By William K. Black
The third omission from Attorney General Eric Holder’s press conference announcing the settlement with Citigroup of civil charges was the words “criminal” and “indictment.” The
Department of Justice (DOJ) press conference had a scripted press release.
According to DOJ’s Statements there should have been Numerous Indictments
The DOJ press release contains the following statements that logically should have led to an indictment of a large number of Citi’s officers. Holder states: “The bank’s activities contributed mightily to the financial crisis that devastated our economy in 2008.” Citi “made serious misrepresentations to the public – including the investing public – about the mortgage loans it securitized in RMBS.” Holder’s press release called them “toxic mortgages.” Holder emphasized the “strength of the evidence of the wrongdoing committed by Citi….” Holder stated that Citi’s officers knowingly made false “reps and warranties.”
By Scott Fullwiler
In the comments section of my last post, Neil Wilson linked to this piece by Paul Krugman from last fall. It’s a useful lecture in that it shows mainstream economists are beginning to understand that currency issuers under flexible exchange rates (a term he actually uses) are not generally subject to bond vigilantes, a condition that applies only to nations without their own currencies, debt in other currencies, and/or fixed exchange rates.
In the paper, as he’s done before, he cites DeGrauwe 2011 as the “seminal” paper demonstrating that Eurozone nations are subject to bond vigilantes while others like the US, Japan, and the UK would not be. I’ve got nothing against DeGrauwe 2011 aside from his own failure to cite heterodox literature that preceded him by decades in some cases. Ok, so I do have something against it, but not in terms of content (though I haven’t read closely so perhaps I’d find something). And in fairness Krugman’s suggestion that DeGrauwe 2011 is “seminal” could be due to the fact that the latter provides a model (though the Kelton/Henry paper I cite below does, too; though it’s quite different, it would not be difficult to build on in the direction DeGrauwe 2011 moves)—and we all know that neoclassicals have difficulties discussing anything outside the context of a formal model (not that models aren’t extremely useful for many things, but they should not be the tail that wags the dog, and for neoclassicals they are essentially that).
Randy will be on Thom Hartmann’s show July 18th, 2014 at 1:00 pm Eastern time. You can catch Randy and Thom live on radio stations coast to coast…live on XM/Sirius satellite radio…simulcast LIVE on Free Speech TV on Dish Network, Direct TV, Comcast Cable, RCN, Cox Cable, Time Warner, Verizon Fios and over 200 independent community cable providers nationwide including Manhattan Neighborhood Network.
The audio and video are streamed LIVE on Thom’s website. Free Speech TV also streams the program LIVE on their website.
The program is also streamed LIVE (audio and video) on The Thom Hartmann Program app available for iPhone and iPad (free of charge on iTunes)