Today's Stories

June 24, 2009

Andrew Cockburn
How the U.S. Has Secretly Backed Pakistan's Nuclear Program From Day One

June 23, 2009

David Price
Obama's Classroom Spies

Patrick Cockburn
Iraq Reels Toward a New Era

James Ridgeway /
Jean Casella
Bi-Partisan Bull on Health Care: Three Ex-Senators Get It Up for the Health Care Industry

Dave Lindorff
Using the Economic Crisis to Attack Workers

Carmelo Ruiz-Marrero
Puerto Rico: Biotech Island

Gary Leupp
Dennis Ross Moves to the White House

Brian M. Downing
The Erosion of the Mullah's Monolith

Robert Bryce
Are Theocracies Doomed?

Nicholas Dearden
The G8 is Dead

Yousef Munayyer
Seeing Through Israeli Delay Tactics

Website of the Day
The Great White Father of America

June 22, 2009

Michael Hudson
Obama's (Latest) Surrender to Wall Street

Esam Al-Amin
What Actually Happened in the Iranian Presidential Election? A Hard Look at the Numbers

Chris Floyd
Dexter's Legions in Afghanistan

Jack Z. Bratich
The Fog Machine: Iran, Social Networks and Genetically Modified Grassroots Organizations

Atash Yaghmaian
We Children of the Revolution

Laura Carlsen
Victory in the Amazon

Paul Craig Roberts
The U.S. Regime-Change Recipe for Iran

Vijay Prashad
Gun v. Butter: Now You are Only Poor

Fred Gardner
Charles Lynch Gets a Year and a Day (No Thanks to Eric Holder)

Andy Thayer
The Blank Check: How We Got the Obama-DOMA Debacle

David Macaray
Unions and the Newspaper Crisis

Website of the Day
The Most Spied Upon Town in America?

June 19 - 21, 2009

Alexander Cockburn
I Become an American

Jeffrey St. Clair
Firebrand: Rod Coronado's Flame War

Patrick Cockburn
Who Will Control Iraq's Oil?

Al Giordano
What the Left Should be Learning From Iran

Henry A. Giroux
The Iranian Uprisings and the Challenge of the New Media

Anthony DiMaggio
The Electoral Façade

Paul Craig Roberts
Are the Iranian Protests Another US Orchestrated "Color Revolution?"

John Ross
46 Dead Mexican Toddlers: Sacrificed on the Altar of Neoliberalism

Gareth Porter
Spinning Civilian Deaths in Afghanistan

Carl Ginsburg
Obama's Bix Fix: Placating the Bankers, Again

Tommi Avicolli Mecca
40 Years After Stonewall: From Smash the Church to Going to the Chapel

Joe Bageant
Workers' Rights: No Balls, No Gains

Serge Halimi
Protectionism: We've Been Here Before

P. Sainath
Price of Rice, Price of Power in India

Jim Goodman
The Claim Deniers: Why the Health Insurance Industry Doesn't Deserve Our Trust

Dave Lindorff
Obama's Health Care Waterloo

Rannie Amiri
Bush Jumps Over Maine, Carter Lands in Gaza

Robert Fantina
Iran, Obama and McCain

Harvey Wasserman
Big Nuke's Radioactive Hoax in Impoverished Ohio

Walter Brasch
They Got Away With Murder: 12 Angry White People

David Ker Thomson
This Moment's Bill of Rights

Charles R. Larson
No Voice: Telling Her Mother's Story

David Yearsley
Escape From the Torture Chamber

Kim Nicolini
When the Closet is the Culprit

Ben Sonnenberg
Rossellini and the Art of Ambiguity

Poets' Basement
Beatty and Kowitt

Website of the Weekend
Grown in Yellowstone, Slaughtered in Montana

June 18, 2009

Uri Avnery
The Case of Netanyahu and the Curious Incident

Robert Sandels /
Nelson P. Valdes
U.S. Cuba Policy: a Case of Post-Diplomatic Strees Disorder

Anthony DiMaggio
The Iranian Elections and the Faith-Based Media

Robert Weissman
Obama's Financial Sector Reform Plan: the Good, the Bad and the Ugly

Joshua Frank
These Are Obama's Wars Now

Jonathan Cook
Canadian Ambassador Honored in Illegal Park Built on Razed Palestinian Homes

Reza Fiyouzat
Iranians in the Streets

Norman Solomon
Obama and the Antiwar Democrats

Ali Jawad
Reformists are Islamists, Too

James Ridgeway
Am I on Crack When It Comes to Flight 447?

