Remember Fridays during the Bush Administration? These are so much better....UPDATED

For quite a while, as the Bush Administration scrambled to do damage control, Friday afternoons became notorious for being the time when news would break about potentially scandalous, illegal, or unethical activities by Bush and/or the rest of the GOP. I am very pleased and relieved to find that Fridays have become so much more interesting and satisfying, even after only one month into the (first?) Obama Administration. Aren't you?

Of course, the three main areas of interest for us are closely intertwined, and the news of the week emphasizes the interconnections among them. On the health care front, the proposed budget itself is encouraging, though more on that below. Given the upcoming presentation to us this Sunday by someone who is well-versed on the topic of health care reform, I hope to take advantage of the incentive to dig a bit deeper than I have so far into the terminology and other intricacies of the subject. [Does anyone know, by the way, of a great one-stop resource for basic information regarding terms, pending legislation, etc.?]

A few stalwart contributors to Daily Kos regularly supply great, if disturbing, news (I'm thinking in particular of nyceve, who is constantly raising awareness of the horrific toll that lack of decent health care/health care coverage is having on our fellow Americans). DrSteveB, another house expert, writes today about "public option," or the provision of a mechanism by which some previously ineligible people may be able to obtain coverage under Medicare. His announcement that the omission of "public option" is cause for alarm and action is worth reading; the links he supplies for deep background are also helpful. I freely observe that DrSteveB's position, since he is a fervent proponent of universal single-payer health care, may be a more radical one than some of us have adopted. On the other hand, that is the option that those of us who met at the 12/28 summit at the Friends' Meeting House wanted to go on record with our support.

One of the sources that the above post supplies is connected to an organization worth knowing: the Institute for America's Future. It's basically a progressive think-tank, one of the few left-wing organizations of its type. These days, their ideas may be in the ascendance--but we should be mindful, also, of the huge infrastructure that the Right already has in place. Today, in any case, among the IAF's entries is a farewell post by Rick Perlstein. While this post itself is not terribly noteworthy, Perlstein is a very insightful and tenacious historian of the Religious/Political Right, and his recent book, Nixonland, is well worth reading. FYI, a generally positive review is here; a generally negative one is here.

I must admit that I regret not having newstracker duty on the day that Gail Collins has a column, because I think her work is generally terrific. But most days, I'm happy to read what Paul Krugman has to say, even if I don't agree with him completely. Today, Krugman is unusually complimentry toward an Obama Administration act regarding economic policy: he gives high marks to the proposed budget.

There's one more item relative to health care today that I think is worth noting: the administration has initiated the process of overturning the so-called "conscience" rule that permitted anti-abortion health care providers to refuse to inform patients of contraception or abortion services or treatment. In case you're not aware of it, this was one of many tactics that the Bush Administration has used to interfere with reproductive freedom of choice; for poor women and/or traumatized women, a refusal of information and/or services related to emergency contraception has resulted in documented, unwanted pregnancies. This was a domestic version, to a point, of the notorious "gag rule" in effect internationally, that denied funds to aid groups if they had any connection whatsoever to abortion. (As I understand it, they could not even offer information or referrals. The arrogance is appalling.) And, fortunately, the new administration has also eliminated that ban. Procedurally, today's move will take longer to be complete, and the whole process may well bear watching.

I don't think anyone else has posted this link yet to the proposed budget itself. How terrific it is, for transparency to be advanced to the point of including previously hidden items like the cost of war in Iraq and Afghanistan. From transparency may come accountability, or so we hope....

UPDATE: I did want to include at least one item related to environmental issues. There are so many possibilities, but this time I'll link to a short report on the middle-class task force meeting from Friday. The idea is taking shape of connecting a manufacturing resurgence with "green jobs" and transformed energy, it seems. Not a bad thought.

AP turned a foreclosure story upside-down.

