Senate Minority Leader Mitch McConnell has concocted an elaborate scheme that would allow President Barack Obama a clean shot at raising the debt limit, in three installments, over the next year and a half. Unlike his fellow Republicans, McConnell will not use the debt-ceiling fight to force cuts in discretionary spending or safety-net programs. Instead, he focuses on his chief preoccupation: winning elections for the GOP.
Last week, Ben Bernanke delivered a speech in which he agreed that the government should reduce the deficit. However, he cautioned, "a sharp fiscal consolidation focused on the very near term could be self-defeating if it were to undercut the still-fragile recovery."
House Majority Leader Eric Cantor and Vice President Joe Biden at talks on a budget deal on Thursday, May 5, 2011, at Blair House in Washington. (AP Photo/J. Scott Applewhite)
The Democrat-controlled Senate has yet to vote on a 2012 budget that would serve as a counterpoint to the Medicare-slashing Paul Ryan plan that passed the House. When Senate Budget Committee Chair Kent Conrad explained on May 19 why he wasn't taking a budget proposal to the Senate floor, he may have said too much.
State and federal regulators have yet to stop mortgage-foreclosure abuses and exact punishment on the banks responsible for them. A slap on the wrist for 14 of the largest mortgage firms, a still fruitless effort by state attorneys general to reach a settlement with banks, and superficial investigations into the extent of the abuses have done little to answer questions about the proliferation of mortgage fraud. Without that knowledge, regulators are at a disadvantage in arriving at an equitable solution.
Iraq veteran and U.S. Paralympic alpine skier Heath Calhoun, 30, walks past the new home that is being built for his family by the veterans group, Homes For Our Troops, and members of his community. (AP Photo/Kristin M. Hall)
Last week, the mortgage servicing arm of JPMorgan Chase reached an unusual settlement in a class action lawsuit, acknowledging it had charged illegally high interest rates and wrongfully foreclosed on 6,000 homeowners across the country. JPMorgan agreed to give $12 million to the individuals and $15 million to a fund for additional damages, on top of $6 million already promised for these particular violations.