BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[The 2001 Bush Income Tax Cut: A Major Policy Mistake]]>http://www.bloggingstocks.com/2010/09/09/the-2001-bush-income-tax-cut-a-major-policy-mistake/http://www.bloggingstocks.com/2010/09/09/the-2001-bush-income-tax-cut-a-major-policy-mistake/http://www.bloggingstocks.com/2010/09/09/the-2001-bush-income-tax-cut-a-major-policy-mistake/#commentsFiled under:

George BushThe 2001 Bush income tax cut is one of those issues whose fate has been sealed by objective economic conditions.

Simply, if the U.S. economy had registered robust growth during the final two years of the Bush administration, and no other negative economic events occurred, the tax cut, which will increase the deficit by $336 billion this fiscal year, $295 billion in fiscal 2011, and by more than $320 billion per year through fiscal 2019, perhaps would have had a chance of being extended.

Continue reading The 2001 Bush Income Tax Cut: A Major Policy Mistake

The 2001 Bush Income Tax Cut: A Major Policy Mistake originally appeared on BloggingStocks on Thu, 09 Sep 2010 18:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bond marketbudget deficitBush tax cutDemocratsfeaturedincome taxesinterest ratesObamaRepublicansThu, 09 Sep 2010 18:00:00 EST<![CDATA[Former Reagan Budget Director Stockman Opposes Extending Bush Tax Cuts]]>http://www.bloggingstocks.com/2010/08/03/former-reagan-budget-director-stockman-opposes-extending-bush-ta/http://www.bloggingstocks.com/2010/08/03/former-reagan-budget-director-stockman-opposes-extending-bush-ta/http://www.bloggingstocks.com/2010/08/03/former-reagan-budget-director-stockman-opposes-extending-bush-ta/#commentsFiled under:

A key figure in the Reagan administration's supply side economics policy implementation opposes extending the 2001 Bush income tax cut.

David Stockman, who served as budget director under President Reagan, in a New York Times op-ed piece, said a Republican effort "to extend the unaffordable Bush tax cuts would amount to a bankruptcy filing."

Stockman also called the current Republican stance of wanting to extend the tax breaks as not fiscal responsibility, but "vulgar Keynesianism robed in the ideological vestments of the prosperous classes."

Continue reading Former Reagan Budget Director Stockman Opposes Extending Bush Tax Cuts

Former Reagan Budget Director Stockman Opposes Extending Bush Tax Cuts originally appeared on BloggingStocks on Tue, 03 Aug 2010 16:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>budget deficitBush tax cutsDemocratsinthenewsRepublicansStockmanTue, 03 Aug 2010 16:00:00 EST<![CDATA[Washington Gridlock: Upside and Downside]]>http://www.bloggingstocks.com/2010/02/24/washington-gridlock-upside-and-downside/http://www.bloggingstocks.com/2010/02/24/washington-gridlock-upside-and-downside/http://www.bloggingstocks.com/2010/02/24/washington-gridlock-upside-and-downside/#commentsFiled under: ,

One upside to gridlock in Washington? The U.S. Congress won't likely move forward with its effort to allow the General Accounting Office to audit the U.S. Federal Reserve.

One (big) downside? President Obama and Congressional Republicans, particularly Republicans in the Senate may not be able to agree on next year's budget. This could result in a shutdown of the federal government if the two political parties don't agree to pass a continuing resolution in the meantime. Any inability of the parties to agree on new budget or a continuing resolution as a temporary bridge will likely rattle both the bond and stock markets.

Continue reading Washington Gridlock: Upside and Downside

Washington Gridlock: Upside and Downside originally appeared on BloggingStocks on Wed, 24 Feb 2010 12:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>budgetdemocratsobamapoliticsrepublicansWed, 24 Feb 2010 12:50:00 EST<![CDATA[This Is How Washington Works: Most Times, It Doesn't]]>http://www.bloggingstocks.com/2010/02/20/this-is-how-washington-works-most-times-it-doesn-t/http://www.bloggingstocks.com/2010/02/20/this-is-how-washington-works-most-times-it-doesn-t/http://www.bloggingstocks.com/2010/02/20/this-is-how-washington-works-most-times-it-doesn-t/#commentsFiled under:

In the past year, President Barack Obama has been introduced to Washington's realpolitik. As MarketWatch Washington Bureau Chief Rex Nutting aptly put it: This is how Washington works. The truth is, most times, it doesn't.