Website of the Day
The Death of the Ghost Prisoner

June 17, 2009

Carl Boggs
Torture: an American Legacy

Dr. Bryant Welch
Torture, Psychology and Sen. Daniel Inouye: the True Story Behind Psychology's Role in Torture?

Winslow T. Wheeler
How Obama Will Outspend Reagan on Defense

Liaquat Ali Khan
Obama's Gift to Pakistan: a Civil War

Jonathan Cook
Beating and Torturing Children

Binoy Kampmark
Gordon Brown's War Inquiry

Karim Makdisi
The Lebanese Elections: a Box Office Success?

Dave Lindorff
Criminalizing Dissent: Obama Pot Calls Iranian Kettle Black

David Swanson
In Congress: 32 Heroes, 21 Frauds

Gene Marx
How Fox News is Helping to Nationalize the GI Sanctuary Movement

Website of the Day
The Diamond Mine That Ate Mirny

June 16, 2009

Patrick Cockburn
Iraq's Looming Peril: a Plague of Snakes

John Ross
Undermining Mexico

Afshin Rattansi
Guarding the Revolution

Marc Levy
How I Nearly Won the War

Paul Craig Roberts
Are You Ready for War with a Demonized Iran?

Behzad Yaghmaian
Iranian Youth Make History

Brian M. Downing
Democracy in Iran

Merle Lefkoff
Israel's Angels in America

David Macaray
Charles Manson and Me

Robert Jensen
Finding a Stubborn Hope to Live in a Dead Culture

David Swanson
An Exit Strategy That Keeps Wars Going

Website of the Day
Rachel Corrie Soccer Tournament Fundraiser

June 15, 2009

Michael Hudson
The Ending of America's Financial-Military Empire

Reza Fiyouzat
The Iranian Elections: Sure They Stole It...Up Front and Honestly

Patrick Cockburn
A Whole New Ballgame in Iraq

James Ridgeway
Did Composite Parts Bring Down Air France Flight 447?

Marjorie Cohn
Agent Orange Continues to Poison Vietnam

Rannie Amiri
Iran and the End of the "Obama Effect" Myth

Dave Lindorff
How Obama is Blowing the Chance for Real Health Care Reform

Ron Jacobs
The Iranian Elections and the Hysterical Media

Leonard Schwartz
The Angel of History and the Ghetto of Gaza

Martha Rosenberg
Start Your Engines, Drug Reps!

Website of the Day
Single-Payer v. Public Option

June 12-14, 2009

Alexander Cockburn
Who Needs Yesterday's Papers?

Gareth Porter
The CIA's Drone Wars

Mike Whitney
Bernanke's Next Parlor Trick

Mark Ames
Elmer Fudd Nation

Esam Al-Amin
What Really Happened in the Lebanese Elections?

Franklin Lamb
Carter in Lebanon

Patrick Cockburn
Prisoner Swap in Iraq

Andy Worthington
The Long Ordeal of Mohammed El-Gharani

Heather Gray
A New Perspective on the Confederacy: Southern Greed During the Civil War

Felice Pace
Why NPR Refuses to Report on the Single Payer Movement

Ron Jacobs
Flashback to the End of a War That Really Did End

George Wuerthner
Burning Questions: Why the National Fire Plan is a Trojan Horse for Logging

Jeffrey Buchanan /
Trinh Le
Biloxi Trailer Blues

David Ker Thomson
Americana

Renaud Lambert
Brazil: More Dependent Than Ever

Kevin Zeese
Congress and the Health Business Lobby

David Macaray
SAG Vote: A Lesson in Solidarity ... Not

Evelyn Pringle
FDA Throws Lifeline to Antipsychotic Pushers

Chris Genovali
Blood Sport Auction: Why eBay Should Stop Selling Guided Hunts for Bears, Wolves and Cougar

David Michael Green
The Rhetorical President

Brian J. Foley
Our Solar System is Not a Suicide Pact!

