User: newstrust Topic: US Economy
Category: Financial Markets
Last updated: Oct 16 2018 16:39 IST RSS 2.0
 
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It Was Vulture Capitalism that Killed Sears 16.10.2018 American Prospect
AP Photo/Matt Rourke A Sears department store in Norristown, Pennsylvania If you’ve been following the  impending bankruptcy  of America’s iconic retailer, as covered by print, broadcast, and digital media, you’ve probably encountered lots of nostalgia, and sad clucking about how dinosaurs like Sears can’t compete in the age of Amazon and specialty retail. But most of the coverage has failed to stress the deeper story. Namely, Sears is a prime example of how hedge funds and private-equity companies take over retailers, encumber them with debt in order to pay themselves massive windfall profits, and then leave the retailer without adequate operating capital to compete.  Part of the strategy is to sell off valuable real estate, the better to enrich the hedge fund, and stick the retail company with costly rental payments to occupy the space that it once owned. In the case of Sears, the culprit is a hedge-fund operator named Edward Lampert, once a senior merger guy at Goldman Sachs. In 2005, Lampert merged ...
After Centuries of Housing Racism, a Southern City Gets Innovative 30.9.2018 Truthout.com
In Jackson, Mississippi, community land trusts are key to fair and affordable development.

The post After Centuries of Housing Racism, a Southern City Gets Innovative appeared first on Truthout.

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Ten Years on, the Crisis of Global Capitalism Never Really Ended 22.9.2018 Truthout.com
The political backlash to the crash of 2008 has only just begun.

The post Ten Years on, the Crisis of Global Capitalism Never Really Ended appeared first on Truthout.

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The Three Big Lessons We Didn’t Learn from the Economic Crisis 18.9.2018 American Prospect
AP Photo/Richard Drew, Fil Traders on the floor of the New York Stock Exchange Ten years ago, after making piles of money gambling with other people’s money, Wall Street nearly imploded, and the outgoing George W. Bush and incoming Obama administrations bailed out the bankers. America should have learned three big lessons from the crisis. We didn’t, to our continuing peril. First unlearned lesson: Banking is a risky business with huge upsides for the few who gamble in it, but bigger downsides for the public when those bets go bad. Which means that safeguards are necessary. The safeguards created after Wall Street’s 1929 crash worked for over four decades. They made banking boring. But starting in the 1980s, they were watered down or repealed because of Wall Street’s increasing thirst for profits and its growing political clout. As politicians from both parties grew dependent on the Street for campaign funding, the rush to deregulate turned into a stampede. It began in 1982 when Congress and the Reagan ...
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'Boom Foreshadows Doom': Anniversary Of Lehman's Collapse Reminder Of What May Yet Come 12.9.2018 Crooks Liars
By Anjan V. Thakor , Washington University in St Louis Only a decade has passed since the collapse of Lehman Brothers , and it seems the mortgage crisis and subsequent Great Recession are already ancient history in the minds of many investors, bankers and regulators. All it took was a few short years of low default rates and good loan growth to re-create the kind of heady atmosphere of irrational exuberance that transforms staid bankers into high-wire risk ...
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Plutocracy Now! 6.9.2018 ConsortiumNews.com
The United States today qualifies as a plutocracy – on a number of grounds, and it is having a profound impact on the media, education and think tanks–indeed on the whole of society, says Michael Brenner.  By Michael Brenner Plutocracy…Read more →
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The Next Crash 4.9.2018 American Prospect
  AP Photo/Richard Drew A screen above the trading floor of the New York Stock Exchange shows an intra-day number for the S&P 500 index September 15 will mark the tenth anniversary of the collapse of  Lehman Brothers  and near meltdown of Wall Street, followed by the Great Recession. Since hitting bottom in 2009, the economy has grown steadily, the stock market has soared, and corporate profits have ballooned. But most Americans are still living in the shadow of the Great Recession. More have jobs, to be sure. But they haven’t seen any rise in their wages, adjusted for inflation. Many are worse off due to the escalating costs of housing, healthcare, and education. And the value of whatever assets they own is  less  than in 2007. Last year, about 40 percent of American families struggled to meet at least one basic need—food, health care, housing, or utilities,  according to an Urban Institute survey.  All of which suggests we’re careening toward the same sort of crash we had in 2008, and possibly as bad ...
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Will the Tax Act Set Back Private Equity? 2.7.2018 American Prospect
AP Photo/Andrew Harnik, File House Speaker Paul Ryan, left, and House Ways and Means Committee Chairman Kevin Brady, second from left, congratulate each other after signing the final version of the GOP tax bill during an enrollment ceremony at the Capitol in Washington Section 13301 of the  Tax Cuts and Jobs Act  spans only 12 of the legislation’s 503 pages. It doesn’t cover the giant corporate tax rate cut, the trim to the top marginal rate, or changes to pass-through income. It wasn’t part of anyone’s talking points, whether touting or damning the tax overhaul. After passage, few even understood how it got into the bill. But Section 13301 could affect the lives of millions of Americans. It could radically upend the balance sheets of some of the most powerful financial institutions in the country. It’s hard to know at this point exactly how these firms will compensate for the changes. But it does show how small shifts in the tax laws can have wide-ranging, unanticipated consequences. What does Section ...
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Puerto Ricans Battle Disaster Capitalism to Achieve Self-Determination 1.7.2018 Truthout.com
Naomi Klein's "Battle for Paradise" details Puerto Ricans' fight for ownership of their water, land and energy.

