Category Archives: Uncategorized

The Inaugural Financial Fraud Lemons of the Week Award Goes to DOJ

William K. Black
February 12, 2016     Bloomington, MN

The Bank Whistleblowers United announce the inaugural Financial Fraud Lemons of the Week award.  There can be no more fitting recipient than the ironically named Department of Justice (DOJ).  The “lemon” is used in the economics and criminology literature to refer to a car of surpassingly terrible quality.  The quality is so bad that the car can only be sold through fraud.  We will award it each week to an example of dishonesty or cowardice about financial fraud that is worthy of public ridicule.  We want to leave room in our scale for truly spectacular examples, so this first award will only receive Four Lemons.  The first award is for what has become a routine example of dishonesty and cowardice by DOJ.  Its conduct should be a scandal of national proportions, but by now everyone expects DOJ to embarrass our Nation when it deals with elite bankers.

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Bank Whistleblowers United Covered in NYT

The New York Times has taken notice of Bank Whistleblowers United (BWU). You can read it here.

Explaining Why Federal Deficits Are Needed

By Thornton (Tip) Parker

Most MMT advocates probably took months to get comfortable with it.  But like a personal computer, one need not understand its innards to use its power.  The great power of MMT is its lesson that the federal government can create new dollars by running deficits to do things that should be done.  But the lesson is counterintuitive and will be rejected by voters unless it can be explained convincingly in a few minutes.  This paper offers five nuggets for explaining it quickly. NEP readers are asked to suggest ways to make the explanation simpler and better.

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Most Americans believe the federal government is like a family or business that must live within its income.  On the surface, that makes sense and the reasons why it is wrong are complex.  Here are five nuggets, or simple ways to explain why it is wrong to voters who will never be economists.  They show why federal deficits are necessary.  They can be adapted and used as appropriate. Continue reading

Latest Book Honoring Professor Fred Lee

fleeAdvancing the Frontiers of Heterodox Economics: Essays in Honor of Frederic S. Lee

Edited by Tae-Hee Jo and Zdravka Todorova
Series in the Routledge Advances in Heterodox Economics ISBN: 978-0-415-73031-0 (hardback), 358 pages, $160. August 2015, Routledge. (20% Discount code: FLR40)

For more information visit:
http://www .taylorandfrancis.com/books/details/9780415730310

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More on the DOJ’s Prosecution Policy

William D. Cohan in the later part of his post “Justice Dept. Shift on White-Collar Crime Is Long Overdue” over at NYT extensively presents and supports NEP’s Bill Black’s views from Bill’s recent post “Now the DOJ Admits They Got it Wrong“.

Ahead of their time?

Julie Verhage and Alex Balogh have published a piece over at Bloomberg about 9 people who saw the Greek Crisis many years before everyone else did. Several names you will recognize from NEP. Three are from UMKC plus Warren Mosler. They warned about the euro system and crises like Greece. You can read the article here.

 

 

MINDS Conference in Sao Paulo, Brazil

Rio de Janeiro- RJ. On July 24, the Multidisciplinary Institute for Development and Strategies (MINDS) will gather top policymakers, economists, and analysts at the FORD-MINDS Conference on Banking, Financial Instability, and Financial Governance in Brazil to discuss the structure of Brazil’s financial system to ensure stability for a growing and equitable economy. The conference, is being organized by MINDS with support from the Ford Foundation, and will take place on Friday, July 24, at the Fundação Getulio Vargas (FGV/EESP), Rua Itapeva 474, in São Paulo. Conference details are below.

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President Obama Fateful Error in Making Bush’s Goldman Sachs/AIG Scandal His Scandal

By William K. Black
Quito: June 3, 2015

We have known from the beginning that Lanny Breuer, who the Obama administration chose as its head of the Criminal Division in order to ensure that there would be no prosecutions of the banksters that led, and were enriched by the fraud epidemics that drove the crisis, would be a national embarrassment. Readers may recall that Breuer publicly admitted that what caused him to lose sleep was not the world’s most destructive fraud epidemics that ruined our economy or his grant of effective immunity to the banksters who led and became wealthy through those frauds. He lost sleep solely over his fear that if he held them accountable for the frauds that had bankrupted their corrupt banks those banks might be placed in receivership and honest managers appointed. (Of course, that isn’t how he phrased it, but that is what he was actually saying.)

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Get Ready to Call ‘Em Out On the TPP!

So, on May 22, the Trade Promotion Authority (TPA) (“Fast Track”) Bill passed the Senate 62 – 37, with 14 Democrats defecting to the pro-Fast TracK/Trade-Pacific Partnership (TPP) forces. However, all was not wine and roses for the Administration and Fast Track/TPP proponents in the Senate.

First, the pro-TPP forces sustained a temporary defeat on May 12, when the Senate would not approve debating Fast Track, introducing delay into the process. The problem was quickly fixed with agreements to consider and vote on related issues such as Trade Adjustment Assistance, forced child labor, and currency manipulation outside of Fast Track. But nevertheless the glitch was unanticipated, and looked bad for an Administration wanting clear sailing in the Senate for Fast Track. Continue reading

Robin Hood in Reverse

Senator Sanders’ presentation before hearings focusing on deficit and debt. He calls for a full employment budget.