In theory, congressional lawmakers and the executive branch should be able to find common ground, aided by that long-standing American habit of compromise, to solve the nation's problems.

Continue reading This Is How Washington Works: Most Times, It Doesn't

This Is How Washington Works: Most Times, It Doesn't originally appeared on BloggingStocks on Sat, 20 Feb 2010 09:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>DemocratsgridlockObamaRepublicansSat, 20 Feb 2010 09:40:00 EST<![CDATA[For Democrats, the Only Good News Is It's January, Not November]]>http://www.bloggingstocks.com/2010/01/20/for-democrats-the-only-good-news-is-its-january-not-november/http://www.bloggingstocks.com/2010/01/20/for-democrats-the-only-good-news-is-its-january-not-november/http://www.bloggingstocks.com/2010/01/20/for-democrats-the-only-good-news-is-its-january-not-november/#commentsFiled under: ,

A few points about the public policy impact of Tuesday's stunning Republican victory in the Massachusetts U.S. Senate election:

You'll hear a great deal of analysis arguing that health care reform, and the bank bail-out, convinced Independents to vote for Republican Scott Brown. To be sure, those two factors (in political science, they're called variables) played a role, as did Democratic candidate Martha Oakley's listless, clumsy campaign, but the biggest factor affecting vote was the Massachusetts' unemployment rate, which is high, as it is across the United States.

Continue reading For Democrats, the Only Good News Is It's January, Not November

For Democrats, the Only Good News Is It's January, Not November originally appeared on BloggingStocks on Wed, 20 Jan 2010 16:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BrownCongressDemocratsOakleyObamaRepublicansWed, 20 Jan 2010 16:40:00 EST<![CDATA[The unemployed are seeking answers: Obama, Democrats must deliver]]>http://www.bloggingstocks.com/2009/12/07/the-unemployed-are-seeking-answers-obama-democrats-must-delive/http://www.bloggingstocks.com/2009/12/07/the-unemployed-are-seeking-answers-obama-democrats-must-delive/http://www.bloggingstocks.com/2009/12/07/the-unemployed-are-seeking-answers-obama-democrats-must-delive/#commentsFiled under: , , ,

As most investors know, before President Obama took the oath of office, there were a half dozen problems waiting for him and his administration -- problems that no-doubt have discouraged many qualified, future aspirants from even thinking of running for the presidency during what will surely be a decade of repair and correction for the United States.

But if one had to isolate one problem President Obama must fix -- one on which his presidency will likely hinge -- it would be, of course, the U.S. economy, and within that, the issue of jobs.

Continue reading The unemployed are seeking answers: Obama, Democrats must deliver

The unemployed are seeking answers: Obama, Democrats must deliver originally appeared on BloggingStocks on Mon, 07 Dec 2009 13:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>2010 elections2012 electionsArianna HuffingtonbirtherscongressDemocratsemploymentinthenewsjob creationObamapopulismSarah Palintea partyMon, 07 Dec 2009 13:00:00 EST<![CDATA[Fiscal stimulus package's primary flaw: It was too small]]>http://www.bloggingstocks.com/2009/11/02/fiscal-stimlulus-packages-primary-flaw-it-was-too-small/http://www.bloggingstocks.com/2009/11/02/fiscal-stimlulus-packages-primary-flaw-it-was-too-small/http://www.bloggingstocks.com/2009/11/02/fiscal-stimlulus-packages-primary-flaw-it-was-too-small/#commentsFiled under: , , ,

New York Times (NYSE: NYT) columnist Paul Krugman argues quite persuasively that the major problem with the fiscal stimulus package was that it was too small, given the financial crisis and the large economic crater the accompanying, pronounced recession created.