Someone at the Associated Press (AP) has an axe to grind. This is from http://dailykos.org -- Gus

AP turns the cramdown story upside-down
by David Waldman aka Kagro X
Thu Feb 26, 2009 at 06:00:05 PM PST

The so-called "cramdown" mortgage relief bill has been crammed into next week, as I reported over at Congress Matters earlier today. The House scrapped its original plan to vote on four amendments to the bill and move to final passage before adjournment today. Instead, they held an hour's worth of general debate only, putting off amendments and final passage.

You can probably regard the delay as an indication that opponents of the bill -- Democratic opponents -- are angling for one last chance to kill or mortally wound it.

(The complete article is in the first comment.)

Economic security threat, effective oversight, Spain's success.

Here are my picks for the day.

I thought Obama did an excellent job on Tuesday night of reminding us why we elected him. By addressing the electorate successfully he showed to the hardcore Republican minority that they are politically in free-fall and that obstructionism won't pay.

However, here comes a sober editorial comment by the FT. Other news of the day do confirm that determination and forcefulness are not enough to prevent disaster from happening. (I was also underwhelmed by Geithner's interview with Jim Lehrer last night on PBS.)
http://www.ft.com/cms/s/0/a0a13940-0384-11de-b405-000077b07658.html

The following article from the Washington Post about the CIA's take on the international situation stresses the political implications of the economic crisis, something I personally find more worrisome than the economic crisis itself.

http://www.washingtonpost.com/wp-dyn/content/article/2009/02/25/AR2009022503389.html?wpisrc=newsletter&wpisrc=newsletter&wpisrc=newsletter

There is bad news coming out of GM. I honestly don't know what can be done with the American auto industry. Part of me wants to save jobs. Part of me sees that attempt as desperate. Here comes today's gloomy news. The following article is by the Associated Press.

http://biz.yahoo.com/ap/090226/earns_gm.html

And here is an interesting commentary frrm the WP highlighting the lack of the personnel and skills needed in federal agencies to guarantee effective oversight of the recovery programs.
http://www.washingtonpost.com/wp-dyn/content/article/2009/02/25/AR2009022503083.html?wpisrc=newsletter&wpisrc=newsletter&wpisrc=newsletter

On ideas from other countries about what needs to be done, two articles from the FT, one about EU proposals for a new international regulatory framework:
http://www.ft.com/cms/s/0/346c05c8-031d-11de-b405-000077b07658.html

the other about Spain's model for guaranteeing the banks' liqudity and solvency, which is proving to be quite successful
http://www.ft.com/cms/s/0/d1a54fa8-035d-11de-b405-000077b07658.html

Social Security and the White House Fiscal Summit of 23 Feb 2009

Progressive Leaders at White House Summit Today Underscore Need for Health Care Reform

FOR IMMEDIATE RELEASE: February 23, 2009
CONTACT: Alan Barber, (202) 486-6180

Washington, D.C.– Campaign for America's Future co-director Roger Hickey, Center for Economic and Policy Research co-director Dean Baker, and Economic Policy Institute president Lawrence Mishel released the following joint statement after participating in President Obama's summit today on the nation's future financial health:

STATEMENT OF ROGER HICKEY, DEAN BAKER, AND LAWRENCE MISHEL

We applaud President Obama for hosting the White House Fiscal Summit, which made clear that the key to the long term budget deficit is health care reform. We too understand that the issue is health care expenditures, not an "entitlement crisis."

CBO has projected that if health care spending, private as well as public, continues to rise at current rates, the nation will be spending 99 percent of GDP on those costs in just 75 years. In sharp contrast, current projections indicate that Social Security will have a $5.5 trillion surplus by 2027 and will be able to pay all benefits promised under current law through 2041.

President Obama appropriately pledged during the campaign not to cut benefits, increase the retirement age, or privatize Social Security. At a time when Americans have lost $2 trillion in pension wealth and $6 trillion in home equity, there should be no attempts to scale back the programs millions depend on to survive.

We applaud the President's commitment to transparency. Rather than a "fast track" process as some have advocated, Social Security reforms should be considered in the open, through the normal legislative process.

The root of the deficit problem is health care costs. Our leaders must get serious about improving our health care system. A concentrated effort by policy makers to control health care expenditures will help American business compete internationally and free resources for other pressing needs.

