My afternoon plane reading:

Berkshire 2012: A Glimpse of Things to Come (Jeff Matthews Is Not Making This Up)
• 4 years after Wall Street crash, regulation of financial markets is still spotty (McClatchy)
• Rents soar as foreclosures, young workers seek housing (LA Times) see also Look Who’s Pushing Homeowners Off the Foreclosure Cliff (Bloomberg)
• 2012: Youngs v. Olds (Salon)
• Regulators Seek Plan B on Money Funds (WSJ) see also Taking On the Little Guy, but Missing the Bigger Ones (DealBook)
• Why Alternatives?: Global Debt Panel at CFA (Attain Capital Management)
• Will Rich People Desert the U.S. If Their Taxes Are Raised? (Economix) see also America’s idiot rich (Salon)
• Analytical Trend Troubles Scientists (WSJ)
• Twitter ‘will be more valuable than Facebook’ (Telegraph) see also A Day in the Life of Steve Jobs (Forbes)
• Massive Projection, anyone? Conservatives Describe Themselves in Attacks on Liberals (They Gave Us A Republic)

What are you reading?
>

Unemployment Rate Without Government Cuts: 7.1%

Source: WSJ

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

17 Responses to “10 Tuesday PM Reads”

  1. Bill in SF says:

    Here’s an excerpt from Paul Krugman’s latest book, “End This Depression Now!”. It’s worth a read, and why Nobel Prizes still matter.

    http://www.huffingtonpost.com/paul-krugman/how-bad-things-are_b_1498070.html?page=1

  2. crankitto11 says:

    Cue the Big Lie, Presidential Campaign Edition. Romney now cynically claiming credit for managed bankruptcy of Detroit auto makers that he publicly and loudly opposed at the time: http://www.latimes.com/news/politics/la-pn-romney-silent-after-claiming-credit-for-auto-industry-comeback-20120508,0,928764.story

    Yes, he advocated bankruptcy for the manufacturers, but without government financing, which in the context of late 2008/early 2009 would absolutely have resulted in Chapter 7 liquidation of not only the manufacturers, but dozens of their suppliers, and have devastated the U.S. auto industry.

    With the banking industry in shambles at that time and unable to provide financing, the Obama administration stepped up and provided debtor in possession financing for GM and Chrysler, allowing them to do Chapter 11 reorganizations. Voila, the Big Three are back, kicking butt and taking names.

    Understandably, this is embarrassing for the GOP narrative that “the gub’mint is evil” and can do no good, [INSERT FRANK LUNTZ BUZZWORDS HERE], therefore, we must cut taxes even more for the top 1%.

    But then for Romney to turn around and claim credit for a turnaround made possible only by government financing– WTF???!!!

    Can the presidential candidate of a major political party make such a bald-faced lie, and hope to get away with it??

    Have you no shame, sir?

  3. Mike in Nola says:

    It’s not black and it’s not a helicopter, but it might as well be:

    http://www.wired.com/dangerroom/2012/05/missile-blimp/

    I suppose it will help intimidate all those desparate old people after their social security is cut to fund this kind of crap.

  4. ilsm says:

    US constitution has not been defended or an impediment to tyranny since JFK/LBJ sent US troops into Vietnam.

    http://www.theygaveusarepublic.com/diary/10620/conservatives-describes-themselves-in-attacks-on-liberals

    …….”conformity to orthodoxy is at the core of the conservative one. ”

    Dogma. Rather substituting “belief” for truth. If they hear on Fox it is belief not truth.

    Mike in NOLA,

    Mav6 seems to have forgotten prohibition from the military other than state militias regulated by congress under Article I Section 8.

    Oops, that section says no standing armies, no money for more than 2 years, wars are declared and congress regulate the militia when called in the service of the united states.

    US constitution has not mattered for years.

  5. machinehead says:

    Re: ‘Unemployment rate without government cuts’:

    To maintain full staffing without a single layoff, the NY county I live in proposed to: (1) Increase the sales tax another 3/8%; (2) Increase its share of property tax; (3) Radically hike the real estate transaction tax; and (4) Raise other miscellaneous fees.

    Fortunately for residents facing their own financial constraints, Albany turned them down.

    And I’m supposed to weep over how much lower the unemployment rate could be, if only all those privileged government workers, with their killer benefit packages, could be retained?

    HA HA HA HA …

    I feel your pain, dedicated public servants. Really I do.

    * pops another brewski *

  6. VennData says:

    “…Our appalling HUMINT deficit was evident shortly after Air Force One took off from Bagram Air Field early Tuesday morning…”

    http://www.realclearpolitics.com/articles/2012/05/04/theater_of_war_114044.html

    …only not so much…

    “…The suicide bomber dispatched by the Yemenbranch of Al Qaeda last month to blow up a United States-bound airliner was actually an intelligence agent for Saudi Arabia who infiltrated the terrorist group and volunteered for the mission, American and foreign officials said Tuesday…”

    http://www.nytimes.com/2012/05/09/world/middleeast/suicide-mission-volunteer-was-double-agent-officials-say.html

  7. Iamthe50percent says:

    “Will Rich People Desert the U.S. If Their Taxes Are Raised?”

    I hope so!