Further, the fiscal stimulus' many benefits -- including substantial job retention in essential public services such as education -- are harder to see and not likely to translate into too much political gain for President Obama and Congressional Democrats, he said. That's consistent with a political science axiom -- often repeated by U.S. Rep. Barney Frank, D-Massachusetts -- that "Congress gets little credit or benefit for averting something." Indeed, retained jobs are hard to see, and the fact that a local public school system is is still operating with as many teachers is an accomplishment, but one that most American voters will take for granted, and not give Democrats credit for.

Continue reading Fiscal stimulus package's primary flaw: It was too small

Fiscal stimulus package's primary flaw: It was too small originally appeared on BloggingStocks on Mon, 02 Nov 2009 17:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Democratsfiscal stimulusGDPinthenewsjobsPaul KrugmanRepublicansU.S. economyMon, 02 Nov 2009 17:30:00 EST<![CDATA[On health care reform, Democrats' best strategy may be to 'go it alone']]>http://www.bloggingstocks.com/2009/09/12/on-health-care-reform-democrats-best-strategy-may-be-to-go-it/http://www.bloggingstocks.com/2009/09/12/on-health-care-reform-democrats-best-strategy-may-be-to-go-it/http://www.bloggingstocks.com/2009/09/12/on-health-care-reform-democrats-best-strategy-may-be-to-go-it/#commentsFiled under:

The best strategy for President Obama and congressional Democrats regarding health care reform may be to "go it alone" -- to pass a bill that has Democratic Party support, with maybe one or two Republicans.

Further, the era of bipartisan cooperation is over, if it ever really began. The U.S. Congress is as polarized as it ever has been in the post-World War II era, with ideologues dominating each party. President Obama's effort to forge a post-partisan politics was admirable, but it did not get very far, largely due to a Republican Party that's dominated by a conservative base, but also due to a Democratic Party committed to largely liberal goals.

Continue reading On health care reform, Democrats' best strategy may be to 'go it alone'

On health care reform, Democrats' best strategy may be to 'go it alone' originally appeared on BloggingStocks on Sat, 12 Sep 2009 09:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>democratshealthcarehealthcare reformobamaSat, 12 Sep 2009 09:40:00 EST<![CDATA[Economically, Democrats still don't have a large enough majority in Congress]]>http://www.bloggingstocks.com/2009/09/09/economically-democrats-still-dont-have-a-large-enough-majority/http://www.bloggingstocks.com/2009/09/09/economically-democrats-still-dont-have-a-large-enough-majority/http://www.bloggingstocks.com/2009/09/09/economically-democrats-still-dont-have-a-large-enough-majority/#commentsFiled under: , ,

Amid the lamentable health care reform debate, one fact is incontrovertible: despite President Barack Obama's large 2008 presidential election victory, one in which the Democrats gained 21 seats (to 257-178) in the House and eight seats in the Senate (59-40, not counting the late Senator Edward M. Kennedy's seat), the Democratic Party's majority still is not large enough to pass progressive legislation.

The solution to this is obvious enough: win more seats in the 2010 off-year congressional election, and then in the 2012 presidential/congressional election. And how does a majority party accomplish the above? By solving the nation's problems. These days, that means: 1) getting the U.S. economy growing again with robust job growth, 2) keeping the U.S. safe against international terrorism, and 3) ending the Iraq War successfully and making substantial progress toward victory in the Afghanistan War.

Continue reading Economically, Democrats still don't have a large enough majority in Congress

Economically, Democrats still don't have a large enough majority in Congress originally appeared on BloggingStocks on Wed, 09 Sep 2009 13:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Barack ObamaCharles CookCongressDemocratselectionshealth care reformRepublicansWed, 09 Sep 2009 13:00:00 EST<![CDATA[Antitrust orgy coming: Airlines, tech and others in sights]]>http://www.bloggingstocks.com/2009/07/27/antitrust-orgy-coming-airlines-tech-and-others-in-sights/http://www.bloggingstocks.com/2009/07/27/antitrust-orgy-coming-airlines-tech-and-others-in-sights/http://www.bloggingstocks.com/2009/07/27/antitrust-orgy-coming-airlines-tech-and-others-in-sights/#commentsFiled under: , , , , ,

Christine A. Varney heads up antitrust at the Department of Justice, and she's going hunting. She is the point person for a group consisting of the presidential administration and some Congressional Democrats that is looking to put the breaks on large companies in several industries.

