Glenn and Larry discuss the LIBOR rate-fixing scandal. Larry gets into the details about how LIBOR works, lamenting a lack of transparency in the gigantic global financial derivatives market. Larry tells how his visit to the Goldman Sachs trading floor made him sick to his stomach. They use the Tylenol drug tampering crisis to explicate our banking woes. Larry explains why leverage plus opacity plus limited liability is a formula for perpetual financial crisis, and recommends creating a financial version of the FDA to certify the “health” of financial instruments. Glenn and Larry outline why banking is different than any other kind of business.
On Fireside Chats, Mike talks to Michael Grunwald about his new book, The New New Deal. What was actually in President Obama’s stimulus bill? Despite conservative criticism of Solyndra, Michael defends Obama’s investments in clean energy. To what extent was the stimulus designed with Obama’s broader policy agenda in mind? Mike asks about a range of liberal critiques of the bill. Has Obama created a new social contract comparable to FDR’s New Deal?
On Foreign Entanglements, Matt and Meir discuss the new IAEA report on Iran’s nuclear program. Meir is concerned that war with Iran has become an identity issue for some Americans. Turning to the recent Non-Aligned Movement conference in Tehran, they discuss the surprising roles of Ban Ki-moon and Egyptian President Mohamed Morsi. Matt argues that Obama’s strategy of diplomatic engagement at the UN has been vindicated. Is Israel or the US ever likely to bomb Iran? Matt worries that the tension between US and Israeli red lines increases the risk of war.
On Adamize, Adam and Dan discuss the GOP convention in Tampa. Can Ann Romney humanize her husband, or should she just portray him as a job-creating robot? Dan recounts how the pro-life movement disowned Todd Akin, and Adam explains why rape exceptions for abortion are a tricky issue for Republicans. Gay and lesbian Republicans may be an awkward fit for the GOP convention, but Dan reports that they’re making themselves known. Finally, Adam argues that Ann Romney’s favorite TV show, Modern Family, proves that the gay rights movement is destined for victory.