And no stability or prosperity in between. Just a lot of grief.
Many Americans are wondering whether they are in for a repeat of the financial crisis of 2008.
The answer is a matter of fierce debate among economists and market experts. Many say the risks are lower today — at least in terms of an immediate crisis — because the financial system over all is healthier and there are fewer hidden problems. But the experts add that there are reasons to worry, and they do not rule out a quick downward spiral if politicians in the United States and in Europe cannot calm investors by addressing fundamental financial threats. ...
...“So far it’s not as bad as 2008, but it could get much worse because the sovereign debt concerns are much more global than the subprime mortgage risk of 2008,” said Darrell Duffie, a professor of finance at Stanford and an expert on the banking system.
A growing lack of confidence is perhaps the most troubling similarity to 2008 and the biggest worry....NYT
Certainly the Republican nominees to the debt reduction committee in Congress are an indication that the Boehner's and McConnell's party have no intention of compromising. Every one of them -- every manjack of them, for none is a woman -- is a signatory of the Grover Norquist's tax pledge.
Two of the Republican appointees have a history of working with Democrats. All oppose tax increases, but at least one supports eliminating tax breaks like the subsidies for ethanol.
The speaker, John A. Boehner, chose the three House Republicans: Jeb Hensarling of Texas and Dave Camp and Fred Upton, both from Michigan.
Mr. Hensarling, the chairman of the House Republican Conference, will be co-chairman, along with Senator Patty Murray, Democrat of Washington.
The Senate Republican leader, Mitch McConnell of Kentucky, chose Senators Jon Kyl of Arizona, Rob Portman of Ohio and Pat Toomey of Pennsylvania for the 12-member panel.
The panel, the Joint Select Committee on Deficit Reduction, is supposed to come up with recommendations by Nov. 23. If it fails, or if its proposals are not enacted, the government will automatically cut spending across the board to ensure savings.
If just one panel member crosses party lines, the committee can send its recommendations to the floor of the House and the Senate for up-or-down votes without amendments. If a deal is to be struck in the middle, it is likely to involve Mr. Portman, Senator John Kerry of Massachusetts and perhaps Senator Max Baucus of Montana, Congressional aides said. ...NYT
Three of the Republicans were on the Bowles-Simpson commission. None of them voted for its proposal. It doesn't look as though the Republicans want a markets-calming resolution of their concocted "debt ceiling" crisis.
The Federal Reserve, the Times notes, is "out of bullets." The one thing we have going for us is that our banks have more capital on hand than in '07 -- a softer cushion if there is a sudden drop.
“We haven’t seen policy makers come out with a plan that is viewed as comprehensive, coordinated and credible,” said Philip Finch, a global bank strategist for UBS. “We need confidence restored and there’s a lot of infighting.” ...NYT
All eyes turn back to Republicans in the US Congress. Are they really so intent on a second, more devastating crash? Think Progress has more details about individual Republican appointees to the super-committee here.
__
At the core of the slide into depression in America is the now historic lack of confidence in the political leadership measured in the latest polls.
Nearly three-quarters of Americans polled said they have little or no confidence in Washington to repair the economy. Confidence is down 21 percentage points from October 2010 and is less than half its 2002 levels. Roughly four in 10 have no confidence at all in the federal government when it comes to dealing with the economy, the poll indicates.
The number of people who expressed no confidence at all nearly doubled since October 2010. Almost half of independents said “none” when asked about their confidence, more than double the proportion saying so last fall.
Nearly eight in 10 of Americans polled were dissatisfied with the way the political system is working, up dramatically from late 2009. ...WaPo
It's not just America that's stuck with a bad deal. It's that Obama is stuck in a card game with seasoned cheaters.
It helps to think like Mitch McConnell. Once you do, you’ll see there’s no way Republicans will partner with Obama to do anything that matters, because they have the president right where they want him, with “full ownership” of a lousy economy. That’s why the super-committee is doomed to fail, because McConnell’s only goals will be a bipartisan Medicare reform that takes the issue off the table, plus a deal with no tax hikes.
This means that, for all the attention it will consume, there is no way the super-committee can deliver. (And the awful cuts that are supposed to ensue if it fails will never happen; they’ll be “triggered” yet scrapped or put off after the election.) ...Matt Miller
For which Miller blames Obama. And that, of course, is the whole point for Republicans.
