Obviously this economic meltdown of the last couple of years is complex. But if pressed to give a one-sentence answer, I would say this: For almost thirty years the financial sector got whatever it wanted. Certain conditions had to be place to make this possible: the widely held idea that markets and business people can […]
Two additional articles worth reading: Stress Tests and the Nationalization We Got, The Baseline Scenario SEC Squanders a Shot at Reform, Wall Street Journal Basically we’ve lost all momentum for reforming the banking sector, and it’s unlikely to come back. Business as usual will continue. And: Our Future as a Financial Colony, Brad DeLong So […]
Following up on my last post on cramdown, I want to highlight this opinion piece from the Wall Street Journal. The author makes the point that many people in the U.S. are saying we need a banking system more like Canada’s, which is in much less trouble than our own. (What does Canada not do […]
The American Prospect has a good wrap-up of the political situation surrounding the recent defeat of “cramdown” legislation (starring Illinois’ own Senator Dick Durbin). Cramdown is when a bankruptcy judge can reduce the amount of a mortgage once a person goes into bankruptcy court. Current law forbids a judge from lowering the amount of a […]
Here’s a nice little article on how a big chunk of our federal budget deficit and debt problems came from the Republicans. Of course, I’m not happy that the Obama administration is having to run up huge, new deficits. But the real question is how long will these deficits go on. It’s appropriate for government […]
Conservatives love to talk about how “welfare” and “entitlement” programs destroy the character of Americans by undermining their willingness to work and generate economic prosperity. There are all sorts of problem with this view. Among them, what’s the evidence? There are plenty of rich people who could retire today with a high quality of life, […]
Or at least, that’s what conservatives should be arguing for. And I think they’d have a lot of support. Conservative Charles Krauthammer writes today: Torture is an impermissible evil. Except under two circumstances. The first is the ticking time bomb. An innocent’s life is at stake. The bad guy you have captured possesses information that […]
There’s a lot to chew on in the discussion over at the New York Times “Does the U.S. need an auto industry?“ I was struck by a couple of passages. This from Roger Simmermaker, a union official: We need a U.S. auto industry because American companies employ more American workers; support more retirees, their families […]
A great discussion taking place over at the New York Times. Economist Mark Thoma says: But there is another rationale for policies preserving certain kinds of production: protecting industries vital to national defense. If you are an island nation vulnerable to blockades or trade embargoes intended to prevent food and other goods from being imported, […]
I’m afraid that I can’t get behind the Obama administration and some Michigan politicians who blame a group of hedge funds for pushing Chrysler into bankruptcy court. The Obama administration desperately wanted to keep Chrysler out of bankruptcy. It secured agreements from just about everybody (management, the union, banks that are major creditors – who, […]
Bill Poorman 