rortybomb

Let’s bring up a favorite quote around here. Anthropologist David Graeber cites historian Moses Finley, who identified “the perennial revolutionary programme of antiquity, cancel debts and redistribute the land, the slogan of a peasantry, not of a working class.” And think through these cases. The overwhelming majority of these statements are actionable demands in the form of (i) free us from the bondage of these debts and (ii) give us a bare minimum to survive on in order to lead decent lives (or, in pre-Industrial terms, give us some land). In Finley’s terms, these are the demands of a peasantry, not a working class.

-Mike Konczal

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Bloomberg’s Awful Comment; What Can We Say For Certain Regarding the GSEs?

we should mention that the conservative think tanks spent the 2000s saying the exact opposite of what they are saying now, and the opposite of what Bloomberg said above. They argued that the CRA and the GSEs were getting in the way of getting risky subprime mortgages to risky subprime borrowers. My personal favorite is Cato’s Should CRA Stand for “Community Redundancy Act?”, (2000, here’s a writeup by James Kwak), arguing a position amplified in Cato’s 2003 Handbook for Congress Financial Deregulation Chapter: “by increasing the costs to banks of doing business in distressed communities, the CRA makes banks likely to deny credit to marginal borrowers that would qualify for credit if costs were not so high.”

Amazing. Yet this lie about the CRA causing the sub-prime crisis persists.
Huntsman and the GOP Debate on Too Big To Fail

There are a series of proposals, mostly surrounding taxes and caps on size, leverage and presumably complexity. The first bullet point, a cap on size relative to GDP, is similar to the SAFE Banking Act, which failed in the 2010 Senate with 33 votes. They all sound like good ideas, though they received little-to-no GOP support during the debates.

Mike Konczal sorts through Huntsman plan to end To big to Fail. Wonky but worth a read.