by Laura Conaway

In the news this morning, the Economy economy and the economy we live in:

— For the first time since November, the S&P 500 closed above 1,000 Monday, and the TED Spread keeps falling as investors and bankers are breathing a little easier these days. The U.S. Treasury says it will need to borrow $109 billion less than expected in the third quarter because banks have paid back more than $70 billion in TARP money (Wall Street Journal, subs. req'd.). The CEO of Goldman Sachs, Lloyd Blankfein, reportedly told his folks to avoid flashing their bonus cash with big purchases around town. Also, Treasury Secretary Tim Geithner apparently cursed out a bunch of financial types — including FDIC chair Sheila Bair and SEC chair Mary Schapiro on Friday, telling them he'd had enough of their objections to the Obama administration's proposed overhaul of financial regulations (Wall Street Journal, subs. requ'd.).

— Meanwhile, people who've been laid off can spend years trying to regain their old salary levels. The price of gas is going up again, as the commodities market rises. Cash for Clunkers tiptoed forward in the Senate, with key critics saying the $2 billion extension should pass. And the new GI Bill sets aside $78 billion in benefits, including college tuition, for veterans.