The Financial Crisis Inquiry Commission report is out, and it also includes two separate dissents. There’s a metaphor contained in the dissent by Peter Wallison of the American Enterprise Institute which does a pretty good jobof describing the majority take and his critique of it:
In the space of less than 24 hours, the Congressional Budget Office managed to stomp all over President Barack Obama’s dovish debt speech. That Obama failed to use the State of the Union address to explicitly endorse any of his own debt panel’s major budget-cutting recommendations was, shall we say, a glaring omission. Now that failure appears absolutely blinding. Give us the bad news CBO bean counters:
Whenever I would ask folks at the White House about how they planned on dealing with America’s long-term debt problem, they would more or less tell me the same thing: “Wait for the deficit commission.” Well, Obama’s panel has come and gone. And in his speech last night, he failed to explicitly endorse any of its budget-cutting recommendations. This part particularly frosted my pumpkin:
The folks at Americans for Tax reform have assembled a pretty solid list of ideas. Since Obama is apparently going for growth in an attempt to get reelected, he might want to take a gander at a few of these:
As they used to say in the Soviet Union, “It’s no coincidence.” At least, I suspect is isn’t. Yesterday, House Republican Majority Leader Eric Cantor came out strongly against the idea of changing the federal bankruptcy code to let states declare bankruptcy, an idea being pushed by some Republicans, including Newt Gingrich:
Lots of buzz about this NYTimes story that says Washington policymakers (Republicans, really) are “working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers.” (My blog post from six weeks ago that said the same thing is here.)
Policy makers are working behind the scenes to come up with a way to let states declare bankruptcy and get out from under crushing debts, including the pensions they have promised to retired public workers. … For now, the fear of destabilizing the municipal bond market with the words “state bankruptcy” has proponents in Congress going about their work on tiptoe. No draft bill is in circulation yet, and no member of Congress has come forward as a sponsor, although Senator John Cornyn, a Texas Republican, asked the Federal Reserve chairman, Ben S. Bernanke, about the possiblity in a hearing this month.
Chinese President Hu Jintao’s visit to Washington has triggered debate about whether the United States should copy his country’s hands-on, interventionist economic model. But the Middle Kingdom’s feisty “tiger mothers” may provide a better guide for Washington policymakers than turning to Big Government, Chinese style. A new book extolling their tough-love approach could help America escape its debt trap and boost growth.
U.S. federal regulations impose nearly $2 trillion in annual costs on American business, according to the Small Business Administration. President Barack Obama thinks that’s probably too much and now wants regulators to strike out needless red tape. Better late than never. Even better, Congress should have more power to do the cleanup itself.