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Is Richmond’s Mortgage Seizure Scheme Even Legal? (WaPo)
Roosevelt Institute Fellow Mike Konczal looks at the questions raised by Richmond, CA’s proposal to use eminent domain to reduce underwater mortgage debt. He argues that the plan has plenty of legal precedent, and clear benefits for the residents of Richmond.
Mike Konczal on Economic Collapse, Hugh MacMillan on Fracking Study (CounterSpin)
Mike appears on FAIR’s weekly radio show to discuss what has and hasn’t changed in the five years since Lehman Brothers’s bankruptcy. He argues that the crisis really started in 2007, with the first wave of foreclosures on subprime mortgages.
This Week in Poverty: New Data, Same Story (and Same Dangerous House Republicans) (The Nation)
Greg Kaufmann sees the latest Census data on poverty as proof that even though the needed steps in the fight against poverty are known, they aren’t being implemented. Unfortunately, all the policies he wants to see are anathema to the GOP.
Jackie Speier Protests Food Stamp Cuts With Steak, Vodka, Caviar (HuffPo)
Robin Wilkey reports on Rep. Speier’s speech calling out her peers who favor cutting SNAP for their excessive travel bills paid by the government. But caviar and filet must come before necessities for the poor, since the $40 billion in cuts passed.
American Bile (NYT)
Robert Reich argues that Americans are divided over many issues, but their anger comes from stagnant economic growth and widening inequality. The people who see the economy as rigged against them, whether by government or business, are the angriest.
- Roosevelt Take: Roosevelt Institute | Pipeline and Roosevelt Institute | Campus Network will join Reich for a conference call on his new film “Inequality for All” on Wednesday.
It’s the Austerity, Stupid: How We Were Sold an Economy-Killing Lie (MoJo)
Kevin Drum explains how the now-infamous Reinhart and Rogoff paper on debt as a killer of economic growth kicked off the austerity regime that has reduced U.S. economic growth by as much as two percent. It’s been disproved, but we’re still on the austerity train.
- Roosevelt Take: Roosevelt Institute Fellow Mike Konczal was one of the first to look at the UMass paper that disproved the Reinhart-Rogoff paper.
The Shutdown Showdown: What Happens Now? (MSNBC)
Kasie Hunt looks at the likely timeline for the continuing resolution now moving into the Senate, which contains language defunding the Affordable Care Act. It’s expected that Harry Reid will strip out that language before the Senate passes the bill.
The Most Important Lesson the Fed Taught the World This Week (The Atlantic)
Zachary Karabell argues that the Fed’s announcement of no taper for now is a reminder that there is no certainty in markets. There’s no excuse for businesses using “uncertainty” as a reason to not hire, especially when they then blame government dysfunction.