Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.
Break Up Citigroup (Simon Johnson, Project Syndicate) Citigroup led a successful effort to get key elements of Dodd-Frank overturned by attachments to the latest budget bill. Johnson says they may have won a battle but it could lead to losing a war and become the fulcrum for action to break up big banks. He says it is not just the very vocal Elizabeth Warren that is thinking this way but a number of other senators in both parties could be brought into the fray.
Fed Hands Record $98.7 Billion Back to Treasury (Michael S. Derby, The Wall Street Journal) The Fed earned $115.9 billion on its Treasury securities and MBS (mortgage backed securities) holdings in 2014. By law, after "expenses" and a 6% dividend to member banks is paid the rest is remitted to the U.S. Treasury. Many think this is great for the government, reducing the current deficits but Econintersect suggests it is economically damaging when there is slack in the economy because it is removing more than $100 billion from the "real economy" that would have been paid to the public (albeit some of the payments would have gone to banks). The effect was to reduce GDP for 2014 by about 0.6%.
WSJ Praises the "Triumph of Austerity" in Greece (The Real News Network) Sharmini Perez interviews William K. Black (who has contributed to GEI). Black criticizes The Wall Street Journal (and The New York Times as well) for portraying the political "rebellion" in Greece against austerity as "snatching defeat from triumph". The headline link takes you to the transcript of the interview.
Articles about events, conflicts and disease around the world
AirAsia Flight 8501
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