  8. Bob A says:

    ditto

  9. the Chart, above, in the Post, makes a nice segue..

    http://www.financialsense.com/contributors/charles-hugh-smith/the-grand-game-of-perception-management
    ~~

    …From Italian, there follows

    The American Heritage® Dictionary of the English Language, Fourth Edition copyright ©2000
    http://www.thefreedictionary.com/segue

    (yes, it’s poetic license to borrow a musical term..)

  10. Mike in Nola says:

    @Iamthe50percent

    They could all move to France or even the UK where the Tories are quickly digging their own grave and Labor may well go back to its socialist roots when it sees how well Lefties are doing in other EU countries.

  11. AtlasRocked says:

    And what would be the addition debt left for the future taxpayers if these gov’t layoffs did not happen?

    What would be the terms of the loan to pay back the debt?

    Who would set the interest rates on the loan? Could the borrower be allowed to inflate the debt away in the future and deflate the savings of anyone who is bothering to save and invest?

    Can your provide proof of ability to pay the money borrowed to support the gov’t jobs, as required for private loans?

    Can the borrower borrow from itself to make payments on the loan that payed for the jobs?

  12. DeDude says:

    “Romney now cynically claiming credit for managed bankruptcy of Detroit auto makers that he publicly and loudly opposed at the time”

    I guess he was against it until it turned out to be a huge success – and then he was (always) for it.

    “And what would be the addition debt left for the future taxpayers if these gov’t layoffs did not happen?”

    If you just look at the data the answer is little to none. Because it turns out that in contrast to trickle down (a proven failure) “trickle up” economics works. Furthermore, in a country with its own currency debt is simply a function of failure to print more currency – so its level is a political decision that has more to do with the ideology of “small gobinment” than the reality of economic instruments.

  13. ZedLoch says:

    I wonder if the government cuts will reverse themselves within a year after a private sector recovery. I’m not 100% sure as to the mechanisms of local government funding, but how long after the tax base recovers can a municipality get back on solid ground? Is it possible to create a national model of this an forecast the unemployment rate from that? Or does the locality of the problem make that too complex to average?

    Hmmm….

  14. AtlasRocked says:

    @Dedude – I agree it is a small amount adding to the deficit. Benefits programs dominate the debt accrual.

    Trickle up and trickle down are lies – if they are true theories, send us a link to the Economic Textbook or white paper that documents the theory and models it.

    Printing money – so you advocate the gov’t “borrow” money from the future taxpayers and then print money to pay it’s own loan payments. If this is a sane and dependable practice, then we should see evidence of recovery using this right? Which nations are recovering now, paying down debt? Send us the data on this, the whole world could be taking advantage of this if you can show us where it’s working.

  15. DeDude says:

    @ZedLoch;

    I think that the local government funding is very dependent on economic activity. Many states are seeing increases in income and particularly sales tax revenues, this is easing the pressure on local governments. What has made the reductions so much more severe in this downturn is the combination of tea-parties at all levels of government. The insistence in Washington to leave state and local governments to fend for themself in spite of a slow recovery, has combined with an insistence at the local levels that the budget shortfall should be solved 100% by cuts. This has produced a particularly nasty pro-cyclical effect, that should continue on the upside (when revenue begin increasing, all the delayed repairs and hiring will be reversed).

    @AtlasRocked;

    If you are interested in learning about how effective “trickle up” policies are, I suggest you begin with reading Krugman’s latest book and maybe continue with a basic textbook on economics that cover Keynes in details. Then you will see plenty of evidence of why it is so much smarter to purchase infrastructure when supply of labor is high, prices are low, and real interest rates are negative (counter-cyclic policies). Simple logic would suggest that buying low and borrowing at negative interest rates is the smart thing to do, but if you need a study then those would be good sources to begin with. I am not aware of any government that currently are “paying down their debt” (or instituting austerity in a febrile attempt to pay down their debt), that are “recovering now” – that’s the point. How many times does austerity have to demonstrate it’s predictable failure to deliver, before people stop saying it will “pay off” in the longer run (5, 10 ,50, 500 years from now?) and just admit that it is has failed both in theory and practice.

  16. Joe Friday says:

    AtlasRocked,

    Benefits programs dominate the debt accrual.

    Only in your fantasy world.

    The independent non-partisan Congressional Budget Office DISAGREES with you.

  17. AtlasRocked says:

    @de-friday-dude: When a salesman tries to sell me something, but won’t answer any questions, and can’t provide a success story from any of their customers, I consider the salesman a fraud.

    Here’s my backup support, from Harvard researches, a decidedly liberal school:

    http://www.economics.harvard.edu/faculty/alesina/files/Large%2Bchanges%2Bin%2Bfiscal%2Bpolicy_October_2009.pdf

    Post your success here, even one would be useful for everyone to see that you’re not the frauds you have documented yourselves to be so far. I’ll send you a $50 check for 1 single success story. Please don’t submit WWII as a success story again. A war is not an economic policy.

    Keynesian stimulus was used in the
    country _____ in the years ______,
    during a __ recession/__ depression,
    then the economy turned around within 2
    years and then produced ___ years
    of lasting growth after this. The
    increased tax revenue was enough to
    pay off all the deficit the stimulus
    had created within ______ years.