By Jia Lynn Yang – The story is the same every time: A measure that would change the tax treatment of “carried interest” passes the House, only to hit a wall in the Senate.
“This is not a tax benefit that’s available to doctors or teachers or firefighters. It’s a tax benefit that’s only available to investment managers,” said Victor Fleischer, an associate professor of law at the University of Colorado at Boulder. more> http://bwbx.io/ydaq
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By Joseph E. Stiglitz – Underpinning reform should be a clear understanding of a financial system’s functions — and an awareness of how poorly ours filled its roles. It did a dismal job of allocating capital (providing credit to the creditworthy); managing risk, and running an efficient payments mechanism.
On several aspects of reform there is (outside the vested interests) broad consensus: A strong financial product safety commission is imperative. Regulatory structures matter, and it is essential that there be a regulator that sees its first obligation as protecting ordinary Americans against the rampant abuses pervasive in the financial industry. more> http://bwbx.io/AWYA
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Economist – If there’s an area where Americans should feel out-competed by foreigners, I’d say we should feel out-competed by the transparency and responsibility of Dutch democracy. American politicians generally claim they want to cut the budget deficit. When a Dutch political party says it wants lower deficits, it actually outlines an electoral program with details about how it plans to cut spending and/or raise taxes. For example, …
The closest thing American parties have to an electoral program, the Republican and Democratic platforms from back in 2008, essentially don’t contain any budget numbers. more> http://tinyurl.com/2d49ycr
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BOOK REVIEW By James Pressley -
Fault Lines: How Hidden Fractures Still Threaten the World Economy, Raghuram G. Rajan, Princeton University Press, ISBN: 978-0691146836 http://bwbx.io/ueqU
It’s fun to play Pin the Meltdown on the greedy bankers, meddling governments and lying homebuyers. Yet these individuals, for all their shortcomings, were only responding to three sets of fault lines, Rajan argues: domestic political pressures, trade imbalances and incompatible financial systems. more> http://bwbx.io/ueqU
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