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...number of economists and policy analysts believe Caballero makes a lot of sense. Alex Pollock of the American Enterprise Institute says it's clear the foreign investors who bought the bonds of mortgage guarantors Fannie Mae and Freddie Mac served to fuel the housing bubble. Ohio State University professor René Stulz, who has studied the financial crisis, says Caballero has hit on a critical contributor. Says Stulz, "Investors looking for safe investments in the U.S. created a demand for new products that caused our financial system to work differently from how it had worked in the past...
...strategy to work, the President, his aides and Democratic candidates such as Coakley will have to accomplish two difficult tasks. First, they must convince voters that their outrage over the state of the country ought to be directed against Republicans rather than against the party that has controlled both ends of Pennsylvania Avenue for the past year. Then, they must successfully sell the idea that the GOP is the party of the wealthy and powerful - a classic Democratic theme. "There are two entities in this country who are working very hard to defeat health reform," White House communications director...
...wonder that the sweetheart deal Senator Ben Nelson got for his home state of Nebraska as part of the Senate health reform bill has caused such consternation among his colleagues. In exchange for his vote, say critics, Nelson was promised that the Federal Government would pay 100% of the cost of expanding the Medicaid program in Nebraska. The 49 other states, by contrast, would have full federal funding for a few years but would eventually have to pick up part of the tab. As soon as word of the special treatment broke, the deal became known as the "Cornhusker Kickback...
...Ayalon's theatrics struck a blow at a relationship as important to Israel as it has become fragile in recent months. Turkey, a NATO member that shares borders with such key Israeli adversaries as Syria and Iran, has long had a close relationship with the Jewish state, particularly at the level of military cooperation. Sources within Israel's Defense Ministry expressed concern that the Ayalon-Celikkol incident might imperil the visit to Turkey by Defense Minister Ehud Barak that is scheduled for Jan. 17. Barak plans to offer Turkey's military establishment an even tighter relationship with Israel. Already...
Israel has no foreign policy, only domestic politics. That was former U.S. Secretary of State Henry Kissinger's conclusion back in the 1970s, but it appears to still hold true three decades later when it comes to understanding the latest fiasco in an Israel-Turkey relationship that has seen better days...