The post Puerto Ricans Battle Disaster Capitalism to Achieve Self-Determination appeared first on Truthout.

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Principles for Tax Reform 28.6.2018 American Prospect
Albin Lohr-Jones/Sipa via AP Images A demonstrator holds a sign at a rally in opposition to the Republican tax bill held in Lower Manhattan in New York This article appears in the Summer 2018 issue of The American Prospect magazine. Subscribe here .  Tax Fairness: Corporations and the Wealthy Should Pay Their Fair Share REPEAL ALL CORPORATE PROVISIONS OF THE TAX ACT. The idea that corporate rates were too high was always phony. Even at the old rates, the United States had one of the lower net rates of corporate taxation among OECD nations.  RESTORE THE TOP MARGINAL RATES ON INDIVIDUALS, and add a new surtax rate of 50 percent for incomes over $1 million. During the boom years after World War II, the top rate was never below 70% and the economy flourished. REPEAL PROVISIONS OF THE LAW INTENDED TO PUNISH CITIZENS in states with decent public services, such as the cap on deductibility of state and local taxes. At the same time, cap the mortgage interest deduction and use the savings to finance more ...
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Today’s Capitalism Is a Far Cry From What It Was Intended to Be 16.6.2018 Truthout.com
US protectionism violates capitalism's free-market principle.

The post Today’s Capitalism Is a Far Cry From What It Was Intended to Be appeared first on Truthout.

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The Next Recession Could Be Catastrophic 15.6.2018 Crooks Liars
Perhaps the most condescending and unintentionally revealing comments any banker made in the wake of the banker-created 2008 financial crisis came from Jamie Dimon, CEO of too-big-to-fail bank JP Morgan Chase. “Not to be funny about it,” Dimon told a congressional panel in 2010, “but my daughter asked me when she came home from school ‘what’s the financial crisis,’ and I said, ‘Well it’s something that happens every five to seven years.”’ Millions of Americans lost their homes in the wake of Wall Street’s crisis – which, come to think of it, isn’t that funny at all. Downturns are so simple, Dimon implies, that they can be explained to schoolchildren in a single sentence. Dimon also admitted his own industry’s ineptness and irresponsibility when he told the panel that “in mortgage underwriting, we somehow missed that home prices don’t go up forever.” Dimon wasn’t the only banker to tell Congress that the titans of Wall Street were clueless. “We never knew what was happening at any minute,” said Goldman ...
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Sharing the Tech Wealth 14.5.2018 American Prospect
This article appears in the Spring 2018 issue of The American Prospect magazine. Subscribe here .  When the Democratic “blue wall” stretching from Wisconsin through Michigan and Ohio to Pennsylvania fell on November 7, 2016, its breach reflected a growing socioeconomic gulf between the prosperous coastal states and depressed non-metro America. The vast majority of economic growth since 2008 has flowed to the coasts, while the Midwest and rural America have seen spikes in deaths of despair, divorce, an opiate crisis, and a moribund economy. It wasn’t always like this. Once upon a time, from roughly 1880 to 1980—an era Trump’s white supporters may have in mind when they demand America be Made Great Again—incomes of different regions more nearly converged. Much of U.S. manufacturing and its supply chain was based in the Midwest. Thanks to unionization, a good deal of basic industry paid decent wages. Meanwhile, other industries such as textiles and apparel migrated from New England to the Southeast, raising ...
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Sharing the Tech Wealth 14.5.2018 American Prospect
This article appears in the Spring 2018 issue of The American Prospect magazine. Subscribe here .  When the Democratic “blue wall” stretching from Wisconsin through Michigan and Ohio to Pennsylvania fell on November 7, 2016, its breach reflected a growing socioeconomic gulf between the prosperous coastal states and depressed non-metro America. The vast majority of economic growth since 2008 has flowed to the coasts, while the Midwest and rural America have seen spikes in deaths of despair, divorce, an opiate crisis, and a moribund economy. It wasn’t always like this. Once upon a time, from roughly 1880 to 1980—an era Trump’s white supporters may have in mind when they demand America be Made Great Again—incomes of different regions more nearly converged. Much of U.S. manufacturing and its supply chain was based in the Midwest. Thanks to unionization, a good deal of basic industry paid decent wages. Meanwhile, other industries such as textiles and apparel migrated from New England to the Southeast, raising ...
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Jeff Zients was with Obama for the long haul — and now he’s going long in investing 12.5.2018 Washington Post
Jeff Zients was with Obama for the long haul — and now he’s going long in investing
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When banks abandoned American Samoa, the islands found a solution nobody had used in a century 9.5.2018 Washington Post
When banks abandoned American Samoa, the islands found a solution nobody had used in a century
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The Finance 202: Banking deregulation takes two leaps forward on Capitol Hill 9.5.2018 Washington Post: Politics
A Dodd-Frank deal has been struck.
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The Finance 202: Good news on the economy may not be a result of GOP tax cuts 8.5.2018 Washington Post
The Finance 202: Good news on the economy may not be a result of GOP tax cuts
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The Finance 202: Trump team faces long odds for trade breakthrough in Beijing 3.5.2018 Washington Post: World
The president's senior economic advisers arrived today.
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What does the yield on the 10-year Treasury mean to you? 24.4.2018 Washington Post
What does the yield on the 10-year Treasury mean to you?
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