Economics News

Mm says:

October 6, 2011 at 1:33 pm

The repeal of regulations that protected the American economy in particular the Glass-Steagal Act which was instituted after the Great Depression of 1929 which Clinton had repealed now allows banks and investment firms to merge and this is a major reason for our economic troubles. I say, close Pandora’s box, bring back the Glass-Steagal Act.

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aserfonthelatifundia says:

October 6, 2011 at 11:36 am

Alex: Support the warm bodies in the field- in the right place at the right time- being abused by the establishment. Forget the “free market” mantra we all know that we don’t have a “free market” nor is perfect Libertarianism the solution. Adams (The Wealth of Nations), the first “free trader” represented the British East India Company. N.Y. City was occupied by the British during the entire duration of the Revolutionary War- it was a Torrie stronghold. N.Y. was the only colony to vote against the Declaration of Independence. Idiological purity does us no good at this point. Defend the U.S. foundation documents, the Constitution and the Bill of Rights like you always do- they will see us through this. On the other side of this “correction” we still need a multiparty system although it probably will not be the R or D party.

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ASKARI1 hour agoin reply to D

D - you state enough facts to be dangerous yet you are terribly misinformed (and yes - I have a finance degree)..... I will take your points one by one:

1) Gas Prices - gas prices are high because of wall st. speculators; investors are buying oil futures and betting on the direction the barrel of oil will cost...very little of the increase has to do with supply or demand or the value of th dollar;

2) When Clinton left office, there was a projected surplus in the budget...Bush did 3 things that caused the vast majority of the deficit: Started 2 wars (Iraq & Afghanistan), tax cuts, and medicare B; all of which was unfunded. Obama's stimulus package was in response to the recession and the mess Bush left;

3) Raising the value of the Dollar is not our most pressing concern; stimulating the economy is...Most non-Friedman, Univ of Chicago-schooled economist agree that when private spending (with credit or cash) has subsided during a recession, government spending is necessary to jump start the economy. FDR and Reagan (yes Reagan! - by increasing defense spending) both increased govt spending;

4) Like most Republicans, you keep rehashing the "Jobs' Creator Myth"....Reagan raised taxes in the 80s to tame the deficit; Clinton raised taxes and increased Jobs....Most investment business people decide to make are made pre-tax; not after tax....

5) Obama is discussing raising the income tax on millionaires; not small businesses... additionally, your tax rate is determined in business by profit; not revenue... Most small businesses in this country do not clear $250k let alone $1M...

6) You are correct - The senate and house were democratically controlled during the bailout; however, the events leading up to financial crisis started under Clinton and culminated under Bush.... The banks involved controlled a large majority of U.S. Assets and the insurer AIG had tenacles in everything, including pensions.... They had to be bailed out or the U.S. as we know it would not exist (and that is not hyperbole)...

7) Gutting the Glass-Steagal Act which separated commercial banking from mingling assets with investments banks is the main cause of why these banks are to "big to fail" and this oversight (to rescind) it in the financial reform act is a big mistake...

8) Again - you are quoting the Ayn Rand objectivist philosophy.....Let's set the record straight: We pay each paycheck for the right (yes - we are entitled!) to have social security and medicare available to us when we retire.....We didn't have a choice when we started working to opt out; but I paid into the plan and I damn sure want it when I retire!... As far as healthcare, it is taking up 16% of our GDP (2x that of other western democracies)...If we repeal the McCarran/Ferguson Act, insurance companies would have to compete and that will reduce the prices tremendously... I'm quite sure they exist, but the vast majorities of Americans bust their hump everyday trying to get ahead and take personal responsibility....Also, only 3% of the federal budget goes to welfare.....Where are all these deadbeats?