News
Bloomberg | Government Shutdown Begins as Deadlocked Congress Flails
The U.S. government began its first partial shutdown in 17 years, idling as many as 800,000 federal employees, closing national parks and halting some services after Congress failed to break a partisan deadlock by a midnight deadline.
WSJ | Breakdown Is New Norm in Spending Showdowns
After three years of last-minute deals, delayed decisions, and acrimonious finger pointing, the process for one of Congress's most basic functions—spending money—finally buckled and broke down Monday night.
Bloomberg | Student-Loan Defaults Rise in U.S. as Borrowers Struggle
About one in seven borrowers defaulted on their federal student loans, showing how former students are buckling under higher-education costs in a weak economy.
Econ Comments & Analysis
WSJ | Fiscal Monkey Business
As the budget histrionics continue, both parties are slyly doing what Congress does best—spend more money. We reported last week that the GOP House has already agreed with Senate Democrats to raise spending in 2014 by $19 billion over the Budget Control Act caps—to $986 billion from $967 billion. But now Senate budget experts have identified in the spending bill some $18 billion more of mostly phantom savings from "changes in mandatory spending programs," also known appropriately enough as Chimps.
Washington Times | Bankrupt ideas lead to bankrupt governments
“There is nothing left to cut,” said House Minority Leader Nancy Pelosi last week when referring to the federal budget. Again, she displayed a complete disconnect with reality — a disconnect reinforced by all those other fantasyland souls who make her their leader.
WSJ | Obama's Detroit Bailout
The White House announced on Friday a $320 million bailout, er, aid package for the bankrupt city of Detroit because of "exceptional" circumstances. But to adapt President Obama, every broke city believes in its own exceptionalism, and now others will want a financial infusion too.
