Barry Ritholtz: This corruption is not an accident. It is the product of years of very patient work.

from economonitor, originally published in the big picture...

We live in an era of defective government.

This corruption is not an accident. It is the product of years of very patient work. It has been brought about through expensive lobbying, relentless propaganda, agnotology. You can see it in this election cycle, where 196 Americans — 0.000063% of the population — have given more than 80% of Super PAC dollars.

Is it democracy or plutocracy when less than 200 people drive election spending in a nation of 300 million?

Previously, we have pointed out how brazen the lobbying has been to actually cut the SEC enforcement budget. This has created an agency that is defective by design. Take a guess who loses in the battle between you, the individual taxpayer versus the corporation.

Wall Street has taken advantage of the crisis and morphed into a cartel. The tragedy is the only entity that is large and powerful enough to offset their wealth and power are national governments. Yet where ever we look, we see that government has been corrupted and rendered neutered by corporations:

-The Federal Reserve Zero Interest Rate policy is a balm to banks whose balance sheets still have so much bad real estate exposure that higher rates will cause corporate bankruptcy;

-The SEC brings minor insider trading cases while enormous financial crimes go unpunished;

-The Supreme Court has granted natural rights to corporations — rights previously reserved for living and breathing Human Beings;

-The CFTC no longer does the sort of daily audits that can prevent fraud like MF Global and PeregrineFG;-The US Attorney’s office has been captured by the Treasury department, which in turn was captured by large Banks long ago;

-Laws that used to be written by Congressional staffers and academics are now drafted by the regulated industry itself;

-The Attorneys General offices of the states are too timid to sue these same banks for obvious perjury;-Tax loopholes allow wealthy companies to pay very little taxes relative to profits;

-Copyrights that should be in the public domain are retained by companies who have changed intellectual property laws by corrupting legislators.

-The Minerals Management Service (MMS) gives away oil leases and mineral rights for pennies on the dollar.-Money has somehow been equated to speech, turning the idea of “One Person, One vote” on its head.

To function properly, all of these agencies need budgets, a career path for a motivated staff. Yet most of that has been gutted.

Take a look at Neil Barofsky’s book Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street. He describes a Federal prosecutorial system that has been systematically disassembled. There are few career lawyers with the know how, budget and balls to go after the big fish. There is little institutional memory.

We see  this throughout government, a product of even a debate that has been corrupted. The framework is not “How can me make government more effective, efficient responsive?“  Instead, the debate has degenerated into “How can we get government out of the way? How can we make taxes lower?”

Its not that I want big government, I want effective regulations. Its not that I want to pay higher taxes, I want efficient government that can accomplish things. I don’t want to live in a corporatocracy, I want to live in a nation where there is a Rule of Law.

The only way to make this happen is to change the campaign finance laws. Without that, we are a plutocracy governed by lobbyists.

Hence:  Its the bankers world, we just live in it . . .

so, what the fuck are we going to do about it...?

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Taxing the rich to make investments that grow the middle class, is the single smartest thing we can do for the middle class, the poor and the rich

here's that ted video that ted deemed "too controversial" to post on their website...

and here's some of the transcript...

I can say with confidence that rich people don't create jobs, nor do businesses, large or small. What does lead to more employment is a "circle of life" like feedback loop between customers and businesses. And only consumers can set in motion this virtuous cycle of increasing demand and hiring. In this sense, an ordinary middle-class consumer is far more of a job creator than a capitalist like me.

[...]

Anyone who's ever run a business knows that hiring more people is a capitalist's course of last resort, something we do only when increasing customer demand requires it. In this sense, calling ourselves job creators isn't just inaccurate, it's disingenuous.

That's why our current policies are so upside down. When you have a tax system in which most of the exemptions and the lowest rates benefit the richest, all in the name of job creation, all that happens is that the rich get richer.

[...]

If it were true that lower tax rates and more wealth for the wealthy would lead to more job creation, then today we would be drowning in jobs. And yet unemployment and under-employment is at record highs.

