Mr. Fix-It doesn't have a credible plan to fix the economy's biggest problem
What's black and white and red all over? I have no idea. But here's what I do know. Mitt Romney's housing plan is an even worse joke.
It's hard to imagine a bigger vulnerability for Obama than housing. The administration's policy has been too little, too late for too long. To borrow a phrase from Ben Bernanke, it's been a case of self-induced paralysis due to a pair of fears. For one, they were worried about forcing banks to recognize even more losses on mortgages back when the financial system's solvency was far from a sure thing. For another, they were worried about a Rick Santelli-led populist backlash against bailing out "loser" homeowners.
So they went small. Refinancings have barely been a rumor, even after Treasury expanded the program. That's still more than can be said for writedowns. Federal Housing Finance Agency (FHFA) chief Ed DeMarco has blocked those -- and Obama has inexplicably refused to recess appoint his replacement. The result has been a tragedy, both for families and for taxpayers. As the New York Fed pointed out, we would save $134 million for every $1 billion of refinancings thanks to lower default rates. It turns out keeping people in their homes is good for everybody.
In other words, Romney had a big opening to go big on housing. Maybe he would come out for a massive refinancing program, like his top adviser Glenn Hubbard wants. Or maybe he would come out for privatizing the government-sponsored entities (GSEs) Fannie Mae and Freddie Mac.Something. Well, the Romney housing plan certainly is something -- something "laughably vacuous" that is, as Matt Yglesias of Slate justifiably lampoons it.
The Romney housing plan comes in two parts: embarrassing, and more embarrassing. Consider this section about fixing the financial system and the GSEs -- and all, as Brad DeLong points out, in 85 words or less!
End "Too-Big-To-Fail" And Reform Fannie Mae And Freddie Mac. The Romney-Ryan plan will completely end "too-big-to-fail" by reforming the GSEs. The four years since taxpayers took over Fannie Mae and Freddie Mac, spending $140 billion in the process, is too long to wait for reform. Rather than just talk about reform, a Romney-Ryan Administration will protect taxpayers from additional risk in the future by reforming Fannie Mae and Freddie Mac and provide a long-term, sustainable solution for the future of housing finance reform in our country.
There are so many problems crammed into so few words. For starters, too-big-to-fail is not about the GSEs; too-big-too-fail is about Wall Street. In other words, it's about the heads-we-win; tails-taxpayers-lose calculus behind big bank bets. Taking the GSEs off government life support does nothing to fix this. Then, of course, there's the question of what reforming the GSEs means. Romney says he won't "just talk" about it -- which makes sense, since he doesn't talk about it here either. It's anybody's guess what Romney wants to do with Fannie Mae and Freddie Mac.
But there are ways to actually end too-big-to-fail. One way is to tackle the "too big" half of the phrase; the other is to take on the "fail" part. In other words, you can either break up big banks until they are small enough to fail, or create a system where big banks can safely fail. Dodd-Frank tries the latter. Its logic is that even a relatively small bank like Lehman Brothers -- or a hedge fund like Long-Term Capital Management -- can topple the financial system if its counterparties are big and numerous enough. Too-connected-to-fail can be just as much a problem as too-big-to-fail. Now, there's still a political economy argument for breaking up the big banks -- so they aren't quite as powerful -- but it seems clear that we need some sort of resolution authority. Except to Romney. Perhaps. He thinks Dodd-Frank is too complicated -- maybe it is! -- and he thinks its Byzantine structure is holding back the recovery. He wants to repeal and replace it with ... something.
Sensible, Not Overly Complex, Financial Regulation That Gets Credit Flowing Again. By replacing the Dodd-Frank Act with sensible regulation (instead of the 9,000+ pages, and counting, of new rules for financial institutions), a Romney-Ryan Administration will usher in a new era of responsible lending. Sensible regulation will allow banks to approve loans for families with good credit rather than rejecting their mortgage applications. A return to more normal lending standards would produce an estimated 640,000 more home sales and 320,000 jobs next year.
Did you catch that Romney wants to do something sensible? What does that mean? Who knows! Something sensible, probably. What about Romney's claim that nixing Dodd-Frank would add 320,000 jobs in 2013 -- is that a sensible? Not so much. Would you believe it if I told you that number comes from the National Association of Realtors (NAR)? Yup, these guys.
That was from Feburary 2008, two years after housing prices peaked. That uncomfortable reality wasn't lost on NAR when they cut this ad two months later, telling people not to worry about falling prices -- increased affordability! -- because housing tends to double every decade.
I could go on. The point isn't that a self-interested group was epically wrong about a once-in-a-generation housing bust. That's true of plenty of others. The point is that Romney is relying on a self-interested group that has been epically wrong to make the case for his -- albeit, nonexistent -- housing plan. It'd be like listening to this guy about, well, anything.
It didn't have to be this way. Conservative wonks have serious ideas about what to do with housing. Mitt Romney even employs some of them as his top advisers. This ambiguity is even more baffling when you consider our jobs slump is the result of our investment slump, which is itself the result of our residential investment slump. Fix housing and you might fix the economy. Now, housing might already be fixing itself, but helping it out would be great policy -- but equally terrible politics.
