Category Archives: Politics

North Korea: Preparing for War

The markets and economic pundits seem to be shrugging off the possibility of any escalation in international tensions. At a minimum, it seems this risk bears closer scrutiny.

Reform Suggestions for the Rogue Regulator, the OCC, and its Partner in Crime, the Shadow Regulator Promontory Group

As a follow up to our series* on how Bank of America and its supposed independent consultant Promontory Financial Group, colluded to make a mockery of a process designed to provide compensation to borrowers who had suffered abuses in foreclosures during 2009 and 2010, we thought we would offer a few suggestions as to how to forestall future fiascoes of this sort.

New Whistleblower Describes How Bank of America Flagrantly Violates Dual Tracking, Single Point of Contact Requirements in State/Federal Mortgage Settlement

Remember that big, ballyhooed mortgage settlement of early last year? The one where homeowners got $25 billion of relief (well actually only around $5 billion in cold cash, but why bother with pesky details?) The one made possible by Eric Schneiderman abandoning his fellow state attorneys general to grasp the brass ring of a do-just-about-nothing Residential Mortgage-Backed Task Force? The one that would make banks clean up their act and stop using robosigned documents and deal more fairly with borrowers?

Consent orders are seldom worth the paper they are printed on. The state/Federal settlement of early 2012 is no different.

Panic-Driven Austerity in the Eurozone and its Implications

By Paul De Grauwe, Professor of international economics, London School of Economics, and former member of the Belgian parliament, and Yuemei Ji, Economist, LICOS, University of Leuven. Cross posted from VoxEU

Eurozone policy seems driven by market sentiment. This column argues that fear and panic led to excessive, and possibly self-defeating, austerity in the south while failing to induce offsetting stimulus in the north. The resulting deflation bias produced the double-dip recession and perhaps more dire consequences. As it becomes obvious that austerity produces unnecessary suffering, millions may seek liberation from ‘euro shackles’.

Martin Wolf Misses the Real Reason the Eurozone’s Unhappy Marriage Has Not Broken Up Yet

The normally astute and blunt Martin Wolf is either having an uncharacteristic bout of circumspection or is managing to miss an important, arguably determining reason why the Eurozone persists in inflicting destructive austerity on much of its population.

Who Will Pay for Nuclear Power Plant Cleanup?

Yves here. Holy moley, the cost estimates focus the mind!

Marcy Wheeler: What a Targeted Killing in the US Would Look Like

By Marcy Wheeler. Cross posted from emptywheel

On October 28, 2009, the FBI set out to arrest a man they claimed, in the complaint justifying the arrest, was “a highly placed leader of a … radical fundamentalist Sunni group [the primary purpose of which] is to establish a separate, sovereign Islamic state.” The leader of the group “calls his followers to an offensive jihad.” The complaint states the group trained in the use of firearms and martial arts and explains that “Abdullah is advocating and encouraging his followers to commit violent acts against the United States.”

The arrest was staged at a warehouse controlled by the FBI, outfitted with 5 closed circuit video cameras that gave the FBI full visibility into anyone entering and leaving the warehouse, as well as pallets loaded with sandbags to provide cover. Altogether 66 FBI Agents participated in the arrest, with 29 Agents, including a K-9 team and snipers, inside the warehouse itself, along with helicopter cover, another K-9 team, and a control room nearby….

Dave Dayen: Yes, Katrina, Wall Street Won Again, and Progressives Need to Face Up to That

By David Dayen, a lapsed blogger, now a freelance writer based in Los Angeles, CA. Follow him on Twitter @ddayen

Greetings, NC readers! Yves has been nice enough to open up her Internet home to me, and I intend to grab the opportunity from time to time. This offer turned fortuitous after I wrote a little piece from Salon on the “anniversary” of the securitization fraud task force, announced at last year’s State of the Union address. Well, Katrina vanden Heuvel, editor and publisher of The Nation, got very upset at my characterization of the task force

Quelle Surprise! The Administration Wants You to Believe it is Serious About Prosecuting Banks

There are times I feel sorry for the business reporters at the New York Times.

Israel’s Prisoner X Scandal: Israeli/Australian Held, Impossibly Commits Suicide, Story Under Gag Order for Two+ Years

Wow, this is ugly, and these two videos help explain why.

Should Bethany McLean Be Bothered by the Government Lawsuit Against S&P?

Bethany McLean just released a piece at Reuters which presents a good overview of the Department of Justice case against rating agency Standard and Poor’s for its conduct in rating residential mortgage backed securities and CDOs.* The high level description of the case, in particular, why the government used FIRREA as its cause of action, is helpful.

I have mixed feeling about taking issue with McLean, since she generally does a fine job of reporting and analysis, but there were some things about her piece that were so surprising that I thought they really needed to be discussed.

Elizabeth Warren Makes Promising Start in Senate Banking Committee Hearing

The progressive blogosphere seems pleased with Elizabeth Warren’s initial foray in the Senate Banking Committee.

NC Crowdsourcing! Whither the Deficit Cliffhanger?

I’m obviously removed from the action, but I’m surprised at the complacency in DC and in the markets over the fact that the sequester is a comin’ soon. Next week Congress is out of session, and the media messaging from both sides at this point lacks the sense of urgency (in particular, front page reports of intense pow-wows) that I’d expect if a deal were to be done by the sequester deadline of early March.

So I have these questions for the NC commentariat: