Paul Krugman: Depression Denial Syndrome

Last week, Bill Gross, the so-called bond king, abruptly left Pimco, the investment firm he had managed for decades. People who follow the financial industry were shocked but not exactly surprised; tales of internal troubles at Pimco had been all over the papers. But why should you care?

The answer is that Mr. Gross’s fall is a symptom of a malady that continues to afflict major decision-makers, public and private. Call it depression denial syndrome: the refusal to acknowledge that the rules are different in a persistently depressed economy.

The Country Simply Can't Go On Like This

By Charles P. Pierce on October 3, 2014

There is someone with Ebola in quarantine down in Texas. It seems as though hospital personnel down there screwed the pooch fairly thoroughly when the man first showed up at the ER with a fever. It also seems as though the response of the officials in Dallas has been less than adequate, at least so far.

In the latest indication, state and local authorities confirmed Thursday that a week after a Liberian man fell ill with Ebola in Dallas, and four days after he was placed in isolation at a hospital here, the apartment where he was staying with four other people had not been sanitized and the sheets and dirty towels he used while sick remained in the home. County officials visited the apartment without protection Wednesday night. The officials said it had been difficult to find a contractor willing to enter the apartment to clean it and remove bedding and clothes, which they said had been bagged in plastic. They said they now had hired a firm that would do the work soon. The Texas health commissioner, Dr. David Lakey, told reporters during an afternoon news conference that officials had encountered "a little bit of hesitancy" in seeking a firm to clean the apartment.

This reminds me of the early days of the AIDS epidemic, when undertakers refused to bury the dead, and emergency workers were afraid to treat people after automobile accidents and commonplace domestic catastrophes. Which is to say this isn't surprising at all.

Rising Tides Lift All Yachts: Why the 1% Grabs all the Gains From Growth

By L. Randall Wray

You’ve probably seen references to the work of my colleague (and former student), Pavlina Tcherneva in recent days.

[...]

The NYT article includes links to her published article in the Journal of Post Keynesian Economics, the first issue edited by me and my Levy Institute colleague Jan Kregel. Pavlina also presented her results at the just finished International Post Keynesian Conference at UMKC.

[...]

Back to the topic at hand. Rising Tides Don’t Lift All Boats. Who wudduva thought?

Aids: Origin of pandemic 'was 1920s Kinshasa'

By James Gallagher Health editor, BBC News website

The origin of the Aids pandemic has been traced to the 1920s in the city of Kinshasa, in what is now the Democratic Republic of Congo, scientists say.

An international team of scientists say a "perfect storm" of population growth, sex and railways allowed HIV to spread.

A feat of viral archaeology was used to find the pandemic's origin, the team report in the journal Science.

They used archived samples of HIV's genetic code to trace its source, with evidence pointing to 1920s Kinshasa.

Gaius Publius: To guarantee a living wage, make government the employer of last resort

I recently wrote about an interview I had with economist and professor Stephanie Kelton at Netroots Nation this year.

The context was “Five Questions” and the talk ranged from climate and “burnable carbon” to what led her to become a leading light of the Modern Monetary Theory (MMT) school of economics.

(For a quick look at what MMT economists think, click the link above, or see my own lay-friendly explanation.)

Meet the Budget-Slashing, Job-Killing GOP Governors Who've Ruined Their States

By Joe Conason

October 2, 2014  |  Even as Republicans boast of their chances to take over the United States Senate come November, their party's governors across the country are facing dimmer prospects. From Georgia to Alaska, right-wing ideological rule imposed by GOP chief executives has left voters disappointed, disillusioned and angry.

The problem isn't that these governors failed to implement their promised panaceas of tax cutting, union busting and budget slashing, all in the name of economic recovery; some did all three. The problem is that those policies have failed to deliver the improving jobs and incomes that were supposed to flow from "conservative" governance. In fact, too often the result wasn't at all truly conservative, at least in the traditional sense -- as excessive and imbalanced tax cuts, skewed to benefit the wealthy, led to ruined budgets and damaged credit ratings.