Already, airlines have run into roadblocks when requesting relief from antitrust regulations. Varney & Co. are digging into complaints by AT&T (NYSE: ATT) and Verizon (NYSE: VZ) that cable competitors - e.g., Cablevision (NYSE: CVC) - have locked them out of the market for cable company-produced programming.

(Imagine that, a phone company complaining! Usually, they're the objects of derision.)

Continue reading Antitrust orgy coming: Airlines, tech and others in sights

Antitrust orgy coming: Airlines, tech and others in sights originally appeared on BloggingStocks on Mon, 27 Jul 2009 09:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>antitrustantitrust lawAntitrustLawantitrustregulationsattcable televisionCableCompanycablevisioncablevisionsystemscox communicationsCoxCommunicationscvcdemocratsdepartment of justiceDepartmentOfJusticegooggoogleinthenewsmicrosoftmsftobama administrationObamaAdministrationpresident barack obamaPresidentBarackObamatelecomtelecommunicationsvzMon, 27 Jul 2009 09:00:00 EST<![CDATA[If the U.S. economy strengthens, Fiscal Stimulus II may be shelved]]>http://www.bloggingstocks.com/2009/03/11/if-the-u-s-economy-strengthens-fiscal-stimulus-ii-may-be-shelv/http://www.bloggingstocks.com/2009/03/11/if-the-u-s-economy-strengthens-fiscal-stimulus-ii-may-be-shelv/http://www.bloggingstocks.com/2009/03/11/if-the-u-s-economy-strengthens-fiscal-stimulus-ii-may-be-shelv/#commentsFiled under: ,

In his column last week, New York Times (NYSE: NYT) columnist and Nobel Prize-winning economist Paul Krugman laid waste to those who argue that he's not critically assessing Obama administration programs. He offered a cogent critique of the U.S. Treasury's tardiness regarding the banking system fix.

Either temporarily nationalize those banks that are clogging the system, buy the toxic assets at unsubsidized prices, or announce some other market-valued removal plan to unclog the system, but let's put this train in motion, Krugman said, in so many words, to get to the root of the matter: We need to get credit flowing freely to facilitate commerce.

Continue reading If the U.S. economy strengthens, Fiscal Stimulus II may be shelved

If the U.S. economy strengthens, Fiscal Stimulus II may be shelved originally appeared on BloggingStocks on Wed, 11 Mar 2009 12:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorCongressDemocratsfeaturedfiscal policyfiscal stimulus packageNew York Times op-edNewYorkTimesOp-edObama administrationPaul KrugmanRepublicanstoxic assetsU.S. economyWed, 11 Mar 2009 12:15:00 EST<![CDATA[Will the U.S. economy need a second fiscal stimulus package? ]]>http://www.bloggingstocks.com/2009/02/26/will-the-u-s-economy-need-a-second-fiscal-stimulus-package/http://www.bloggingstocks.com/2009/02/26/will-the-u-s-economy-need-a-second-fiscal-stimulus-package/http://www.bloggingstocks.com/2009/02/26/will-the-u-s-economy-need-a-second-fiscal-stimulus-package/#commentsFiled under: , ,

In the landmark, blockbuster film "Jaws" (1975), reluctant sailor, Police Chief Martin Brody (Roy Scheider), while chumming bait, gets his first look at the great white shark that's been terrorizing Amity's shoreline community. Captain Quint (Robert Shaw) and Marine Biologist Matt Hooper (Richard Dreyfuss) are immediately struck by the shark's size.

But Chief Brody is struck by another reality. "You're gonna need a bigger boat," Brody said.

