News
WSJ | Moody's Warns on China Debt
Moody's Investors Service said China's main government auditor may have understated banks' loans to local governments by half a trillion dollars, escalating the ratings firm's warnings that the scale of such loans could pose a threat to China's banking system.
Washington Times | Obama prods Congress on debt deal
Calls on Hill to ‘do something big,’ sets White House talk with leaders.
Bloomberg | Bank Regulators Need Power to Close Failing Institutions, Basel Group Says
Bank regulators need greater powers to close failing banks in an orderly fashion so that taxpayers don’t have to bear the costs of rescuing lenders during a crisis, global regulators said.
Econ Comments
Politico | Clinton budget bind, the sequel
Sixteen years ago this summer, a Democratic president found himself on the political defensive.
FT | Moment of truth for the eurozone
The biggest question in any debt crisis is whether a credible path back to solvency can be found.
Washington Times | MILLER: Make the debt talks public
Taxpayers deserve a seat at tax-and-spend negotiation table.
WSJ | A Debt-Limit Breakout
Republicans should call Obama's bluff on tax increases.
Daily Caller | Why California Democrats crafted a fiscally conservative state budget
Last week, Democrats in the California Legislature sealed a budget deal with Democrat Governor Jerry Brown.
Blogs
Atlantic: McArdle | What Can the Treasury Legally Do if the Debt Ceiling Isn't Raised?
Maybe we just hack 40% off every single expenditure. Or maybe we have a constitutional crisis.
Mercatus Center: Neighborhood Effects | Governor Christie’s pared down budget
The Star Ledger reports that Governor Christie, “took an axe” to the state’s budget and “slashed $900 million in a budget he blasted as ‘unconstitutional.’”
Atlantic: McArdle | GOP Base: Spending Cuts Now, or Never
One thing that I hear over and over from my conservative interlocutors on the budget is that they need spending cuts right now because they just don't trust the Democrats (or indeed the Republicans) to make spending cuts in the future.
