2009: The Year Wall Street Bounced Back and Main Street Got Shafted

2010 Great Recession

Robert Reich: As long as income and wealth keep concentrating at the top, and the great divide between America’s have-mores and have-lesses continues to widen, the Great Recession won’t end — at least not in the real economy.

So Much Happening in Washington and So Little to Show for It, So Far

Politics Elephant cartoon

The public doesn’t know what’s going on because the national media would rather report on the sexual escapades of famous people or social trends or high finance (a recent Pew study of economic reporting shows the vast majority of stories about the Great Recession have focused on Wall Street rather than Main Street).

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 [...]

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 [...]

The President’s American Recovery & Reinvestment Act: What We Don’t Know Can Hurt Us

shovel-ready

One of the first things President Barack Obama did as our nation’s Chief Executive was to urge Congress to pass, then sign, the American Recovery & Reinvestment Act (ARRA), better known as the nation’s “economic stimulus” package. The $787 billion bill, the largest taxpayer footed bill ever passed, was viewed as the primary vehicle to [...]

Where Government Spending Should be Trimmed — And Why It’s Necessary to Fast-Track Universal Health Care

play-aig

It’s no accident that as Congress returns this week from its two-week recess and begins debate on the $3.5 trillion budget plans for the fiscal year starting in October — which may or may not include a provision that fast-tracks Obama’s health care proposal by allowing it to pass the Senate with a mere majority [...]

Stimulus Mania: Is It The 21st Century Soup Line?

soupline

The efforts to jump start the economy in the United States, in hopes of causing a global ripple, have taken on an entirely new meaning as people and industry alike wait for the $787 billion dollar economic stimulus package to drop. It’s like a “mania” as so many cities, states, industries, school districts, homeowners, small [...]

A Short Citizen’s Guide to Kooks, Demagogues, and Right-Wingers On Tax Day

what-are-we-protesting

No one likes to pay taxes, so tax day typically attracts a range of right-wing Republicans, kooks, and demagogues, all of whom tell us how awful we have it. Herewith a short citizen’s guide (that is, a citizen’s guide that’s short rather than a guide for short citizens) responding to the predictable charges: “Americans pay [...]

We Can Stop Our Businesses From Moving Out

echo_park_murals

Long before I saw her walking her dog that morning or the guy who was jogging, or that couple move in down the street, I concluded that one way or another, my neighborhood was going to change. I just wasn’t expecting it so soon or for Black people to play such an active roll in [...]

We Need More Stimulus, Not More Bailout

patching panks

With only $110 billion remaining in the TARP bailout fund, all signs are that Tim Geithner is preparing to return to Congress seeking more bailout money. He’ll bring along the results of his bank “stress tests,” which will probably show many that big banks are still technically insolvent, along with bankruptcy scenarios for General Motors [...]

Nationalizing Banks and Industry: Why Capitalists Hate Socialism

worse-depression

The United States has always been a political economy, requiring government regulation of its finance and money markets, and using government stimulation on its labor force. “Free Market” enterprise is based on the notion that open markets and the competition derived from competing ideas for consumer patronage will create a market balance (equilibrium) that will [...]

Why We’re Not at the Beginning of the End, and Probably Not Even at the End of the Beginning

populist-rage

Are we at the beginning of the end? Mortgage interests are now so low (the average rate on 30-year fixed mortgages was 4.87% Thursday, slightly higher than the 4.78% last week, but still the lowest level since 1971) that President Obama has begun urging Americans to refinance their homes so they can save money and [...]

CSI Bailout, with William K. Black — Bill Moyers Journal Interview

handcuffs

William K. Black suspects that it was more than greed and incompetence that brought down the U.S. financial sector and plunged the economy in recession — it was fraud. And he would know. When it comes to financial shenanigans, William K. Black, the former senior regulator who cracked down on banks during the savings and [...]

Why You Should Work for a Hedge Fund

jacuzzi

Just because I lost a big chunk of my total retirement savings over the last year doesn’t mean I should be upset that 25 hedge-fund managers reaped a total of $11.6 billion during the same interval, according to Institutional Investor’s Alpha Magazine — including $2.5 billion for James Simons of Renaissance Technologies and $2 billion [...]

The Administration’s Proposed Responsible Wall Streeter Tax Credit

recession-copy

The Administration is about to launch a new plan designed both to stimulate the economy and clean up Wall Street at the same time, the “Responsible Wall Streeter Tax Credit”.

