Quick Hits

Here are some of the other items making news today.

The Senate approved $10 billion to states and local school districts to prevent teacher layoffs and an additional $16 billion in Federal aid to cash-strapped states. The procedural vote in the Senate was 61 to 38, with the Maine Republicans, Susan Collins and Olympia J. Snowe, joining all Democrats in support of cutting off a filibuster. Louisiana Senator David Vitter did not vote. Speaker Pelosi is to summon House back from its summer recess to grant final approval to the bill. The full story in the New York Times.

With President Obama is headed to fundraisers in Austin and Dallas, Texas junior senator, Republican John Cornyn accuses the President of "using Texas as an ATM." This will be the President's third visit to the Lone Star state. The fundraisers are on behalf of the Democratic National Committee and the Democratic Senatorial Campaign Committee. However among the Democratic political establishment in Texas, Obama's visit is proving to be as toxic as Gulf Coast oil spill. Former Houston Mayor Bill White, the Democratic nominee for governor, has said he'll be elsewhere during Obama's visit. Ditto for Barbara Radnofsky, the Democratic candidate for Attorney General.

Up in the Big Sky country, $90 million in Federal stimulus funding to expand high-speed Internet is coming Montana's way, for projects on the Fort Peck Indian Reservation and rural Gallatin County, U.S. Agriculture Secretary Tom Vilsack announced today. The story in the Billings Gazette.

New York state lawmakers finalized a $136 billion budget for fiscal 2011 late Tuesday, approving a final piece of legislation that will raise about $1 billion through a mix of tax hikes and other measures. More from Reuters.

Divorced from reality, Tim Geithner seems married to indifference. The Secretary of the Treasury has an op-ed in the New York Times entitled Welcome to the Recovery.

In another New York Times op-ed, Rep. Anthony Weiner of the New York Ninth Congressional District explains that anger that led to his outburst on the House floor.

Mayor Ron Dellums of Oakland announced Wednesday that he won't seek re-election in November. Dellums, 74, was elected mayor in June 2006 and took office in January 2007. His term expires next January. Dellums served 13 terms in the House before becoming mayor of Oakland. More from CBS-5 San Francisco.

The birther madness will not die. CNN has a poll showing the 27 percent of Americans do not believe the President Obama was born in Honolulu or anywhere else in the United States. Twenty-seven percent of Republicans say he was probably not born here, and another 14 percent of Republicans say he was definitely not born in the US. In other words, 41 percent of Republicans view the President as a Constitutional usurper. Today, by the way, is the President's 49th birthday which is spending at home alone in Chicago.

Quick Hits

Here are some of the other items making news today.

The Senate approved $10 billion to states and local school districts to prevent teacher layoffs and an additional $16 billion in Federal aid to cash-strapped states. The procedural vote in the Senate was 61 to 38, with the Maine Republicans, Susan Collins and Olympia J. Snowe, joining all Democrats in support of cutting off a filibuster. Louisiana Senator David Vitter did not vote. Speaker Pelosi is to summon House back from its summer recess to grant final approval to the bill. The full story in the New York Times.

With President Obama is headed to fundraisers in Austin and Dallas, Texas junior senator, Republican John Cornyn accuses the President of "using Texas as an ATM." This will be the President's third visit to the Lone Star state. The fundraisers are on behalf of the Democratic National Committee and the Democratic Senatorial Campaign Committee. However among the Democratic political establishment in Texas, Obama's visit is proving to be as toxic as Gulf Coast oil spill. Former Houston Mayor Bill White, the Democratic nominee for governor, has said he'll be elsewhere during Obama's visit. Ditto for Barbara Radnofsky, the Democratic candidate for Attorney General.

Up in the Big Sky country, $90 million in Federal stimulus funding to expand high-speed Internet is coming Montana's way, for projects on the Fort Peck Indian Reservation and rural Gallatin County, U.S. Agriculture Secretary Tom Vilsack announced today. The story in the Billings Gazette.

New York state lawmakers finalized a $136 billion budget for fiscal 2011 late Tuesday, approving a final piece of legislation that will raise about $1 billion through a mix of tax hikes and other measures. More from Reuters.

Divorced from reality, Tim Geithner seems married to indifference. The Secretary of the Treasury has an op-ed in the New York Times entitled Welcome to the Recovery.

In another New York Times op-ed, Rep. Anthony Weiner of the New York Ninth Congressional District explains that anger that led to his outburst on the House floor.

Mayor Ron Dellums of Oakland announced Wednesday that he won't seek re-election in November. Dellums, 74, was elected mayor in June 2006 and took office in January 2007. His term expires next January. Dellums served 13 terms in the House before becoming mayor of Oakland. More from CBS-5 San Francisco.

