The U.S. economy
Inside Story Americas - Has capitalism proven its durability?
"American Pie in the Sky" by Nouriel Roubini Exit from comment view mode. Click to hide this space NEW YORK – While the risk of a disorderly crisis in the eurozone is well recognized, a more sanguine view of the United States has prevailed. For the last three years, the consensus has been that the US economy was on the verge of a robust and self-sustaining recovery that would restore above-potential growth.
Modern American Economic History in a Few Charts Matt Stoller is a fellow at the Roosevelt Institute. You can follow him at http://www.twitter.com/matthewstoller . The big economic strategy for the next term of whoever is Presidenti is essentially, “turn those machines back on”. It’s fracking to replace cheap oil and a new real estate bubble in housing. Essentially, the idea is to turn America into more and more of a resource extraction economy , or a petro-state. If American politics seems more and more oligarchical, that’s because the American political system is beginning to reflect the Middle Eastern oil states its economic investment implies it should.
World’s Most Prestigious Financial Agency – Called the “Central Banks’ Central Bank” – Slams U.S. Economic Policy The “Central Banks’ Central Bank” Slams the Federal Reserve The central banks’ central bank, the Bank of International Settlements or “BIS” – which is the world’s most prestigious mainstream financial body – has slammed the policy of America’s economic leaders. This is especially dramatic given that the banks own the Federal Reserve, and that the Federal Reserve and other central banks – in turn – own BIS . In other words, BIS is criticizing one of its main owners. Economics professor Michael Hudson notes :
How many times have we heard that this was the worst recession since the Great Depression? That may be true—although the double-dip recession of the early 1980s was about comparable. Less publicized is that our current recovery pales in comparison with most other recoveries, including the one following the Great Depression. The Great Depression started with major economic contractions in 1930, '31, '32 and '33. In the three following years, the economy rebounded strongly with growth rates of 11%, 9% and 13%, respectively. Edward Lazear: The Worst Economic Recovery in History
« Replacing Iran's oil production | Main | Current economic conditions » April 05, 2012 The Recovery According to Ed “We are not in a recession” Lazear In Tuesday’s WSJ , Edward Lazear argued that we are now experiencing the “Worst Economic Recovery in History” . Before dissecting this remarkable document, it would behoove the reader to recall that while he was Chair of George W. The Recovery According to Ed “We are not in a recession” Lazear
Is Obama Still on the Austerity Train?
By Simon Johnson The principle behind unemployment insurance is simple. Since the 1930s, employers – and in some states employees — have paid insurance premiums (in the form of payroll taxes, levied on wages) to the government. Mean-Spirited, Bad Economics
Graphic of World Military Spending (Iran's too Small to Show up)
Uwe E. Reinhardt is an economics professor at Princeton. He has some financial interests in the health care field. After wrestling for decades and in futility with the triple problems facing health care in the United States – unsustainable spending growth, lack of timely access to health care for millions of uninsured Americans and highly varied quality of care – any new proposal to address these problems is likely to be a recycled old idea. Uwe E. Reinhardt: The Wyden-Ryan Plan for Health Care
Housing & Homeownership in America
The nation is still struggling with the effects of the most serious financial crisis and economic downturn since the Great Depression. But Wall Street seems all too ready to return to the same untenable business practices that brought it to its knees less than three years ago.And some in government who claim to be representing Main Street seem all too ready to help. Already we have heard rationalization of the subprime mortgage debacle and denigration of those of us who have advocated long-term, structural changes in the way we regulate the financial industry. Too many industry leaders, as well as some government officials, compare the crisis to a 100-year flood. “Who, us?” Short-termism and the risk of another financial crisis
The 2007/8 financial crisis
Cognitive Regulatory Capture
Get Ready for TARP 2.0 Washington DC appears to be readying itself for a repeat of the TARP, namely, the passage of unpopular legislation to appease the Market Gods (and transfer even more income from ordinary Americans to the Masters of the Universe). It isn’t yet clear whether this drama will be played out via generating bona fide financial market upheaval or mere threat-mongering (the Treasury market seems pretty confident that well-trained Congresscritters will fall into line). But unlike the TARP, which was a classic example of well-placed interests finding opportunity in the midst of upheaval, this reprise is a far more calculated affair.
« Supply Chains and the Future of Globalization in the Wake of the Tōhoku Earthquake and Tsunami | Main | Advice for the academic job market » December 08, 2011 Lost Decades , Illustrated When I discuss Lost Decades I always stress the fact that the “s” denotes the plural. I>Lost Decades</I>, Illustrated
Michael interviewed on Guns N Butter with Bonnie Faulkner Listen here “When I was in Norway one of the Norwegian politicians sat next to me at a dinner and said, “You know, there’s one good thing that President Obama has done that we never anticipated in Europe. He’s shown the Europeans that we can never depend upon America again. There’s no president, no matter how good he sounds, no matter what he promises, we’re never again going to believe the patter talk of an American President. Mr. Wall Street’s Euthanasia of Industry
The False Dichotomy of Greed By Sell on News, a macro equities analyst. Cross posted from MacroBusiness The Euro crisis appears to be developing into something similar to the 1980s Latin American debt crisis when the idea that, to quote Walter Wriston, who ran First National City/ Citibank from the 1960s into the 1980s it was assumed that: “countries don’t go out of business.” The Latin American leadership demonstrated that they, in effect, could, by defaulting.
20 July 2011, Financial Times In the 1990s, when European monetary union was a plan but not a reality, I would explain to students that the effect was to replace currency risk by credit risk. With exchange rates free to float, loose monetary and fiscal policies would lead sooner or later to a fall in the exchange rate. That expectation implied higher interest rates. Currency markets would limit the scope for bad economic policies. Monetary union meant sovereign governments could no longer print money. American lessons in how to run a single currency
Financial Sector Fraud
There are the bills a president signs sitting in the Oval Office and the bills that merit a Rose Garden ceremony. And then there are bills so momentous—or at least so critical to a president’s reelection prospects—that those around the commander in chief orchestrate a more elaborate ceremony. Such was the case with Dodd-Frank , the financial-reform package that President Obama signed into law last July against a backdrop of velvet curtains in a resplendent venue a few blocks from the White House. The Billion-Dollar Bank Heist - Newsweek
In U.S. Monetary Policy, a Boon to Banks
Rise in risk inequality helps explain polarized US voters
America: The Hungriest, Most Imprisoned Developed Country on Earth - Derek Thompson - Business
The politics and economics of Austerity
debating the future of capitalism - perspectives...
a fiscal cliff?
The ‘strong-dollar’ policy of the US
The impotence of monetary policy
Gross Echoes Buffett Saying Treasuries Have ‘Little Value’ on Debt, Dollar