CEOs Golden Parachutes

Golden Parachutes

n 2008, approximately  1,484 CEOs left or were fired from their jobs. But most of them left with hefty severance packages or “Golden Parachutes” which softened the fall for so many of the executives responsible for the financial crisis. General Motors CEO Rick Wagoner stepped down under pressure from the White House.  His Golden Parachute [...]

AIG Bonuses: Don’t Hate the Player, Hate the Game

jasmyne cannick

I watched this week as the nation’s furor turned towards employees of insurance giant American International Group (A.I.G.) and the $200 million-plus in retention bonus payments recently doled out to executives. Executives, who, as we already know, are largely to blame for their role in A.I.G.’s financial crisis that led to the country’s economic meltdown [...]

AIG and the Undeserving Rich

dry-bones

Charles Blow, the “moderate” who seems to write a lot of words but never takes a clear stand on anything, recently lamented on the op-ed page of the New York Times about what a small matter the $165 million in bonuses really were compared to the $170 billion AIG received in government welfare. Sheryl Gay [...]

The Rich Countries’ Faltering “United Front”

crisis8

By now we’ve heard “The worst economic crisis since the 1930s” – or words to that effect – so many times it’s become like a mantra. But as the days roll on it begins to appear that it might just be an understatement and that not only does the economic situation appear more like the [...]

Economic Recovery Will Be More than Trusting President Obama’s Stimulus Plan

bottom-feeder

The Audacity Of Greed should be the title of President Obama’s next book. Never could he have imagined how tough getting out of an economic recession (borderline depression) when he signed up for the presidency. He knew the job was tough when he took it, he just didn’t know that greed would continue to trump [...]

Obama Rescuing Capitalism: That’s a Lot of Weight for One Brother

obama_congress

Back in December, when it was obvious that the economy was in bad shape and before we knew how precarious it could get, Fareed Zakaria, editor of Newsweek International and columnist for Newsweek and the Washington Post, wrote, “For Obama to be remembered as a great president, he has to do nothing less than rescue [...]

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Madoff, Stanford, Ponzi and the Media

questionable ethics

Few had heard the name Bernard (Bernie) Madoff, as recently as two months ago. An equally small group was familiar with the term “Ponzi Scheme” when the Madoff scandal broke. And now there is the Sir R. Allen Stanford scandal. Now, in this era of keen observance to rules of fiscal prudence where the public [...]

President Obama’s Remarks Before the House Votes on Stimulus Bill

President Barack Obama spoke to a group of business executives and elected officials before the House voted on the highly anticipated Stimulus Bill which contains an $825 billion Stimulus Plan. The President noted that seven of the largest corporations in the United States announced, this week, that they are making job cuts. Earlier, in a [...]

Dem Bones Connected to De Debt Bone

rich-government

It is an understatement to say we are experiencing an unprecedented financial crisis along with our worldwide environmental crisis. Neither crisis needs an Austrian economist to explain it. We live in a consumer society and consumers “use things up.” In recent history, this useless, toxic “stuff” comes from China, and this sad state of affairs [...]

Thoughts on the End of a Hell of a Year

2009

The biggest thing to happen to me this year was the birth of my first grandchild, a little girl named Ella. I know this kind of thing happens all the time and frankly I get bored with people who go all gushy about the birth of kids or grandkids.

States’ Budget Crises: Share the Pain, Share the Dough

sanjose-football

by Carl Bloice – It’s probable that by the time this is read, officials in San Jose, California, will have eliminated athletic programs from all 11 of the city’s high schools. It might not seem like much to some, given the declining economic situation in the country and the kinds of budget cuts being made [...]

Bail Out the Big Three and Revitalize the Economy

1947_cadillac_series_62_convertible

by John Paul Rossi – The other week, the appeal of the Big Three’’s executives for a $25 billion taxpayer bailout for their desperately ailing firms failed. Neither the fractious lame duck Congress, nor the Bush administration were willing to help.

Another Great Depression?

great-depression

The United States is in the midst of the worst financial crisis since the Great Depression. The question is: How close are we to another Great Depression? The answer is: Very close. Here’s why. The Great Depression was the result of the combination of the 1929 financial crisis and serious structural problems in the American [...]

Now Greenspan Tells Us!

Whoops! My bad. Sorry. In effect, this is what former Fed chair Alan Greenspan is telling members of the House Committee of Government Oversight and Reform today by admitting he was wrong about unfettered free markets regulating themselves.

A Failed Economy Hurts Gay Taxpayers More

In the face of a financial Armageddon, the economy has become the center of the campaign, where it should have been all along. But the moment all Americans have been waiting for – the latest McCain-Obama debate – was a yawn. The melodrama and histrionics of whether the first debate would happen titillated anxious taxpayers [...]

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