Inside Story Americas - Has capitalism proven its durability?
"American Pie in the Sky" by Nouriel Roubini "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 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. Modern American Economic History in a Few Charts
World’s Most Prestigious Financial Agency – Called the “Central Banks’ Central Bank” – Slams U.S. Economic Policy 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:
Edward Lazear: The Worst Economic Recovery in History Updated April 2, 2012 7:20 p.m. ET 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. Edward Lazear: The Worst Economic Recovery in History
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. Bush’s Council of Economic Advisers, he stated unequivocally in May 2008 (also in the pages of the WSJ): “The data are pretty clear that we are not in a recession.” He wrote this less than five months before US GDP took a remarkable dive; in 2008Q4 q/q growth was -8.9 percent SAAR. The Recovery According to Ed “We are not in a recession” Lazear 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 Mean-Spirited, Bad Economics
Graphic of World Military Spending (Iran's too Small to Show up)

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Uwe E. Reinhardt: The Wyden-Ryan Plan for Health Care
Housing & Homeownership in America

The truth is, some of us did see this coming. We tried to stop the excessive risk-taking that was fueling the housing bubble and turning our financial markets into gambling parlors. But we were impeded by the culture of short-termism that dominates our society. Our financial markets remain too focused on quick profits, and our political process is driven by a two-year election cycle and its relentless demands for fundraising. I’ve had a unique vantage point during my five-year term as chairman of the Federal Deposit Insurance Corp., from the early failure of IndyMac Bankto the implementation of reforms designed to ensure that no conglomerate ever again is deemed “too big to fail.” Short-termism and the risk of another financial crisis Short-termism and the risk of another financial crisis
The 2007/8 financial crisis

Cognitive Regulatory Capture

Get Ready for TARP 2.0 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.
Jobless Recoveries...

When I discuss Lost Decades I always stress the fact that the “s” denotes the plural. Figure 1 shows that a decade and a half in, the trajectory of output has been noticeably depressed since 2001Q1. Figure 1: Log GDP (dark blue), OECD forecasted (light blue), potential GDP (gray), and nearest neighbor fit against time, local weighting, bandwidth=0.3 (red). Source: BEA, 2011Q3 2nd release, OECD November 28 forecast, CBO Budget and Economic Outlook (August 2011), and author’s calculations. I>Lost Decades</I>, Illustrated I>Lost Decades</I>, Illustrated
Michael interviewed on Guns N Butter with Bonnie FaulknerListen 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 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
The Truth About the Economy
Financial Sector Fraud

The Billion-Dollar Bank Heist - Newsweek Money in Politics -- See Who's Giving & Who's Getting Featured NewsOpenSecrets Blog Wins SPJ AwardHonored by Society of Professional Journalists for Public Service in Online JournalismRead more › With your generous support, together we can count cash & make change. Adds New Joint Fundraising Committee Section Apr 17Today added a new section for joint fundraising committees, the fundraising partnerships between candidates, committees or party committees that allow participants to pool their efforts and split the proceeds.
In U.S. Monetary Policy, a Boon to Banks Note: The Trade is not subject to our Creative Commons license. The most pronounced development in banking today is that executives have become bolder as their business has gotten worse. The economy is clearly weaker than expected, and housing prices are falling throughout the land, eroding bank asset values. Yet regulators are on their heels in Washington as bankers and their lobbyists push back against the postcrisis regulations, even publicly condemning the new rules. In a well-covered exchange [1], Jamie Dimon, JPMorgan Chase's chief executive, challenged Ben S.
Rise in risk inequality helps explain polarized US voters
America: The Hungriest, Most Imprisoned Developed Country on Earth - Derek Thompson - Business
Fault Lines...

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