Archive for ‘financial reform’

January 8, 2013

Daily Scoop: AIG Considers Suing US Government over Bailouts

AIG Suing TaxpayersA jaw-dropping twist in the story of the Great Recession has emerged from the very seed that spawned the economic collapse itself. A month after paying off its taxpayer provided, government loans AIG is now considering a lawsuit against the very government that saved it from oblivion. One must ask what wires crossed in the brains of the company leadership to think this would be an acceptable route to take.

Feel free to read more in the article below and be sure to read Elizabeth Warren’s response to the lawsuit talk immediately following.

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June 15, 2012

The Daily Scoop: 5 myths of the great financial meltdown

FORTUNE — It’s hard to believe, but it’s been five years and a day since the U.S. financial system’s problems surfaced, and we’re still not even remotely close to being able to feel good about the economy. There’s a long way to go before the economy, and people, recover from wounds inflicted by the financial meltdown.

How should you think about the past five years? What can we learn from them? And what can we as a society do to minimize the chances of a recurrence?

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May 8, 2012

Daily Scoop Xtra: Ryan Budget May Cut Economic Data

Starting in the early 1990s, the U.S. Census Bureau asked Congress for extra funding each year so it could better analyze the services sector, which was quickly replacing industrial activity as the biggest driver of the U.S. economy. In 2003 the bureau requested more funding to survey financial, real estate, and other companies on a quarterly basis, rather than wait to take their pulse with its Economic Census, which gathers data on business every five years.

Every year, Census asked for the extra funds; every year, Congress denied them the money, leaving the Census Bureau largely blind to the health of a sector that made up more than half the total economy.

Finally, in early 2009, after the real estate-fueled financial crisis, Congress gave Census what it had been asking for—an extra $8.1 million. In the view of many, it was too late.

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April 24, 2012

Europe’s Woes Prove GOP Wrong

Anyone frustrated with the drawn out economic recovery here in the US should cast a gaze across the Atlantic for a view of how it could have been. In the European Union we have a unique opportunity to catch a glimpse of where this country would be had we chosen the path of severe spending cuts rather than a road stabilized by economic stimulus. 

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April 17, 2012

The Daily Scoop: A huge student loan scam

With the help of Virginia Foxx, R-N.C., for-profit colleges are massively ripping off U.S. taxpayers
Earlier this year, the U.S. House of Representatives voted to pass a bill with the impressive, everybody-can-get-behind-this title “Protecting Academic Freedom in Higher Education Act.” Sponsored by the ultra-conservative North Carolina Republican Virginia Foxx, the bill ostensibly took aim at an issue close to small-government-loving hearts: intrusive federal regulation of for-profit colleges — fast growing, highly profitable outfits like DeVry University or the online-only University of Phoenix.

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April 4, 2012

The Daily Scoop: 5 Years After Crisis, No Normal Recovery

So many write attempting to compare the Great Recession’s recovery to other more “normal” recoveries from “normal” downturns. Those are like comparing the proverbial apples and oranges. The most accurate economic crisis to compare this one to is the Great Depression and its recovery. As a result, other comparisons are simply inaccurate in their conclusions. This article provides an in-depth assessment of the current economic situation and how we may need to rethink how recoveries from severe crises are judged.

  With the U.S. economy yielding firmer data, some researchers are beginning to argue that recoveries from financial crises might not be as different from the aftermath of conventional recessions as our analysis suggests.

Their case is unconvincing. It is mystifying that they can make this claim almost five years after the subprime mortgage crisis erupted in the summer of 2007 and against a backdrop of an 8.3 percent unemployment rate (compared with 4.4 percent at the outset of the financial crisis). Our research makes the point that the aftermaths of severe financial crises are characterized by long, deep recessions in which crucial indicators such as unemployment and housing prices take far longer to hit bottom than they would after a normal recession.

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February 22, 2012

The Daily Scoop: Harder for GOP to claim healthcare reform is a job-killer

Whatever happened to the dread horror of job-killing uncertainty? Just last year, the talking point was all the rage, unanimously chorused by GOP pundits, politicians and economists looking to hammer President Obama for a stalled-out economy.

The argument was simple: Employers were refusing to hire because they feared the “regulatory uncertainty” flowing in the wake of the passage of the Affordable Care Act and the Dodd-Frank bank reform law. Terrified that the future implementation of these reforms would crimp their profits, employers laid low. A policy analyst at the Heritage Foundation provided the smoking gun: He argued that job growth slowed dramatically almost immediately after the passage of the Affordable Care Act in April 2010 — “this suggests,” he wrote, “that businesses are not exaggerating when they tell pollsters that the new health care law is holding back hiring.”

Less than a year later, however, references to the intersection between regulatory uncertainty, healthcare reform and the labor market have plummeted. There’s a very obvious reason for that: The private sector has added over a million jobs over the last six months while the unemployment rate has fallen steadily.

And yet nothing fundamental has changed on the regulatory front…
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January 10, 2012

Why does GOP want to KO the CFPB?

  President Obama riled Republicans this past Wednesday with his “recess” appointments of four long-blocked agency nominations. The most hair raising for the GOP was the President’s appointment of Richard Cordray to the Consumer Financial Protection Bureau, an agency congressional Republicans have opposed since its inception. The President’s actions drew further anger due to questions as to whether the Senate was technically in recess. Were these appointments a response to consistent blockage of the confirmation process? What is behind the ardent GOP opposition to the CFPB and other agency appointees?

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November 4, 2011

The Forgotten 15: Job Creation through Deregulation

Illinois Rep. Bobby Schilling, in this past Republican weekly address, introduced into the current political lexicon, The Forgotten 15, a reference to 15 pieces of House legislation awaiting perusal in the Senate. Offered as a counter to the President’s criticism of the GOP’s inaction on his Jobs Bill, Schilling and other Republicans throughout the week, touted this legislation as job creation through deregulation.

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