Does the Obama Plan for Reforming Wall Street Measure Up?

evasive-money

In a word: No. The plan doesn’t stop stop bankers from making huge, risky bets with other peoples’ money. It does increase capital requirements and oversight, but it doesn’t require bankers to take their pay in long-term stock options or warrants, and it doesn’t even hint that banks should go back to being partnerships instead […]

California Democrats: “Spreading the Pain” from Sacramento

Karen Bass, Darryl Steinberg

When his term mercifully expires next year, California Governor Arnold Schwarzenegger will be leaving the Golden State in the worst condition than at any time its history. If Schwarzenegger and his right-wing Republican co-conspirators get their way (as they always seem to do), they’ll gut every social program and educational institution in the state in […]

The Italian Job: Border Police Seize $134 Billion in US Government Securities

Michael Caine as John Le Carre's George Smiley

Although the story is being widely reported across Europe and Asia, it’s received scant media coverage in the US. AsiaNews along with other major media outlets outside the US are reporting that Italy’s financial police, the Guardia Italiana di Finanza, seized US government bonds worth $134.5 billion from two Japanese nationals at Chiasso, located less […]

The Three Essentials of Financial Reform

dollar-hand

As the White House unveils its long-awaited proposals to prevent another Wall Street meltdown in the future, keep a lookout for three essentials. Without them the Street will revert to its old ways as soon as the coast clears. In fact, now that the government has bailed out the Street, the biggest banks will take […]

The Great Debt Scare: Why Has It Returned?

broken economy

It’s the kind of thing I expect to hear from deficit hawks and chicken littles — from the self-described “fiscally responsible” right, from the scolds Ross Perot and Pete Peterson, from my former cabinet colleague Bob Rubin. But yesterday I was shown slides developed by the putatively liberal Center for American Progress intended to make […]

“You Are Now the Owner of a Brand New Car (Company)!”

Walter Reuther

We now own a major stake in the largest auto company in the world. With the General Motors Corporation filing the second-largest industrial bankruptcy in world history, the US government has stepped in to take a 60% stake in the company and the autoworkers’ healthcare fund taking ownership of 17.5%. In a reversal of Aesop’s […]

The Future of Manufacturing, GM, and American Workers (Part III)

Buick assembly line, 1950 (Photos Philip Gendreau)

As president of General Motors when Eisenhower tapped him to become secretary of defense in 1953, “Engine Charlie” Wilson voiced at his Senate confirmation hearing what was then the conventional view. When asked whether he could make a decision in the interest of the US that was adverse to the interest of GM, he said […]

The Future of Manufacturing, GM, and American Workers (Part II)

knowledge-worker

Symbolic analysts have been hit by the current downturn, just as everyone else has. But over the long term, symbolic analysts will do just fine – as long as they stay away from job functions that are becoming routinized. They will continue to benefit from economic change. Computer technology gives them more tools for thinking, […]

The Future of Manufacturing, GM, and American Workers (Part I)

auto-plant

What’s the Administration’s specific aim in bailing out GM? I’ll give you my theory later. For now, though, some background. First and most broadly, it doesn’t make sense for America to try to maintain or enlarge manufacturing as a portion of the economy. Even if the U.S. were to seal its borders and bar any […]

Intellectual Monopoly Is an Unnecessary Evil

monopoly

In a rush to stimulate the economy, the Obama administration is touting various “visionary” plans to make the American economy more progressive, more innovative, and more forward-looking by subsidizing politically-motivated projects like “green” technology. These hands-on policies will be ineffective. Recent research suggests that a much more effective way to accomplish the same goals would […]

A Modest Plan for Paying College Costs

falon_williams

I’m just about to head off to a commencement here at University of Califonria,  Berkeley. The news that keeps banging around in my head is that the state has just announced a whopping 9% increase in fees for next academic year, the third fee increase in three years. The average young person now graduating from […]

The Truth Behind the Social Security and Medicare Alarm Bells

social-secuirty

What are we to make of yesterday’s report from the trustees of the Social Security and Medicare trust funds that Social Security will run out of assets in 2037, four years sooner than previously forecast, and Medicare’s hospital fund will be exhausted by 2017, two years earlier than predicted a year ago? Reports of these […]

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