Social Security, Medicare, and Medicaid assist the most vulnerable among us – the sick, the old, the disabled, the poor, the widowed, and the orphaned. Some people seek to divide us by age in their attempts to gut or drastically change programs such as Social Security, Medicare, and Medicaid, warning of unsustainable transfers of money to programs for seniors. Social Security serves and is fair to all generations. Social Security and Medicare are successful today because policy makers of an earlier era understood that "we are all in it together." President Obama understands this as well.

###

President Obama’s Address to Congress on 24 Feb 2009

February 24, 2009

Transcript

President Obama’s Address to Congress

Following is a transcript of President Obama’s address to a joint session of Congress on Tuesday, as recorded by CQ Transcriptions.

OBAMA: Thank you very much.

Madam Speaker, Mr. Vice President, members of Congress, and the first lady of the United States... (APPLAUSE)

... who's around here somewhere...

(APPLAUSE)

... I have come here tonight not only to address the distinguished men and women in this great chamber, but to speak frankly and directly to the men and women who sent us here.

I know that for many Americans watching right now, the state of our economy is a concern that rises above all others, and rightly so. If you haven't been personally affected by this recession, you probably know someone who has: a friend, a neighbor, a member of your family.

(The whole speech is in the first comment.)

Wednesday is open! Anyone have an important story?

Until someone volunteers for Wednesday, it's open for anyone to post.

Moving closer to nationalizing the banks.

Great story at Democracy Now!

New England Journal of Medicine article on the Stimulus Package

Check out this piece. The NEJM is really influential.

Are Obama's plans optimistic? Nationalize the banks?

Thanks to Gus for sending us information about Obama's plan for reigning in the deficit. However, I'm afraid that worse times lie ahead, which will make Obama's optimistic plans look downright silly, unless we take much more drastic action to address the banking and financial crisis.

Economists of all persuastions and from different countries appear to be reaching a consensus, which reads as follows: The situation is getting dramatically worse, even more rapidly and to a degree that is taking even pessimistic analysts by surprise. (I don't like the catastrophic tone of the following, but the authors have been correct morst of the times since I've been reading them, so it's wortk seeing what they have to say:
http://us.f806.mail.yahoo.com/dc/launch?freeacct=1)

A consensus is also forming around the idea the nationalization of insolvent US banks is inevitable. (See Krugman's piece in today's NYT: http://www.nytimes.com/2009/02/23/opinion/23krugman.html?_r=1&em). Krugman is a self-proclaimed liberal, so some people may discount his opinions. My perusal of other sources, however, confirms that nationalization is now considered inevitable by experts of all stripes.

I will borrow Martin Wolf's words to convey the gravity of the situation, while reminding people that he is a prudent, moderate, keep-your-cool British economist. What he's saying is therefore even more worrisome:

"We are living on the cusp of history. The priority is to reverse the downward spiral of despair through overwhelming and concerted action. That will only occur if the US now gives the leadership we need. Mr Obama may even find, as many presidents have found before him, that leading the world is easier and more rewarding than cajoling a recalcitrant Congress. This may not be the challenge he expected. But it is the challenge he confronts. History will judge his presidency on whether he dares to succeed."
http://www.ft.com/cms/s/0/4a44f222-f221-11dd-9678-0000779fd2ac.html

You can read more about his take on crisis if you click on the following link.
http://www.ft.com/cms/s/0/9ebea1b8-f794-11dd-81f7-000077b07658.html

Another vote in favor of nationalization comes from Gerard Caprio, Professor of Economics at Williams College, chair of the Center for Development Economics at Williams College and a former director of financial sector policy at the World Bank:
http://blogs.ft.com/economistsforum/2009/02/us-bad-banks-and-bad-plans-why-capitalism-requires-nationalisation/

Caprio also quotes Dominique Strauss-Kahn, President of the IMF, who insists that nationalization, disposal of insolvent banks, wiping out of shareholders, and sale of the cleaned-up institutions to new private owners is the only way to go. This is what the US preached to countries all over the world when a financial crisis hit them. We may have no choice but take a dose of our own medicine. Strauss-Kahn also insists on the need for a coordinated global response.

