Category Archives: The destruction of the middle class

Dan Kervick: Yellen Needs to Tell Politicians to Stop Passing the Buck to the Fed

By Dan Kervick, who does research in decision theory and analytic metaphysics. Cross posted from New Economic Perspectives

Evan Soltas is hoping that President Obama’s appointment of Janet Yellen signifies a new administration commitment to jobs and economic growth.

Unfortunately, Soltas seems to be one of those folks who is convinced that our failures over the past five years have much to do with a monetary policy that has been insufficiently “accommodative”. That’s just another version of the “if you only have a hammer, every problem looks like a nail” thinking. If you think the Fed has to fix the economy, sure, you’d think the Fed hasn’t done enough. But the Fed isn’t in a position to pull us out of this ditch, and Yellen should quit enabling the idea that it can.

As Budget Stalemate Hostilities Escalate, Obama Starts to Brandish Default Threat

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The confrontation underway in Washington DC isn’t as deadly as the Cuban Missile crisis. But in many ways, a misstep could be would produce collateral damage is hard to estimate but would unquestionably be large. So given the stakes, it’s remarkable to see Obama prove his manhood by telling those Republicans he is not intimidated by the possibility of default.

Budget Brinksmanship: American Exceptionalism Gone Bad

Being exceptional apparently means never having take responsiblity for your actions.

How the Foreclosure Crisis Made the Rich Even Richer

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It’s a welcome departure to see Adam Davidson’s weekly column in the New York Times, which usually puts a happy face on how the 1% are winning the class war in America, have a guest writer look at the other side of the story.

Joe Firestone: Stop “the Great Betrayal” – Kabuki Update

It now looks like the big media and leaders in both parties are no longer focusing on the Government Shutdown crisis, but are now moving on to the notion that the shutdown is melding with the upcoming probable breaching of the debt limit to create a combined mother of all fiscal crises. Don’t be fooled.

David Dayen: Mysterious Study Backs Financial Adviser Thieves Who Want To Keep Bilking Small Investors

At the risk of self-promotion, allow me to point you in the direction of a piece by me running today in The New Republic. It’s about a proposed update to the Department of Labor’s fiduciary rule, and how the financial services industry, along with members of both parties, are working to stop it. An excerpt:

Robert Reich, Inequality’s Intellectual Fraudster

Now it may seem churlish to take on a prominent former government official making a star turn to publicize one of the most pressing social and political problems in America, namely, our ever widening levels of inequality. But in fact, Reich is not only selling the equivalent of patent medicine as the remedy but he’s even getting commissions from some of the snake-oil manufacturers.

Ilargi: From Tragedy To Travesty – Selling Off The Cradle Of Democracy

Is it merely a coincidence that the troika rode its Trojan horse into Athens again on the very day Angela Merkel went awfully close to an absolute majority in German elections? I’m sure it is. But it’s still very bad news for the Greeks, who now have their perhaps last chance to throw out the international financial system and decide their own fate, before most of their valuables have been sold off to foreign interests. Greece is where democracy started, and the way things are going, it may be where it will end as well.