In today's environment, with the U.S. economy in a pronounced recession and credit markets still constrained, the Keyensians - - which include most Congressional Democrats - - are playing the role of Chief Brody. They know what's needed to go after that shark (the recession).

'You're gonna need a bigger stimulus.' (In this case the 'bigger stimulus' means a second stimulus package.)

Continue reading Will the U.S. economy need a second fiscal stimulus package?

Will the U.S. economy need a second fiscal stimulus package? originally appeared on BloggingStocks on Thu, 26 Feb 2009 14:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank bailoutCongressDemocratsfeaturedfiscal stimulus packagegdpObamaObama administrationRepublicansU.S. economyThu, 26 Feb 2009 14:55:00 EST<![CDATA[Where does the U.S. economy go from here?]]>http://www.bloggingstocks.com/2009/02/12/where-does-the-u-s-economy-go-from-here/http://www.bloggingstocks.com/2009/02/12/where-does-the-u-s-economy-go-from-here/http://www.bloggingstocks.com/2009/02/12/where-does-the-u-s-economy-go-from-here/#commentsFiled under: , , ,

The U.S.'s first fiscal stimulus package 'of size' since the recession's start has passed - - albeit in a modified form that decreased spending by about $140 billion over the original outline.

Further, the young President Barack Obama, like the young President John F. Kennedy, has learned that presidential honeymoons can be short inside the beltway, particularly if you have to trade policy to obtain votes both inside your party and among the loyal opposition.

Meanwhile, investors and the financial community more broader await the specifics pertaining to Obama administration's revised plan to stabilize the banking system, with the declining Dow discounting that even a successful plan will require months of systemic adjustment, and, of course, more public funds.

Continue reading Where does the U.S. economy go from here?

Where does the U.S. economy go from here? originally appeared on BloggingStocks on Thu, 12 Feb 2009 14:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CongressDemocratsfiscal policygdpmonetary policyObama administrationRepublicansU.S. economyThu, 12 Feb 2009 14:20:00 EST<![CDATA[Fiscal stimulus package is big, but may not be big enough]]>http://www.bloggingstocks.com/2009/02/09/fiscal-stimulus-package-is-big-but-may-not-be-big-enough/http://www.bloggingstocks.com/2009/02/09/fiscal-stimulus-package-is-big-but-may-not-be-big-enough/http://www.bloggingstocks.com/2009/02/09/fiscal-stimulus-package-is-big-but-may-not-be-big-enough/#commentsFiled under: , ,

As the U.S. Senate prepares to vote on an $820-$900 billion fiscal stimulus bill and send it to a House / Senate conference committee, a stark reality confronted lawmakers: the stimulus package may not be large enough.

A group led by Senate Moderate Republicans and selected Democrats cut roughly $60-80 billion from the bill, in what they believe to be wasteful spending and / or items not directly related to stimulating the economy.

Economist Richard Felson said lawmakers may find themselves staring at an economy in six months that needs another stimulus jolt, and given the two options, it's better to provide the stimulus all at once, from a GDP-impact standpoint.

Continue reading Fiscal stimulus package is big, but may not be big enough

Fiscal stimulus package is big, but may not be big enough originally appeared on BloggingStocks on Mon, 09 Feb 2009 11:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CongressDemocratsfeaturedfiscal stimulus packagegdpObama administrationRepublicansU.S. economyunemployment rateMon, 09 Feb 2009 11:30:00 EST<![CDATA[NYT's Krugman: Now is really the time for Congress to choose correctly ]]>http://www.bloggingstocks.com/2009/02/08/nyts-krugman-now-is-really-the-time-for-congress-to-choose-cor/http://www.bloggingstocks.com/2009/02/08/nyts-krugman-now-is-really-the-time-for-congress-to-choose-cor/http://www.bloggingstocks.com/2009/02/08/nyts-krugman-now-is-really-the-time-for-congress-to-choose-cor/#commentsFiled under: , ,

New York Times columnist and Nobel Prize-winning economist Paul Krugman knows the situation facing the United States is very serious, so he doesn't mince words.

 columnist and Nobel Prize-winning economist knows the situation facing the United States is very serious, so he doesn't mince words.

