This past Friday (May 11, 2012) I had the pleasure of testifying before a joint hearing of the Committee on Small Business, and the Committee onCultural Affairs, Libraries and International Intergroup Relations of the New York City Council. The topic? “New York City’s Cultural Sector and Derivative Small Businesses.”
Happy New Year! And what better time to talk about my favorite ideas for getting us out of this fine mess of an economic jim jam we’re all bunched up in. But first, a recap of my previous two posts:
In Dear Mom (Part I) I talked about the absolutely bizarre and vitriolic discussion around what role US federal housing policy played in the collapse of the global economy. Basically, it played a very minor role, in spite of lingering (or, should I say, malingering) opinions to the contrary. When even the industry publication American Banker weighs with a super geeky online commentary saying pretty much what I already said in my blog post, I think we can all put this bugbear to bed.
In Dear Mom (Part II) I took a pretty heady Wall St Journal editorial by Republican dissenters to the Federal Crisis Inquiry Commission and broke down their top ten reasons for the economic collapse into plain English. I’m proud of this blog post, really. It works. And my mom says you should read it because it’s good for you.
But now that I’ve debunked the junk and laid down the ground, I owe it Mom and to you, dear reader, to put my money where my mouth is and talk about what my favorite fixes include. So to begin. Continue reading →
Wall Street greed, lax regulatory oversight, and excessive executive compensation fueled a global debt glut that finally imploded; and
Federal housing policies forced Wall Street financiers to provide high risk mortgages to unworthy borrowers, ultimately leading to an unstable housing market that finally collapsed and brought the economy down with it.
In my first post, I explained some of the background for these opposing views, and I also spent a substantial amount of time discussing why view #2 appears to be (a) freakishly out of touch with reality, (b) so freakishly out of touch with reality that even people who normally want to blame the government for everything can’t agree with it, and (c) in spite of (a) and (b), freakishly popular.
To add vinegar to gall, I don’t think view #1 really doesn’t do justice to the issues either. Continue reading →