When the economic crisis hit in 2008, economists started to admit that neoclassical economics was wrong.Specifically, they started to admit that the assumption that the economy is inherently stable is false, and that their models were faulty and needed…
Posts Tagged ‘Dean Baker’
Virtually All Independent Financial Experts Say that the Size of the Big Banks Is Hurting the Economy
January 11th, 2011 |
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Here’s my updated list of top financial experts saying that the giant banks are too big, and that their very size is hurting the economy:Nobel prize-winning economist, Joseph StiglitzNobel prize-winning economist, Ed Prescott Nobel prize-winning econom…
Obama Appoints Ultimate Wall Street Insiders to Top Posts … Again
January 6th, 2011 |
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Obama is replacing his chief economic adviser – Larry Summers – with Gene Sperling.Sperling is currently a counselor to Treasury Secretary Timothy Geithner, and is now being appointed as Obama’s chief economic adviser. He’s been there before: Sperling…
We Can Fix America If We Focus on What ALL Americans – Liberals AND Conservatives – Want
November 19th, 2010 |
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While there are some things that liberals and conservatives will never agree about, there are many things that we already all agree on. Knowing the many things we agree to empowers us, because it helps get us away from the distractions so that we can …
Washington Post Idiocy: Calls for War With Iran to Save America’s Economy
October 31st, 2010 |
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As many writers have documented, the corporate media is usually pro-war. See this.And so Washington Post hack David Broder’s op-ed arguing that war with Iran will save America’s economy is not all that surprising.Of course, China and Russia might not…
Why Are Home Sales Plummeting?
August 27th, 2010 |
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Why are home sales plummeting?On the surface, it is because the government’s tax-credit for first-time home buyers lapsed in April. It takes a couple of months lag-time between buyer purchase decisions and the actual close of escrow, and so the expir…
The Fed’s New Round of Quantitative Easing Is Like Trying to Patch Leaking Pipes by Pumping in More Water
August 11th, 2010 |
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Bernanke announced additional quantitative easing yesterday, primarily in the form of buying treasuries to monetize the U.S. debt.Jeff Harding points out that those worried about deflation within the Fed won out over the scared-of-inflation camp:The Fe…
No Wonder the Outlook for the Economy is “Unusually Uncertain” … the Fed is Killing It
July 21st, 2010 |
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Fed Chairman Ben Bernanke testified today that the outlook for the economy is “unusually uncertain”.That’s not surprising.Nothing has changed since I made the following points last December.High-Level Fed Officials Slam BernankeFed Vice Chairman Donal…
Can the Financial Reform Bill Fix the Economy?
July 17th, 2010 |
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Preface: If you’ve been too busy to pay attention to the details, and if you’re hoping that the financial reform bill which has just been passed will fix the economy, this essay will bring you up to date. Congress, Federal Reserve chairman Ben Bernan…
The Responses to the Gulf Oil Spill and to the Financial Crisis Are Remarkably Similar … And Have Made Both Crises Much Worse
May 18th, 2010 |
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The Gulf oil spill and the financial crisis were both caused by excessive risk-taking by industry giants and the “capture” of politicians and regulators by the corporate behemoths.Moreover, the response to the Gulf oil spill and the financial crisis ar…
America Is Losing Its Imperial Status, And Global Institutions Such As The IMF, G20 And BIS Are Filling The Void
April 26th, 2010 |
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IMF As Grim Reaper of Austerity?As I wrote last June:When the International Monetary Fund or World Bank offer to lend money to a struggling third-world country (or “emerging market”), they demand “austerity measures”.As Wikipedia describes it:In econom…
Krugman: Break Up the Giant Banks to Stop Their Domination of the Political Process
April 20th, 2010 |
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While Paul Krugman has seemed to go against the rising tide of experts calling for the giant banks to be broken up, he clarified his position last week:My view is that I’d love to see those financial giants broken up, if only for political reasons: i…
Banking Industry Insiders Call for Breaking Up Giant Banks
April 7th, 2010 |
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Virtually all independent financial experts are demanding that the too big to fail banks be broken up, including:Nobel prize-winning economist, Joseph StiglitzNobel prize-winning economist, Ed PrescottFormer Secretary of Labor, Robert Reich Chairman of…
No Wonder the Economy Isn’t Improving
March 3rd, 2010 |
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I’ve read countless news headlines recently about how economists are “surprised” over an “unexpectedly bad” economic indicator.But it’s not surprising at all. It’s no mystery.The government hasn’t taken the necessary actions, and has instead been doi…
Abandon False Hope … And Get Some Real Hope
January 4th, 2010 |
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It is easy to be skeptical.Virtually all of our politicians are corrupt. See this, this and this.The giant banks are running the show.The healthcare bill being rammed through Congress “is just another bailout of the financial system”, and law school pr…