Author: Stable Genius

I am the very model of a Stable Genius Liberal.

The Debt Ceiling and the Housing Bust

The Debt Ceiling and the Housing Bust

You can argue that these spending cuts wouldn’t have as much impact as the housing bust, because payment would be delayed, not cancelled, and at least some players would continue to expect eventual payment. On the other hand, as I pointed out in my last post, this time around we would have disconnected the automatic stabilizers — as GDP fell, revenues would fall, forcing another round of spending cuts, and so on.

GOP seems to prefer vicious cycles to virtuous ones. 

Krugman: Automatic Destabilizers

Krugman: Automatic Destabilizers

The immediate question is whether Treasury can, in fact, “prioritize” — pay interest on the debt while stiffing everyone else, from vendors to Social Security recipients. If they can, they might choose to do this to avoid financial meltdown.

My worry s that once people stop getting paid the GOP will decided that they have more leverage and make greater demands. 

Forbes Calls Goldman CEO Lloyd Blankfein Holier Than Mother Teresa

Forbes Calls Goldman CEO Lloyd Blankfein Holier Than Mother Teresa

there are still huge pockets of these Fountainhead junkies who genuinely believe that the Blankfeins of the world are reviled because they’re bankers and they’re rich, and not because they’re the heads of unprosecutable organized crime syndicates who make their money through mass fraud, manipulation and the shameless burgling of public treasure.

The Ayn Rand crowd insists this is jealousy and not well earned revulsion.