JP Morgan Losses and Systemic Risk

Edward V. Murphy in a new Congressional Research Service report reveals that Congress will be examining JP Morgans trades involving complex financial instruments. "What Is Systemic Risk? Does It Apply to Recent JP Morgan Losses?" defines systemic risk and discusses a number of policy responses to it.

Long-Term U.S. Budget Outlook

The Congressional Budget Office (CBO) has released The 2012 Long-Term Budget Outlook complete with a summary, supplemental data, and an infographic. The CBO predicts that the federal debt will reach approximately 70 percent of gross domestic product (GDP) by the end of 2012, "the highest percentage since shortly after World War II."  The report presents two possible scenarios (extended baseline and extended alternative fiscal scenario) about federal revenues and spending  and corresponding budgetary outcomes.