Validity of the ExIm Bank: Why Market Radicals Fail to Understand the Modern Economy
Economy / Other / Politics / Regulation

Validity of the ExIm Bank: Why Market Radicals Fail to Understand the Modern Economy

  Recent political proceedings on Capitol Hill regarding the reauthorization of the Export Import Bank have revealed a deficit in economic competence on the part of market fundamentalists who believe that the Ex-Im Bank should be shuttered. Founded in 1934 under the FDR administration, the Ex-Im bank has been one of the primary establishments within … Continue reading

Why Is The EU Running Off With Our Chianti And Parmesan?
Culture / Economy / Europe / Foreign Policy / Regulation

Why Is The EU Running Off With Our Chianti And Parmesan?

Ladies and gentlemen, our champagne and charcuterie are in danger. Bubbling to the forefront of the upcoming round of the Transatlantic Trade and Investment Partnership (TTIP) negotiations is the controversial U.S. usage of regional European names for food and drinks manufactured by U.S. companies. Many EU members demand that U.S. wine, spirits and food companies … Continue reading

America Doesn’t Need Another Tax Hike
America / Economy / Fiscal policy / Tax / Taxes / U.S. Domestic Policy

America Doesn’t Need Another Tax Hike

Hillary Clinton is not the only feature of Washington that is “dead broke”: the Highway Trust Fund is set to run out of money by late August, and members of Congress are scrambling to find ways to raise revenue. One solution, proposed by Senators Chris Murphy (D-Conn.) and Bob Corker (R-Tenn.), is to raise the … Continue reading

Pay As You Earn: Not the Solution to Student Debt Crisis
America / Culture / Debt / Economy

Pay As You Earn: Not the Solution to Student Debt Crisis

President Obama’s expansion of the Pay As You Earn program for student loan payment while earning support still fails to fix the root of the student debt problem. The expansion allows for more people to become eligible for their student loan payments to be capped at 10 percent of their monthly income, which is based … Continue reading

Volcker and The Capital Asset Pricing Model: Enforcing Ineffective Regulation Since 2013?
Economy / Fiscal policy / Regulation / U.S. Domestic Policy

Volcker and The Capital Asset Pricing Model: Enforcing Ineffective Regulation Since 2013?

One fundamental principle of financial markets is the relationship between risk and return. This tenet is reflected in the Capital Asset Pricing Model (CAPM), the workhorse of security pricing, where the return required by investors is measured by adding the risk free rate (such as a treasury bond) to a market risk premium, adjusted for … Continue reading

Playing Politics With America’s Retirement
Economy / Fiscal policy / Social Security / Tax / Taxes

Playing Politics With America’s Retirement

Social Security is both the largest program in the federal budget and one of the most fiscally unsustainable.  The program has already begun paying out more in benefits than it is taking in through payroll taxes.  By 2033, the Social Security Trust Fund will be drained and the benefits paid out will decline by 25 … Continue reading

Discharge Petition Irrelevant, Let’s Get Back to the Facts
America / Economy / Immigration / National Security

Discharge Petition Irrelevant, Let’s Get Back to the Facts

Two weeks ago, in the midst of immigration “deadlock,” House Minority Leader Nancy Pelosi (D-CA) submitted a discharge petition in order to retrieve HB-15 from committee and bring it to a floor vote. HB-15 is the House version of the “Gang of 8” immigration reform bill passed in the Senate last spring. The media focus … Continue reading

HUD’s Latest Proposal Brings Moral Hazard into Rental Housing
Debt / Economy / Politics

HUD’s Latest Proposal Brings Moral Hazard into Rental Housing

The 2008 Financial crisis was a costly lesson in the dangers that come with subsidizing risk. Fannie Mae and Freddie Mac are well recognized as the principal creators of moral hazard by reimbursing investors that held mortgage-backed securities when homeowners failed to make payments on their mortgages. Yet only five years after the worst of … Continue reading