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By Tim Price, originally published on Next New Deal

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What Would Jack Lew Do? (Prospect)

Roosevelt Institute Fellow Mike Konczal writes that the next treasury secretary will be responsible for implementing financial reform and guiding it forward, but Obama's pick has no record on these issues, so we'll all get to experience the thrill of discovery together.

U.S. Accuses S.&P. of Fraud in Suit on Loan Bundles (NYT)

Andrew Ross Sorkin and Mary Williams Walsh report on the charges that S&P inflated its ratings for the mortgage bundles that sparked the financial crisis, which it denies. "We should have downgraded your credit more when we had the chance," S&P did not say.

Too Fast to Fail: Is High-Speed Trading the Next Wall Street Disaster? (MoJo)

Pundits have warned that the average American worker should fear the robot uprising, but the real danger might be on Wall Street, where Nick Baumann notes that computer algorithms could generate crises even more quickly and efficiently than their human counterparts.

The Trouble with Wall Street (TNR)

Michael Lewis argues that Greg Smith's account of life as a disgruntled Goldman Sachs employee accidentally gets at the truth about the culture of greed at oversized banks, and while we can't ask a tree to change its leaves, we can chop it up into firewood.

Fresh Questions Over a Bank of America Settlement (NYT)

Gretchen Morgenson writes that new documents suggest BofA's griping about its acquisition of Countrywide and the billions it set aside to settle mortage abuse claims hasn't stopped it from adopting some of Countrywide's best (read: worst) practices.

A Few Good (and Fair) Tax Hikes (The Nation)

Katrina vanden Heuvel writes that while congressional Republicans would rather hide under the table than put any more tax increases on it, the right mix of changes could provide better incentives, reduce inequality, and, you know, help pay for stuff we want.

Totally Unexpected Outrage Over the White House's Tardy Budget (Slate)

Dave Weigel notes that President Obama received his obligatory scolding from John "Brisk" Boehner and "Punctual" Paul Ryan for failing to submit a budget by yesterday's deadline, because the Do-Nothing Congress always makes sure nothing gets done on time.

Everybody's working for the... health care benefits (WaPo)

Sarah Kliff highlights a new survey that finds that most current workers base their retirement plans at least partly on their desire to keep the health insurance they receive through their employers, even if it doesn't cover the chronic condition of being sick of work.

Student loans: The next housing bubble (Salon)

Paul Campos warns that students are taking on as much debt as the average mortgage without even the bare minimum of safeguards built into the subprime mortgage fiasco, which mostly involved lenders taking off their rings before the mugging commenced.

'The Blackout Bowl,' or 'The Most Depressing Super Bowl Column You'll Read' (The Nation)

Dave Zirin writes that Sunday wasn't just a sad night for 49ers fans and anyone who had to go to work nursing a hangover the next day. The half-lit Superdome was also a perfect illustration of the unequal economy we've built in New Orleans and throughout the U.S.

Tim Price is Deputy Editor of Next New Deal. Follow him on Twitter @txprice.

Originally posted to Daily Kos Economics on Tue Feb 05, 2013 at 06:51 AM PST.

Also republished by Daily Kos.

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Comment Preferences

  •  The educational loan bubble (0+ / 0-)

    is slowly but surely becoming a crisis. Many students who enter college today should not be there and would benefit more from a 2 year technical degree where they can learn a practical skillset for a specific job.

    a solution I have not heard proposes is a cap (or more rigorous vetting) on the number of students who major in non-practical liberal arts type like American Indian studies - in order to make something out of that (like research or other types of academia) you have to be truly passionate about it, you can't just choose it because it seems easy and you're just there to party all week.

  •  Ironically, wall street having a motive to build (1+ / 0-)
    Recommended by:

    high quality network infrastructure, because they need it for high speed trades, is useful for society.  The world needs more intercontinental fiber optic lines, but I can think of better uses for them than wall street trades.  That might be some first useful infrastructure wallstreet's paid for in a while.

    I object to violence because when it appears to do good, the good is only temporary; the evil it does is permanent.

    by Futuristic Dreamer on Tue Feb 05, 2013 at 03:57:54 PM PST

    •  If this country were brave enough (1+ / 0-)
      Recommended by:
      Futuristic Dreamer

      to pass a transaction tax, those high-speed trades would reap a lot of tax money for the Treasury.

      "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 Tue Feb 05, 2013 at 06:23:38 PM PST

      [ Parent ]

  •  misinformation (1+ / 0-)
    Recommended by:

    Republicans can proceed in this way because their constituents actually don't understand what is going on. The misinformation campaign has been so successful over the years that when Republican voters hear the words spending cuts they think of food stamps and direct welfare assistance to minorities, as well as probably foreign aid and public broadcasting.

    If they ever come to realize that the spending cuts are going to affect their own SS checks and medicare benefits, as well as aid for small farmers in the red states where they live, the tune being played in Congress is going to change pretty fast.

    •  Half of Georgia will be laid off (0+ / 0-)

      when the defense cuts go into effect.

      "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 Tue Feb 05, 2013 at 06:27:25 PM PST

      [ Parent ]

  •  Really enjoyed the Michael Lewis (1+ / 0-)
    Recommended by:

    piece.  I like the straightforward way he writes, and since I read The Big Short I've trusted his judgment about everything Wall Street, particularly Goldman Sachs.

    "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 Tue Feb 05, 2013 at 06:02:45 PM PST

  •  Does anybody know why Justice filed a civil fraud (0+ / 0-)

    charge not a criminal fraud charge against S&P?

    •  Justice (0+ / 0-)

      DOJ probably figures that they don't have enough to pursue criminal charges. Has been this way since 08. PBS did a good piece on this subject a couple weeks ago.

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