The Effect of Changes in Tax Rates.

Gregory Mankiw, professor at Harvard and former chair of Bush's Council of Economic Advisors:

Economic View - Higher Taxes Mean I’ll Work Less - NYTimes.com

(He should have known better than to make such a flimsy argument. It's just one more example of the lack of any real world substance behind much of what passes for economic theory today). See Barry Ritholz's response:

Questions for Mankiw - NYTimes.com

What Were They Thinking?

There seems to be a lot of discussion on the left regarding whether liberals are doing Obama a disservice by pointing out the areas where he has fallen short and ignoring the areas where he has been successful. It's clear that he has had a number of successes--Affordable Care being the most important. However, for all the heavyweights on his economic team, with respect to economic policy, his administration went with what they thought they could get rather than what was needed. Did they really believe that what they were asking for would solve the problem? Time has shown this to be a dumb strategy. There were plenty of people within and without his administration who argued for more stimulus. One could have expected the Fed to have its head in the sand, so fiscal policy was pretty much on its own. The net result has been far too little, leading opponents to be able to say: "See, fiscal policy doesn't work." The worst possible result--for the economy and for the Democrats in the midterm elections. It's surprising that Democrats couldn't remember that "It's the economy, stupid."

Epitaph For An Administration - Paul Krugman

Stimulus Critics Beg for "Wasted" Money

Virtually all the senators and congressmen who voted against the Obama stimulus package went hat in hand to the Federal Government begging for funds for their districts. Some of them contradicting their own positions when they voted. The big names begging for funds included Sen. Scott Brown (R-Mass.), Rep. Michele Bachmann (R-Minn.), Rep. Ron Paul (R-Tex.) and Sen. John McCain (R-Ariz.).

See "Republicans, Democrats Who Criticized Stimulus Wrote Letters Seeking Funds."

For example, Rep. Pete Sessions (R, Tex.) argued that the funds would help create jobs in his district, something he denied when the bill was in Congress. Do only the ethically challenged make it to Congress?

A Good Football Day

Mizzou dominated Texas A&M 30-9 and the game wasn't that close. Mizzou's wide receivers are impressive. But it was surprising that the Missouri coaching staff left Blaine Gabbert in for most of the game, particularly given that their offensive plan was ineffectual in the 4th quarter. I'm just hoping that Mizzou's defense is as real as it looks. The next two weeks will be key: Oklahoma at home and then Nebraska in Lincoln.

Living in Texas, it's amazing how the sportswriters are such a bunch of homers until they get down on someone. Every single writer for the Austin Statesman picked A&M to win. What a bunch of losers.

Speaking of getting down on someone, not many people around here gave Texas much of a chance against Nebraska. I had a feeling that Texas's defense had something to prove and that Texas would beat Nebraska. Everyone I told thought I was crazy. Muschamp's defense shut down the run, Nebraska had to pass and it turns out that Nebraska's wide receivers would be better suited as defensive backs--they can't catch a football. Expect stickum sales to be up in Lincoln for the rest of the season.

Mack Brown showed once again that he's the nicest guy/lousiest coach in BCS football. That pooch kick halfway through the 4th quarter was a real gem of a call.

More Mortgage Shenanigans

Key features of the mortgage crisis.

1. Many homeowners took out mortgages that they had no reasonable probability of paying.

2. Many of those same homeowners were induced by unscrupulous bankers and mortgage brokers into taking out those loans in the first place.

3. The banks and financial house who packaged those loans into derivative securities didn't care (even when they knew) that a significant number of those loans would eventually default.

4. When this happened, everyone pointed at everyone else as the cause of the problem.

As Ralph Cioffi, the former Bear Stearns hedge fund manager and fraud defendant, said in a recent Observer profile about anger at banks and bankers. "People don't want to take responsibility for their own actions." Of course, he was talking about borrowers, not bankers.

For more Wall Street "color," read the article in the New York Observer.

The Foreclosure Fiasco and Wall Street’s Shrug

Where We Should Put Our Education Dollars

Policy recommendations from a Rand Corporation study.

http://www.rand.org/pubs/research_briefs/RB9427/

Too Scary for Halloween

This is a good description of how messed up the mortgage crisis really is. If you think it's over, you're very, very wrong. Check this out:

http://rortybomb.wordpress.com/

And here:

Foreclosure-Gate's Doomsday Scenario

Rick Perry Is a Liar

More Perry Crookedness

From the Burnt Orange Report: by: Phillip Martin Wed Oct 13, 2010 at 11:46 AM CDT

It doesn't get any clearer than this. From the Dallas Morning News, "Gov. Rick Perry approved $4.5 million for donor's start-up firm without regional board's OK": Gov. Rick Perry approved a $4.5 million award from the state's technology fund to a company founded by a major campaign donor despite the company's failure to win the endorsement of a regional screening board, The Dallas Morning News has learned. The money was awarded in August to Convergen Lifesciences Inc., founded by Perry contributor David G. Nance. Convergen was allowed to bypass a key part of the Texas Emerging Technology Fund's extensive process for vetting applications, and to proceed for approval to a statewide advisory board appointed by Perry. A spokeswoman for Perry said Tuesday that the money was properly awarded to Convergen because the law establishing the tech fund allows applicants to appeal decisions by regional reviewers. However, the law makes no mention of such appeals. The chairman of the regional board in Houston, one of the state's largest, told The News he had never heard of an appeals process. Walter Ulrich, also a former member of the tech fund's statewide advisory committee, said approval by regional boards is mandatory. "It cannot go to the state without our board's approval," he said. "I've never seen that happen." Walt Trybula, a nanotechnology expert at Texas State University who reviews tech fund applications for the Austin regional board, said the ability to appeal would undermine the process. "If you've got a way to go around a review committee," he said, "why do you have a review committee?" And the chairman of the state House committee that oversees the tech fund said the "extraordinary" process that awarded the money to Nance's firm shows that reforms are needed. "This is the most troubling case that I've seen come through" on the fund, said Rep. Mark Strama, D-Austin.

Glory Days