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By Tim Price, originally posted on Next New Deal

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Obama's Pick for Treasury Is Said to Be His Chief of Staff (NYT)

Jackie Calmes reports that by tapping Jacob Lew to replace Tim Geithner at Treasury, President Obama continues to build his second-term team using the (white, male) members of his first-term team. Some of them have splurged on new tie clips to celebrate.

Jack Lew to Treasury: A Caterpillar Emerges from His Cocoon (New Yorker)

John Cassidy expects Lew to be an easy confirmation who will face opposition from the left as a Rubinite with Wall Street ties, but also thinks he should be given the benefit of the doubt since all we really know about him is that he has trouble writing his name.

The Obama Coalition vs. Corporate America (NYT)

Thomas Edsall notes that big business, which has been the power behind the throne in D.C. for decades, has a demographic problem: the young, diverse coalition of Obama voters doesn't care for it, and Republicans are tired of having it chained to their ankles.

The Banks Win Again (Prospect)

Robert Kuttner compares last February's major bank settlement, which was so weak the president had to apologize for it by appointing Eric Schneiderman to a task force that didn't really exist, to this year's model, which doesn't even come with a consolation prize.

The Latest Myth About the Government's Mishandling of the Housing Market (ProPublica)

Jesse Eisinger writes that the FHA's minor problems have been overblown by the same critics who treat GSEs and low-income borrowers as the culprits behind the financial crisis. Damn you, poor people. Always trying to pull one over on those unsuspecting banks.

U.S. Consumer Watchdog to Issue Mortgage Rules (NYT)

Edward Wyatt writes that the CFPB will announce rules for "qualified" loans (i.e., the kind that aren't designed to bleed people dry and doom their withered husks to foreclosure) that banks can offer if they'd like to stop being sued for abusing their borrowers all the time.

A White House Meeting With Low-Income Americans (The Nation)

Greg Kaufmann argues that if the president is really open to hearing good ideas from all sides, he could start by canceling his next lunch with Lloyd Blankfein and clearing time on his calendar for the people who will be most deeply affected by the budget negotiations.

A Reminder Why Protecting Social Security Is So Important (On the Economy)

Jared Bernstein writes that with private defined-benefit pension plans going the way of print journalism and cassette players, it's all the more important for the government to absorb the risks of retirement rather than handing workers a gold watch and wishing them luck.

Women Don't Like Libertarianism Because They Don't Like Libertarianism (Forbes)

Joining the debate about why there aren't more libertarian women, NND Editor Bryce Covert argues that it's not because all the cool kids prefer moochers. It's because women are best positioned to recognize that some of libertarianism's basic precepts are nonsense. 

A.I.G. Says It Will Not Join Lawsuit Against Government (NYT)

Michael de la Merced and Ben Protess report that AIG's board has opted not to join former CEO Maurice Greenberg's quixotic lawsuit against the government, but if you stocked up on torches and pitchforks, you should be able to return them for at least store credit.


Originally posted to Daily Kos Economics on Thu Jan 10, 2013 at 07:06 AM PST.

Also republished by Daily Kos.

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Comment Preferences

  •  I wonder if... (0+ / 0-)

    Obama purposefully picked these whote guys so that Huckabee could partake in a hypocritical rant about it...

    "It's almost as if we're watching Mitt Romney on Safari in his own country." -- Jonathan Capeheart

    by JackND on Thu Jan 10, 2013 at 07:18:11 AM PST

  •  I like Dean Baker's take - (3+ / 0-)
    Recommended by:
    midwesterner, No Exit, stevej

    Paul Krugman for Treasury Secretary

    It is precisely this track record of being right on most of the key policy calls of the last decade that makes Krugman unacceptable as a candidate for Treasury Secretary. To be a serious candidate for this position it is necessary to have been wrong on most or all of these issues.

    [snip]

    If Krugman were Treasury Secretary we could envision a policy that was focused on creating jobs rather than reducing a deficit that exists almost entirely because of the downturn in the economy. We could also envision a policy that sought to tame the bloated financial sector with a speculation tax that would make much of the creative finance on Wall Street unprofitable. And, we would not have to worry that cutting Social Security and Medicare is the top priority for the Obama administration.

    But, Krugman is not on the short list for Treasury Secretary. This list has the names of people who are much more acceptable to Wall Street, who, by the way, have been wrong on almost everything important about the economy in the last decade. As a result, we should be very, very afraid.

    Remember when the Bush administration always promoted and/or gave medals to the people who got it wrong and failed the country?

    Even when it's the Democrats, it's still dumb, destructive and...wrong.

