Finance & Banking:

Assigning Blame as if We Understand the Economy

Assigning Blame as if We Understand the Economy

Robert Samuelson writes in today’s Oregonian about the Obama Administration’s law suit against Standard & Poors.  If we can prove that S&P contributed to the economic crisis, we should have known enought to take measures to avoid the harm.  t’s always easier to blame than to take responsibility

The Next Four Years of Fiscal Conservatism: What Can Be Done to Sustain the Nation

The Next Four Years of Fiscal Conservatism: What Can Be Done to Sustain the Nation

Writing at e21: Economic Policies for the 21st Century (economics21.org), Charles Blahous, James Capretta and David Malpass explain what needs to be done to save Social Security, reform health care and entitlement policy, and achieve an effective monetary policy.

Understanding Ben Bernanke

Understanding Ben Bernanke

Rare footage of Federal Reserve Chairman Ben Bernanke’s childhood has recently surfaced . . . < http://i.imgur.com/XaiUx.gif>

The Democrats’ GM Fiction

The Democrats’ GM Fiction

Originally published at National Review — September 10, 2012 — (for a related story on the impossible math of the GM Volt, see Reuters here.) The Democrats have decided to run in 2012 as the bailout party. It is an odd choice — the 2008–09 bailouts were deeply unpopular among the general public, and even […]

Is the Federal Reserve a Systemic Risk?

Is the Federal Reserve a Systemic Risk?

Alex Pollack writing at AEI.org thinks so.  Read Pollack’s interesting argument here.

Unintended Consequences of Regulation

Unintended Consequences of Regulation

Government regulations always have unintended consequences.  Some cannot be anticipated.  Others can be because many regulation create what economists call “moral hazards.”  One such moral hazard is that “too big to fail” institutions under newly issued Dodd-Frank regulations will make riskier investments and get capital at below market rates because they and their investors know […]

J.P. Morgan Redux

J.P. Morgan Redux

Oregon Senator Jeff Merkley writes in today’s Oregonian that the J.P. Morgan trading loss provides 2 billion reasons for more regulation of the banking and financial industries.  On the same page, Washington Post columnist Robert J. Samuelson explains why — in “four propositions that defy conventional wisdom” –,Merkley is wrong.

Sometimes, People Invest and Lose Money

Sometimes, People Invest and Lose Money

$2 billion is a lot of money.  Enough to get the regulator’s juices pumping.  Treasury Secretary Timothy Geithner says the J.P. Morgan $2 billion trading loss is evidence of the need for more regulation of banks and the financial sector.  Jonathan Macey, writing in the Wall Street Journal, and Peter J. Wallison, writing in USA […]

Will Senate Pass Jobs Act?

Will Senate Pass Jobs Act?

Originally published at Politico — 2/22/12 – An end to the regulatory state? – by Jonathan Macey, Yale law professor and member of Hoover Institution Task Force on Property Rights, Freedom and Prosperity – Once in a while, it appears that Congress might actually pass a constructive law and the president may sign it. But […]

Geithner Defends the Bailouts on His Way Out

Geithner Defends the Bailouts on His Way Out

Writing in Investor’s Business Daily, Vern McKinley, research fellow at the Independent Institute and author of the new book, “Financing Failure: A Century of Bailouts,” reaches the following conclusion about Secretary of Treasury Timothy Geithner’s bailout of Bear Stearns: “Ultimately, the final judgment about Secretary Geithner’s bailout strategies will be inexorably tied to the political […]

$7.7 trillion Congress didn’t know about

$7.7 trillion Congress didn’t know about

The Daily Caller reports on Federal Reserve loans totalling $7.77 trillion made without Congress’ knowledge.  So who’s running the country?

A Constitution Scholar for the Fed

A Constitution Scholar for the Fed

Writing in today’s Wall Street Journal, Seth Lipsky argues for having a Federal Reserve Board member who understands the constitutional authority of the Fed. In this day of “whatever-it-takes” government, Lipsky’s view is much in need.

GOP isn’t buying Obama’s debt limit pitch

05/19/11 by Jonathan Allen & Jake Sherman, Politico. RICHMOND, Va. — House Republican leaders have spent a lot of time lately assuring Wall Street that they understand the calamitous consequences that would result from a default on the nation’s debt… Read more…

Wall Street Reform Act Misses the Mark

Wall Street Reform Act Misses the Mark

With the economy showing signs of recovery and Congress looking to the challenges of agreeing to a budget that does not contribute further to the rapidly growing national deficit, news and commentary about last year’s financial regulation reforms have been relegated to the back pages, if not disappeared altogether. In a commentary for Politico, Yale […]