The Edgy Optimist

A mayor is only as good as his city

By Zachary Karabell
October 25, 2013

The New York City mayoral race is entering its final days, and it seems all but certain that Bill de Blasio will be the new master of City Hall. That’s prompted anxiety among some in New York, best encapsulated by an ad run by Republican challenger Joseph Lhota warning that the city would revert to a 1970s crime-ridden cesspit if de Blasio is elected.

The benefits of a ‘de-Americanized world’

By Zachary Karabell
October 16, 2013

This current bout of Washington inanity is approaching its denouement, but however it ends, it has accelerated a trend that has been gathering steam for at least the last five years: the move away from a Washington-centric world and towards a new, undefined, but decidedly less American global system.

Canceling the debt ceiling apocalypse

By Zachary Karabell
October 4, 2013

Before we begin, let it be said that the looming possibility of the U.S.’s default on its own debt is a not-insignificant issue. Let it also be said that the U.S. government may be unwilling to pay interest on its multi-trillion dollar publicly-held debt as of mid-October, and that this carries substantial risks. And, finally, let it be said that this is something we should most definitely avoid.

Alibaba looks West

By Zachary Karabell
September 27, 2013

Washington may once again be careening toward an abyss of its own making, but it is not the only story worth attending to. It makes good theater, but for now we don’t know how or if it will fundamentally shape our lives.

Fed tells markets: There is no certainty

By Zachary Karabell
September 20, 2013

So the Federal Reserve did not taper after all, as we know from its mini-bombshell of an announcement on September 18th. Having signaled in May and June that the central bank was likely to pare back its monthly purchases of $85 billion in mortgage and treasury bonds, the bank and its chairman Ben Bernanke essentially said “Never mind,” and decided that now was not the time after all.

A recovery without a home

By Zachary Karabell
September 13, 2013

Five years after the collapse of Lehman Brothers and the onset of the 2008-2009 financial crisis, the U.S. housing market is at last starting to thrive. It has, in fact, been steadily improving over the past years, and that trend has only accelerated of late. Housing is widely perceived as a key ingredient to a healthy economy, and so the revival in the housing market has been heralded as a positive step for an American system that has been sluggish at best. Similar trends in the United Kingdom and parts of the EU are greeted as positives as well.

Obama, Syria, and the decline of the imperial presidency

By Zachary Karabell
September 5, 2013

In 1973, Arthur Schlesinger wrote about the tendency in American history for the president to assume sweeping powers in times of war and crisis. The balance of power established by the Constitution gets upended; Congress and the courts take a back seat; and the executive makes decisions about life and death largely unchecked. He called this “the imperial presidency.” Today, with President Obama turning to Congress to endorse a military strike on Syria, the imperial presidency is beginning to wane.

Our imperial disdain for the emerging world

By Zachary Karabell
August 23, 2013

August this year has been exceptionally unkind to the emerging world. We know that Egypt has been plunged into political and economic turmoil, yet that is only the most extreme case. Elsewhere, stories proliferate about economic slowdowns in Peru and China, and protests in Brazil and Turkey (among others).

Fannie, Freddie and our flawed ‘Ownership Society’

By Zachary Karabell
August 9, 2013

More than four years ago, President Obama assumed office promising dramatic reform to the housing market. After all, it was the housing market that triggered the financial crisis, and the vast proliferation of low-quality loans that had fueled the housing bubble. But politics delayed those reforms, and now the president is reopening the issue with a call to wind down the two main federal mortgage agencies, Fannie Mae and Freddie Mac. “For too long, these companies were allowed to make big profits buying mortgages, knowing that if their bets went bad, taxpayers would be left holding the bag,” the president said this week. “It was ‘heads we win, tails you lose.’”

What difference does it make who runs the Fed?

By Zachary Karabell
August 2, 2013

As this week’s release of government numbers on unemployment and jobs highlight, the American economy is puttering along in the slow lane. And while few things in life are more frustrating than being stuck in the passenger seat of that car, it certainly beats crashing.