When Kevin Hall, writing for McClatchy Newspapers, said “the Obama administration got what it was looking for at its summit on the future of housing finance,” he was very close to the truth: No matter who spoke at the summit or what “new” ideas might be proposed, nothing would change — the government would remain fully in charge of mortgage financing for the country.
The first warning about the possible bankruptcy of the town of Vallejo, California, was reported by the Associated Press on February 28, 2008, when Councilwoman Stephanie Gomes said, “Our financial situation is getting worse every single day. No city or private person wants to declare bankruptcy, but if you’re facing insolvency, you have no choice but to seek protection.”
The San Francisco Branch of the Federal Reserve Bank has found that the United States will more likely than not be dipping back into formal recession over the next two years, according to an August 9 study of nine economic indicators. Study authors Travis J. Berge and Òscar Jordà concluded that “for the period 18 to 24 months in the future, the probability of recession goes above 0.5 [50 percent], putting the odds of recession slightly above the odds of expansion.”
Infowars.com, the website founded by self-described “aggressive constitutionalist” Alex Jones, published an article by former Reagan Treasury Department official and co-author of Reaganomics, Paul Craig Roberts entitled “The Ecstasy of Empire.” With such an alluring title, it is little wonder that the article has attracted a volume of comments. Roberts brings to bear all the entries of his impressive resume in diagnosing the illness afflicting the American body politic, particularly the economic might that is its lifeblood.