The birther madness will not die. CNN has a poll showing the 27 percent of Americans do not believe the President Obama was born in Honolulu or anywhere else in the United States. Twenty-seven percent of Republicans say he was probably not born here, and another 14 percent of Republicans say he was definitely not born in the US. In other words, 41 percent of Republicans view the President as a Constitutional usurper. Today, by the way, is the President's 49th birthday which is spending at home alone in Chicago.

The Blinder-Zandi Report

A paper by economists Alan Blinder, an economist at Princeton and a former vice chairman of the Federal Reserve, and Mark Zandi, the chief economist at Moody’s Analytics, finds that without the Troubled Asset Relief Program (TARP) that bailed out the nation's financial sector, the bank stress tests, the emergency lending and asset purchases by the Federal Reserve, and the Obama Administration’s fiscal stimulus program - the much maligned American Recovery and Reinvestment Act of 2009 (ARRA) - the nation’s gross domestic product would be about 6.5 percent lower this year.

Additionally, Dr. Blinder and Dr. Zandi find that the US economy would have lost an additional 8.5 million jobs, on top of the more than 8 million lost so far; and the economy would be in the midst of a deflationary asset spiral, instead of low inflation. Overall, they conclude that the aggregate effects of the TARP and the ARRA "probably averted what could have been called Great Depression 2.0." I am not quite sure why economists apart from Paul Krugman always seem to forget about the Panic of 1873, a five-year long financial downturn marked by deflation, price instability and the first sustained period of mass unemployment in world history.

More on the Blinder-Zandi report from the New York Times:

Mr. Blinder and Mr. Zandi emphasize the sheer size of the fallout from the financial crisis. They estimate the total direct cost of the recession at $1.6 trillion, and the total budgetary cost, after adding in nearly $750 billion in lost revenue from the weaker economy, at $2.35 trillion, or about 16 percent of G.D.P.

By comparison, the savings and loan crisis cost about $350 billion in today’s dollars: $275 billion in direct cost and an additional $75 billion from the recession of 1990-91 — or about 6 percent of G.D.P. at the time.

But the new analysis might not be of immediate solace to officials in the Obama administration, who have been trying to promote the “summer of recovery” at events across the nation in the face of polls indicating persistent doubts about the impact of the $787 billion stimulus program.

For one thing, Mr. Blinder and Mr. Zandi find that the financial stabilization measures — the Troubled Asset Relief Program, as the bailout is known, along with the bank stress tests and the Fed’s actions — have had a relatively greater impact than the stimulus program.

If the fiscal stimulus alone had been enacted, and not the financial measures, they concluded, real G.D.P. would have fallen 5 percent last year, with 12 million jobs lost. But if only the financial measures had been enacted, and not the stimulus, real G.D.P. would have fallen nearly 4 percent, with 10 million jobs lost.

The combined effects of both sets of policies cannot be directly compared with the sum of each in isolation, they found, “because the policies tend to reinforce each other.”

Oddly enough, the New York Times failed to link to the report but here it is: How the Great Recession Was Brought to an End (pdf). The title is perhaps a bit over optimistic given that we are not quite out of the economic doldrums as yet but I do think their conclusion is inescapable:

It is clear that laissez faire was not an option; policymakers had to act. Not responding would have left both the economy and the government’s fiscal situation in far graver condition.

Still no one has ever won an election with the argument that it could have been worse. 

The Blinder-Zandi Report

A paper by economists Alan Blinder, an economist at Princeton and a former vice chairman of the Federal Reserve, and Mark Zandi, the chief economist at Moody’s Analytics, finds that without the Troubled Asset Relief Program (TARP) that bailed out the nation's financial sector, the bank stress tests, the emergency lending and asset purchases by the Federal Reserve, and the Obama Administration’s fiscal stimulus program - the much maligned American Recovery and Reinvestment Act of 2009 (ARRA) - the nation’s gross domestic product would be about 6.5 percent lower this year.

Additionally, Dr. Blinder and Dr. Zandi find that the US economy would have lost an additional 8.5 million jobs, on top of the more than 8 million lost so far; and the economy would be in the midst of a deflationary asset spiral, instead of low inflation. Overall, they conclude that the aggregate effects of the TARP and the ARRA "probably averted what could have been called Great Depression 2.0." I am not quite sure why economists apart from Paul Krugman always seem to forget about the Panic of 1873, a five-year long financial downturn marked by deflation, price instability and the first sustained period of mass unemployment in world history.

