Items of Interest:
The Huffington Post:
Bailed Out Bankers To Be Hauled Before Congress — Rep. Barney Frank plans to call the heads of major bailed-out banks to testify before his committee next week, two aides to the House Financial Services Committee chairman said. — Frank, a Massachusetts Democrat, has been a vocal proponent …
discussion:Jessica Pressler / New York Magazine: Barney Frank to Haul TARP Recipients to Washington for Major SassingPandit!
Jill Tubman / Jack & Jill Politics: We are in big trouble: Scary Charts You Need to Seediscussion:
Chris Bowers / Open Left: The Joker Takes Over American Financial PolicyPaul Krugman / New York Times: Bailouts for Bunglers — Question: what happens if you lose …Jane Hamsher / Firedoglake: Fiscal Conservatism, Blue Dog Style: Much Love for Banks; Tough Love for Taxpayers
discussion:Don Surber: Daily scoreboardMark Fightmaster / BloggingStocks: Bank of America sponsors the NFL Experience ... a bad move?Chris Black / TPMMuckraker: The Daily Muck — Despite making some moves toward …Dr Gail / Comments from Left Field: A Confluence of Outrages — There are two current themes in the news …Lisa Derrick / La Figa: Your Tax Dollars At Work: B of A Bail Out at the Super BowlAli Frick / Think Progress: Bailed-out Bank of America spent $10 million on Super Bowl party
Five Things You Need to Know --
2. Point: The Dollar is Doomed... I'll be blunt. The US dollar is doomed.
Today, our country (government and private citizens) are carrying a debt load of more than $53 trillion dollars (almost 400% of GDP), and the borrowing is far from over. To put that number in perspective, consider that one billion seconds is about 32 years, but one trillion seconds is nearly 32 thousand years. Our debt is massive.
Remember, the government can't create wealth and productivity; it can only transfer it from one party to another. As a country, where we were once borrowing this money from the rest of the world, mainly China and Japan, we're now reduced to printing this money out of thin air and the end result will be the inevitable devaluation of the US dollar.
Well, that's one way to look at it. But there's another side to this... ahem... coin...
3. Counterpoint: But Wait, Dollars Are Scarce... While the argument in point 2 does seem logical, let's hold off on making funeral arrangements for the dollar just yet.
It may seem counterintuitive, but this financial crisis is precisely why the greenback is increasing in value. It's called deflation. And what's happening is that people who thought they had a certain amount of dollars in assets they own, such as their home, are now finding when they go to sell they aren't getting as many back as they thought they would. This deflation is creating a dollar shortage....
John Tamny / Forbes: This Budget Deficit Is Different -- And Dangerous
Andrew Leonard / Salon: Saving v. Spending: The Penny-Pinching Paradox
discussion:Conor Clarke / The Atlantic Business Channel: The Senate's stimulus and the CBO
- Washington Offers Bailouts for Bunglers - Paul Krugman, New York Times
- How We Are Trying To Fix the Recession - Brad DeLong, Project Syndicate
- A Recession of Biblical Proportions - Geoff Colvin, Fortune
- Corporate Experts Explain How To Thrive In This Downturn - Newsweek
- Time To Trust Those on Wall Street Again? - Charlie Gasparino, Daily Beast
- Don't Push Banks To Make Bad Loans - Bert Ely, Wall Street Journal
- Swinging the Axe: Have Job Cuts Been Wisely Made? - The Economist
- Enjoy Stimulus Now, Pay Your $14,000 Later - Kevin Hassett, Bloomberg
- The Myth About Moral Hazard - James Surowiecki, The New Yorker
- The 'Bad Bank' Plan Is a Bad Idea - Editorial , Los Angeles Times
- Stimulus: Too Little Bang for Bucks - Robert Samuelson, Washington Post
- The Stimulus Plan Must Be Stopped - Larry Kudlow, RealClearMarkets
- In Davos, Protectionism Is a Dirty Word - A.E. Pritchard, Daily Telegraph
- At Davos, Beware the Tide of Groupthink - Stephen Adler, Business Week
- U.S. Mortgage Time Bomb Needs Defusing - John Wasik, Bloomberg
- Bonus Controversy Ushers In Post-Bailout Capitalism - Editorial, IBD
- When the Old Bad Becomes the New Good - Bill Frezza, RealClearMarkets
- How Government Prolonged Depression - Harold Cole & Lee Ohanian, WSJ
- Ben Stein: 'Put Not Your Trust in Princes' - Ben Stein, Y! Finance
- Battered Private-Equity Business Goes Kaboom - Andrew Bary, Barron's
- Letting Dick Fuld off the Hook - William Cohan, Fortune