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By Rachel Goldfarb, originally published on Next New Deal

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There will not be a new Daily Digest on Monday, May 26, in observance of Memorial Day. The Daily Digest will return on Tuesday, May 27.

The Shared-Responsibility Mortgage Could Help Bubbleproof the Housing Market (Bloomberg Businessweek)

Peter Coy looks at Atif Mian and Amir Sufi's bold suggestion for a new, safer mortgage structure in House of Debt, which would tie the cost of loan repayment to local housing prices.

It Wasn't Household Debt That Caused the Great Recession (The Atlantic)

Heather Boushey praises House of Debt for bringing in hard data to prove that banks targeting poorer communities for bad mortgages led to the recession, not general household debt.

Cutting Off Emergency Unemployment Benefits Hasn’t Pushed People Back to Work (Five Thirty Eight)

Most unemployed workers who no longer receive benefits are still struggling to find jobs, writes Ben Casselman, and nearly a quarter have dropped out of the labor force entirely.

McDonald's CEO Insists Fast-Food Giant Pays 'Fair Wages' as Protesters Rally (The Guardian)

Dominic Rushe reports on McDonald's chief executive Don Thompson's statement as protests against the company's pay practices continued outside its annual shareholder meeting.

Paul Ryan Now Wants to Solve Poverty with 'Love' and 'Eye to Eye' Contact. Don't Let Him. (The Week)

Elizabeth Stoker argues that Ryan's tough-love strategy of cutting aid programs won't actually help the poor, and that a truly loving approach would maintain government's obligation to all citizens.

A Progressive Alternative to Obamacare (MSNBC)

Geoffrey Cawley reports on Vermont's plan to implement single-payer health care as soon as 2017. This would be a step beyond the Affordable Care Act, though there are logistical hurdles.

Financial Crisis, Over and Already Forgotten (NYT)

Attacks on the Financial Stability Oversight Council demonstrate how quickly Washington has forgotten the source of the Great Recession, says Floyd Norris.

  • Roosevelt Take: "An Unfinished Mission," a report from the Roosevelt Institute and Americans for Financial Reform, lays out suggestions for the next phase of fixing the financial sector.

Originally posted to Daily Kos Economics on Fri May 23, 2014 at 05:23 AM PDT.

Also republished by Daily Kos.

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Comment Preferences

  •  "It Wasn't Household Debt (1+ / 0-)
    Recommended by:
    Aunt Pat

    That Caused the Great Recession". I'm sure it's true, but I really doubt that most people will ever believe that.

    "If you would stop buying frivolous crap, you would be able to afford that house". Now that is true. The problem is if people stop buying frivolous crap, our economy goes down the toilet. Some economists warned us about that. A long time ago. About 70% of the economy was/is based on frivolous crap that nobody really needs. I don't think we have any idea on how to address that problem.

    We're fools whether we dance or not, so we might as well dance.

    by PowWowPollock on Fri May 23, 2014 at 05:52:12 AM PDT

    •  I Think Stopping Exporting Good Jobs (7+ / 0-)

      and letting the rich steal pensions & 401k's and gamble on every commodity in the world using our money and with our making good their losses could help a little.

      We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

      by Gooserock on Fri May 23, 2014 at 05:54:57 AM PDT

      [ Parent ]

      •  read a diary yesterday about Roth conversions (1+ / 0-)
        Recommended by:
        FindingMyVoice

        and GOP plans to "liberalize" Roths again caught my eye yesterday.  As I tell my kids, the people who can turn $100 into $1,000,000 do not impress me so much as the guy who can turn $0 into $100.

         Reading about the "canners" in NYC who subsist by scrounging cans and bottles for recycling.  I have been aware of them for ages but did not realize the recycling centers had a max daily payout of $12.50 per diem per recycler.  Now there is a way to plan to buy a house:  $12.50 per day  

        Also read how municipalities, burdened with abandoned properties where banks had forced out the owners and left the homes empty, are now considering billing the banks for the upkeep the cities have provided or else fining the banks for failure to keep up their properties like they do other property owners.  About time.

    •  Frivolous crap, like incompetent people, (0+ / 0-)

      serve a purpose. While the latter provide someone for the doers to do for (if everyone did for him/herself, there would be no caring or sharing), much crap serves as a memento of an idea, an interaction, a satisfaction or a tactile reminder of the ephemeral. Crap keeps us connected to the real world.

      http://hannah.smith-family.com

      by hannah on Fri May 23, 2014 at 07:02:56 AM PDT

      [ Parent ]

    •  Frivilous crap and houses (0+ / 0-)

      used to be attainable at the same time - the frivolous crap largely bought with cash no less, not on plastic.

      It is amazing that some people (#cough# rank-and-file Republican voters #cough#) cannot look back a few decades and see how the American middle class and working class used to live - so they could get an idea of how a functioning economy actually works.  Instead, they just keep listening to the bullshit of their "business friendly" (read: business ass-kissing) GOP pols and Fox Infotainment pundits.

      In our golden age post-war period, people were able to buy frivolous crap with cash and were able to save enough to make a 20% down payment on a house - generally on one income no less.  Of course, this was back when the nations largest employer was GM, who paid the equivalent of about $25/hour today on top of great benefits like a secure defined benefit pension.  Todays largest employer - Walmart - pays little more than minimum wage.

      Is it any wonder our economy is broken?

      Raising the minimum wage is a start - but if we want a functional economy again, practically everyone in the bottom 90% needs a huge raise - largely taken from the vampire like rents collected by the rentier class in the top 0.1%.

      "There was no such thing as a "wealthy" hunter-gatherer. It is the creation of human society that has allowed the wealthy to become wealthy. As such, they have an obligation to pay a bit more to sustain that society than the not-so-wealthy." - Me

      by Darth Stateworker on Sat May 24, 2014 at 08:37:41 AM PDT

      [ Parent ]

  •  Money is a tool. Depriving people of its use (2+ / 0-)
    Recommended by:
    Aunt Pat, GleninCA

    is a cruel form of deprivation because, until it is used, its usefulness is, sort of like with literacy, unknown. So, the deprivators keep a secret benefit for themselves even as they pretend the deprived are too stupid to know they're being deprived.

    I don't know if there's a word for the glee being expressed by "I know something you don't know."  But, it's really mean spirited.

    http://hannah.smith-family.com

    by hannah on Fri May 23, 2014 at 07:08:03 AM PDT

  •  I see Brooks has the solution to all of our (0+ / 0-)

    problems:  just nominate a bunch of tired white old men who are totally irrelevant (so I qualify, sorta) who were once movers and shakers and then task them with solving the problem at hand and committing everyone to follow their suggestions.  He points to the Simpson-Bowles Catfood Commission as the epitome of how well this model works.

    I also see Ben Carson, in typical Justice Thomas fashion, forgets that public assistance and Affirmative Action made sure his family had the requisites boots for him to bootstrap himself with and opines that the only way to get those lazy bums off public assistance and unemployment is to let them starve.  It is only when they are starving that the poor will finally go out and find jobs.  Carson is up for the Inspector Javert Award this week.    

  •  It's depressing to think that.... (0+ / 0-)

    The only way we can, from not just a national sense, but from a GLOBAL economic recovery perspective, is an asset bubble.  Like we can just push around debt, and otherwise paperlike "fictions" as I call it....forever.  History is littered with such "fictions".   When socieities produce nothng of value except paper....they collapse.

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