More on the Blinder-Zandi report from the New York Times:

Mr. Blinder and Mr. Zandi emphasize the sheer size of the fallout from the financial crisis. They estimate the total direct cost of the recession at $1.6 trillion, and the total budgetary cost, after adding in nearly $750 billion in lost revenue from the weaker economy, at $2.35 trillion, or about 16 percent of G.D.P.

By comparison, the savings and loan crisis cost about $350 billion in today’s dollars: $275 billion in direct cost and an additional $75 billion from the recession of 1990-91 — or about 6 percent of G.D.P. at the time.

But the new analysis might not be of immediate solace to officials in the Obama administration, who have been trying to promote the “summer of recovery” at events across the nation in the face of polls indicating persistent doubts about the impact of the $787 billion stimulus program.

For one thing, Mr. Blinder and Mr. Zandi find that the financial stabilization measures — the Troubled Asset Relief Program, as the bailout is known, along with the bank stress tests and the Fed’s actions — have had a relatively greater impact than the stimulus program.

If the fiscal stimulus alone had been enacted, and not the financial measures, they concluded, real G.D.P. would have fallen 5 percent last year, with 12 million jobs lost. But if only the financial measures had been enacted, and not the stimulus, real G.D.P. would have fallen nearly 4 percent, with 10 million jobs lost.

The combined effects of both sets of policies cannot be directly compared with the sum of each in isolation, they found, “because the policies tend to reinforce each other.”

Oddly enough, the New York Times failed to link to the report but here it is: How the Great Recession Was Brought to an End (pdf). The title is perhaps a bit over optimistic given that we are not quite out of the economic doldrums as yet but I do think their conclusion is inescapable:

It is clear that laissez faire was not an option; policymakers had to act. Not responding would have left both the economy and the government’s fiscal situation in far graver condition.

Still no one has ever won an election with the argument that it could have been worse. 

The Blinder-Zandi Report

A paper by economists Alan Blinder, an economist at Princeton and a former vice chairman of the Federal Reserve, and Mark Zandi, the chief economist at Moody’s Analytics, finds that without the Troubled Asset Relief Program (TARP) that bailed out the nation's financial sector, the bank stress tests, the emergency lending and asset purchases by the Federal Reserve, and the Obama Administration’s fiscal stimulus program - the much maligned American Recovery and Reinvestment Act of 2009 (ARRA) - the nation’s gross domestic product would be about 6.5 percent lower this year.

Additionally, Dr. Blinder and Dr. Zandi find that the US economy would have lost an additional 8.5 million jobs, on top of the more than 8 million lost so far; and the economy would be in the midst of a deflationary asset spiral, instead of low inflation. Overall, they conclude that the aggregate effects of the TARP and the ARRA "probably averted what could have been called Great Depression 2.0." I am not quite sure why economists apart from Paul Krugman always seem to forget about the Panic of 1873, a five-year long financial downturn marked by deflation, price instability and the first sustained period of mass unemployment in world history.

More on the Blinder-Zandi report from the New York Times:

Mr. Blinder and Mr. Zandi emphasize the sheer size of the fallout from the financial crisis. They estimate the total direct cost of the recession at $1.6 trillion, and the total budgetary cost, after adding in nearly $750 billion in lost revenue from the weaker economy, at $2.35 trillion, or about 16 percent of G.D.P.

By comparison, the savings and loan crisis cost about $350 billion in today’s dollars: $275 billion in direct cost and an additional $75 billion from the recession of 1990-91 — or about 6 percent of G.D.P. at the time.

But the new analysis might not be of immediate solace to officials in the Obama administration, who have been trying to promote the “summer of recovery” at events across the nation in the face of polls indicating persistent doubts about the impact of the $787 billion stimulus program.

For one thing, Mr. Blinder and Mr. Zandi find that the financial stabilization measures — the Troubled Asset Relief Program, as the bailout is known, along with the bank stress tests and the Fed’s actions — have had a relatively greater impact than the stimulus program.

If the fiscal stimulus alone had been enacted, and not the financial measures, they concluded, real G.D.P. would have fallen 5 percent last year, with 12 million jobs lost. But if only the financial measures had been enacted, and not the stimulus, real G.D.P. would have fallen nearly 4 percent, with 10 million jobs lost.

The combined effects of both sets of policies cannot be directly compared with the sum of each in isolation, they found, “because the policies tend to reinforce each other.”

Oddly enough, the New York Times failed to link to the report but here it is: How the Great Recession Was Brought to an End (pdf). The title is perhaps a bit over optimistic given that we are not quite out of the economic doldrums as yet but I do think their conclusion is inescapable:

It is clear that laissez faire was not an option; policymakers had to act. Not responding would have left both the economy and the government’s fiscal situation in far graver condition.

Still no one has ever won an election with the argument that it could have been worse. 

Diaries

Advertise Blogads