Posts filed under “Taxes and Policy”

How to Build a Better Bailout

“To avert panic, central banks should lend early and freely, to solvent firms, against good collateral, and at ‘high rates.’ ” -Walter Bagehot, Lombard Street

 

Former U.S. Treasury Secretary Timothy Geithner has been promoting his new book, “Stress Test: Reflections on Financial Crises.” I haven’t read it, and based on what I have heard him say, I won’t. Geithner doesn’t seem to understand how the crisis came about, what alternatives existed to the bank bailouts, or the impact they had. Indeed, Geithner makes multiple claims about the bailouts, none of which survive scrutiny.

Geithner argues that the bailouts were the best response to the financial panic. The financial system needed to be protected from collapse, he says, and there were no true alternatives. If part of the rescue worked to the benefits of the “arsonists who set the original fire,” that was merely an unfortunate side effect.

Those arguments stand in stark contrast to what many critics, me included, have written about the crisis. Rather than talk my own book, “Bailout Nation,” I want to respond directly to the Geithner claims. Continues here

Category: Bailout Nation, Bailouts, Books, Really, really bad calls, Taxes and Policy

A Tangled Web of Charity

Source: Businessweek   Continues here

Category: Data Analysis, Digital Media, Taxes and Policy

Tune Out Politicians Still Obsessing Over Government Debt

Source: CBPP   Today’s chart comes from the Center on Budget and Policy Priorities. It shows how much debt projections have changed during the past four years. Continues here  

Category: Economy, Politics, Taxes and Policy

The Retirement Delusion

A recent Gallup poll asked working Americans what they expected in retirement. “Half of Americans think they will have enough money to live comfortably after they retire.” This is the first time since before the financial crisis that a majority of Americans have felt this way. The poll is very revealing about both investing psychology…Read More

Category: 401(k), Investing, Really, really bad calls, Taxes and Policy

How Millionaires Want Fix Inequality

Category: Taxes and Policy, Video, Wages & Income

American Tax Burden to Other Developed Nations

Source: Yahoo Finance

Category: Taxes and Policy

Tapping Your 401(k) ?

From Bloomberg Visual Data: The IRS collected more than $5 billion in 2011 from penalties incurred by taxpayers who withdrew money from tax-deferred retirement accounts before the age of 59 1/2. The people who pay the penalty include younger workers who switch jobs and don’t bother to roll over their accounts and older workers who…Read More

Category: 401(k), Digital Media, Really, really bad calls, Taxes and Policy

Restaurant Industry Pay: Taxpayer’s Double Burden

Category: Retail, Taxes and Policy, Think Tank, Wages & Income

States With the Biggest Infrastructure Need

Click for full graphic. Source: Bloomberg Visual Data

Category: Digital Media, Politics, Taxes and Policy

Jeff Sachs: Why We Need a Wealth Tax


Source: Bloomberg TV

Category: Taxes and Policy, Video, Wages & Income