The JJW Blog

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As Asia boomed, a glut of global savings emerged—in China, in other exporting countries, and later in oil exporting states. Because there was a dearth of government-backed, dollar-dominated investment vehicles, global savings poured into the dubious schemes of U.S. mortgage bundlers—prime, subprime, and otherwise. What if there had been a federally-chartered U.S. infrastructure bank or similar vehicle offering relatively safe investments with returns at least a little better than Treasuries, and what if the capital raised from such a bank had been invested into roads, broadband, and a renewable-energy-supporting-electricity grid? We might now be further down the road Obama now apparently wants to travel.