Four and a half years after the "recovery" began, economic pain remains widespread. Yet the Washington/Wall Street tell Americans, "Have patience." Now, Larry Summers suggests a core economic assumption of the American elite might be dead wrong.
On Tuesday, the Justice Department announced that JPMorgan has agreed to a $13 billion dollar settlement over the fraudulent sale of mortgage backed securities. But, that settlement is a fraud in and of itself.
Beneath the Tea Party-generated gridlock in Washington, continued mass unemployment and growing inequality are confounding the old economic consensus. Heresies sounded in the temples of the old faith suggest the debate on reform has only begun.
Sen. Elizabeth Warren says progressive Davids can win against the banking Goliaths and rebuild the wall between retail banking activities and the kind of high-risk financial bets that contributed to the 2008 financial crisis.
The Senate’s role in presidential nominations is “advise and consent,” not “obstruct and prevent.” But even so-called “moderate” Republicans like Susan Collins won't block a filibuster of Mel Watt to lead the Federal Housing Finance Agency.
All knowledgeable D.C. types know that the TARP and Fed bailout of Wall Street banks five years ago saved us from a second Great Depression. Like most things known by knowledgeable Washington types, this is not true.
The appointment of the next Federal Reserve chair is no longer just a policy question. It has become a test of the Obama administration’s ability to act pragmatically by abandoning a costly and potentially doomed nomination.
Not that this is exactly news, but Michael Bloomberg is a jerk. A very wealthy jerk. I guess Bloomberg and his ilk really do feel that they deserve to have every last penny on this earth. Because they're productive.
It takes a special magic to bring together people as diverse as progressive Democrats, Californians, conservative Republicans, feminists, a number of prominent economists, and a large chunk of the investment community.
The “boys club” that dominates Obama administration economic policy is all in for Larry Summers. The divide between Summers' critics and the insiders dramatizes the looking-glass world that is today’s Washington.
Anat Admati makes a compelling case for effective financial reform in a recent New York Times op-ed entitled “We’re All Still Hostages to the Big Banks." Admati rightfully notes that we are still unsafe.
This excerpt comes from a piece by Michael Winship on how much Washington has changed since the Nixon years. The social and cultural changes are quite striking. But this says it all.
This won't come as a surprise to many of you, unless you are a bankster or a billionaire, you're not being represented in the United States Senate. Senators in the last five Congresses have consistently voted to benefit their wealthy constituents.
The supporters of Larry Summers drive to be Fed chair are desperately trying to rewrite history so that this world class champion of financial deregulation was actually a prescient supporter of tighter regulation all along.
The chattering classes are fascinated by the Republicans’ internecine battle to redefine the party in the wake of the George W. Bush calamity and the Mitt Romney defeat.
Write a cookbook, go to jail? David Dayen points out the absurdity and hypocrisy behind the Obama/Holder Justice Department’s decision to indict two stars of “The Real Housewives of New […]
It’s a real-life disaster movie, one that’s left neighborhoods in ruins all across the country, killed thousands of people, and ruined millions of lives. You might call it a “Banknado.” Yes, we know the “Sharknado” craze ended about ten days […]
Whoever said, “What you don’t know can’t hurt you” doesn’t know much about economics. That goes double for the nomination of Lawrence Summers to head the Federal Reserve. For all […]
Larry Summers for the Fed? Seriously? There are better choices for Federal Reserve chair; in particular, Janet Yellen is more than qualified and would do a great job. Ezra Klein […]
Sheila Bair, the former chair of the Federal Deposit Insurance Corporation and one of the few insider voices of sanity in the midst of the 2008 financial crisis, made the […]
Here’s an economic free-association test. Read the following sentence: The federal government should bail out Detroit city worker’s pensions so that retirees can be paid in full. Some people will […]
In tough times, there’s some good news on the housing front. In slow but meaningful steps around the country, decisionmakers are adopting key elements of the Compact for Home Opportunity, […]
Senator Elizabeth Warren wants to make banking boring again.
Though the Consumer Financial Protection Bureau opened shop almost three years ago, it has yet to be fully functional because of the financial industry lobby and its allies in Congress. […]
Nearly 100 years ago two young Detroit girls visited a now-vanished island park that had a dance pavilion, amusement rides, and swimming, and wrote that they were “having fun” on […]
After 237 years, we’re becoming a colony again. Our nation’s losing the right to self-determination it fought so hard to win, and it’s happening on a scale unseen since the […]
The U.S. Congress votes readily to subsidize the big banks to our peril. The Congress lavishes subsidies to Big Oil to our shame. Congress allows Big Pharma to help health […]
High-profile federal prosecutions of America's hedge fund managers only hint at the crime and ethical misbehavior rampant in America's most rewarding high-finance suites.
Congressional Republicans came to Silicon Valley this week to raise money from CEOs and their companies. They were offering a flat-out quid pro quo: give us money and in exchange […]
A JPMorgan Chase employee stepped onstage at a black-tie gala on Wall Street last week to accept a “best crisis management” award given by an investor relations magazine. The bank, […]
On Wednesday the Senate Finance Committee will hear from Jack Lew, the President nominee for Treasury Secretary. If confirmed, Lew will succeed the controversial Tim Geithner. While Lew would not […]
It’s been 13 days since the Campaign for a Fair Settlement challenged President Obama to use the first 100 days of his term to “fix what Wall Street broke.” Though […]
In Part 1 of this series, I wrote that Republicans who were incensed that President Obama had nothing to say to them in his inaugural address should be far more […]
Senator Jeff Merkley, one of the handful of independent stalwarts on bank reform, today blasted the Attorney General for the Justice Department’s apparent policy of giving big bankers a “get […]
The following was originally published in The Nation. With the election behind us, President Obama and the lame-duck Congress return to Washington to face a fiscal showdown, occasioned by automatic […]
In the words of the old spiritual, “My Lord, what a morning!” Barack Obama’s 2008 campaign was defined by an iconic poster bearing the single word: “Change.” Obama’s victory in […]