Gary Cohn: The reasons for Los Angeles’ comparatively good financial condition include a legal groundwork laid years ago that required specific funding safeguards, recent give-backs from public sector unions and an improving economy.
Brent Budowsky: Obama’s political strategy is to position himself as the lofty leader above the fray, appealing to voters who tell pollsters that “we must work together” without risking his elevated image of possessing the hands-on executive leadership that is required to make hard decisions on tough issues in a divided government.
Joseph Palermo: The financial reform legislation currently winding its way through the Congress is a step in the right direction but it retains too much of the status quo that brought down the economy in the first place. The key problem, as many economists have been telling us, is that the top financial institutions remain “too big to fail.” Congress can enact all the regulations it wishes but even the best written rules won’t be enough to prevent another financial meltdown.
Joseph Palermo: Schwarzenegger’s hackneyed “State of the State” address was pathetic and unconvincing. If it weren’t for his acting chops and his ability to emote on cue, he couldn’t get away with the simplistic platitudes that roll off his tongue. Then again, if he couldn’t act he wouldn’t be governor either.
Resolving our fiscal crisis will require many very difficult decisions, but our guiding principle must be constructing a budget that is least injurious to the most vulnerable. While we will have to take quick action to avoid the state sliding into insolvency, we must take that action in a thoughtful manner minimizing the potential permanent [...]
In his most recent piece in the New York Times Paul Krugman asks: “Who would have thought that America’s largest state, a state whose economy is larger than that of all but a few nations, could so easily become a banana republic?” Here in Sacramento I’ve watched the disaster unfold before my eyes like a [...]
Governor Schwarzenegger’s May “budget revise” last week – which proposed more mass layoffs, more painful cuts and more reckless borrowing – had all the makings of the end of a Shakespearean tragedy, where the protagonist has run out of options due to troubles of his own making. One could also view it as the definition [...]
by Richard M. Mathews – I wrote recently about how Democratic presidents create many more jobs than do Republican presidents. What about the rest of the economy? I don’t want to talk down the economy as George W. Bush’s team did when he was running for president in 2000. They insisted that the economy was [...]