Dave Johnson: Reagan Set Up The Death Of The Middle Class, But China Was The Clincher

Our 2010 Reagan Revolution Home To Roost series, especially the post Reagan Revolution Home To Roost — In Charts described the beginning of the great decoupling of the American economy from the middle class.

Four Other Lawyer Whistleblowers are Essential at the Carmen Segarra Senate Witness Table

By Pam Martens and Russ Martens: October 1, 2014

Wall Street’s crime spree has been coming at the public for the past six years like a geyser spewing from a broken water main. It’s been tough for the public to keep tract of the twists and turns, and equally so for Congress.

What has been lost in all the media frenzy over the tapes released by Carmen Segarra, an attorney and bank examiner at the New York Fed who was fired for wanting to hold Goldman Sachs accountable, according to her lawsuit, is that four other regulatory lawyers have stepped forward from 2006 to earlier this year to report that their Wall Street regulator has been captured. In the case of those four, the captured regulator is the Securities and Exchange Commission.

Wall Street’s P.R. whopper: How its big new lie can trigger another crisis

Hoping to gut regulations in the housing market, big banks are pushing a new line. The problem is who's buying it

David Dayen

In the wake of Attorney General Eric Holder’s resignation last week, a former Obama administration official made an incredible statement. The Washington Post reported that Jim Parrott, who advised the Obama White House on housing policy during the first term, said Holder’s “tough” enforcement actions on big banks harmed the economy, with the implication that his replacement should just back off.

First of all, the idea that Eric Holder led a hard-charging onslaught against bank malfeasance is a fantasy. The Justice Department never led one top executive to jail for the mountain of fraud that caused the Great Recession, and much of the misconduct that was never fixed continues to this day. Big banks were so wounded by the DoJ crackdown that their stock prices rose whenever they announced a settlement.

Dave Johnson: Oil Cos. Trying To Use Trade Treaty To Bypass Congress And Raise Prices

You may have heard that there is an oil and gas “boom” happening in the US. You might not know that there is a ban on exporting our own oil. This ban is good for the country but bad for oil companies. And the oil industry is attempting an end run around Congress to do something about it.

There is an ongoing “boom” in oil and natural gas production. Production of natural gas is way up. Imports are down about half since 2007. Texas oil production alone has more than doubled since 2011. This increase in domestic oil production has various consequences. We use much of our rail capacity transporting oil to refineries. The increase in natural gas production is pushing coal use down, and lowering carbon emissions as we fight for a transition away from using fossil fuel at all.

New Report: Global Economies May Be on Path to Another Crash

By Pam Martens and Russ Martens: September 30, 2014

Four noted economists have issued a report under the umbrellas of the International Center for Monetary and Banking Studies and the Centre for Economic Policy Research (CEPR) that is raising alarm bells at global central banks.

According to the report: “The world is still leveraging up; an overall, global deleveraging process to bring down the total debt-to-GDP ratio – or even to reduce its growth rate – has not yet started. On the contrary, the debt ratio is still rising to all-time highs.”

Chomsky: The Corporate Assault on Public Education

March 8, 2013  |  The following is Part II of the transcript of a speech Noam Chomsky delivered in February on "The Common Good." Click here to read Part I [3].

Let’s turn to the assault on education, one element of the general elite reaction to the civilizing effect of the ‘60s. On the right side of the political spectrum, one striking illustration is an influential memorandum written by Lewis Powell, a corporate lawyer working for the tobacco industry, later appointed to the Supreme Court by Richard Nixon. At the other end of the narrow spectrum, there was an important study by the Trilateral Commission, liberal internationalists from the three major state capitalist industrial systems: the US, Europe and Japan. Both provide good insight into why the assault targets the educational system.

Let's start with the Powell memorandum. Its title is, “The Attack on the American Free-Enterprise System." It is interesting not only for the content, but also for the paranoid tone. For those who take for granted the right to rule, anything that gets out of control means that the world is coming to an end, like a spoiled three-year-old. So the rhetoric tends to be inflated and paranoid.

