Monthly Archives: September 2012

Washington Post and the AIG Bailout

The Washington Post (9/10) published an article on the the “success” of the AIG bailout. NEP’s William Black explains the issue of perverse incentives created by the successful bailout.


Too Big To Jail

In a recent article (9/8) at Huffington Post, NEP’s William Black  provides support as to why Wall Street executives should face criminal charges relating to the financial crisis.


European views on financial regulation (and other American evils)

By William K. Black
(Cross posted at

I was invited back to the give the welcoming keynote address last week to the 33rd SFOA International Bürgenstock Meeting.  SFOA is an acronym for the Swiss Futures and Option Association and their meeting (long held at Bürgenstock, Switzerland but now at Interlaken) is the preeminent meeting in Europe on financial derivatives.  The meeting attracts industry participants, regulators, and academics from all over the world.  I’m writing from the Munich airport, where I get to wait overnight for a flight back to the U.S.

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“We” Don’t Owe $16 Trillion; and You Don’t Owe $50,000

By Joe Firestone

Just saw John Sununu, one of Republicans favorite Bushie junk yard attack dogs all up in arms about the debt subject to the limit (the so-called national debt) reaching $16 Trillion dollars, and going on to tell people that every man, woman, and child in the United States now owes $50,000 to pay that debt off. Now, I’m here to tell you that all that is bull shit.

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No, Barack, It Just Ain’t Gonna Happen!

By Joe Firestone

Who else thinks the President’s speech didn’t include any plans to create the 29 million full-time jobs for the dis-employed? Please raise your hand!

About jobs he said:

”We can help big factories and small businesses double their exports, and if we choose this path, we can create a million new manufacturing jobs in the next four years.” Continue reading

Preview of Modern Money and Public Purpose

Modern Money and Public Purpose is an eight-part, interdisciplinary seminar series held at Columbia Law School over the 2012-2013 academic year. The series aims to present new perspectives and progressive policy proposals on a range of contemporary issues facing the U.S. and global macroeconomy.

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Marshall Auerback Appears on BNN: ECB Bond Purchase Program

Marshall Auerback appeared on the September 6th episode of BNN’s Business Day discussing the ECB’s bond purchase plan. You can view it here.


New Sense—Common Sense


The principal dilemma of the progressive cause is that it has allowed a bedrock conservative premise to go so long unchallenged; indeed the progressives themselves have either overtly or implicitly agreed with the premise, making it virtually impossible for them to effectively advocate their goals:

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“Misery”: A Postscript To “The Euro Is Not Unassailable”

By Marshall Auerback

This memorable scene in Misery is a perfect metaphor for the ECB’s much vaunted bond buying program.

In essence you have two distinct, but related problems: the solvency issue and the problem of deficient aggregate demand.

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The Euro Is Not Unassailable, Even With The ECB’s Bond Buying

By Marshall Auerback

There appears to be an emerging consensus that the euro will survive, especially now that Mario Draghi has apparently grasped the nettle and persuaded his colleagues that the ECB is prepared to initiate unlimited purchases of national government bonds in order to underwrite their solvency.  Of course, as usual
with the ECB, there’s a sting in the tail, the sting being additional “conditionality” (for which one can read more fiscal austerity) as a quid pro quo.  It’s like dealing with Hannibal Lecter.

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