Charles R. Larson
No Safe Return

Kim Nicolini
Foreclosure is Hell: Sam Raimi's Frightfest

David Yearsley
Bach on Torture: Mr. Cheney, They're Playing Your Song

Lorenzo Wolff
Intent to Discord

Poets' Basement
Chris Jordan

Website of the Weekend
The Red Room

June 11, 2009

Kathy Kelly /
Dan Pearson
Down and Out in Shah Mansoor: With the Swat Refugees

James Bovard
The Latest Torture Cover-Up Scam

Tristan de Bourbon
The Toy Makers of Chenghai: the Financial Crisis Seen From China

Dave Lindorff
The Wheels are Coming Off the Recovery Program

Kevin Zeese
The Case for Disbarment of the Torture Lawyers

Ralph Nader
The Craft of Sam Maloof: a Visionary Woodworker

Harvey Wasserman
The GOP's Trillion Dollar Reactor Plan Goes Radioactive

Nicole Colson
The Anti-Abortion Movement's Climate of Violence

Mark Weisbrot
Showdown Over the IMF

Dan Bacher
Big Water's Big Lie Unravels

Website of the Day
Top 10 Most Absurd TIME Covers

June 10, 2009

Ismael Hossein-Zadeh
Obama's Doublespeak on Iran

Jennifer Van Bergen / Douglas Valentine
The Dangerous World of Indefinite Detentions: From Vietnam to Abu Ghraib

Kathy Kelly
Visitors and Hosts in Pakistan

Paul Craig Roberts
Fear Rules

Rev. William E. Alberts
First the Torture of Truth ...

Peter Lee
Obama and North Korea: a Warm-Up in the Offing?

Carol Miller
Why We Need a Holistic, Cradle-to-the-Grave National Health Care System

Emily Ratner
Dreams of Flight in Gaza

Robert Weissman
The IMF's Accountability Moment

Dave Lindorff
The Sutra of the Crushed Volvo

Website of the Day
Starving in Gitmo

June 9, 2009

Winslow T. Wheeler
Back From the Dead: Pentagon Pork!

Mike Whitney
Is Hyper-Inflation Around the Corner?

Stan Cox
Biofuel's Drug Problem

Sibel Edmonds
The Battle Against the State Secrets Privilege

Jonathan Cook
Where the Victim is the Guilty Party

David Macaray
A Bad Time for Unions

Robert Jensen
In South Africa, Apartheid is Dead, But White Supremacy Lingers On

Nadia Hijab
The Obama Difference

Mark Weisbrot
Vulture Funds Descend on Argentina

Website of the Day
Waging Non-Violence

June 8, 2009

John Ross
Mexico: Politics as Drugs / Drugs as Politics

Paul Wright
Deconstructing Gus: How a Former Prisoner Took On and Took Down Corrections Corporation of America's Top Lawyer (and Cheney Pal)

Paul Craig Roberts
Long-Term Economic Memory Loss

Franklin C. Spinney
"Natural Growth:" Israel's Demographic Hogwash

Franklin Lamb
Lebanon's Elections: Return to the Status Quo

Uri Avnery
The Tone and the Music

Jonathan Cook
Israeli Loyalty Oaths

Eric Toussaint
/ Damien Millet
The Partisans of Capitalism Have Lost All Credibility

Jim Goodman
The Dairy Oligarchy

Norman Solomon
Words and War

Reza Fiyouzat
When Accusations Fly: the Spectacle of the Iranian Elections

Website of the Day
Latino Jobless Rate Soars

June 5 -7, 200

Alexander Cockburn
High Words, Low Truths

George Galloway
Our Convoy to Gaza

Paul Craig Roberts
Obama in Cairo

Jennifer Loewenstein
How Much Really Separates Obama and Netanyahu?

Franklin Lamb
Watching Obama's Speech in Lebanon

Mike Whitney
The Biggest Rip Off Ever?

Andy Worthington
Death at Guantánamo

Missy Comley Beattie
Peace Be Upon You?

