The Great Divide: global income inequality and its cost

Surging income inequality has turned the United States into one of the most divided developed economies on the planet.

The US is leading a global trend that economists warn has dire consequences.

For our special report on “The Great Divide,” GlobalPost journeyed from Brazil to Thailand, and back home to Fairfield County, Connecticut and Selma, Alabama, to get at the “ground truth” of global income inequality and its cost.

In cities around the world, the gap between the rich and the poor is widening.

And in each of these cities, that growing inequality comes with a cost.

The greatest cost is the political and economic instability that accompanies vast disparities of wealth, Nobel Prize-winning economist Joseph Stiglitz told GlobalPost, using the United States as an example.

“We are paying a very high economic price for this inequality – our economy is less productive and efficient,” Stiglitz said. “We are also paying a price in terms of our politics and our society — inequality is undermining our democracy and our basic values.”

Continue reading “The Great Divide: global income inequality and its cost”

U.S. Accuses Bank of America of a ‘Brazen’ Mortgage Fraud |

Five years after the housing market crumbled, government officials are still trying to assign blame for the problems that fueled the mortgage boom and bust.

On Wednesday, federal prosecutors in New York took aim at Bank of America. They accused it of carrying out a scheme, started by its Countrywide Financial unit, that defrauded government-backed mortgage agencies by churning out loans at a rapid pace without proper controls. In a civil suit, prosecutors seek to collect at least $1 billion in penalties from the bank as compensation for the behavior that they say forced taxpayers to guarantee billions in bad loans.

For more on this story, visit: U.S. Accuses Bank of America of a ‘Brazen’ Mortgage Fraud –

Proudly powered by WordPress | Theme: Baskerville 2 by Anders Noren.

Up ↑