"A coordinated global response was needed to contain the crisis. "We saw in 2008 that piecemeal responses are not enough. This does not mean that all countries should do the same things, or that there is a "one size fits all" solution. But policy responses have to take into account the interconnectedness of national economies, and the fact that decisions taken in one country can have profound effects on others."
http://www.imf.org/external/pubs/ft/survey/so/2009/NEW020709A.htm

And here comes news about proposals from the EU, usually vilified or ignored in the American press. We may agree or disagree, like or dislike the EU, but they are the only other Behemoth in the global economy, at least the only one we can really coordinate our policies with (China is a universe onto itself, and right not it's in trouble too, more than people think).

Here is one piece on EU proposals for the G20 meeting which will take place in April.
http://www.ft.com/cms/s/0/a896e59e-011f-11de-8f6e-000077b07658.html

And the followint piece is about the precarious state of central European countries and the need to bring them into the EU even more -- something that doesn't find me enthusiastic, given their attitude toward the Union even after they joined, but something that must be done, whether we like it or not. That's what Wolfgang Munchau is proposing.

"The second policy error is directly related to the first. The new EU members treated eurozone membership as a voluntary policy choice. This is a misinterpretation of their own accession treaties. When they signed up to EU membership, they signed up to the euro as well. Only the UK and Denmark have a legal opt-out. Of course, as newly industrialised economies, they were not under an obligation to join immediately, but they were under an obligation to conduct policies consistent with eventual membership. If they had pursued such policies, they would almost all be members by now. Slovenia and Slovakia have demonstrated that, given the right policies, it was possible to enter the eurozone early on. Both these countries are now safe. For the others, the decision to procrastinate turned out to be a financial stability disaster. If confronted with a crisis such as this, you do not want to be a small open economy, on the fringes of the eurozone, with an irrelevant currency and lots of Swiss franc mortgages....

In my view, the smartest answer to the prospect of meltdown is the adoption of the euro as quickly as possible. There is no need to switch over tomorrow. All we need tomorrow is a credible and firm accession strategy – one for each country – which would include a firm membership date and a conversion rate, backed up by credible policies."http://www.ft.com/cms/s/0/06a45f2a-0118-11de-8f6e-000077b07658.html

I can't say these are enjoyable readings, but I think they are useful.

A Michigan Republican at Risk?

Here's a link to a story in today's New York Times about a Republican Congressman from the Livonia area who voted against the stimulus, and is drawing some fire as a result.

http://www.nytimes.com/2009/02/23/us/politics/23repubs.html?emc=eta1

Obama to cut the budget deficit in half in 4 years.

WASHINGTON — After a string of costly bailout and stimulus measures, President Obama will set a goal this week to cut the annual deficit at least in half by the end of his term, administration officials said. The reduction would come in large part through Iraq troop withdrawals and higher taxes on the wealthy.
...
The president will propose to tax the investment income of hedge fund and private equity partners at ordinary income tax rates, which are now as high as 35 percent and could return to 39.6 percent under his plans, instead of at the capital gains rate, which is 15 percent at most.
...
Mr. Obama will also call for letting the Bush tax cuts on income, dividends and capital gains lapse after 2010 for individuals who make more than $250,000 a year. But while the top rate for income would rise to 39.6 percent, the top rate for capital gains and dividends would be 20 percent.

... withdrawing combat troops from Iraq would save about $90 billion a year. But it is not clear how much any savings would be offset by increased spending in Afghanistan, where Mr. Obama has ordered an additional 17,000 troops, bringing the total there to 56,000.
...
Mr. Obama will propose cutting ... the Medicare Advantage subsidies for insurance companies that cover seniors who can otherwise acquire health coverage directly from the government. Another target is spending on private contractors, especially for defense, which spiked during the Bush administration.