Another reason this idea is so wrong-headed is that there can never be enough super-rich Americans to power a great economy. The annual earnings of people like me are hundreds, if not thousands, of times greater than those of the median American, but we don't buy hundreds or thousands of times more stuff. My family owns three cars, not 3,000. I buy a few pairs of pants and a few shirts a year, just like most American men. Like everyone else, we go out to eat with friends and family only occasionally.

I can't buy enough of anything to make up for the fact that millions of unemployed and underemployed Americans can't buy any new clothes or cars or enjoy any meals out. Or to make up for the decreasing consumption of the vast majority of American families that are barely squeaking by, buried by spiraling costs and trapped by stagnant or declining wages.

[...]

We've had it backward for the last 30 years. Rich businesspeople like me don't create jobs. Rather they are a consequence of an eco-systemic feedback loop animated by middle-class consumers, and when they thrive, businesses grow and hire, and owners profit. That's why taxing the rich to pay for investments that benefit all is a great deal for both the middle class and the rich.

So here's an idea worth spreading.

In a capitalist economy, the true job creators are consumers, the middle class. And taxing the rich to make investments that grow the middle class, is the single smartest thing we can do for the middle class, the poor and the rich.

about time a wealthy capitalist stood up and told the truth...

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The leading weapons seller in the world creates more jobs by selling more weapons - 70% more than 2011

i think one of the most disgusting things - among many - that the united states does is to produce and sell massive amounts of weaponry and defense items to countries around the world... i've posted on it repeatedly and i continue to find it unconscionable... now, the u.s. is setting another record...

US Sets Another Record on Defense Sales, Already 

The United States is set to far surpass previous records for defence sales this year, according to U.S. officials.

"Despite the global economic strain, demand for U.S. defence products and services is stronger than ever," Andrew J. Shapiro, an assistant secretary in the U.S. State Department, said on Thursday.

He confirmed that the U.S., long the world's largest weapons exporter, has already seen more than 50 billion dollars in government-to-government military sales this fiscal year.

"This represents at least a 20-billion-dollar increase over fiscal year 2011, and we still have more than a quarter of the fiscal year left," Shapiro said, speaking with reporters. The current fiscal year will end in September.

"To put this in context, fiscal year 2011 was a record-setting year at just over 30 billion. This fiscal year will be at least 70 percent greater."

Observers noted the administration's evident pride at the high numbers.

"An Obama arms bazaar is going on – this is further evidence of that," Jeff Abramson, director of Control Arms, an international civil-society alliance based in Washington, told IPS.

"This administration has made defence trade an economic rather than just a security issue – part of the agenda in terms of keeping the U.S. economy going. I think human rights issues should trump those concerns. Selling to countries such as Saudi Arabia, people need to ask whether the U.S. is living up to its promises on rights obligations."

Shapiro, who noted that the U.S. only allows a sale "after we carefully examine issues like human rights", spoke a week after the launch of the newest edition of the 655 Report, an annual compilation of defence products and services authorised for export.

Many have cautioned that the U.S. defence trade is notoriously difficult to estimate, given the numerous ways available to calculate the figure. Several point to a lower number of 30 billion dollars worth of actual transfers, rather than the larger sales number, not all of which may ultimately take place.

[...]

In a major priority for the U.S. government today, Shapiro noted that the Saudi Arabia deal alone would support more than 50,000 jobs.

[...]

According to Amnesty International, a watchdog group, today it is easier to trade in weapons than in bananas.

like i said - disgusting...

 

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Dean Baker, "If you want to talk to someone from Goldman Sachs, call the Treasury"

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The richest 1% of the US population controls 40% of the wealth

from the al jazeera fault lines news magazine that aired august 2, 2011...

The richest 1% of US Americans earn nearly a quarter of the country's income and control an astonishing 40% of its wealth. Inequality in the US is more extreme than it's been in almost a century — and the gap between the super rich and the poor and middle class people has widened drastically over the last 30 years.

Meanwhile, in Washington, a bitter partisan debate over how to cut deficit spending and reduce the US' 14.3 trillion dollar debt is underway. As low and middle class wages stagnate and unemployment remains above 9%, Republicans and Democrats are tussling over whether to slash funding for the medical and retirement programs that are the backbone of the US's social safety net, and whether to raise taxes — or to cut them further.

