The Wrong Message on Deficits (NYTimes)
Deficit hawks in the U.S. and Europe are acting as though the financial crisis is already over, but the truth is their policies will only prolong the pain.
Bernanke Warns Congress Not to Cut Spending, Cautions About 'Fragile' Recovery (HuffPo)
Though concerned about deficits in the long term, the Fed chairman spoke favorably of the stimulus bill and urged Congress to avoid fiscal retrenchment while the job market is still recovering. Maybe now they'll take the hint.
Why Financial Reform Hinges on Defusing Derivatives (BNET)
Roosevelt Institute Chief Economist and Senior Fellow Joseph Stiglitz joined Michael Greenberger on a conference call yesterday to explain why the Lincoln plan for separating swap desks from commercial banks must be in the final FinReg bill.
Stiglitz Calls for a 'Goldman Sachs Amendment' (NYTimes)
It's a simple proposition: Banks can agree to play by the rules and receive government protection, or they can take all the risks they want and accept the consequences.
Are We Slipping Back Into a Recession? (The Atlantic)
Derek Thompson weighs the evidence for and against the possibility of a double-dip, which would be much less fun than it sounds.
Unemployment Benefits Lapse Causes Panic and Confusion for the Jobless (HuffPo)
Congress's failure to act has cut the social safety net out from under hundreds of thousands of unemployed Americans. Another extension may be passed soon, but for some the damage is already done.
Teachers Without Jobs and Education Without Hope (Truthout)
In Greece, there are mass protests in support of vital public services like education. In the U.S., teachers unions are dismissed as selfish and unreasonable when they oppose school budget cuts. Henry Giroux examines the cultural differences that account for these very different responses.
Building a Better Bond (TAP)
The Build America Bonds program has helped to lower credit costs, close state and city budget gaps, and restore America's battered infrastructure. According to Iowa Senator Chuck Grassley, that makes it just like the bank bailouts.
Medicare and Medicaid are NOT like Social Security (Taking Note)
Conservatives may hate them all equally, but Social Security's problems are much easier to fix.
Goldman Faces $1 Billion Suit (WSJ)
Goldman Sachs is being sued for lying to investors while pushing a toxic CDO called Timberwolf on them. Which raises the question: Timberwolf? Really?
The Corporate Court (Think Progress)
Republican appointees have turned the Supreme Court into a subsidiary of the Chamber of Commerce. But don't call them judicial activists.
Unemployment and Despair (NYTimes)
New research demonstrates the psychological impact of unemployment and its growing burden over time.
Personal Bankruptcy in America (Big Picture)
Barry Ritholtz flags a very pretty graph of a very ugly trend.