Quantcast
Connect with us

‘Warning lights are flashing,’ says Elizabeth Warren, detailing plan to stave off impending financial crisis

Published

on

Democratic presidential hopeful warns of “a number of serious shocks on the horizon that could cause our economy’s shaky foundation to crumble.”

“Warning lights are flashing,” Sen. Elizabeth Warren wrote Monday, predicting an economic crisis within two years unless federal regulators and Congress take swift action.

ADVERTISEMENT

The Democratic presidential contender outlined the reasons for her concerns and plans to address them in Medium post entitled “The Coming Economic Crash—And How to Stop It.”

As she did in the years leading up to the 2008 economic crisis, Warren now sees “a lot to worry about again.” According to the Massachusetts Democrat, there are “a number of serious shocks on the horizon that could cause our economy’s shaky foundation to crumble.”

“The country’s economic foundation is fragile. A single shock could bring it all down,” she wrote. “And the Trump administration’s reckless behavior is increasing the odds of just such a shock.”

ADVERTISEMENT

Among the potential triggers she laid out is the level of household debt. Warren referenced recent data showing that household debt is now $869 billion higher than the $12.68 trillion peak it hit in 2008.

To remedy that, she cued up several of her already-released plans, including raising the minimum wage to $15 an hour, canceling most student loan debts, offering free public higher education, and making child care affordable.

ADVERTISEMENT

She also called on federal regulators to swiftly address the potential shock that lies in leveraged corporate lending. “Leveraged lending—lending to companies that are already seriously in debt—has jumped by 40 percent since Trump took office, spreading ‘systemic risk’ throughout our financial system,” wrote Warren.

Federal regulators, she wrote, should “enforce leveraged lending guidance that is intended to stop banks from issuing these risky loans in the first place.”

Warren also cited the current manufacturing recessions—a problem she said could be flipped by enacting her Green Manufacturing Plan.

ADVERTISEMENT

Inoculating the economy from “potential shocks” also will happen by “strengthening critical American industries, instead of undercutting American companies” and eliminating the debt ceiling, she wrote.

A crisis could be averted, wrote Warren, “if we take bold action now to address the underlying problems in the economy.”

Warren’s new plan rollout came the same day as Democracy for America’s latest straw poll showedher closing in on Bernie Sanders’s lead among the progressive group. The Vermont senator notched just over 32 percent to Warren’s roughly 26 percent, both well ahead of third place Kamala Harris’s 12 percent. The group’s previous survey in April showed Sanders as the frontrunner and with a 30-point lead over Warren.

ADVERTISEMENT

by

Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and legal efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. And unlike other news outlets, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from billionaires and corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you. Click to donate by check.

Enjoy this piece?

… then let us make a small request. Like you, we here at Raw Story believe in the power of progressive journalism — and we’re investing in investigative reporting as other publications give it the ax. Raw Story readers power David Cay Johnston’s DCReport, which we've expanded to keep watch in Washington. We’ve exposed billionaire tax evasion and uncovered White House efforts to poison our water. We’ve revealed financial scams that prey on veterans, and efforts to harm workers exploited by abusive bosses. We’ve launched a weekly podcast, “We’ve Got Issues,” focused on issues, not tweets. Unlike other news sites, we’ve decided to make our original content free. But we need your support to do what we do.

Raw Story is independent. You won’t find mainstream media bias here. We’re not part of a conglomerate, or a project of venture capital bros. From unflinching coverage of racism, to revealing efforts to erode our rights, Raw Story will continue to expose hypocrisy and harm. Unhinged from corporate overlords, we fight to ensure no one is forgotten.

We need your support to keep producing quality journalism and deepen our investigative reporting. Every reader contribution, whatever the amount, makes a tremendous difference. Invest with us in the future. Make a one-time contribution to Raw Story Investigates, or click here to become a subscriber. Thank you.



Report typos and corrections to: [email protected]. Send news tips to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

2020 Election

‘Part of me wanted to leave’: Lone attendee of Steve King town hall turns out to be a ‘hungover’ Democrat

Published

on

Rep. Steve King (R-IA) is being told to resign by members of his own party who are tired of his overt racism. While many Republicans might exhibit racist tendencies and make apologies for the president's racism, King says things out loud the GOP would just assume he keep quiet on. The true test, however, comes from King's own district and whether or not they're willing to reelect him in November.

The key revelation came at a recent townhall King held, where the only person who attended was a hungover Democrat. The Iowa Starting Line reported the pathetic event, where it seemed more members of the press were willing to show up than actual constituents.

Continue Reading

Facebook

‘I’m the one who calls the shots’: Trump rails against Fox News for giving him ‘his worst polls’

Published

on

President Donald Trump explained why Fox News has drawn his ire and that they need to realize he's the one in control of them.

In a conversation on the tarmac in Morristown, New Jersey on his way back to Washington, Trump said that Fox News has not been good to him lately.

"Fox is a lot different than it used to be, I can tell you that," Trump said.

In an earlier Twitter rant, the president went off on Juan Williams for being "nasty and wrong."

Continue Reading
 

Facebook

Trump explains why he wants to buy Greenland to reporters: ‘It’s a large real estate deal — a lot can be done’

Published

on

President Donald Trump reaffirmed his desire to buy Greenland in discussion with reporters Sunday.

The president was returning to Washington, D.C. when he stopped at the airport in Morristown, New Jersey. New York Times reporter Maggie Haberman asked the president about his desire to buy the country from Denmark.

"Greenland, I don't know. It got released somehow," Trump said of the news about his desire to buy the country. "It's something we talked about. Denmark essentially owns it. We're very good allies with Denmark. We protect Denmark like we protect large portions of the world. So the concept came up, and I said, strategically, it's interesting. And we'd be interested. We'll talk to them a little bit. It's not number one on the burner; I can tell you that."

Continue Reading
 
 

Thank you for whitelisting Raw Story!

As a special thank you, from now until August 31st, we're offering you a discounted rate of $5.99/month to subscribe and get ad-free access. We're honored to have you as a reader. Thank you. :) —Elias, Membership Coordinator
LEARN MORE
close-link
close-image