The poor have to endure not just the indignity of struggling to survive, but also from having to listen to pious lectures on how they really can proper on their meager incomes.
Read more...The top Republican on the House Financial Services Committee has tucked a provision into his mortgage finance reform bill that would create a privately held “National Mortgage Data Repository.” The repository would basically look like MERS, the bank-owned electronic database tracking mortgage transfer. The difference is that, while MERS’ activities have drawn legal challenges across the country, the National Mortgage Data Repository would have the force of statute to carry out the exact same behavior. According to the bill text, any document arising from this repository would be seen as presumptively legal, pre-empting state and federal laws on demonstrating the right to foreclose.
Read more...Econ4, a group of heterodox economists, has released a short video and a statement on the “new economy” which they define as more sustainable and equitable forms of organizing “productive” activity and the resources that support them.
Read more...So this week I got an education in the mentality of “official” Washington.
Last week I was asked by a DC-based publication to give a comment on Corker-Warner, the flavor-of-the-month proposal to abolish Fannie and Freddie and reform mortgage finance. I basically take the same position as Yves on this issue: all of these GSE 2.0 plans assume a private label MBS market the way the proverbial economist on a desert island assumes a can opener.
Read more...Yves here. This article, part of an ongoing AlterNet series, ‘The Age of Fraud,’ edited by Lynn Stuart Parramore, does the difficult and important feat of unpacking a financial structure that blew up a lot of municipalities in layperson-friendly terms. It also proposes some sound reform ideas. Circulate to friends and colleagues, particularly in communities that have been on the losing end of bad Wall Street deals.
Read more...OK, you remaining Obama fans: tell me why we should trust the biggest baiter and switcher in the history of the Presidency, particularly when he insists on unprecedented levels of secrecy? Because he has nice teeth and cute kids?
Read more...Yves here. While readers may think development policy has limited relevance to US and advanced economy readers, the IMF and World Bank have been and continue to be vehicles to make the world, particularly smaller or otherwise more influenceable regimes, more friendly to the interests of US multinationals. And at the same time US companies are taking down a record share of GDP in profits, the country’s ranking in inequality is worse than that of many developing economies. New York City is more unequal than China, and as the chart below shows, is also more unequal than Russia, famed for its oligarchs, and India, which still has hundreds of millions living in abject poverty.
So the World Bank’s efforts over time to exclude issues like corruption and inequality from its analysis have direct and obvious parallels to policy discussions here. Wade’s anecdotes of the way the World Bank refused to even allow the “c” word to be acknowledged are striking.
Read more...Despite financial firms’ pious claims to the contrary, their commodities machinations extract wealth from agricultural providers, and thus also ultimately from consumers.
Read more...The first article in a series by Black on the remarkable, in the bad sense of the work, work by Nobel prize winners on regulation.
Read more...It’s hard to know where to begin with a story up at the Wall Street Journal, Risk-Averse Culture Infects U.S. Workers, Entrepreneurs.
Read more...By Nathan Tankus, a student and research assistant at the University of Ottawa. You can follow him on Twitter at @NathanTankus
Now that pubic libraries have “done their jobs” (in FIRE sector terms) they can do one more thing for finance and real estate: be killed for private sector fun and profit.
Read more...I welcome readers telling me I’ve missed something, but looking at the Fed’s problem from 50,000 feet, it appears that the the monetary authority appears to have set boundary conditions for its QE exit that it can’t meet.
Read more...An important article in the Latin American press peculiarly has not gotten the attention it deserves. Or perhaps not so peculiarly, given the Obama administration’s intention to keep the Trans-Pacific Partnership negotiations as far out of the public eye as possible.
Read more...The past several years have demonstrated the obvious point that inequality and depression will combine to produce flares of mass social unrest. You see this in Europe and the Middle East, where rising food prices had as much to do with the Arab Spring as decades of political repression. Things are no different here in America. Even though elites are fortunate enough to have a militarized local law enforcement apparatus in place to make sure the rabble doesn’t get too out of control, these flares, indications of broader awareness that in an economy rigged against them, the only recourse is to step outside the system and shout to the heavens. We’ve seen this before in US history; it was called the Gilded Age, and it led to the set of progressive reforms as well as a legacy of labor organizing that might, just might, be awakening from what seems like a decades-long slumber.
Read more...A few months ago, I wrote a story for The American Prospect about the credit rating agencies, and their thus-far successful effort to ward off any change to their business model, despite their wretched performance during the crisis. This is true even though Dodd-Frank contained a measure, written by Al Franken, to alter the issuer-pays model that incentivizes higher ratings in the pursuit of future profits. The Franken-Wicker rule (the “Wicker” is Republican Senator Roger Wicker) would create a self-regulating organization to randomly assign securities to accredited rating agencies, with more securities over time going to the agencies that rated the most accurately.
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