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May 25, 2012
Mark Clayton: Is Hillary's State Dept. hacking Al Qaeda? Not quite
Erika Bolstad: Temple cancels Wasserman Schultz speech
The Kosher Gourmet by Ethel G. Hofman: The former president of the International Association of Culinary Professionals, whose members included the likes of Julia Child, is back with contemporary Shavous cuisine: Ruby Fruit Soup, Sweet Noodle Kugel with Cheese, Key Lime Curd, Calsone Casserole Frittata with Wild Mushrooms, Sun-dried tomatoes and Olives, Baked Tilapia with Pepper Cheese Cream and Brown Sugar Shortbread
May 24, 2012
Jeff Jacoby: The peace process battered Israel's reputation
Michael Muskal: 'Pro-choice' position hits record low, according to poll
Chris Farrell: Are We in a Tech Bubble?
The Kosher Gourmet by Penelope Wall: PHILLY CHEESE STEAKS --- hold the steak!
May 23, 2012
Tony Pugh: More private colleges offering tuition discounts
Mary Beth Franklin: How to Choose the Right Annuity for You
Tina Susman: The wig wasn't enough: Man gets 13 years for posing as his dead mom
The Kosher Gourmet by Emma Christensen:A simple way to do fish right
May 22, 2012
Warren Richey: Can US group challenge overseas surveillance act? Supreme Court to decide
Thomas M. Anderson: Walking Away From a Mortgage
The Kosher Gourmet by Megan Gordon: Enjoy a celebration of the most rich and layered flavors: Black bean, sweet potato and quinoa chili
May 21, 2012
Mark Clayton: Cybersecurity: How US utilities passed up chance to protect their networks
Howard LaFranchi: NATO summit: Who will foot the bill for long-term Afghanistan security?
Chris Farrell : Earn Dividends in Emerging Markets with This WisdomTree ETF
Stephen Whiteside, Ph.D. : Mayo Clinic Medical Edge: Social anxiety disorder --- or just shy?
Guy Jackson : Victim's father regrets death of Lockerbie bomber
The Kosher Gourmet by Mario Batali: Famed chef's veal shoulder farsumagru: A festive meat course for late spring
May 18, 2012
Rabbi Berel Wein: Striving: The People of the Book's Book for (All of) the People
Steven Goldberg: 5 Great Stock Picks and the Exchange-Traded Fund that Owns Them
Mary Pickett, M.D.: Ask the Harvard Experts: Don't be forced into gluten-free lifestyle based merely on a doctor's false-positive test
The Kosher Gourmet by Carolyn Malcoun: DIY healthy lunchbox treats: HOMEMADE FRUIT BARS for kids and brown-bagging adults alike
May 17, 2012
Warren Richey: Teacher fired for being unwed and pregnant can sue religious school, court rules
Josh Mitnick: Netanyahu's 'centrist' coalition is already proving it's anything but
Steven Goldberg: Earn Dividends in Emerging Markets with This WisdomTree ETF
Amina Khan: Research links coffee to lower death rates
The Kosher Gourmet by Faith Duran : Cheesy Potato Breakfast Casserole with Cheddar and Sun-Dried Tomatoes
May 16, 2012
Carmen Terzic, M.D., Ph.D. : Mayo Clinic Medical Edge: A variety of exercises can help improve balance
Melissa Healy: National strategy on Alzheimer's disease aims to halt it by 2025
The Kosher Gourmet by Joyce White : GOODNESS GRACIOUS: GREENS! 4 winning recipes that are no longer just for down-home folks (Includes expert tips & techniques)
May 15, 2012
Kristen Chick: Obama administration resumes arms sales to Bahrain despite serious unresolved human rights issues. Activists feel abandoned
Pat Mertz Esswein: Homes are now affordable again and mortgage rates are low. What you need to know before you buy
Kathy Kristof: Our Practical Investor Fights Inflation with These 6 Investments
Sue Hubbard, M.D.: The Kid's Doctor: Lactose intolerant young child? Check again
The Kosher Gourmet by Kathy Hunt: Spread a Little Excitement with EXOTIC CONDIMENTS (4 RECIPES)
May 14, 2012
Lisa Gerstner: How to Protect Your Identity, Finances If You Lose Your Phone
Harvard Health Letters: Heart disease and dementia
The Kosher Gourmet by Megan Gordon: MANGO COCONUT OAT MORNING MUFFINS are a bright but hearty delight
May 11, 2012
Jessica L. Anderson: Get the Best Deal on a Used Car
Jett Stone: Forget face-lifts and fake knees. Scientists have seen the fountain of youth --- and it's broccoli
The Kosher Gourmet by Chef Mario Batali: The famed chef's vegetable dish that tastes true to the season: FAVAS AND SUGAR SNAP PEAS WITH POTATOES AND TARRAGON
May 10, 2012
Sergei L. Loiko: Putin sends warning to U.S., NATO in Victory Day speech at Red Square
Mary Rourke: How being a 'mentch' got Vidal Sasoon his start and fighting in Israel's War of Independence provided him with confidence and a strong sense of his own identity
Jeff Bertolucci: Get Home Phone Service for Less Than $10 a Month
The Kosher Gourmet by Betty Rosbottom: Gleaming with its golden, crimson, and snowy white hues, this silken smooth and creamy STRAWBERRY ORANGE TRIFLE looks impressive, but is easy to prepare
May 9, 2012
Sharon Palmer, R.D. How you can reduce your risk -- or delay -- chronic diseases associated with aging
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Jewish World Review
June 20, 2011
/ 18 Sivan, 5771
Government looks to past, free enterprise to future
By
Michael Barone
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http://www.JewishWorldReview.com |
Two years ago, in June 2009, the American economy emerged from recession, according to the National Bureau of Economic Research. But as this week's Economist noted, with typical British understatement, "The recovery has been a disappointment."