    And the cheerleaders, so willing to accept these moves as "serious"and "practical" and beyond our understanding, will be baffled and blame the voters for being...unimpressed, if not pissed off, after two more years of this sort of feckless, obtuse leadership as the encore to a fraudulent populist campaign...

    The Class, Terror and Climate Wars are indivisible and the short-term outcome will affect the planet for centuries. -WiA "When you triangulate everything, you can't even roll downhill..." - PhilJD

    by Words In Action on Thu Jan 10, 2013 at 07:30:45 AM PST

    •  This idea has been brought up by commenters (0+ / 0-)

      on Krugman's blog many times over during the past two years, ever since Geithner threatened to leave the first time.  He finally addressed the idea directly in a blog entry of January 7th:

      Yes, I’ve heard about the notion that I should be nominated as Treasury Secretary. I’m flattered, but it really is a bad idea.

      Part of the reason is that I am indeed the World’s Worst Administrator — and that does matter. Someone else can do the paperwork — but an administrative job requires making hiring and firing decisions, it means keeping track of many things, and that, to say the least, is not my forte.

      Oh, and there’s not a chance that I would be confirmed.

      "In this world of sin and sorrow there is always something to be thankful for; as for me, I rejoice that I am not a Republican." - H. L. Mencken

      by SueDe on Thu Jan 10, 2013 at 01:33:21 PM PST

      [ Parent ]

  •  George Will crows about fiscal cliff deal. (1+ / 0-)
    Recommended by:
    SueDe

    Will, as usual, starts with facts, makes a false equivalence, then draws a false conclusion.  i.e. SS and MM must be cut.  But he crows over these facts:

    Washington — Democrats not allergic to arithmetic must know the cost of their “fiscal cliff” victory. When they flinched from allowing all of George W. Bush’s tax rates, especially those on middle-class incomes, to expire, liberalism lost its nerve and began what will be a long slide into ludicrousness.

    Those temporary rates were enacted in 2001, when only 28 House Democrats supported them, and in 2003, when only seven did. But with the “American Taxpayer Relief Act of 2012” — did liberals think about that title? — 172 House Democrats voted to make the Bush income-tax rates permanent for all but 0.7 percent of taxpayers — individuals earning more than $400,000 and couples earning more than $450,000.

    Liberals could have had a revenue increase of $3.7 trillion over 10 years. Instead, they surrendered nearly $3.1 trillion of that. They cannot have repeated bites at this apple. They cannot now increase government revenues as a share of GDP through tax reform because Republicans insist that the Taxpayer Relief Act closed the revenue question. And because tax reform is dead for the foreseeable future, so are hopes for a revenue surge produced by vigorous economic growth.

    •  I appreciate hearing about Will's opinion (0+ / 0-)

      by reading snippets here at DKos, as I'm sure there are some people left alive who still pay attention to him.  But I don't read anything more, because I can't remember the last time he was right about anything, especially concerning matters relating to economics.

      "In this world of sin and sorrow there is always something to be thankful for; as for me, I rejoice that I am not a Republican." - H. L. Mencken

      by SueDe on Thu Jan 10, 2013 at 01:45:20 PM PST

      [ Parent ]

      •  Will's MO is 1. start with a fact, 2. make a false (1+ / 0-)
        Recommended by:
        SueDe

        equivalence, 3. draw a false conclusion.  His conclusion at the end of the article is SS and MM must be cut.  (false)
        He's positively giddy he has the fiscal cliff deal fact to start his train rolling.

  •  The banks definitely won (0+ / 0-)

    this latest round - the more interesting and tougher question is did the WH win or lose.

  •  best headline of the day (0+ / 0-)

    and great quick takes too. thank you for a little all too scarce levity.

  •  The problem with Jared Bernstein's article is that (0+ / 0-)

    he's all over the place--saying one day that he supports the Chained CPI, the next that he doesn't support it.  Here's an excerpt that claims that he supports this policy:

    Many other individuals and groups have supported/defended the chained CPI: Donald Marron, the Washington Post editorial board, Reihan Salam, the Progressive Policy Institute, the Heritage Foundation, and Jared Bernstein. Also, the Center for American Progress included it in their Peterson Foundation fiscal plan.
    The problem is that like so many politicians, partisan pundits say different things to different audiences.

    How do we know which policy they actually support?

    Mollie

    “If a dog won’t come to you after having looked you in the face, you should go home and examine your conscience.” -- Woodrow Wilson

    by musiccitymollie on Thu Jan 10, 2013 at 04:10:19 PM PST

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