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Home Publications Blogs Beat the Press Another Front Page Editorial at the Washington Post

Another Front Page Editorial at the Washington Post

Monday, 01 August 2011 03:58

The budget deal has them really excited at Fox on 15th. It told readers:

"At several points, Obama and Boehner held out hope they could agree on a far-reaching bipartisan plan to tame the soaring national debt once and for all by raising taxes and cutting health and retirement spending. But House Republicans repeatedly walked away from the bargaining table, refusing to raise taxes. In the end, policymakers were left with a far more modest achievement that does little more than resolve the immediate crisis."

Wow, maybe the Washington Post could share with us the mechanism for taming "the soaring nation debt once and for all." The reason the debt is soaring (serious newspapers reserve such terms for the opinion pages) is that incompetent economists allowed an $8 trillion housing bubble to grow out of control so that when it crashed it wrecked the economy. Does the Post know a mechanism that will require that the Fed and Treasury are staffed by competent people? Its readers would love to hear about it.

Comments (3)Add Comment
Housing bubble wasn't an accident
written by Michael Bolser, August 01, 2011 8:19
Your observation that the housing $8T bubble was a disaster is correct. That it was the work of incompetent economists falls well short of reality.

It was as intentional as the gold bubble in 1933 where nearly all banks had "loaned" all their bullion. This time the goal will not be to seize the bullion back from safety deposit boxes (Gold Reserve Act 1934) but to seize through foreclosure the real estate assets so carefully built in the planned bubble of 2000-2008. And then the $2 trillion in IRA accounts still ripe for the plucking to complete the thinnish Debt Deal.

Too evil to believe? You of all people know the wealth disparity numbers (1% owns 37% as of 2007). The aristocrats are simply finishing off the middle class once and for all. It's in their DNA.

Flogging their hired Circus Master, Barack Obama or their "Press" aparachiks uselessly spins wheels.

Call a thing by its right name.

BTW––The default of 1971 was the Mother of all Defaults.
written by kharris, August 01, 2011 2:12
Sort of reaching here, aren't you? Writing a plan to balance the budget is not beyond the capacity of the people we have, and the housing sector's greatest impact on the rest of the economy is necessarily smaller now and in the future (the relevant periods for this discussion) than in the past because the housing sector is a smaller share of the economy.

Often, blog commenters with chips on their shoulder condemn any comment on topics deal to their hearts which don't address exactly the issues they want addressed. No room for other perspectives, thank you very much. Here you are, sniping away at Fox for not saying what you'd have them say. When it comes to Fox, there is so much low-hanging fruit. It's embarrassing to see you resort to this sort of misdirected criticism when honest criticism comes so easily in dealing with Fox.
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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.