Farzana Versey
Walk Like an Egyptian: the Oprahfication of Obama

Stanley Heller
Obama's Non-Starter

John V. Whitbeck
Nothing Comes From Nothing

Robert Weissman
GM: the Path Not Taken

Lee Sustar
The Fall of GM: Why Workers Will Pay the Price

Dave Lindorff
What a State-Run GM Could Do

William Blum
The Great, International, Truly Demonic Iran Threat

Ernest Callenbach /
Harvey Wasserman
A Green-Powered Trip Through Ecotopia

Greg Moses
By George! Austin Leads the National Recovery

Ron Jacobs
The Meaning of Yasser Arafat

David Yearsley
Art Set in Concrete:
the Desolate Urban Landscape of High Culture

Tim Stelloh
Pot Home Invasions: Bud and Blow Torches

Belén Fernández
The Joksters: Obama and Thomas Friedman

David Ker Thomson
The Academics

Karyn Strickler
Clean Coal: a Dirty Joke

Christopher Brauchli
Judicial Amnesia and the Federalist Society

Charles R. Larson
Leaving Tangier: Exile and Exploitation

Kim Nicolini
"Hunger:" Art With a Punch

Lorenzo Wolff
Good Head (Or Why the End of Hand-Crafted Music Isn't (Necessarily) the End of Music)

Poets' Basement
Jenkins, Orloski and Willson

Website of the Weekend
Tankman

June 24, 2009

A Systematic Risk Regulator

Making Financial Regulation Work

By DEAN BAKER

One of the major debates around President Obama’s plan for reforming the financial system is over who should be given the job of regulating systemic risk. This debate is fundamentally misguided.

We already have an unofficial systemic risk regulator, or SRR: the Federal Reserve Board. The problem is that it did not do its job when it allowed an $8 trillion housing bubble to grow unchecked.

The Fed has always perceived addressing problems of systemic risk as part of its job description. How else can we explain Alan Greenspan’s decision to support the stock market following the crash in 1987 or to intervene in the collapse of the Long-Term Capital Management hedge fund in 1998? Can these interventions be described as the conduct of monetary policy?

We are not experiencing this crisis because no one had the job of dealing with systemic risk. The economy collapsed because Alan Greenspan and his successor, Ben Bernanke, both insisted that everything was just fine, even as the housing bubble grew to ever-more-dangerous levels. Their failure to recognize the risks posed by the housing bubble and to take steps to rein it in is the root cause of our economic problems.

Suppose we rerun history and envision that our systemic risk regulator did its job over the past decade. Would anything have been different?

If the Fed were officially designed as our SRR, the answer almost certainly is no. AIG’s issuance of trillions of dollars of credit default swaps almost certainly would have survived Greenspan’s scrutiny. After all, Greenspan insisted that there was no housing bubble. In the absence of a nationwide housing bubble, the prospect of a large number of mortgage-backed securities going bad simultaneously is infinitely small. Why would Greenspan have been concerned?

Suppose the SRR were someone else. If Alan Greenspan (formerly known as “the Maestro”) had said everything was okay, would that person have had said that he was wrong and there is a dangerous housing bubble?

That is not the way things generally work in Washington. Most people in public agencies are worried first and foremost about advancing their careers. And picking a fight with a Fed chairman who enjoys the support of the financial industry, the media and most academic economists is not how to advance your career. In short, there is little reason to believe things would have been different even if there were a formally designated SSR.

If the problem is the regulators rather than the regulations, then the goal should be to change the behavior of the regulators. There is one obvious way to do this: Fire them.

The point is simple. If the regulators fail to do their jobs, as happened with disastrous consequences in this case, and do not see their careers suffer, then they have no incentive to do anything besides go along. In other words, we have to restore some symmetry to the incentive structure.

The regulators know they take risks when they confront the financial industry. They must also know that they take risks if they fail to confront the industry. Simple economics tells us that if regulators risk consequences only when they confront the financial industry, then they will never confront the financial industry, even if we give them the title of “Systemic Risk Regulator.”

Dean Baker is the co-director of the Center for Economic and Policy Research (CEPR). He is the author of Plunder and Blunder: The Rise and Fall of the Bubble Economy.

This column was originally published by The Washington Post.

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