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In Defense of Deficits

"View in Wall Street from Corner of Broad...

James K. Galbraith in The Nation: ‘The Simpson-Bowles Commission, just established by the president, will no doubt deliver an attack on Social Security and Medicare dressed up in the sanctimonious rhetoric of deficit reduction. (Back in his salad days, former Senator Alan Simpson was a regular schemer to cut Social Security.) The Obama spending freeze is another symbolic sacrifice to the deficit gods. Most observers believe neither will amount to much, and one can hope that they are right. But what would be the economic consequences if they did? The answer is that a big deficit-reduction program would destroy the economy, or what remains of it, two years into the Great Crisis.

For this reason, the deficit phobia of Wall Street, the press, some economists and practically all politicians is one of the deepest dangers that we face. It’s not just the old and the sick who are threatened; we all are.’

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Blame the childish, ignorant American public—not politicians—for our political and economic crisis

WASHINGTON, D.C. - JANUARY 20:  Crowds look at...

Jacob Weisberg: “In trying to explain why our political paralysis seems to have gotten so much worse over the past year, analysts have rounded up a plausible collection of reasons including: President Obama’s tactical missteps, the obstinacy of congressional Republicans, rising partisanship in Washington, the blustering idiocracy of the cable-news stations, and the Senate filibuster, which has devolved into a super-majority threshold for any important legislation. These are all large factors, to be sure, but that list neglects what may be the biggest culprit in our current predicament: the childishness, ignorance, and growing incoherence of the public at large.” Slate Magazine

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If there is any justice, Bobby Jindal’s national political career is over

{{w|Bobby Jindal}}, member of the United State...

“A month after Louisiana Gov. Bobby Jindal complained about wasteful spending in President Obama’s economic stimulus package, including money for “something called ‘volcano monitoring,'” Alaska pilots were grateful for such expenditures. The Alaska Volcano Observatory was ready with warnings to flight officials when Alaska’s Mount Redoubt blew five times Sunday night and Monday morning, sending potentially deadly ash clouds north of Anchorage.” via The Associated Press.

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The Inflection Is Near?

Thomas Friedman, American journalist, columnis...

Thomas Friedman:

What if the crisis of 2008 represents something much more fundamental than a deep recession? What if it’s telling us that the whole growth model we created over the last 50 years is simply unsustainable economically and ecologically and that 2008 was when we hit the wall — when Mother Nature and the market both said: “No more.” ‘ (New York Times op-ed)

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Homeowners’ rallying cry: Show Me the note

Stave off your foreclosure by asking the bank to produce the original mortgage note. Often, it can no longer be found.

‘During the real estate frenzy of the past decade, mortgages were sold and resold, bundled into securities and peddled to investors. In many cases, the original note signed by the homeowner was lost, stored away in a distant warehouse or destroyed.

Persuading a judge to compel production of hard-to-find or nonexistent documents can, at the very least, delay foreclosure, buying the homeowner some time and turning up the pressure on the lender to renegotiate the mortgage.’ via The Associated Press.