The budget debate and the economy are the battleground on which the 2012 presidential election race will be fought. And the United States has never seemed so divided — both politically and economically.

How did the gap grow so wide, and so quickly? And how are the convictions, campaign contributions and charitable donations of the top 1% impacting the other 99% of Americans?

pretty pathetic, eh...?

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The Truth About the Economy

robert reich courtesy of moveon...



not bad... if there were traditional news outlets worthy of the name in the u.s., this would be continuing front page news... sigh...

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from truthout...

"Austerity" Comes to America

Richard Wolff is Professor of Economics Emeritus at the University of Massachusetts in Amherst and currently a Visiting Professor at the Graduate Program in International Affairs of the New School University in New York. He has a PhD in Economics from Yale University as well as degrees from Harvard University (history BA) and Stanford University (economics MA). Wolff has authored or co-authored 10 books and over 50 scholarly articles and 75 popular articles. His recent work has concentrated on analyzing the causes and alternative solutions to the current global economic crisis.

His documentary film on that crisis, Capitalism Hits the Fan, can be previewed at www.capitalismhitsthefan.com. He also published a book of essays on the current crisis in 2010 entitled Capitalism Hits the Fan: the Global Economic meltdown and What to Do About it. Detailed information on and copies of his many writings, audios and videos of his media interviews, lectures, and classes, and his speaking schedule are all available at his website: www.rdwolff.com.

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Where we ARE vs. where we COULD be

where we are...

macro...

max keiser on rt...



micro...

a very disturbing but amazingly accurate perspective...



compare the above to where we COULD be...

community co-housing...

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In 2010, there is absolutely no reason to equate a rising Dow Jones average with a good economy

by now, most everybody knows the dow is only an indicator of what's happening for the super-rich elites...

Dow Closes Above 11,000 on Earnings Optimism

The Dow industrials closed above 11,000 for the first time in almost 19 months on Monday as expectations of solid first-quarter earnings spurred buying in the financial, energy and industrial sectors.

The Dow Jones industrial average added 8.84 points, or 0.08 percent, to 11,006.19, according to the latest available figures.

i'm sure the chronically unemployed are cheered by this good news...

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A lucky star's above, but not for me

these three articles touting the dow breaking 10,000, the just-announced $3.6B 3d quarter profit of jpmorgan chase and the totally obscene bonus payout predictions remind me of the george and ira gershwin song, "but not for me"...

Dow Closes Above 10,000 For First Time In A Year

UPDATED at 4:15 p.m.

The Dow closed above 10,000 moments ago, pushing above a psychological barrier it has not recorded in more than a year.

The Dow briefly crossed 10,000 at about 1:15 p.m. today, then retreated, then punched above 10,000 after 3 p.m. and held on until closing.

and for those of you looking for work, choke on this...

JPMorgan Chase Reports Strong Profit of $3.6 Billion

JPMorgan’s results — $3.6 billion in profit for the third quarter — fanned hopes on Wall Street that the nation’s financial sector was entering a new period of prosperity, despite lingering troubles. The bank’s robust showing, amid tentative signs that its consumer loan losses might soon peak, has set the pace for other big banks that will report results in coming days.

but before you head to the bathroom to retch, be sure to check this...

Wall Street banks in $70bn staff payout
Pay and bonus deals equivalent to 10% of US government bail-out package

Financial workers at Wall Street's top banks are to receive pay deals worth more than $70bn (£40bn), a substantial proportion of which is expected to be paid in discretionary bonuses, for their work so far this year - despite plunging the global financial system into its worst crisis since the 1929 stock market crash, the Guardian has learned.

Staff at six banks including Goldman Sachs and Citigroup are in line to pick up the payouts despite being the beneficiaries of a $700bn bail-out from the US government that has already prompted criticism. The government's cash has been poured in on the condition that excessive executive pay would be curbed.

if you're feeling like the victim of a con job that might just be because you are...

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Joseph Stiglitz: “The question then is who is going to finance the U.S. government”

yep... that's the question all right...

from bloomberg...

Joseph Stiglitz, the Nobel Prize-winning economist, said the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.

“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,” Stiglitz said in an interview today in Paris. “The problems are worse than they were in 2007 before the crisis.”

[...]

