The budget bill began in shame, with Republicans demanding that Democrats give up clean water legislation and child nutrition in exchange for avoiding a government shutdown. It has degenerated into disgrace.
Buried in the legislation is a provision that would begin gutting Dodd-Frank, the post-panic financial regulation bill that the financial industry has already weakened. Now, the part of the bill that prohibits federally insured banks from gambling in parts of the derivatives market would be eliminated. Indeed, it was drafted almost word-for-word by Citigroup lobbyists.
These hustles played a big role in the near-meltdown of the financial system (and nobody went to jail). And the banksters would sleep comfortably in their many mansions knowing the taxpayers will bail them out (again).
If President Obama vetoes the budget, the Republicans will surely shut down the government (not all bad: less torture). And you ain’t seen nothing yet: Wait for a totally GOP-controlled Congress in January thanks to the lowest turnout in 70 years. On the other hand, if America had a Democratic Party of old, one not owned by the oligarchs, it would take the case to the people and make the Republicans own this infamous behavior.
What do you think?
This Week’s Links:
• Why America’s middle class is lost | Washington Post
• Labor union membership and life satisfaction | Economist’s View
• Is inequality good or bad for growth | OECD Insights
• Second Circuit decision effectively legalizes insider trading | Naked Capitalism
• Economic gains from shale oil and gas | Tim Taylor
• China has overtaken the United States as the world’s largest economy | Joseph Stiglitz
Today’s Econ Haiku:
McGinn was correct
Until he made that u-turn
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