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These are the personal views of Peter Morici, a professor at the University of Maryland’s Robert H. Smith School of Business and former chief economist at the U.S. International Trade Commission:

By appointing Bill Daley Chief of Staff, President Barack Obama hopes to present a centrist face to voters skeptical about his commitment to free enterprise.

Don’t be fooled. Deeper in the administration, the president’s electricians are busily rewiring U.S. capitalism for failure.

The recent crisis was caused by a huge international trade deficit, massive foreign borrowing and shoddy Wall Street practices.

From 2004 to 2008, Americans spent and consumed 5% more than they produced and earned, scarfing up electronic devices made in China, Middle East oil and houses whose mortgages they couldn’t afford. The Chinese and Middle East royals bought U.S. bonds and other securities with the dollars not spent on U.S. exports, and Wall Street banks recycled those to consumers through first and second mortgages.

These are the personal views of Peter Morici, a professor at the University of Maryland’s Robert H. Smith School of Business and former chief economist at the U.S. International Trade Commission:

Americans have the economy scoped.

Polls indicate they sense the economy growing again, but many more believe the job market is getting worse than see it improving.

Over the next three years, the economy must create nearly 13 million jobs to bring unemployment down to 5%–still higher than pre-recession levels. That requires 360,000 jobs every month and economic growth at 5% a year.

After a deep recession, robust growth is possible if businesses have enough customers and capital, but President Obama’s policies don’t address the underlying causes of the Great Recession. Neither enough demand nor financing are forthcoming.

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These are the personal views of Peter Morici, a professor at the University of Maryland’s Robert H. Smith School of Business and former chief economist at the U.S. International Trade Commission:

Goldman Sachs, J.P. Morgan and other big Wall Street banks are awarding multi-million dollar bonuses to the same financiers who pushed the nation to the brink of financial ruin.

President Barack Obama voices outrage but fails to stem the abuse.

Wall Street leaders argue those bonuses were earned, much like jewel thieves refer to a big heist snatched from an impenetrable safe.

Wall Street has kept its mischief legal by salting the pockets of politicians running for Congress and president, and by making certain that key policy makers at the Treasury Department and the Federal Reserve are faithful Goldman Sachs alumni. Continue reading…

These are the personal views of Peter Morici, a professor at the University of Maryland’s Robert H. Smith School of Business and former chief economist at the U.S. International Trade Commission:

Wall Street greed and irresponsibility have nearly destroyed the U.S. economy. Big bonuses for bankers encourage reckless risk taking and were a principal cause of the credit crisis and Great Recession.

Pay must be regulated to avoid another calamity.

A generation ago, banks took deposits, made loans and collected payments. Bankers quickly felt the consequences of money lent to folks unlikely to repay.

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These are the personal views of Peter Morici, a professor at the University of Maryland’s Robert H. Smith School of Business and former chief economist at the U.S. International Trade Commission:

Like a boxer staggering to its feet, the U.S. economy is recovering.

Since May, real consumer spending has been gradually rising. Technology spending is looking up, as computers age and Asian growth pulls demand for sophisticated components. New home construction is showing new life.

These will permit 2% GDP growth in the second half of 2009, but a second credit squeeze could knock down the economy again.

Regional banks are in a sorry state, laboring under failing commercial loans. Through August 2008, the FDIC closed or merged 83 banks into stronger institutions and 400 more banks are on the critical list. Continue reading…

By Neal Lipschutz
   A DOW JONES NEWSWIRES COLUMN 

The resignation of Eric Schmidt, the chief executive officer of Google Inc. (GOOG), from the board of directors of Apple Inc. (AAPL) is just a glaring example of a poor industry practice. Currently serving CEOs should not be board members of other public companies.

In the Schmidt/Apple affair it took head-on competition in some areas between the two companies before the announced mutual decision that Schmidt should take his leave. Dow Jones Newswires also noted there has been a Federal Trade Commission look at the boards of Apple and Google, as they not only shared Schmidt as a member on both but also Genentech Inc. (DNA) Chairman Arthur Levinson.

Apple CEO Steve Jobs thanked Schmidt for being “an excellent board member,” but added, “as Google enters more of Apple’s core businesses, with Android and now Chrome OS, Eric’s effectiveness as an Apple board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest.”

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