“It’s an outrage,” especially “in the U.S. where we poured so much money into the banks,” Stiglitz said. “The administration seems very reluctant to do what is necessary. Yes they’ll do something, the question is: Will they do as much as required?”

[...]

“We’re going into an extended period of weak economy, of economic malaise,” Stiglitz said. The U.S. will “grow but not enough to offset the increase in the population,” he said, adding that “if workers do not have income, it’s very hard to see how the U.S. will generate the demand that the world economy needs.”

The Federal Reserve faces a “quandary” in ending its monetary stimulus programs because doing so may drive up the cost of borrowing for the U.S. government, he said.

“The question then is who is going to finance the U.S. government,” Stiglitz said.

not mentioned in the article is obama's abject betrayal of those of us who voted for this "bait-and-switch" president with the highest of hopes and despite our reservations...

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Happy Labor Day...? Not so much... A holiday outpouring of truth...

here's some of the juicier parts of juan cole's labor day rant... it's a beaut and i strongly suggest reading the whole thing... it captures what should be the essence of this day and places it firmly in the context of our present, sad reality...

The unemployment rate as a write is inching toward 10 percent nationally, and that is only counting people who were still looking for a job recently. A vast bank robbery by the corrupt on Wall Street has robbed them of the credit that made the economy go. Labor Day was passed by Congress under Grover Cleveland to celebrate not only the individual American laborer but the labor movement-- yes, unions, workers' parades, hard hats and blue jeans (before the youth movement of the 1960s appropriated them, blue jeans were working class clothing, and my working class relatives upbraided me for wearing them as an undergraduate) . It is to celebrate all those icons that shills for the barracuda billionaires, such as Glenn Beck, now castigate as "fascist" and "communist."

[...]

The closest we get to celebrating the workers who built this country is when we talk about "working families," an odd locution, since aside from the idle rich who defrauded the country into bankruptcy last fall, wouldn't that be everyone?

[...]

Fewer effective unions have left American workers at the mercy of predatory company policies. Government has, since Ronald Reagan (who hated organized workers the way the devil hates holy water), also socially-engineered the tax laws so as to throw enormous further wealth at the wealthy. As a result, the average wage of the average worker in the United States has not increased since 1970 (in 2004 the bottom 60% of the population was actually making less in real terms per capita each year than in 1979). In contrast, the top 1% of the population by income now takes home nearly 20% of the country's annual income. The top 1%, about 3 million persons, has gone from owning 25% of the privately held wealth in the 1950s under Eisenhower to owning over a third today. The top 10 percent of Americans own almost all the country's privately-held property.


[...]

Reagan-Cheney between 1980 and 2008 created a new American aristocracy, a small sliver of super-rich, who buy and sell legislators, create whole "news networks" to present far right wing fantasies as "news," have their lackeys invade and occupy whole countries, hold themselves above the law, falsify financial statements, and suffer little or no punishment for stealing billions from the pensions of "working families" (i.e. those of us about whom P.T. Barnum remarked, "one is born every minute".) The Republican Party has come to represent these super-rich. Since .1% of the population couldn't actually win elections, they ally with other groups in society. About two-thirds of evangelicals have joined up with them, about a third of Latinos, significant numbers of mid-western rural families, and obviously large numbers of white southerners. In some cases these are lower middle class people on the make, who want to hitch their wagons to the brightest stars in the sky. In others, they share with the super-rich various resentments of the federal government. This alliance of odd bedfellows (think of Paris Hilton married to Joe Sixpack) is what produces the wackiness of Republican Party politics and media. They can't come out and say that they want the country run for the benefit of 300,000 multi-millionaires and billionaires (almost all of them white), so they say they are all in favor of guns, apple pie, Jay-sus and the Confederacy.

[...]

represents the poor schmucks who make up the 80 percent of the population that has been reduced to peasants by our new dukes, viscounts and princesses who have captured the lion's share of the country's wealth and income. Obviously, elements in the top 20% (and even more so in the top 1%) are not happy about any outbreak of democracy.

oh, god forbid we should even FLIRT with real democracy...

professor cole closes with this and a quote from carl sandberg's poem, chicago...

