Monday, February 8, 2010
In his column in Forbes magazine, Roubini, a professor of economics at the Stern School of Business at New York University and chairman of Roubini Global Economics, a consulting firm, notes that the president’s “waning political capital” will stand in the way of achieving the left’s fiscal, social and economic goals.
The administration has proposed a new budget, as well as a tax on banks, and is actively marketing the ideas, but these proposals fall short of the required “aggressive fiscal reforms” to make America competitive again, writes Roubini. (more)
Banking and Housing Payments Devoured the Middle Class Income – 1 out of 10 Americans on Food Stamps and how the Fed Slowly Devalued the Dollars in yo
It is a challenge to say that things are getting better when every month that goes by more Americans are losing their jobs or needing to apply for food assistance. In the latest data for food assistance through SNAP we find that 200,000 more Americans were added to the program. That now brings the total number of Americans on food assistance to 38,183,000. 1 out of 10 Americans are receiving food assistance. For 2009 this cost the government $50 billion, up from $34 billion in 2008 and $30 billion in 2007. It should be no surprise then that average Americans are questioning the viability of a middle class in the upcoming decade.
But even when we look at the balance sheet of the government, things are still not improving: (more)
At the end of the meeting yesterday, Treasury Secretary Tim Geithner told reporters, “I just want to underscore they made it clear to us, they the European authorities, that they will manage this [the Greek debt crisis] with great care.”
But the Europeans are not being careful – and it’s not just about Greece any more. Worries about government debt and associated public sector liabilities (e.g., because banking systems are in deep trouble) have spread through the eurozone to Spain and Portugal. Ireland and Italy are next up for hostile reconsideration by the markets, and the UK may not be far behind... (more)