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Progressives and the Budget Deficit

Readers: This a fairly concise statement of the current economic situation in the US. Perhaps it should be subtitled as "Why are budget deficits to bail out the privatized banking and speculative finance sector at the public's expense a reasonable response when the need for a bail out of productive economics and of our communities not a reasonable response to this situation??" admin

 

LANDMARK DECISION PROMISES MASSIVE RELIEF FOR HOMEOWNERS AND TROUBLE FOR BANKS

Reader: This article and the related Kansas Supreme Court Decision points out another legal weakness in the whole financialization by securitization process. This one is also very basic to the nature of contract law. The article also points out a lesser known strategy behind the US treasury and US Federal Reserve bail-outs of the primary investment banks who have created the economic collapse.

The Importance of Public Banking" by C.P. CHANDRASEKHAR

A very straightforward and concise description of why banks need to be made public institutions. This provides an example of what the banking industry would be like if its profits weren't privatized and its losses socialized. admin

Public ownership of banks, besides preventing the system from plunging into periodic crises, delivers many growth and welfare benefits.

Selling Death: Wall Street’s Newest Bubble By L. Randal Wray, Univ.of Missouri, Kansas City

When Wall Street’s commodities bubble crashed last year, I asked whether the next bubble might be in securitized body parts. Wall Street would search the world for transplantable organs, holding them in cold storage as collateral against securities sold to managed money such as pension funds. Of course, it was meant to be an apocryphal story about unregulated banksters gone wild. But as the NYT reports, Wall Street really is moving forward to market bets on death.

Judge Overturns Bank Of America-SEC Settlement Over Merrill Bonuses From Huffington Post STEPHEN BERNARD | 09/14/09 07:11 PM |

Readers: The unstated detail below is that given the amounts of money dispensed as bonuses and the amounts of money lost by investors the $33 million that was proposed as the basis for a settlement is a pittance. This refusal by the judge involved in this case to accept the proposed settlement also amounts to a statement that the SEC has been deeply suborned in favor of ignoring the highly questionable practices or to appropriately respond to the criminogenic culture of Wall Street. In effect through political bribery and other accommodations the SEC has become a co-conspirator. Admin.

Why Capitalism Fails: Minsky, who saw the meltdown coming, had another troubling insight: it will happen again By Stephen Mihm

(comment: Although this is a reasonably good introduction to Minsky's insights it ignores some very important implications of Minsky's approach and body of work. Minsky's perspective is actually much richer than what has been presented here. One detail is that Mihm in choosing his title supposes that "Capitalism" is monolithic, Minsky rejects that assumption.

How the Federal Reserve Bought the Economics Profession by Ryan Grim From the Huffington Post http://www.huffingtonpost.com/200

Readers: This article pretty much peels back the veneer on the economics profession and professors relative to the US Federal Reserve. What it does not do is expose the long term investments by corporations including banks in promoting economists that favor their industry and excess profits. Thomas Malthus was for instance employed beginning in 1805 as an economics professor at Haileybury College as a solely owned educational institution to train employees of the British East Indies Company.

Judge Shira Scheindlin Procedural Decision In Case Against Ratings Agencies and Co-conspirators on Fraud.

 

READERS: This is a very important decision  against both corporate fraud as a form of free speech and against the fraudulent forms of securitization. As a decision it is likely to go to the US Supreme Court on an appeal. As it stands it is unlikely to be overturned, which means that Clients who lost based upon fraudulent ratings will be able to collect damages. This will put most of the current big five banks out of business.

Let's Create a Real Job Czar for the Jobless By L. Randal Wray Univ. of Missouri, Kansas City

For an example of what can be done, we can look to the recent experience of Argentina. As everyone knows, Argentina had been the darling of the Washington Consensus and of the IMF structural adjustment approach. It opened its economy, freed its markets, privatized government operations, downsized government, adopted fiscal and monetary austerity, and—importantly—adopted a currency board based on the dollar. It did everything “right”, but the IMF/Washington Consensus approach was fundamentally flawed and put Argentina into an inherently unsustainable situation.

The Specter of Debt Revolt Is Haunting Europe and the Kleptocrats

Readers: this article is important because it describes an effort to defend and re-establish the sovereignty(aka a commons) of democratic governance over the control of a national economy in the name of and in the interests of the people of that nation. This has potential implications for de-legitimating the US Owen Glass Bill of 1913 which privatized the control of the US economy in favor of private financialization and speculation. Toward the center of the issue for Iceland, Latvia, and others is who is responsible for loses run up by private banking interests.

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