Explanation of Fed and Treasury actions

This is Part Two of a critical review of The National Journal’s Debate on “Our Fiscal Future” between John Podesta and Douglas Holtz-Eakin with Jim Tankersley moderating, at The George Washington University’s Jack Morton Auditorium. This part provides more observations and evaluation on some of the propositions offered by Holtz-Eakin and Podesta.

Over the past decade, Fannie Mae and Freddie Mac transformed themselves into some of the worst-run companies in recent history. But contrary to current talking points, the firms’ failings had almost nothing to do with their programs for low-income borrowers. As policymakers debate what should be done with the mortgage giants, a battle is now beginning in which the very availability of affordable housing for the middle class may be at stake.

I can’t quite determine what the Times’s business columnist Andrew Ross Sorkin is trying to tell us about the Bush/NY Fed 2008 backdoor bank bailout via A.I.G. But the evidence he cites seems to support the “backdoor” theory more than ever.

If financial reform is so great, great! That means we can finally end all those programs giving public monies to private actors.

a roundup of things I’ve come across that aren’t mentioned

Assistant Treasury Secretary Herbert Allison has redefined success of the mortgage modification program from providing permanent modifications to, get this, allowing people to enter the trial modification period. Duh, why bother with a trial period and making several months of additional payments if your NOT going to get a permanent modification?

In the worst economy since the Great Depression, far too many Americans are out of work. Despite the rising fears of more job losses, the Senate is refusing to do what is necessary to protect and create jobs.

This is the third and last in a series of posts based on youtubes from a speech in Milford CT by Warren Mosler. Warren is running for the Senate in CT in the Independent Party primary. Unlike both the Democratic and Republican candidates Warren really understands economics and his forté is explaining it to people. Here’s a youtube following on the last one I blogged about. My earlier post covered Warren’s policy proposals. This one considers the question “How are you gonna pay for it?”

Elucidation for others