Obama isn't the only one afraid of anti-bailout rage. Romney is too. Maybe even more so. After all, Romney is counting on the Santellis of the world to back him. And that's why Mr. Fix-It is running on a housing plan short of an actual plan -- a plan that actually fixes things wouldn't pass the Tea Party's ideological sniff test. It would mean helping out homeowners who might not "deserve" help. As Paul Krugman pointed out, Romney is boxed in. He feels like he has to kowtow to the base, but the base does not want to kowtow to the reality of what it will take to get the economy moving again.
Romney is running as an economic expert, but his economic plans either do not add up or do not exist. That leaves him with little more than magical thinking. The joke's on us.
In a new model of living, residents will have their own “microunits” built around a shared living space for cooking, eating and hanging out.
SYRACUSE—This office looks like a pretty typical co-working space, what with the guy with a ponytail coding in one corner, the pile of bikes clustered in another, and the minimalist desks spread across a light-filled room. Troy Evans opened this space, CoWorks, in a downtown building here in February.
Coworking is probably a familiar concept at this point, but Evans wants to take his idea a step further. On Friday, on the top two floors of the building, he’s starting construction on a space he envisions as a dorm for Millennials, though he cringes at the word “dorm.” Commonspace, as he’s calling it, will feature 21 microunits, which each pack a tiny kitchen, bathroom, bedroom, and living space into 300-square-feet. The microunits surround shared common areas including a chef’s kitchen, a game room, and a TV room. Worried about the complicated social dynamics of so many Millennials in one living unit? Fear not, Evans and partner John Talarico are hiring a “social engineer” who will facilitate group events and maintain harmony among roommates.
In the age of the digital hermit, a psychologist explains what it means to avoid other people—and what to do about it.
People today might not actually be avoiding social interaction any more than they did in past decades, but they’re certainly more vocal about it. The rise of digital communication seems to be spawning a nation of indoor cats, all humble-bragging about how introverted they are and ordering their rides and groceries without ever talking to a human.
Sometimes reclusiveness can be a sign of something more serious, though. Social anxiety is one of the most common mental illnesses, but it’s still poorly understood outside of scientific circles. The good news is that it’s highly treatable, according to Stefan G. Hofmann, the director of the Social Anxiety Program at Boston University.
I recently talked with Hofmann about how social anxiety works and what people who feel socially anxious can do about it. An edited transcript of our conversation follows.
What do we actually know about the candidate’s health?
Cameras rolling, Manhattan gastroenterologist Harold Bornstein was confronted last week with a letter that carried his signature. In that letter, the writer “state[d] unequivocally” that Donald Trump “will be the healthiest individual ever elected to the presidency.”
Donald Trump would be the oldest individual ever elected to the presidency. He sleeps little and holds angry grudges. He purports to eat KFC and girthy slabs of red meat, and his physique doesn’t suggest any inconsistency in this. His health might be fine, but a claim to anything superlative feels off.
Bornstein might have jumped on that opportunity to get out of this mess—to say that Trump had dictated the letter, and Bornstein only signed it. Or that Trump had at least suggested phrases. Because it’s not just the facts of Trump’s life that don’t add up, but the linguistics of the letter.
The San Francisco quarterback has been attacked for refusing to stand for the Star Spangled Banner—and for daring to criticize the system in which he thrived.
It was in early childhood when W.E.B. Du Bois––scholar, activist, and black radical––first noticed The Veil that separated him from his white classmates in the mostly white town of Great Barrington, Massachusetts. He and his classmates were exchanging “visiting cards,” invitations to visit one another’s homes, when a white girl refused his.
“Then it dawned upon me with a certain suddenness that I was different from the others; or like, mayhap, in heart and life and longing, but shut out from their world by a vast veil. I had thereafter no desire to tear down that veil, to creep through; I held all beyond it in common contempt, and lived above it in a region of blue sky and great wandering shadows,” Du Bois wrote in his acclaimed essay collection, The Souls of Black Folk. “That sky was bluest when I could beat my mates at examination-time, or beat them at a foot-race, or even beat their stringy heads.”
Practices meant to protect marginalized communities can also ostracize those who disagree with them.
Last week, the University of Chicago’s dean of students sent a welcome letter to freshmen decrying trigger warnings and safe spaces—ways for students to be warned about and opt out of exposure to potentially challenging material. While some supported the school’s actions, arguing that these practices threaten free speech and the purpose of higher education, the note also led to widespread outrage, and understandably so. Considered in isolation, trigger warnings may seem straightforwardly good. Basic human decency means professors like myself should be aware of students’ traumatic experiences, and give them a heads up about course content—photographs of dead bodies, extended accounts of abuse, disordered eating, self-harm—that might trigger an anxiety attack and foreclose intellectual engagement. Similarly, it may seem silly to object to the creation of safe spaces on campus, where members of marginalized groups can count on meeting supportive conversation partners who empathize with their life experiences, and where they feel free to be themselves without the threat of judgment or censure.
