Trump’s Perfect Storm that Could Sink the American Economy
Donald Trump has steered the American economy into a perfect storm. In the book, film, and now in real life, a rare combination of destructive forces comes together and magnifies the damage. This storm could break the U.S. economy. Trump’s tariffs are the most destructive force. Their first-order damages begin by arbitrarily driving up the prices of every product and… Continue reading
It’s a Bad Bailout
Congress is now embroiled in an important and passionate debate about the Bush Administration’s rescue-bailout plan. Get past the anxiety, and it seems clear that the plan will not resolve the underlying problems driving the crisis, the deterioration of the housing market. And in another instance of the Bush economic doctrine, it would transfer untold billions of dollars from ordinary…Continue reading
Crisis on Wall Street
This week’s financial developments have unfolded in the ways that keep people up at night and spark panic in even seasoned investors. And it’s not over yet — we’re perhaps midway through the financial crisis (which actually could get much worse), and headed fast into a serious and disturbing recession. It’s as if the economy entered a time warp and…Continue reading
Understanding the Mortgage Crisis
It’s a truism of this time, though one often doubted, that globalization is fundamentally good for healthy, successful economies. But unchecked and unscrutinized, globalization also can impose terrible costs, as we see clearly in this week’s U.S. government bail-out of Fannie Mae and Freddie Mac. Globalization set much of the stage for the meltdown, as our government’s systematic failure to…Continue reading