And maybe not a recovery for long. Robert Shiller, the economist who first identified the housing bubble, said last week that we may be headed for recession again. "Whether we call it a double dip or not," he told Reuters, "there is a risk."
His Case/Shiller housing price index indicated that home prices in March slumped to levels not seen since March 2003, and Shiller says they may keep falling for 20 years.
As I look back on these years of economic tumult, I sometimes think of an off-the-record session arranged by National Review with Treasury Secretary Henry Paulson back in the fall of 2007.
I asked Paulson when the government was going to change the Securities and Exchange Commission regulation under which the credit rating agencies were paid by the sellers rather than the buyers of securities. That arrangement gave the credit agencies an incentive to give high ratings to the mortgage-backed securities that later turned sour.
Oh, we'll get to that, Paulson said, when we get through the rough stuff we face right now. Of course he had not yet gotten to the stuff that was so rough that, as he wrote in his memoir, he had to leave meetings to throw up.
With the benefit of hindsight, it seems that our leaders, in both the Bush and the Obama administrations, responded to crises and challenges all too often with measures that attempted to revive the old pre-financial crisis economy rather than with policies that would allow a new economy to grow.
As in Paulson's comment, the thinking seems to have been that if we can just get things back in place then we can attack the underlying problems.
Such was the theory behind the now seemingly puny stimulus package agreed to by George W. Bush and Democratic congressional leaders in early 2008. And behind the Federal Reserve's rescue package for Bear Stearns in March 2008.
It was behind the argument that Paulson used to persuade Congress to pass the $700 billion Troubled Asset Relief Program package in October 2008. He said he'd use the money to buy toxic mortgage-backed securities from the banks, but then decided to lend the banks tranches of $25 billion instead.
The Obama Democrats' February 2009 stimulus package doled out one-third of its $787 billion to state and local governments so that public-sector employees (and union members) would not lose their jobs as so many private-sector employees were. That worked for a while but did not prevent painful cuts and layoffs later.
Then there were the various mortgage forbearance programs, designed to prevent foreclosures. Precious few homeowners took advantage of them, and many who did ended up losing their houses anyway.
And of course there was cash for clunkers, which increased car sales in the summer only to see them decline in the fall. Hundreds of millions were spent, but with no permanent effect except to increase used-car prices because clunkers traded in had to be junked.
Decision makers have responded as if they were facing liquidity crises (we don't have enough cash to pay off debts immediately) instead of solvency crises (we will never be able to pay off these debts). Too often pain has not been prevented, but just postponed -- and prolonged.
In retrospect much of the pain could not be avoided. As economist Tyler Cowen has put it, we were not as rich as we thought we were. Housing bubble prices did not turn out to be real wealth, unless you sold out at the peak and moved to a cave.
Trying to put everyone back in the position they once thought they were in simply won't work. But it does sound attractive politically. People can remember what life was like in the past.
We don't, however, know what it will be like in the future. Republicans want less government spending and more leeway for entrepreneurs to create new businesses and jobs. No one knows what innovative products and services will emerge.
That's the beauty of free enterprise, but it also makes it a hard sell politically. Unless voters have figured out no amount of government spending is going to restore the old status quo.
Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
Comment by clicking here.
JWR contributor Michael Barone is senior political analyst for The Washington Examiner.
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