Archive - Jul 3, 2009

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Vologda, Russia: Where the jobs are few and the lumber is cheap

Vologda, Russia. Photo: <a href="http://www.flickr.com/photos/borches/292563306/">Borches (flickr)</a>
Vologda, Russia. Photo: Borches (flickr)

One small Russian town is taking an untraditional approach to helping residents cope with the economic crisis: They're practically giving away lumber, according to a recent story in the Wall Street Journal.

In Vologda, the local government can't afford to keep up with the demand for unemployment benefits and have capped monthly unemployment checks at $160. To help keep a lid on social unrest among the unemployed and give infrastructure a boost, the governor announced a program that allows local residents to chop down trees from area forests at an absurdly discounted price. Under the program, the citizens of Vologda can purchase enough wood to build a house for under $7, but they're entitled to cut down and purchase up to 200 cubic meters of wood, which they can then sell — that's enough to load up multiple semi-trucks.

But there's a catch. First you have to trudge through the forest and chop down the trees, then you have to build a house with it. If your resume doesn't happen to include being a logger, architect, and carpenter this could be quite difficult and dangerous.


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Could Glass-Steagall Have Stopped JPMorgan Loss?

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The banking giant's $2 billion loss has many lawmakers and economists wondering what happened to the 2010 financial overhaul, which was supposed to prevent risky hedging. Many are also looking back further — to a Depression-era law, repealed in 1999, that separated commercial and investment bank activities.

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