I celebrate today the organized workers, the ones who can push back against the crooks in pinstripe:

Bareheaded,
Shoveling,
Wrecking,
Planning,
Building, breaking, rebuilding,
Under the smoke, dust all over his mouth, laughing with
white teeth,
Under the terrible burden of destiny laughing as a young
man laughs,
Laughing even as an ignorant fighter laughs who has
never lost a battle,
Bragging and laughing that under his wrist is the pulse.
and under his ribs the heart of the people

i see our new class of peasantry wherever i look these days - immigrant labor mowing lawns, joe sixpacks driving fedex delivery vans, stooped, elderly women ringing up purchases at walmart, young teens taking orders at fast food restaurants, middle-aged men manning security guard posts... we're all falling into line, taking our places in the service economy, eating highly processed, unhealthy food, going home to a house with an underwater mortgage to relax in front of our new giant, flat-screen tv that we bought on credit last december...

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Now, let's all feel sorry for the poor lobbyists and defense contractors

how 'bout it...? do ya think you can muster some sympathy...?

In a year when Washington's influence industry should be thriving, with epic battles over health-care and energy legislation, lobbying in many sectors is in marked decline as defense contractors, real estate firms and other companies pull back in a down economy.

Overall spending on lobbying has leveled off for the first time in a decade, according to disclosure data filed with Congress. Lobbying revenue for many of the city's most powerful advocacy firms, including bellwethers such as Patton Boggs and Akin Gump Strauss Hauer & Feld, plunged 10 percent or more in the first half of the year.

Washington also has 2,200 fewer registered lobbyists than it did a year ago, the lowest tally since shortly after George W. Bush took office in January 2001.

[...]

The formidable defense industry, reeling from tens of thousands of layoffs, has cut back expenditures by 17 percent this year. That was true even with the lobbying effort triggered by Defense Secretary Robert M. Gates's cancellation of the F-22 fighter jet and other major weapons projects, which had long survived thanks to the lobbying prowess of major contractors. Northrop Grumman has slashed its spending for lobbying in half, and Boeing and Lockheed Martin each have reduced spending by more than $1 million.

boo-freakin'-hoo...

p.s. ya gotta love that term, "influence industry"...

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Read Nouriel Roubini's lips: "Simply put I am not forecasting economic growth before year’s end"

from roubini global economics newsletter...

“It has been widely reported today that I have stated that the recession will be over “this year” and that I have “improved” my economic outlook. Despite those reports - however – my views expressed today are no different than the views I have expressed previously. If anything my views were taken out of context.

“I have said on numerous occasions that the recession would last roughly 24 months. Therefore, we are 19 months into that recession. If as I predicted the recession is over by year end, it will have lasted 24 months with a recovery only beginning in 2010. Simply put I am not forecasting economic growth before year’s end.

“Indeed, last year I argued that this will be a long and deep and protracted U-shaped recession that would last 24 months. Meanwhile, the consensus argued that this would be a short and shallow V-shaped 8 months long recession (like those in 1990-91 and 2001). That debate is over today as we are in the 19th month of a severe recession; so the V is out of the window and we are in a deep U-shaped recession. If that recession were to be over by year end – as I have consistently predicted – it would have lasted 24 months and thus been three times longer than the previous two and five times deeper – in terms of cumulative GDP contraction – than the previous two. So, there is nothing new in my remarks today about the recession being over at the end of this year.

“I have also consistently argued – including in my remarks today - that while the consensus predicts that the US economy will go back close to potential growth by next year, I see instead a shallow, below-par and below-trend recovery where growth will average about 1% in the next couple of years when potential is probably closer to 2.75%.

“I have also consistently argued that there is a risk of a double-dip W-shaped recession toward the end of 2010, as a tough policy dilemma will emerge next year: on one side, early exit from monetary and fiscal easing would tip the economy into a new recession as the recovery is anemic and deflationary pressures are dominant. On the other side, maintaining large budget deficits and continued monetization of such deficits would eventually increase long term interest rates (because of concerns about medium term fiscal sustainability and because of an increase in expected inflation) and thus would lead to a crowding out of private demand.