... forsaking several gimmicks that President Bush used to make deficits look smaller.
...
Full details of Mr. Obama’s budget for the 2010 fiscal year will be released in April.
...
On energy policy, Mr. Obama’s budget will show new revenues by 2012 from his proposal to require companies to buy permits from the government for greenhouse gas emissions above a certain cap. The Congressional Budget Office estimates that the permits would raise up to $300 billion a year by 2020.

Since companies would pass their costs on to customers, Mr. Obama would have the government use most of the revenues for relief to families to offset higher utility bills and related expenses. The remaining revenues would cover his proposals for $15 billion a year in spending and tax incentives to develop alternative energy.

http://www.nytimes.com/2009/02/22/us/politics/22budget.html?_r=1&ref=us

News Digest for Friday 2/20 (sorry, belated)

Hi, everyone--
Sorry not to be up to speed with this yet. It seems to be a reasonable interface, but it's all new to me! I appreciate your patience as I figure this out and incorporate it into my routine.

In national economic news, there are two big questions as I see it: first, not whether the banks in the U.S. will be "nationalized" but rather when, how and for how long. Personally, I suspect that it will happen pretty soon and last for quite a while. But as I am not an economist nor a prognosticator, I could be way off. At any rate, here's some interesting commentary on that developing situation.

Second, how prolonged and severe will this depression get? Again, I am not an expert, so I don't know whether the "d" word is accurate--but it sure is feeling that way to me. (I know, there are disagreements about the levels of unemployment, but most progressive economists seem to think that the U6 measure is probably more accurate than the U3, the figure most often circulated. And the U6 rate, including discouraged workers and those who want full-time work but can't find it, is around 16% already.) I don't recall the track record of Paul Volcker in detail; some people still hold him responsible for the painful economic policies of the Carter Administration. However, I'm glad to see him in the Obama Administration as chair of the Economic Recovery Advisory Board; he seems to have more sense (and humility) than Larry Summers or Tim Geithner. Yesterday, Volcker continued to sound the general alarm.

This little blog entry by Dean Baker is worth noting in part because I want to spread the word about Baker, one of the subset of economists who have been calling attention to the perils of various financial "bubbles" for a while. (He's also a U-M grad; anyone in town now know him?) The financialization of the economy, and the associated de-emphasis on manufacturing and other kinds of production, have literally cost us dearly. It's worth following Baker on a regular basis.

As long as I am promoting economists, let me give a shout-out to Jared Bernstein, now one of VP Biden's top economic advisors. His organization, the Economic Policy Institute, is one of the best clearinghouses on progressive economics around. It publishes an annual report on "the state of working America" which is a terrific general resource.

I don't know about you, but I am pleased that the idea Ray LaHood floated of taxing people by the miles they drive has been shot down by the White House. (Isn't LaHood a Republican? Hmmm. So much for "bi-partisanship" /snark) I know, commuting as a way of life is not ecologically sustainable, but that's a regressive remedy all the same.

On the health-care/insurance front, this is an interesting article, with a somewhat misleading headline. It would appear that single-payer insurance is not on this table, for obvious reasons I guess, but there may be some progress toward universal coverage, and perhaps that's the best we'll be able to do. (Not that we shouldn't keep pushing for all we want!)

By the way, I think most would agree that Sen. Teddy Kennedy has been vitally important in advancing the cause of universal health care in this country for decades. His 77th birthday is tomorrow, the 22nd; if you're inclined to send him birthday greetings, you can do so here.

On a lighter note, let me promote Leonard Cohen's upcoming U.S. tour with posting today's (Saturday's) NYT review of a recent performance. I saw Cohen live in Detroit during his last tour, in 1994. It was among the very, very best concerts I have ever attended--in my top 3 easily--because he, and his backup musicians, were not only very highly skilled but also obviously loving their engagement with the audience. It was sublime. I am excited enough about his upcoming tour that I gave a moment's thought to skipping my nephew's wedding to attend his show in Detroit this May. (Instead, I'm heading to London, ONT, assuming I can get tickets!) If you're not familiar with his music, I encourage you to check him out. He is an astute political observer as well as a fabulous songwriter, and these far outweigh the limitations of his instrument.

