- Links for 01-15-15
- 'Republican Assault on Dodd-Frank Act Intensifies'
- 'Supply-Side Enablers'
- 'Let Us Hope for a Syriza Victory'
Posted: 15 Jan 2015 12:06 AM PST
Posted: 14 Jan 2015 12:28 PM PST
Is anyone surprised?:
Republican assault on Dodd-Frank act intensifies, by Barney Jopson, FT: Republicans are intensifying an assault on the Dodd-Frank financial reform act in the second week of a new Congress...
Under attack in the House on Wednesday was part of the so-called Volcker rule, a provision of the reforms that limits bank risk taking.
Lawmakers voted 271-154 to delay from 2017 to 2019 a ban on banks holding securitised debt that has been packaged into collateralised loan obligations, with 29 Democrats supporting the postponement along with Republicans. ...
Because the Masters of the Universe need years and years to adjust to this change (Dodd-Frank was passed nearly *five* years ago). Or maybe they are simply hoping to delay and delay until they can get repeal? The president has said he will veto this if it also gets through the Senate, but they will likely try to attach it to other legislation to make a veto much harder.
I don't think the repeal of Glass-Steagall caused the financial crisis. But that doesn't mean the Volcker rule has no value, only costs. Repeal of Glass-Steagall sets up a vulnerability that could cause a crisis in the future, so it's worth fixing via the Volcker rule.
Posted: 14 Jan 2015 11:45 AM PST
...Norman Ture indeed was the original supply-sider who basically told Chairman Mills to ignore the CEA's recommendations for fiscal restraint in 1966. We now know the unfortunate history of politics not heeding the advice of sensible economists. And yes – the supply-siders once again pushed for fiscal stimulus in 1981. How did that work out? I bring this up today in light of the fact that Mitt Romney is once again running for President. The last time he did so, he advocated large tax cuts without any serious consideration of how to pay for them. I'm sure Romney will have plenty of supply-side enablers once again.
Posted: 14 Jan 2015 10:02 AM PST
Let us hope for a Syriza victory: If you think this sentiment is dangerous, because you have read that if this left wing party formed a government after the forthcoming Greek elections the Eurozone would be plunged into crisis, I suspect you should reconsider where you get your information from. Here is why.
Syriza wants to reduce the burden of Greek government debt by various means, which would clearly benefit Greece and mean losses for its creditors. Its bargaining position is strong because the government is running a primary surplus. This means that if all debt was written off and the Greek government was unable to borrowing anything more, it would be immediately better off because taxes exceed government spending. In contrast the creditors' position in such a situation is normally very weak, which is why some kind of deal is usually done to reduce the debt burden. Creditors take a hit, but not as bad a hit as they would if all debt was written off. ...
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