Chomsky: Corporations and the Richest Americans Viscerally Oppose the Common Good

September 29, 2014  |  The following is Part I of the transcript of a speech delivered by Noam Chomsky in February 2013. Read Part II [3].

Whether public education contributes to the Common Good depends, of course, on what kind of education it is, to whom it is available, and what we take to be the Common Good. There’s no need to tarry on the fact that these are highly contested matters, have been throughout history, and continue to be so today.

 

One of the great achievements of American democracy has been the introduction of mass public education, from children to advanced research universities. And in some respects that leadership position has been maintained. Unfortunately, not all. Public education is under serious attack, one component of the attack on any rational and humane concept of the Common Good, sometimes in ways that are not only shocking, but also spell disaster for the species.

 

All of this falls within the general assault on the population in the past generation, the so-called “neoliberal era.” I’ll return to these matters, of great significance and import.

The Rise of ISIS and the Origins of the New Middle East War

by TARIQ ALI and PATRICK COCKBURN

 

Tariq Ali: I’m in conversation with Patrick Cockburn, who can  only be described as a veteran reporter and courageous journalist who has covered the wars of the United States in the Middle East since they began with the invasion of Iraq, and was reporting from the region a long time before on the sanctions against Iraq, the Gulf wars. We’re now at a critical stage where a new organisation has emerged.

Patrick has written a new book, The Jihadis Return, which is an extended essay on the emergence of ISIS and its links to the Sunni population in Iraq and the likely consequences of this for the region. Because there’s absolutely no doubt that what this opens up is yet another front in the unending war that has become a total misery for the people who live in the Arab world today. Patrick, let’s begin by sort of inquiring about the origins of the Islamic State group, ISIS as they call themselves, where do they come out from and when did this start? 

Patrick Cockburn: Well they come most immediately from al-Qaeda in Iraq, which was at the height of its influence in 2006 [and] 2007 when it was an element–but not the only element–in the Sunni resistance to a Shia government and the American occupation. Ideologically, it comes out of the Jihadi movement and actually its religious beliefs are not that much different from Saudi Wahhabism, the variant of the Islam which is effectively the state religion of Saudi Arabia with its denigration of Shia as heretics, [along with] Christians and Jews. It’s just carrying these beliefs to a higher and more violent level but it’s very much in the context of the Jihadi movement 

Tariq Ali: Can I just interrupt you there? This Jihadi movement did not exist in Iraq as such prior to the American invasion and occupation.

Walmart Wants to Offer Banking For America’s Poor, Which Is a Really Crappy Idea

By Lynn Stuart Parramore

September 29, 2014 | The FDIC estimates there are 10 million people living in the U.S. who do not have a bank account — that’s one out of every 13 households. Nearly 33 percent of people living in Starr County, TX can’t write a check. In one census district in Savannah, GA, over 42 percent of residents are unbanked. The unbanked are usually poor, often minorities, and find themselves shunned by banks that can’t make money off them. Typically, they end up turning to predatory check cashers and payday lenders. Many also feel a great sense of social division between themselves and those who have bank accounts.

The crash of 2008 exacerbated America’s growing problem of the unbanked, as many people faced financial ruin and the U.S. saw an increase in distrust of the banking industry. Some people have turned to credit unions, but these institutions generally do not actively recruit lower-income clients, many of whom may be unfamiliar with their services.

Thomas Frank: Bernie Sanders: Longterm Democratic strategy is “pathetic”

Senator Bernie Sanders sits down with Salon to talk inequality, the GOP, and whether or not he'll run for president

Bernie Sanders is a legendary political independent from Vermont. Over the years, he has served as mayor of Burlington, the largest city in that state; as a member of the House of Representatives; and (currently) as a United States Senator. We met last week in his office in one of the Senate office buildings in Washington, D.C., and discussed the Clinton years, the way to beat the Right, and whether or not he should run for president in 2016. Needless to say, his take on the current political situation is not exactly the kind of thing you usually hear when you walk the marble halls of the nation’s capital.

