will go a second consecutive year without receiving a cost-of-living adjustment in 2011, according to various press reports. The announcement, which will formally be made when the federal government reveals Consumer Price Index figures October 15, amounts to what MSNBC says in the subtitle to its article on the subject that the “expected announcement before election couldn't be worse for Democrats.”

Alan Greenspan, former chairman of the Federal Reserve, is worried about many things. In March he worried about the future of the economy. “The important lesson,” he wrote, “is that bank regulators cannot fully or accurately forecast whether, for example, subprime mortgages will turn toxic…. A large fraction of such difficult forecasts will invariably be proved wrong…. Anticipating the onset of crisis … appears out of our forecasting reach.”

Amid the rising turmoil in the housing market, the Bank of America announced today it is suspending foreclosure sales in all 50 states.

Once upon a time the United States had some standing to lecture communist countries on the virtues of free markets. Today, however, our government is growing larger by the minute, while Cuba and Russia — once the most communist of communist nations — are heading in the opposite direction, at least in economic terms.

moneyThe Associated Press reports that a government investigator has discovered that 89,000 stimulus payments of $250 went to people who were either dead or in prison. The 89,000 payments were among nearly 52 million sent to Social Security recipients and federal retirees as part of the mammoth economic recovery (stimulus) package enacted in 2009. In making the $250 payments, the government simply failed to confirm that the recipients were not incarcerated and not deceased.