In testimony this morning to the House Financial Services Committee, Mr. Bernanke said a full review of consumer protection regulations was under way under existing regulatory authority. “The recent problems in subprime lending have underscored the need not only for better disclosure and new rules but also for more-uniform enforcement in the fragmented market structure… Continue reading Fed Chief Calls for New Mortgage Rules
Category: economics
Bernanke’s `Rookie Mistake’ Forces Fed to Shift Focus
“It was a rookie mistake,” said Kenneth Thomas, a lecturer in finance at the University of Pennsylvania’s Wharton School in Philadelphia. The Fed “underestimated liquidity needs” of investors and the fallout from the housing recession, he said, adding, “This demonstrates the difference between book-smart and street-smart.” From Bloomberg News The meeting signals Congress is looking… Continue reading Bernanke’s `Rookie Mistake’ Forces Fed to Shift Focus
Bill to Let Medicare Negotiate Drug Prices Is Blocked
A pillar of the Democratic political program tumbled today when Republicans in the Senate blocked a proposal to allow Medicare to negotiate lower drug prices for millions of older Americans, a practice now forbidden by law. From Bill to Let Medicare Negotiate Drug Prices Is Blocked Can someone please explain why forbidding the Government from… Continue reading Bill to Let Medicare Negotiate Drug Prices Is Blocked
Sub-prime Lender Files for Bankruptcy
Once a highflier in the booming market for making risky mortgage loans, the New Century Financial Corporation filed for bankruptcy court protection today. From NYT Not sure how I feel about this news from the mortgage industry. Normally, I think home ownership is a net-good for society. But that shouldn’t be an excuse for lenders… Continue reading Sub-prime Lender Files for Bankruptcy
Income inequality grew significantly in 2005
Income inequality grew significantly in 2005, with the top 1 percent of Americans — those with incomes that year of more than $348,000 — receiving their largest share of national income since 1928, analysis of newly released tax data shows. The top 10 percent, roughly those earning more than $100,000, also reached a level of… Continue reading Income inequality grew significantly in 2005
Race, poverty and skin-whitener
the very act of encouraging poor people to consume products that they don’t need may actually make them worse off. Instead of trying to get them to buy more stuff, argues Kulkarni, we should be striving to find ways to help them produce more, so we can buy from them. From How the World Works… Continue reading Race, poverty and skin-whitener
There’s trouble brewing in Tunisia
If you wanted to support democracy in the Arab world, why did you begin with your enemies instead of your friends? Why Iraq and Iran? Why not us? From Slate Magazine A must read. As a progressive and a fan of Karl Popper, I’ve long felt that the right way to spread freedom is by… Continue reading There’s trouble brewing in Tunisia
Robert Reich and earmarks
With all due respect, I think it would be a bad idea to get rid of earmarks. While it would rid us of one source of legal malfeasance, it would shift another power from Congress to the Whitehouse. History has shown this to be a bad idea with military and trade policy. I seen no… Continue reading Robert Reich and earmarks
number six
(Bloomberg) – The U.S. lost its position as the world’s most competitive economy to Switzerland as budget and trade deficits prompted a slide to sixth in the World Economic Forum’s annual rankings. From Bloomberg Sadly, not surprising. This is the result six years of economic policy set by people who think that supply-side economics is… Continue reading number six
Gain in Income Is Offset by Rise in Property Tax
Nationwide, property taxes grew 28 percent from 2000 to 2004, though income went up only 16 percent. From New York Times Anyone still willing to argue that under the Bush administration, the middle class is paying less in taxes? I for one would not be willing to defend that proposition. Likewise, anyone really willing to… Continue reading Gain in Income Is Offset by Rise in Property Tax