This conversation has been lightly edited.

Paul Krugman: Our Invisible Rich

Half a century ago, a classic essay in The New Yorker titled “Our Invisible Poor” took on the then-prevalent myth that America was an affluent society with only a few “pockets of poverty.” For many, the facts about poverty came as a revelation, and Dwight Macdonald’s article arguably did more than any other piece of advocacy to prepare the ground for Lyndon Johnson’s War on Poverty.

I don’t think the poor are invisible today, even though you sometimes hear assertions that they aren’t really living in poverty — hey, some of them have Xboxes! Instead, these days it’s the rich who are invisible.

Greenland Ice Sheet more vulnerable to climate change than previously thought

A new model developed by researchers at the University of Cambridge has shown that despite its apparent stability, the massive ice sheet covering most of Greenland is more sensitive to climate change than earlier estimates have suggested, which would accelerate the rising sea levels that threaten coastal communities worldwide.

In addition to assessing the impact of the increasing levels of meltwater created and spilled into the ocean each year as the climate continues to warm, the new model also takes into account the role that the soft, spongy ground beneath the ice sheet plays in its changing dynamics. Details are published today (29 September) in the journal Nature Communications.

Why Voting Machines Are About To Wreak Havoc On Another Election

by Lauren C. Williams, Posted on September 26, 2014 at 11:26 am

In 2012, hundreds of thousands of people across the U.S. waited, at first patiently and then with growing frustration, in lines that ventured out the doors and wrapped around street corners. They weren’t waiting more than seven hours in line to buy the new iPhone — they were waiting to vote on an electronic touch-screen machine.

Technology has made life easier, simplifying common tasks such as banking, publishing a book, talking to friends and paying for things online. But when it comes to voting, technology is stuck in 2002. And with the decade-old electronic voting machines that states use falling apart — creating long lines that cause some not vote at all — voters are slowly losing access to their voting rights.

The big “middle class” rip-off: How a short sale taught me rich people’s ethics

So many of us are clueless about business and finance. Here's why that's just the way the investment class likes it

Edwin Lyngar

The closest I ever came to acting like a rich person was two years ago when I short-sold my primary residence. I might have been able to keep it but strategic default made life easier. I owed about $400,000 on a house that short-sold for $150K. The bank lost more than a quarter of a million dollars, and I lost at least $80K in down payment and property improvements. In a short sale the bank agrees to settle debt for the lesser amount and the seller gets nothing but is “punished” by not being able to finance another house for at least two years (rules vary). My moment of acting rich was when I bought a second house before short-selling the first to skirt around the repercussions of my own bad luck.

When the housing market tanked a few years ago, the government rescued every bank and business (even a damned insurance company), while ignoring everyone else. I realized that the game was fatally lopsided, so I didn’t just walk away in middle-class shame, but rather I employed all my (extremely limited) cunning and deviousness to get a similar home before ditching the old one. I was able to cash in on low housing prices from a couple of years ago, coupled with low interest rates, to come out on top. The biggest barrier to getting a great deal was an almost overpowering need to behave like a middle-class sucker.

Paul Krugman: The Show-Off Society

Liberals talk about circumstances; conservatives talk about character.

This intellectual divide is most obvious when the subject is the persistence of poverty in a wealthy nation. Liberals focus on the stagnation of real wages and the disappearance of jobs offering middle-class incomes, as well as the constant insecurity that comes with not having reliable jobs or assets. For conservatives, however, it’s all about not trying hard enough. The House speaker, John Boehner, says that people have gotten the idea that they “really don’t have to work.” Mitt Romney chides lower-income Americans as being unwilling to “take personal responsibility.” Even as he declares that he really does care about the poor, Representative Paul Ryan attributes persistent poverty to lack of “productive habits.”