“While the recession will be over by the end of the year the recovery will be weak given the debt overhang in the household sector, the financial system and the corporate sector; and now there is also a massive re-leveraging of the public sector with unsustainable fiscal deficits and public debt accumulation.

“Also, as I fleshed out in detail in recent remarks the labor market is still very weak: I predict a peak unemployment rate of close to 11% in 2010. Such large unemployment rate will have negative effects on labor income and consumption growth; will postpone the bottoming out of the housing sector; will lead to larger defaults and losses on bank loans (residential and commercial mortgages, credit cards, auto loans, leveraged loans); will increase the size of the budget deficit (even before any additional stimulus is implemented); and will increase protectionist pressures.

“So, yes there is light at the end of the tunnel for the US and the global economy; but as I have consistently argued the recession will continue through the end of the year, and the recovery will be weak and at risk of a double dip, as the challenge of getting right the timing and size of the exit strategy for monetary and fiscal policy easing will be daunting."

of course it's not over... all the pollyannas that are claiming it is are simply those desperate to get us back to the insane status quo that produced this unholy mess in the first place... meanwhile, those who make a killing no matter what happens - recession, depression or collapse - are continuing to rake it in...

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What is likely to happen under the Geithner plan and what should be considered instead

informed insight and a set of reasonable (although undoubtedly bald-faced heresy to the banksters and super-rich elites) proposals...

james galbraith in washington monthly via alternet...

The most likely scenario, should the Geithner plan go through, is a combination of looting, fraud, and a renewed speculation in volatile commodity markets such as oil. Ultimately the losses fall on the public anyway, since deposits are largely insured. There is no chance that the banks will simply resume normal long-term lending. To whom would they lend? For what? Against what collateral? And if banks are recapitalized without changing their management, why should we expect them to change the behavior that caused the insolvency in the first place?

The oddest thing about the Geithner program is its failure to act as though the financial crisis is a true crisis -- an integrated, long-term economic threat -- rather than merely a couple of related but temporary problems, one in banking and the other in jobs. In banking, the dominant metaphor is of plumbing: there is a blockage to be cleared. Take a plunger to the toxic assets, it is said, and credit conditions will return to normal. This, then, will make the recession essentially normal, validating the stimulus package. Solve these two problems, and the crisis will end. That's the thinking.

But the plumbing metaphor is misleading. Credit is not a flow. It is not something that can be forced downstream by clearing a pipe. Credit is a contract. It requires a borrower as well as a lender, a customer as well as a bank. And the borrower must meet two conditions. One is creditworthiness, meaning a secure income and, usually, a house with equity in it. Asset prices therefore matter. With a chronic oversupply of houses, prices fall, collateral disappears, and even if borrowers are willing they can't qualify for loans. The other requirement is a willingness to borrow, motivated by what Keynes called the "animal spirits" of entrepreneurial enthusiasm. In a slump, such optimism is scarce. Even if people have collateral, they want the security of cash. And it is precisely because they want cash that they will not deplete their reserves by plunking down a payment on a new car.

The credit flow metaphor implies that people came flocking to the new-car showrooms last November and were turned away because there were no loans to be had. This is not true -- what happened was that people stopped coming in. And they stopped coming in because, suddenly, they felt poor.

Strapped and afraid, people want to be in cash. This is what economists call the liquidity trap. And it gets worse: in these conditions, the normal estimates for multipliers -- the bang for the buck -- may be too high. Government spending on goods and services always increases total spending directly; a dollar of public spending is a dollar of GDP. But if the workers simply save their extra income, or use it to pay debt, that's the end of the line: there is no further effect. For tax cuts (especially for the middle class and up), the new funds are mostly saved or used to pay down debt. Debt reduction may help lay a foundation for better times later on, but it doesn't help now. With smaller multipliers, the public spending package would need to be even larger, in order to fill in all the holes in total demand. Thus financial crisis makes the real crisis worse, and the failure of the bank plan practically assures that the stimulus also will be too small.

In short, if we are in a true collapse of finance, our models will not serve.

[...]