Happy surfing, everyone.
Catherine

Saturday - February 21st

http://www.commondreams.org/headline/2009/02/21-1
Obama administration has expanded the covert war run by the Central Intelligence Agency inside Pakistan, attacking a militant network seeking to topple the Pakistani government.
http://hosted.ap.org/dynamic/stories/A/AS_AFGHANISTAN?SITE=CACRU&SECTION=HOME&TEMPLATE=DEFAULT
An operation the American military at first described as a "precision strike" instead killed 13 Afghan civilians and only three militants, the U.S. said Saturday, three days after sending a general to the site to investigate.
http://www.truthout.org/022009T
Unemployed workers outraged over charges to inquire on benefits.

WEDNESDAY, MARCH 18 @ 7:00 PM: Join us for a showing of the film, "Taxi to the Dark Side"
Where: University of Michigan Campus, location to be announced. (ICPJ)

http://www.alternet.org/audits/127850/
Could a Sudden Collapse of Mexico Be Obama's Surprise Foreign Policy Challenge?
Free-trade politics and the drug war created a social crisis in Mexico, and a militarized response to it may push events to an explosion.

http://features.csmonitor.com/environment/2009/02/12/iceland-strides-toward-a-hydrogen-economy/
Global economic crises underscores urgency of the goal, even as it delays progress.

http://www.csmonitor.com/2009/0220/p25s19-wosc.html
China taking advantage of global recession and goes on a buying spree!

Thursday 19 Feb.

Here follow some articles about the most recent economic news. President Obama announced a plan to help homeowners facing foreclosures, which fortunately doesn't require Congress's approval. In two articles, the NYT talks about a) Obama's plan:

$275 Billion Plan Seeks to Address Housing Crisis
http://www.nytimes.com/2009/02/19/business/19housing.html?ref=us

and b) about the difficulties homeowners face when refinancing. The happy-ending-story in the following article confirms that it's much better to deal with a small local lender, rather than with a behemoth such as Wells Fargo.

Modifying Mortgages Can Be Tricky
http://www.nytimes.com/pages/national/index.html

In yesterday's NYT there was also an interesting article about a campaign by Acorn (http://www.acorn.org/) to support homeowners in foreclosure when the sheriff comes to kick them out. Perhaps their initiative could give as an idea for an action item...

Effort Takes Shape to Support Families Facing Foreclosure http://www.nytimes.com/2009/02/18/nyregion/18foreclose.html

And here are three articles on the wider world:

One on the worsening situation in the European Union and on the short-sightedness of its leaders:
http://www.ft.com/cms/s/0/09df5532-fdf3-11dd-932e-000077b07658.html

One on proposals for green job by Al Gore and Ban Ki Moon
http://www.ft.com/cms/s/0/0fa98852-fc45-11dd-aed8-000077b07658.html

And a forecast on the economy by analysts and investors who have been quite accurate in assessing the crisis. I don't agree with their prescriptions, but the data are interesting and I believe it's important to cosider all points of view:

Let the market do its job...
http://us.mg201.mail.yahoo.com/dc/launch?.partner=sbc&.rand=4434nf540ilqn

Recovery Website Now Operative

Hello Everyone,

Just confirmed that recovery.gov is now operative (it was not working at Noon today--I'm impressed by the exactness of it not being available until after the Stimulus package was signed).

Preliminarily, it looks good. I'll explore indepth after I listen to the MSNBC & CNN commentators this evening. Also, I heard news earlier today, that Governer Granholm will be making a website available for tracking Michigan's data; but it may be available within Recovery.

http://www.recovery.gov

Lucille

The Economists Who Missed the Housing Bubble Are Coming After Your Social Security

Here's some news from an economist who was right about the housing bubble when almost every economist missed it: Social Security may be threatened.

They Sure Showed That Obama Guy!