Krugman outlined: The housing sector has collapsed. Consumers have sharply decreased their spending, due to a declining stock market, home prices, and stagnant wages. Businesses are cutting investment. Exports, the formerly one strength of the economy, are plunging, as the recession grips emerging markets. The Fed has already cut short-term interest rates to zero. And there are signs of deflation. In sum, the U.S. economy is very close to the dreaded negative spiral that tends to feed on itself, and that could continue for a long, long time without fiscal stimulus.

Hence, the nation needs to pass the fiscal stimulus package, and if anything, the current package is too small, he argued.

Continue reading NYT's Krugman: Now is really the time for Congress to choose correctly

NYT's Krugman: Now is really the time for Congress to choose correctly originally appeared on BloggingStocks on Sun, 08 Feb 2009 10:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CongressDemocratsfisal stimulus packagegdpKeynesObama administrationPaul KrugmanRepublicansU.S. economySun, 08 Feb 2009 10:40:00 EST<![CDATA[Ray of Light: U.S. Senate adds $15,000 homebuyer tax credit to stimulus bill ]]>http://www.bloggingstocks.com/2009/02/05/ray-of-light-u-s-senate-adds-15-000-homebuyer-tax-credit-to-s/http://www.bloggingstocks.com/2009/02/05/ray-of-light-u-s-senate-adds-15-000-homebuyer-tax-credit-to-s/http://www.bloggingstocks.com/2009/02/05/ray-of-light-u-s-senate-adds-15-000-homebuyer-tax-credit-to-s/#commentsFiled under: ,

Now we're talking fiscal stimulus. In a move to provide stimulus and economic incentives to a sector that, arguably, needs them the most, the U.S. Senate has added to the fiscal stimulus package a tax credit for up to $15,000 for homebuyers, The New York Times reported.

Economists and public policy analysts caution that the Senate has yet to vote on the stimulus bill, and the legislation, if approved, would then have to be reconciled, via a conference committee, with the stimulus package passed by the House. Nevertheless, economist Peter Dawson still likes the direction of the February wind in Washington.

Continue reading Ray of Light: U.S. Senate adds $15,000 homebuyer tax credit to stimulus bill

Ray of Light: U.S. Senate adds $15,000 homebuyer tax credit to stimulus bill originally appeared on BloggingStocks on Thu, 05 Feb 2009 16:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Democratsfiscal stimulus packagegdphomebuyer tax credithousing sectormedian home pricesObama AdministrationRepublicansU.S. economyU.S. SenateThu, 05 Feb 2009 16:50:00 EST<![CDATA[President Obama pushes hard for $900 billion stimulus]]>http://www.bloggingstocks.com/2009/02/05/president-obama-pushes-hard-for-900-billion-stimulus/http://www.bloggingstocks.com/2009/02/05/president-obama-pushes-hard-for-900-billion-stimulus/http://www.bloggingstocks.com/2009/02/05/president-obama-pushes-hard-for-900-billion-stimulus/#commentsFiled under: , ,

President Obama is starting to flex his leadership muscles and spend his hard-won political capital.

In remarks before House Democrats in Virginia Thursday night that sounded more like one of his successful campaign speeches that energized millions, Obama argued that the nation's economic well being requires swift approval of the roughly $900 billion fiscal stimulus package.

Continue reading President Obama pushes hard for $900 billion stimulus

President Obama pushes hard for $900 billion stimulus originally appeared on BloggingStocks on Thu, 05 Feb 2009 12:03:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Democratsfeaturedfiscal stimulus packagegdpObama administrationPresident ObamaRepublicansU.S. economyThu, 05 Feb 2009 12:03:00 EST<![CDATA[Bailed out bank executives, if smart, will accept Obama's $500k cap]]>http://www.bloggingstocks.com/2009/02/04/bailed-out-bank-executives-if-smart-will-accept-obamas-500k/http://www.bloggingstocks.com/2009/02/04/bailed-out-bank-executives-if-smart-will-accept-obamas-500k/http://www.bloggingstocks.com/2009/02/04/bailed-out-bank-executives-if-smart-will-accept-obamas-500k/#commentsFiled under: , ,

With the Obama administration's $500,000 executive pay cap for bailed out companies imposed, the more important and more determining question concerns how the American people respond.

