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As some companies begin to rebuild stocks, the impact could wash through the economy for a few more months, adding jobs and moderating the overall decline. Then the underlying weakness of the economy will probably reassert itself, say experts. After years of borrowing against homes and cashing in stock to spend in excess of their incomes, many Americans are tapped out. Austerity and saving have replaced spending and investment in many households, constraining the economy. As many Americans transition from living on home equity loans to sustaining themselves on paychecks, weekly pay continues to effectively shrink: Over the last year, average hourly earnings for rank-and-file workers - some 80 percent of the labor force - have increased by 2.5 percent. But average weekly earnings have expanded by only 0.7 percent, less than the increase in the cost of living, because employers have slashed working hours. In September, the average workweek edged down by one-tenth of an hour, to 33 hours. For those out of work, the job market looks harsher now than at any point in the recession. The number of people who have been jobless for more than six months increased in September by 450,000, reaching 5.4 million. "We have a truly massive crisis of long-term unemployment," said Christine L. Owens, executive director of the National Employment Law Project in a statement, adding that nearly 400,000 jobless people had exhausted their unemployment benefits by the end of September. "Today's employment report is a marching order for Congress to pass unemployment benefit extensions to all states, quickly." The first signs of improvement are likely to be seen among temporary workers, say experts, as companies now hunkering down in the face of uncertain prospects take tentative steps to expand. But temporary help services lost 1,700 jobs in September. "Companies are extremely cautious," said Roy G. Krause, chief executive of Spherion, a recruiting and staffing comp

As some companies begin to rebuild stocks, the impact could wash through the economy for a few more months, adding jobs and moderating the overall decline. Then the underlying weakness of the economy will probably reassert itself, say experts. After years of borrowing against homes and cashing in stock to spend in excess of their incomes, many Americans are tapped out. Austerity and saving have replaced spending and investment in many households, constraining the economy. As many Americans transition from living on home equity loans to sustaining themselves on paychecks, weekly pay continues to effectively shrink: Over the last year, average hourly earnings for rank-and-file workers - some 80 percent of the labor force - have increased by 2.5 percent. But average weekly earnings have expanded by only 0.7 percent, less than the increase in the cost of living, because employers have slashed working hours. In September, the average workweek edged down by one-tenth of an hour, to 33 hours. For those out of work, the job market looks harsher now than at any point in the recession. The number of people who have been jobless for more than six months increased in September by 450,000, reaching 5.4 million. "We have a truly massive crisis of long-term unemployment," said Christine L. Owens, executive director of the National Employment Law Project in a statement, adding that nearly 400,000 jobless people had exhausted their unemployment benefits by the end of September. "Today's employment report is a marching order for Congress to pass unemployment benefit extensions to all states, quickly." The first signs of improvement are likely to be seen among temporary workers, say experts, as companies now hunkering down in the face of uncertain prospects take tentative steps to expand. But temporary help services lost 1,700 jobs in September. "Companies are extremely cautious," said Roy G. Krause, chief executive of Spherion, a recruiting and staffing comp

HESPERIA * Authorities said a frightening e-mail warning Hesperia residents of a rapist on the loose is a hoax. The e-mail includes an imbedded picture of convicted 9/11 terrorist Zacharias Moussaoui who is currently in federal prison in Colorado.

"After analyzing risky mortgages made on homes in Arizona, California, Florida and Nevada, where the housing markets had overheated, Mr. Paulson went to Goldman to talk about how he could bet against those loans. He focused his analysis on adjustable-rate loans taken out by borrowers with relatively low credit scores and turned up more than 100 loan pools that he considered vulnerable, the S.E.C. said. Mr. Paulson then asked Goldman to put together a portfolio of these pools, or others like them that he could wager against. He paid $15 million to Goldman for creating and marketing the Abacus deal, the complaint says. One of a small cohort of money managers who saw the mortgage market in late 2006 as a bubble waiting to burst, Mr. Paulson capitalized on the opacity of mortgage-related securities that Wall Street cobbled together and sold to its clients. These instruments contained thousands of mortgage loans that few investors bothered to analyze. Instead, the buyers relied on the opinions of credit ratings agencies like Moody's, Standard & Poor's and Fitch Ratings. These turned out to be overly rosy, and investors suffered hundreds of billions in losses when the loans underlying these securities went bad. Mr. Paulson personally made an estimated $3.7 billion in 2007 as a result of his hedge fund's performance, and another $2 billion in 2008. He was also treated like a celebrity by members of a Congressional committee that invited him to testify in November 2008 about the credit crisis. At the time, none of the lawmakers asked how he had managed to set up his lucrative trades; they seemed more interested in getting his advice on how to solve the credit crisis. "

"Americans, whether they are rich or poor, are much more in favor of high-skilled immigrants," said Jens Hainmueller, a political scientist at M.I.T. and co-author of a survey of attitudes toward immigration with Michael J. Hiscox, professor of government at Harvard. The survey of 1,600 adults, which examined the reasons for anti-immigration sentiment in the United States, was published in February in American Political Science Review, a peer-reviewed journal. Americans are inclined to welcome upper-tier immigrants - like Ms. Kollman-Moore - believing they contribute to economic growth without burdening public services, the study found. More than 60 percent of Americans are opposed to allowing more low-skilled foreign laborers, regarding them as more likely to be a drag on the economy. Those kinds of views, in turn, have informed recent efforts by Congress to remake the immigration system. A measure unveiled last month by Senator Lindsey Graham, Republican of South Carolina, and Senator Charles E. Schumer, Democrat of New York, aims to reshape the legal system to give priority to high-skilled, high-earning immigrants, offering narrower channels for low-wage workers. (A bill in 2007 by the Bush administration tilted even more sharply toward upper-tier immigrants; it failed in Congress.) "

20 deaths, including two in the state of Baja California Norte, which borders California. The Mexican cases include five health- care workers, the Ottawa-based agency said in an e-mail today. Tests in Mexico found patients were infected with H1N1 and type-B influenza strains and the parainfluenza virus, the agency said. In the U.S., doctors discovered a new strain of H1N1 swine influenza in patients in San Diego County and Imperial County, California, and in San Antonio, the Centers for Disease Control and Prevention in Atlanta said today. "It will be critical to determine whether or not the strains of H1N1 isolated from patients in Mexico are also swine flu," Donald Low, an infectious diseases specialist at Toronto's Mount Sinai Hospital, told the Canadian Press. Canada's National Microbiology Lab received 51 specimens from Mexico yesterday and will be testing them for a range of pathogens, the public health agency said.