Must Read Posts - Sometimes you just can't say it better for 02.13.10

On The Economic Populist you might have noticed the middle column. We try to list other sites and blogs who have exceptional insight and writing on what is happening in the U.S. economy.

Sometimes though, one cannot say it better but miss those who did.

Must Read Post #1

There is enormous analysis on Greece and Europe out there, but Simon Johnson asks if Greece Derails, is Europe far behind? The reason you should read it is more the IMF like control message over even the political rhetoric of Greece's leaders. Now read this Wall Street Journal piece by Simon Johnson:

Germany and France are cooking up a belated support package for Greece, but they have made it abundantly clear that Greece must slash public sector wages and other spending; the Greek trade unions get this and are in the streets. If Greece (and the other troubled countries) still had their own currencies, it would all be a lot easier. Just as in the U.K. since 2008, their exchange rates would depreciate sharply. This would lower the cost of labor, making them competitive again (remember Asia after 1997-'98) while also inflating asset prices and helping to refloat borrowers who are underwater on their mortgages and other debts. It would undoubtedly hurt the Germans and the French, who would suffer from less competitiveness—but when you are in deep trouble, who cares?

Right. Who here believes all of this is because of unions and living wages? It's brazen, P.I.G.S. was a bubble, credit driven rapid expansion. Somehow I don't think wages caused that but look at where this is going. I point out Simon Johnson specifically with this rhetoric for many believe he's on our side, us being the peanut gallery, working stiffs.

Must Read Post #2

Senator Fritz Hollings has written a common sense, no bones demand for a national industrial policy in this Huffington Post piece. Why is it, when we have so many very sane thinkers, who are out to get our economy back, can we get no action by our lovely government?

Must Read Post #3

An excellent call out by Yves Smith on the fear mongering that banks will strangle the economy unless governments do their bidding. I believe banks just did that, all the while governments did do their bidding and now that governments have bailed them out....well, we know the drill. Yves goes through the specifics of the argument, where my response is something akin to get stuffed.

Must Read Post #4

The New York Times wrote up the latest legal wranglings on Bloomberg suing the Fed. No surprise here, it's the banks and the Federal Reserve against the media and the public.

Must Read Post #5

Dubai credit default swaps are back up to November levels, this goes along with our sovereign default news.

Happy reading and Happy Valentine's Day!

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Comments

I should add the President's state of the economy report

It's here.

Beyond the fact the job situation is semi being recognized yet still, we cannot get the right legislation and policies to really do something about this....

Much of the report is such fiction I literally got poed reading it and had to walk away.

Example is productivity section, the wrong solution, i.e. more bad trade deals, instead of looking at global labor arbitrage, offshore outsourcing as causing a very serious dent in high productivity numbers and a reason for wage repression and the new culture of disposable workers in the U.S.

Take Pepto before reading.

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