Ironically, the public's reaction may hinge on how Wall Street and the broader financial community reacts.

Historically, Americans have opposed pay caps and generally looked unfavorably on government -- particularly federal government -- efforts to interfere with market-based valuations of talent / labor. In a nutshell, the public favors a minimum wage but believes "the sky's the limit" regarding compensation; if a board of directors, business partner or negotiated contract says you're worth $10 million a year in salary and bonus, then you deserve $10 million year.

Continue reading Bailed out bank executives, if smart, will accept Obama's $500k cap

Bailed out bank executives, if smart, will accept Obama's $500k cap originally appeared on BloggingStocks on Wed, 04 Feb 2009 19:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailout billCongressDemocratsexecutive compensationGeithnerinthenewsObamaObama administrationpay cappublic opinionRepublicansrescue billTARPWed, 04 Feb 2009 19:30:00 EST<![CDATA[Economists: Modify fiscal stimulus package, but pass it, pronto]]>http://www.bloggingstocks.com/2009/02/03/economists-modify-fiscal-stimulus-package-but-pass-it-pronto/http://www.bloggingstocks.com/2009/02/03/economists-modify-fiscal-stimulus-package-but-pass-it-pronto/http://www.bloggingstocks.com/2009/02/03/economists-modify-fiscal-stimulus-package-but-pass-it-pronto/#commentsFiled under: ,

Senate debate resumed Tuesday on the fiscal stimulus package, and as it did several economists offered their policy advice for the august members of the world's greatest deliberative body.

The biggest change should concern size, so says economist David H. Wang. "It's too small. A $900 billion plan is good, but the stimulus plans that most effectively increase GDP are ones that are large, and the bigger the package, the bigger bang you'll get for your buck, from a GDP standpoint," Wang said. Wang said he would add at least $300 billion in spending to the plan.

Continue reading Economists: Modify fiscal stimulus package, but pass it, pronto

Economists: Modify fiscal stimulus package, but pass it, pronto originally appeared on BloggingStocks on Tue, 03 Feb 2009 19:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>CongressDemocratsfiscal policyfiscal stimulus packagegdpObama administrationRepublicansU.S. economyTue, 03 Feb 2009 19:30:00 EST<![CDATA[NYT's Krugman: Here's a better bank rescue, for the taxpayer]]>http://www.bloggingstocks.com/2009/02/03/nyts-krugman-heres-a-better-bank-rescue-for-the-taxpayer/http://www.bloggingstocks.com/2009/02/03/nyts-krugman-heres-a-better-bank-rescue-for-the-taxpayer/http://www.bloggingstocks.com/2009/02/03/nyts-krugman-heres-a-better-bank-rescue-for-the-taxpayer/#commentsFiled under: ,

You have to appreciate the cleverness of this era's financial humor. (Note that I said, appreciate the cleverness, not love, or enjoy. That's because, depending on your perspective, the humor is either on-the-mark, or not that funny. But that is part of the subjective nature of humor.)

One joke making the rounds:

Question: What's the capital of Iceland?
Answer: $25.

Another: In the old days, banks lent money to people. These days, people lend money to banks.

New York Times (NYSE: NYT) columnist and Nobel Prize-winning economist Paul Krugman discusses bank capital and lending in his most recent column, and argues that the apparent likely Obama administration fix for the banking sector -- a combination of U.S. government purchase of toxic assets and guarantees against losses on other assets, each on terms favorable to the banks -- represents a lousy deal for the U.S. taxpayer, who'll end up "footing the bill for rescuing the banks."

Continue reading NYT's Krugman: Here's a better bank rescue, for the taxpayer

NYT's Krugman: Here's a better bank rescue, for the taxpayer originally appeared on BloggingStocks on Tue, 03 Feb 2009 19:00:00 EST. Please see our terms for use of feeds.

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