Budget

Look Who's Downgraded Now

The reappraisal of Austria's and France's credit ratings shows that the Greek economic crisis is at high-risk of contagion.

AP Photo/Remy de la Maviniere

Friday was another very bad day for Europe’s crisis managers. Within the space of a few hours, it was revealed that talks between Greece and its international creditors had reached a dead end and were being put on hold and that Standard & Poor’s had downgraded nine eurozone countries, including France and Austria, which formerly held AAA ratings. Both developments are alarming, but the Greek situation is the more immediately pressing.

Hungary Games

The country is seeking help from the IMF even as its internal policies scare off investors.

Hungarian Prime Minister Viktor Orban. AP Photo/Tamas Kovacs

Tamas Fellegi, Hungary’s chief negotiator with the International Monetary Fund, has a tough task this week. Fellegi, a minister without portfolio in Viktor Orban’s right-wing government, is in Washington for preliminary talks with the IMF, in the hopes of setting the foundations for a new package of financial support that will prevent the country’s descent into the Hades of default. This new package, which Orban had previously stated would not be needed, was made necessary in part because of the dramatic deterioration in the economic outlook of the whole of Europe as a result of the eurozone debt crisis and the inept way it has been handled.

Mitt the Unassailed

AP Photo/Elise Amendola

Manchester, New Hampshire —Well, that was unremarkable.

The last presidential debate until another begins ten hours from now saw none of Mitt Romney’s challengers actually challenge him. His toughest challenge probably came from George Stephanopoulos, who asked him if his assertions on Bain Capital’s job creation were really on the level—neither Newt, Ron, Jon nor the two Ricks, confronted Romney with anything as potentially threatening to his lead.

Hitting the Ground Running

Richard Cordray wastes no time introducing a financial supervision plan with the Consumer Financial Protection Bureau.

Republicans are still huffing and puffing about President Barack Obama’s recess appointment of Richard Cordray to head the Consumer Financial Protection Bureau, but that hasn’t stopped the new director from getting right to work.

Cordray announced Thursday the launch of a nonbank supervision program to supplement the agency’s monitoring of banks. In layman’s terms, a "nonbank" is a business that doesn’t accept deposits but provides financial services that include pay day loans, credit ratings, debt collection and some mortgage lending.

Until now, most of these nonbanks have operated without federal regulation. The new supervision program will be equipped to investigate them and enforce rules.

Showdown at the Docks

Occupy Wall Street protesters celebrated the movement's three-month anniversary by taking the fight to major ports.

Protesters at the Port of Oakland Monday. Photo/Aaron Bady

On Monday, occupiers set out to shut down ports across the West Coast.  Targets included SSA, which is largely owned by Goldman Sachs, and the Port of Longview, which multinational EGT is trying to operate as the West Coast’s only port without members of the International Longshore and Warehouse Union (ILWU).  The actions, which shut down operations at Longview, Oakland, and Portland, were opposed by ILWU leadership.  They led to intense debate among and between occupiers and unionists over tactics—who the blockades hurt, whether they’re worth the legal risks—and democracy, namely, how democratic the ILWU and the Occupy movement each are, and whether workers should have a veto over actions where they work.

Legislative Legerdemain

AP Photo/Yves Logghe

So you think congressional Republicans are the only right-wingers who like to append their pet (and sometimes, wedge) issues—like the Keystone pipeline—to must-pass legislation like the payroll tax-cut extension? Guess again—it looks to be a trans-Atlantic syndrome.

Britain Hesitates

David Cameron's veto of an EU integration plan reveals England's deep skepticism about the union.

AP Photo/Yves Logghe

European leaders went one better this time. Not content with failing to resolve the debt crisis tearing through the eurozone and threatening a global recession, they have now managed to create a new source of instability: the rift between Britain and the rest of the European Union, whose consequences may prove to be momentous indeed.

Crash Diet

Obama still has time to redeem his food-production policy.

AP Photo/Pablo Martinez Monsivais

In October 2008, Michael Pollan, a food writer and critic of American agriculture policy, wrote a letter in The New York Times Magazine addressed to the president-elect, whom everyone then assumed would be Barack Obama, on how to make our food more healthful. Obama wouldn’t win the election for another month, but the lithe, urbane candidate had earned a reputation for eating well on the campaign trail; he eschewed hot dogs for salmon, arugula, and Honest Tea. Food policy had not been at the forefront of the campaign, Pollan argued, but was key to a number of policy goals Obama had raised: “Unless you [reform the food system], you will not be able to make significant progress on the health care crisis, energy independence or climate change.

Republicans' Governing Glossary

AP Photo/Manuel Balce Ceneta

Agencycide noun – The effective killing of a statutorially established agency of government by legislative refusal to confirm the nominees required to lead that agency. The term dates from December 2011, when Senate Republicans killed (by exploiting Senate rules requiring a supermajority to bring up votes) President Barack Obama’s nomination of former Ohio Attorney General Richard Cordray for the position of director of the Consumer Financial Protection Bureau, which had been created by the Dodd-Frank Act passed by the previous Congress.

Elizabeth Warren: Bailout Queen

Karl Rove’s latest ad has to set an all-time record for hypocrisy and factual inversion. The ad actually manages to blame Elizabeth Warren for the bank bailouts.

As anyone who hasn’t spent the past three years in a cave must know, Warren has been the nation’s single most effective, relentless, and brave critic of the bailouts. It was that service as chair of the Congressional Oversight Panel that made her one of America’s most admired public leaders.

The Wrong Fix

AP Photo/Bernd Kammerer

Yesterday, both Bob Kuttner, here in the Prospect, and I ,in my Washington Post column, noted that the deal that German Chancellor Angela Merkel and French President Nicolas Sarkozy struck to save the Eurozone will inflict years of austerity on European nations that are already mired in depression. Spain, for instance, has an unemployment rate of about 20 percent and a youth unemployment rate that is approaching a mind-boggling 50 percent. It needs a massive Keynesian jolt to its economy, not budgetary constraints that will condemn it to a decade or quarter-century of penury.

GOP vs. Job Creators

In the ongoing battle over extending the payroll tax cuts that currently save the median American household about $1,000 a year, one salient point is commonly overlooked: The proposal that the Obama administration and congressional Democrats are championing also cuts in half the payroll tax for employers. Currently, employers are subjected to a payroll tax of 6.2 percent on every paycheck they write. The Democratic proposal would reduce that to 3.1 percent on the first $5 million in taxable payroll—that is, it would chiefly benefit small and middle-sized businesses.

Police Raze Occupy DC Shelter

Will resistance give the protest movement in the nation's capital the shot in the arm it needs?

After an extended showdown that began around noon Sunday, police in Washington, D.C., succeeded in destroying a wooden structure Occupy DC protesters had erected in McPherson Square to provide shelter throughout the winter.

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