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By Rachel Goldfarb, originally published on Next New Deal

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Default Notes (NYT)

Paul Krugman is concerned by the seeming non-response from markets to the possibility of a government default in mid-October. Shouldn't big business be worrying about the possibility of another recession, cuts to Federal spending, and a plunging dollar?

You Really Ought to Be More Terrified of the Debt Ceiling (The Atlantic)

Derek Thompson points out that while a shutdown would have predictable effects, we have no idea what will happen if Congress fails to raise the debt ceiling. It's unclear if there's even a way for the government to prioritize payments in such a situation.

How One Stroke of the Pen Could Lift Wages for Millions (MSNBC)

Ned Resnikoff presents two possible executive orders that would raise the low wages of two million federally contracted workers. Many of these workers in DC are striking again, this time rallying outside the White House.

Thousands of Grocery Workers Vote on Strike Authorization (The Nation)

Allison Kilkenny reports on a United Food and Commercial Workers vote this week that could lead to strikes if contract negotiations with major grocery chains break down. The biggest concern is health insurance for part-time workers who are union members.

Some Public Companies are Divulging More Details About Their Political Contributions (WaPo)

Dina ElBoghdady reports that due to mounting pressure from shareholders and threats of lawsuits, some large publicly traded companies are starting to disclose more of their political donations. The SEC is deciding whether to step in and mandate such disclosures.

Insight: Wal-Mart 'Made in America' drive follows suppliers' lead (Reuters)

Jessica Wohl and James B. Kelleher argue that for all the stars-and-stripes PR, Walmart's decision to buy more American-made goods is all business. U.S. made products have lower shipping costs and no tariffs, which improves the mega-retailer's bottom line.

SEC Wins Big Fine From JPMorgan but Execs Skate Free (ProPublica)

Jesse Eisinger argues that even though JPMorgan is paying a large settlement for its wrongdoing in the London Whale case, the public still loses. Unless the Volcker Rule is written with serious disclosure requirements, executives will continue to be in the clear.

Originally posted to Daily Kos Economics on Thu Sep 26, 2013 at 07:23 AM PDT.

Also republished by Daily Kos.

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Comment Preferences

  •  Rachel Goldfarb asks... (0+ / 0-)

    Rachel Goldfarb asks (paraphrasing Krugman),

    "Shouldn't big business be worrying about the possibility of another recession, cuts to Federal spending, and a plunging dollar?"
    Whey, when they know they can put the siphon in the Treasury if something bad happens?  
  •  Consol bonds ... (1+ / 0-)
    Recommended by:

    ... would allow financing obligations without violating the debt ceiling.

    I've got an essay on Consol bonds at Voices on the Square, which I'll be cross-posting sometime today (Friday).

    Support Lesbian Creative Works with Yuri anime and manga from ALC Publishing

    by BruceMcF on Thu Sep 26, 2013 at 11:15:20 PM PDT

  •  Amazing how little I care. (0+ / 0-)

    After years of watching unemployed become long-term unemployed, short money becoming lost homes, the impact on my family and the families of many people I've known, I find it hard to care about the alleged crises associated with the debt ceiling.

    If anything, I see them as good news for millions of Americans who seem to have been forgotten after we "avoided a depression".


    Never has the idea of "two Americas (or three or four) been more clear than it has in the last 5 years.  Those who kept their jobs and their homes and their families' future have always been quick to tell the rest of us to be patient, that there is little the administration can do.

    Oh -- and "We're all in this together", though we clearly aren't.

    I believe that will go long so long as we are some "other" group.  If the economy suffers a broader collapse, it will hurt for a while. There is no doubt about that.  But we'll finally all be this together for real and maybe, just maybe, forgotten no more.

    LG: You know what? You got spunk. MR: Well, Yes... LG: I hate spunk!

    by dinotrac on Fri Sep 27, 2013 at 04:46:41 AM PDT

  •  Wow, did you read Krugman? (0+ / 0-)

    If I understand him correctly, he's saying that interest rates won't rise.  Absent that, I can't see any inflation happening.  Absent that, what changes for the monied Powers that Be?  

    I have had a suspicion all along that the GOP, Wall Street, and the markets are not as afraid of default as Obama and the Dems are.  They have the cash.  Like the Great Recession, they'll ride this out, and be fine in the end.  But, it will devastate the economy for regular folks, who will eventually blame EVERYBODY.  Obama is not all that popular right now, and Dems in Congress, with their 25% approval, look good only next to the GOP in Congress (and their 17% approval).

    I can pretty much guarantee that if 2016 dawns during, or shortly after, another brutal recession, the people will turn to "anybody but Obama and Dems", and Chris Christie will be president.  

    That is why I think that Obama will give the GOP something in exchange for the debt ceiling raise.  Obama and Dems are doing more doomsaying than the GOP.  They want to avoid a default more than the GOP.  That is a terrible position to negotiate from.  This is a complete reversal of leverage from the tax cut deal last December, and the trillion dollar coin isn't the answer.

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