New America Foundation

Back in 2007 we used to refer to the current crisis as the "U.S. subprime crisis". But while it was the area where troubles first emerged, the subprime mortgage sector turned out to be only the tip of the iceberg. Today, the Lehman crisis of mid September 2008 is still widely seen as the critical blunder that pushed the U.S. and world economies off the cliff. And yet, the Lehman bust may have been no more than just the trigger of an implosion of underlying financial… more

In undertaking the task of rebuilding a viable financial system in the aftermath of the 2008-09 Wall Street meltdown, the principle that should guide all discussions should be straightforward:  how to design measures that are capable of promoting both financial stability and broadly-shared social welfare. 

Executive Summary

It might be called the "World's Scariest Chart."  It is a snapshot of the fragile foundations of the American economy and the epic boulder it now finds itself trapped beneath. The graph shows total debt outstanding in the United States, both secured and unsecured, as a percentage of GDP. In 1981 it was a manageable 168 percent, in 1996 253 percent, and by the first quarter of 2009 with the collapse of the housing and credit bubbles it had reached a staggering 373 percent of GDP.

 

"The Koizumi reforms" was one of the portmanteau concepts most commonly bandied about in Japanese political debates in the summer of 2009 as the parties geared up for the August election. Japan had in fact embarked on its neo-liberal agenda of deregulation and privatization well before the charismatic Mr. Koizumi laconically offered his "no gain without pain" recipes, but it was pushed with most enthusiasm during his premiership from 2001 to 2006.

Today’s complex financial marketplace makes it increasingly difficult to understand and navigate the array of products and services available from a variety of providers. Low- and moderate-income families, who have fewer financial resources to begin with, are most vulnerable to falling into financial distress. A solid grounding in personal finance and a clear understanding of the available options when making financial decisions are critical.

Asset ownership is seen as having an increasingly influential link to a variety of social outcomes. While the UK has experienced increases in economic wealth and improvements in overall living standards over the past 40 years, trends in asset ownership have reversed. More recently, 15 years of economic stability led to a feeling of increased financial security and individual savings were eroded in a boom of consumerism. The distribution of this increase in wealth has been unequal… more

German Chancellor Angela Merkel has just completed her first official visit to Washington since President Barack Obama took up office. At home Mrs. Merkel has only a few months left to go until an upcoming general election will determine her own political future. This was surely one more reason to send a message of harmony with President Obama back home, as the new U.S. president, much in contrast to his predecessor, enjoys great popularity among German voters. Elections aside, such harmonious gestures can hardly deflect

First, I would like to thank Chairman Carper, Ranking Member McCain, and other members of the subcommittee who have gathered today. I am honored by this incredible opportunity to share some thoughts on the subject of strengthening U.S.-Pakistan relations, with a specific focus on explaining the character and dynamics of jihadist militancy in Pakistan.

The Obama Administration has proposed the creation of a new, independent federal agency, the Consumer Financial Protection Agency, to ensure consumers have the information they need to make wise financial decisions; are protected from abuse, discrimination, and unfair and deceptive practices; have access to financial services; and ensure the financial services market operates fairly and efficiently. Click here for an overview of the proposed Consumer Financial Protection Agency.