September 30

What you need to know to navigate today’s most critical debates.

Consumer Advocate Seeks to Reassure Banks About Protection Agency (NYTimes)
Elizabeth Warren told bank execs that she plans to work with them rather than against them, but she’s still determined to stand up for consumers.

The Ghost of Full Employment (TAP)
Jefferson Cowie argues that a federal job guarantee would end our economic malaise and reframe the role of government in American society.

Deficit Pipe Dreams: Social Security Cuts Would Increase Inequity and Keep Deficits, er, High (HuffPo)
Richard Eskow explores the conservative delusion that slashing Social Security is the best way to fix America’s budget problems.

GMAC’s ‘Robo-Signers’ Draw Concerns About Faulty Process, Mistaken Foreclosures (ProPublica)
Marian Wang reports that foreclosures are being put on hold as serious doubts arise over the reliability and fairness of banks’ approval procedures.

Can business afford Jim DeMint? (WaPo)
Corporations love Republican tax policies, but Steven Pearlstein wonders if they can stomach the consequences of complete government paralysis under a GOP majority.

99ers Legislation Blocked in Senate (HuffPo)
A relief bill for people who have exhausted their unemployment benefits went out with a whimper yesterday as Republicans denied Debbie Stabenow’s request for unanimous consent.

House Passes 9/11 Health Care Bill (NYTimes)
House Democrats, with the support of only 17 Republicans, finally approved a bill that will provide medical aid to Ground Zero rescue workers and reopen the September 11th Victim Compensation Fund.

House Fires Shot Across China’s Bow (Naked Capitalism)
The House also passed a bill allowing President Obama to impose tariffs on China, which is now in a poor strategic position according to Yves Smith.

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Obama as Comeback Kid Just Needs Weaker Dollar (Bloomberg)
Simon Johnson predicts that the economy — and the President’s political prospects — will rebound if the dollar depreciates.

The Case for More Central Bank Action (NYTimes)
Adam Posen advocates for additional monetary stimulus in order to bolster productivity and prevent a long-term downward spiral.

More Fed action: How would it work? (WaPo)
Neil Irwin examines the policy options on the table for the Federal Reserve.

Unemployment, Economy Forcing Savers to Give Up $5 Billion a Year (HuffPo)
Skittish savers are shifting to low-yield money market accounts so that they have more cash on hand in case their economic situation deteriorates.

CBO: Extending the Bush tax cuts will hurt the economy, reduce incomes (WaPo)
CBO Director Doug Elmendorf warned Congress this week that a permanent extension of the Bush tax cuts would trigger a domino effect of debt.

Imagining a Deficit Plan from Republicans (NYTimes)
David Leonhardt notes that pairing strident demands for tax cuts with some vague mumbling about spending cuts is a recipe for massive deficits.

GOP Fits ‘Pledge’ on 2 Pages (WSJ)
When you can cut 43 pages out of your 45-page treatise without altering its substance, you know you’ve produced one of history’s great time-wasters.

Women Confront Deficit Commission Over Social Security (Seeing the Forest)
The National Organization for Women made a special delivery of 1,500 nipples to deficit commission co-chair Alan Simpson yesterday. No milk cows were harmed.