February 15, 2009
Op-Ed Columnist
They Sure Showed That Obama
By FRANK RICH

AM I crazy, or wasn’t the Obama presidency pronounced dead just days ago? Obama had “all but lost control of the agenda in Washington,” declared Newsweek on Feb. 4 as it wondered whether he might even get a stimulus package through Congress. “Obama Losing Stimulus Message War” was the headline at Politico a day later. At the mostly liberal MSNBC, the morning host, Joe Scarborough, started preparing the final rites. Obama couldn’t possibly eke out a victory because the stimulus package was “a steaming pile of garbage.”

The whole article is the first comment.

Getting There From Here

This is a fascinating piece from the New Yorker. It details how every country that has universal health insurance took its own unique path to get there. If we want to ultimately have single payer, there's a lot of food for thought here.

Property values continue to fall.

"Preliminary assessments show housing values declining in all municipalities in Washtenaw and Livingston counties, the second consecutive year that the figures have fallen broadly.

"The city of Ann Arbor ... is down ... 5.8 percent. The city of Ypsilanti is down 11.9 percent."

http://www.mlive.com/news/annarbornews/index.ssf?/base/news-31/1234597236224310.xml&coll=2

The whole article is the first comment.

The stimulus bill made ineffective by Republicans.

Politics-as-usual prevented this bill from being the stimulus we need, specifically, the three Republicans were able to delete a lot of the stimulus.

The first comment is an article from the New York Times. It is full of spin, but has basic information.

USEFUL QUOTES

And yet it seemed almost trifling compared with the $2.5 trillion rescue plan for the financial system ....

Despite intense lobbying by governors around the country, the final deal slashed $25 billion from a proposed state fiscal stabilization fund, eliminated a $16 billion line item for school construction and sharply curtailed spending to provide health insurance for the unemployed.
...

The final agreement retained a $70 billion tax break to spare millions of middle-income Americans from paying the alternative minimum tax in 2009. Some Democrats decried the provision as a costly addition that would not lift the economy and that Congress would have approved, regardless of the recession.

... “I am not happy with it,” said Senator Tom Harkin, Democrat of Iowa. “You are not looking at a happy camper. I mean they took a lot of stuff out of education. They took it out of health, school construction and they put it more into tax issues.”

Mr. Harkin said he was particularly frustrated by the money being spent on fixing the alternative minimum tax. “It’s about 9 percent of the whole bill,” he said, “Why is it in there? It has nothing to do with stimulus. It has nothing to do with recovery.”

The Great Depression and today's economic crisis

This morning, on the Diane Rehm Show on UM-PR radio, I heard a very interesting discussion on similarities and differences between the Great Depression and today's crisis, as seen by Liaquat Ahamed, a professional investment manager and a former economist at The World Bank, and author of the following book (which I haven't read yet, but I will buy as soon as possible):

Liaquat Ahamed: Lords of Finance (Penguin)

How four bankers, titans of their time, sought to rebuild the shattered international financial system after World War One. A look at their initial success, the fateful decisions that put the world on the path of the Great Depression, and parallels to the financial crisis of today.

Two points he emphasized which I find compelling:

1. Roosevelt DID adopt the right policies to get the US out of the depression, policies that would have worked in the medium term even without the stimulus generated by the war. This of course means that Mr. Ahamed strongly supports the large stimulus package Obama wants to see adopted.

2. Second important point I wish to stress -- partially because many people disagree -- is that we need to work on an international strategy to address the current financial and economic mess, with the inevitable corollary that nations that are better off from a financial point of view (Germany, China) need to pass stimulus packages that can help other countries get out from under.

Daniela

Merrill Lynch paid $3-4 B in bonuses after getting bailout money

See the comments.

Welcome to our blog that tracks the news.

This will really help us follow the news and become better players on our team. We'll know more about what's going on.

Here's how I propose playing this game.

When you post a news item, post only the title and a one-sentence summary. Post the article as a comment. That way the blog will display many news items, and you can click on any one for more info.

I hope we can form a ring, and each day someone will post a big story or two.

Also, we could be summary postings for a topic that describe what happened over time.

Should be fun,
Gus