In the name of emotional well-being, college students are increasingly demanding protection from words and ideas they don’t like. Here’s why that’s disastrous for education—and mental health.
Something strange is happening at America’s colleges and universities. A movement is arising, undirected and driven largely by students, to scrub campuses clean of words, ideas, and subjects that might cause discomfort or give offense. Last December, Jeannie Suk wrote in an online article for The New Yorker about law students asking her fellow professors at Harvard not to teach rape law—or, in one case, even use the word violate (as in “that violates the law”) lest it cause students distress. In February, Laura Kipnis, a professor at Northwestern University, wrote an essay in The Chronicle of Higher Education describing a new campus politics of sexual paranoia—and was then subjected to a long investigation after students who were offended by the article and by a tweet she’d sent filed Title IX complaints against her. In June, a professor protecting himself with a pseudonym wrote an essay for Vox describing how gingerly he now has to teach. “I’m a Liberal Professor, and My Liberal Students Terrify Me,” the headline said. A number of popular comedians, including Chris Rock, have stopped performing on college campuses (see Caitlin Flanagan’s article in this month’s issue). Jerry Seinfeld and Bill Maher have publicly condemned the oversensitivity of college students, saying too many of them can’t take a joke.
People can get addicted to almost any product. Do manufacturers have a responsibility to stop them?
“A day doesn’t go by that I don’t see people come in with Q-tip-related injuries,” laments Jennifer Derebery, an inner-ear specialist in Los Angeles.
And yet there’s a scary warning on every box of Q-tips. It reads, “CAUTION: Do not enter ear canal. … Entering the ear canal could cause injury.” How is it that the one thing most people do with cotton swabs is also the thing manufacturers explicitly warn them not to do? It’s not just that people do damage to their ears, it’s that they keep doing damage.
Some even call it an addiction. On an online forum, Q-tip user associates ear swabbing with dependency: “How can I detox from my Q-tips addiction?” MADtv ran a classic sketch on a daughter having to hide Q-tip use from her parents like a junkie.
In its early days, the first English settlement in America had lots of men, tobacco, and land. All it needed was women.
“First comes love, then comes marriage,” the old nursery rhyme goes, but historically, first came money. Marriage was above all an economic transaction, and in no place was this more apparent than in the early 1600s in the Jamestown colony, where a severe gender imbalance threatened the fledgling colony’s future.
The men of Jamestown desperately wanted wives, but women were refusing to immigrate. They had heard disturbing reports of dissension, famine, and disease, and had decided it simply wasn’t worth it. Consequently, barely a decade after its founding in 1607, Jamestown was almost entirely male, and because these men were unable to find wives, they were deserting the colony in droves.
An immediate influx of women was needed to save the floundering colony; its leaders suggested putting out an advertisement targeting wives. The women who responded to this marital request and agreed to marry unknown men in an unfamiliar land were in a sense America’s first mail-order brides.
Education experts offer their thoughts on how—if at all—schools should assign, grade, and use take-home assignments.
This is the third installment in our series about school in a perfect world. Read previous entries on calendars and content.
We asked prominent voices in education—from policy makers and teachers to activists and parents—to look beyond laws, politics, and funding and imagine a utopian system of learning. They went back to the drawing board—and the chalkboard—to build an educational Garden of Eden. We’re publishing their answers to one question each day this week. Responses have been lightly edited for clarity and length.
Today’s assignment: The Homework. Will students have homework?
Rita Pin Ahrens, thedirector of education policy for the Southeast Asia Resource Action Center
Homework is absolutely necessary for students to demonstrate that they are able to independently process and apply their learning. But who says homework has to be the same as it has been? Homework might include pre-reading in preparation for what will be covered in class that day, independent research on a student-chosen topic that complements the class curriculum, experiential learning through a volunteer activity or field trip, or visiting a website and accomplishing a task on it. The structure will be left to the teachers to determine, as best fits the learning objective, and should be graded—whether by the teacher or student. Students will be held accountable for their homework and understand that it is an integral part of the learning process.
How will the show maintain its charm while unraveling its mysteries?
Stranger Things will return in 2017 for a second season with nine episodes by original writers/directors Matt and Ross Duffer, Netflix announced today. The news is about as unsurprising as, say, the idea that four Dungeons and Dragons-playing nerds in 1983 would be bullied at school. But it’s also an intriguing development—not unlike the revelation of an alternate dimension that resembles our own but has unfriendly plant-headed monsters roaming about.
The first eight episodes of the nostalgia-soaked sci-fi saga became the unpredicted breakout pop-culture conversation piece of summer 2016, spawning memes online and faux funerals in real life. Netflix doesn’t reveal viewership numbers, but this week the independent data-measurement company Symphony Advanced Media estimated that the series drew an average of 14.07 million adults age 18-49 in the first 35 days of streaming. That would make it the second most-watched Netflix original of 2016, just behind Fuller House and the latest Orange Is the New Black season, both of which (unlike Stranger Things ) arrived with established fan bases. Netflix’s business model relies on shows doing exactly what Stranger Things has done: draw buzz to lure subscribers.