Must Read Posts - Sometimes you just can't say it better for 12.21.09

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 #1

VoxEU has a post we've hit upon many times, but this is based on new, in depth research. In Trade and labour income risk in the US: Evidence from longitudinal data, they discover a permanent income risk reduction directly correlated to the import penetration in that occupational sector.

Of course the post then rambles on about of course one should not advocate protectionism or reduced globalization and then claims the answer is to increase the social safety net. Absurd conclusion when in fact one must clearly revamp trade so America and U.S. workers win. But obviously global labor arbitrage does not pay off for U.S. workers.


Must Read #2

Calculated Risk gives analysis and graphs in this post to the fact in Q3, foreclosures topped 1 million.



Must Read #3

EP readers know about AIG and Goldman Sachs. Now, in a New York Times op-ed , William Black, Elliot Spitzer and Frank Partnoy ask to show us the email and other non-privileged documents to have an open source investigation. Naked Capitalism asks why there hasn't been an in-depth investigation in the first place?

why was no forensic work done as a requirement of the bailouts? The Swiss Federal Banking Commission required UBS to perform an extensive investigation of exactly what it did so wrong that it needed a government handout, and it hired (presumably at the insistence of the regulators) third parties to conduct the investigation. It provided considerably more detail than any bank has provided so far of how a firm with a solid franchise drove itself into an abyss.

Why has there been NO serious investigation of ANY kind of the recipient of such extraordinary taxpayer largesse? Why has virtually NOTHING been demanded of them? Why the unseemly rush to let them off the hook and let them “pay back the TARP”? This is completely unwarranted in the case of AIG, which has had its deal with the government retraded in AIG’s favor a full four times.


Must Read #4

Blogger George Washington has post, Economists are Trained to Ignore the Real World and suggests it pays out to ignore fraudulent schemes, use faulty models and ignore bubbles.

Indeed as we can see from post #1, with such obvious research results, the conclusion is absurd on policy recommendations. I suggest there is the in club and the out club. Mention the Emperor has no clothes and you're in the out club, cut off from publications to cocktail parties.