That being so, what must now be done? The first thing we need, in the wake of the recovery bill, is more recovery bills. The next efforts should be larger, reflecting the true scale of the emergency. There should be open-ended support for state and local governments, public utilities, transit authorities, public hospitals, schools, and universities for the duration, and generous support for public capital investment in the short and long term. To the extent possible, all the resources being released from the private residential and commercial construction industries should be absorbed into public building projects. There should be comprehensive foreclosure relief, through a moratorium followed by restructuring or by conversion-to-rental, except in cases of speculative investment and borrower fraud.

[...]

Second, we should offset the violent drop in the wealth of the elderly population as a whole. ... For an increasing number of the elderly, Social Security and Medicare wealth are all they have.

That means that the entitlement reformers have it backward: instead of cutting Social Security benefits, we should increase them, especially for those at the bottom of the benefit scale. Indeed, in this crisis, precisely because it is universal and efficient, Social Security is an economic recovery ace in the hole. Increasing benefits is a simple, direct, progressive, and highly efficient way to prevent poverty and sustain purchasing power for this vulnerable population. I would also argue for lowering the age of eligibility for Medicare to (say) fifty-five, to permit workers to retire earlier and to free firms from the burden of managing health plans for older workers.

[...]

Third, we will soon need a jobs program to put the unemployed to work quickly. Infrastructure spending can help, but major building projects can take years to gear up, and they can, for the most part, provide jobs only for those who have the requisite skills. So the federal government should sponsor projects that employ people to do what they do best, including art, letters, drama, dance, music, scientific research, teaching, conservation, and the nonprofit sector, including community organizing -- why not?

Finally, a payroll tax holiday would help restore the purchasing power of working families, as well as make it easier for employers to keep them on the payroll. This is a particularly potent suggestion, because it is large and immediate. And if growth resumes rapidly, it can also be scaled back. There is no error in doing too much that cannot easily be repaired, by doing a bit less.

oh, and about those banksters and super-rich elites...

As these measures take effect, the government must take control of insolvent banks, however large, and get on with the business of reorganizing, re-regulating, decapitating, and recapitalizing them. Depositors should be insured fully to prevent runs, and private risk capital (common and preferred equity and subordinated debt) should take the first loss. Effective compensation limits should be enforced -- it is a good thing that they will encourage those at the top to retire.

good riddance, i say...

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Here's some eye-popping home price data

courtesy of mish's global economic trend analysis...

first, the median house price decline over the past 12-41 months (depending on area) from the california association of realtors...


Click on image for larger version

now, the national picture covering 20 cities from case-shiller...


Click on image for larger version

wow...! (and that's all i've got to say...)

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The Dow takes another 280-point plunge and there's no end in sight

yowee-zowee...

6,594.44, down –281.40

and the rest of the world is pretty ugly as well...

Key Indexes	At close 03/05/2009	Change	% change	1 month	1 year

FTSE 100 Britain	3,529.86	–116.01	–3.18%	–16.53%	–39.70%
DAX Germany	3,695.49	–195.45	–5.02%	–18.07%	–44.71%
CAC 40 France	2,569.63	–106.05	–3.96%	–16.20%	–45.98%
FTSE Eurofirst 300 Europe	670.72	–25.51	–3.66%	–17.25%	–48.45%

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Dow at 7243.73 at noon today, down -121.94 [UPDATE]

once again, i am sitting in kabul on monday night, 9 1/2 hours ahead of u.s. east coast time, watching the dow plunge... i'll update this post in the morning when i get up which will be approximately five hours after wall street's closing bell...

[UPDATE]

holy shit...! i knew it was going to continue to fall, but i wasn't expecting THIS...!

7,114.78, down -250.89

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The Dow is at 7345 at noon today [UPDATE]

it's currently 9:30 p.m. friday here in kabul... i'll have to wait to see what happened the rest of the day when i wake up in the morning... ain't lookin' good...

At midday, the Dow is down 121 to 7,345. The Standard & Poor's 500 index is down 13 at 766, and the Nasdaq composite index is down 8 at 1,435.

[UPDATE, 5:30 a.m., Saturday, 21 February, Kabul]

i see the dow closed at 7,365.67, down 100.28...

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Yikes...! Dow closes on Thursday at 7465.95

i guess we're going to have to hold our breath and see what's going to happen today...

Dow Jones Industrial Average ... 7,465.95 ... -89.68

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