The Intellectual Fallout
The aftermath of the bailout is sure to help bring a whole host of ridiculous arguments to the fore. Here’s one. Evidently, any Social Security reform that allows people to invest their money in the stock market is a bad idea because the market had a bad week. Of course, the market was only down 34 points this week–the news of the bailout prompted a | Read More »
The New Moral Hazard Deal is staggering and appalling in its scope. It promises to get even more staggering and appalling once Congress is finished adding Christmas tree ornaments to it, such as provisions regulating CEO pay–a matter that used to be exclusively the province of shareholders and the board of directors of a particular company, but now is being nationalized by a government that | Read More »
Ben? Hank? You Reading This Stuff?
This is genius. I’m getting rich quick.
Hey, guess what! Contrary to popular opinion, Gramm-Leach-Bliley is not responsible for the current financial crisis. I know that this may come as a shock to all of those people who believe that Phil Gramm is at the root of all evil, but there it is. In other surprising news, John Milton did not give Phil Gramm a role in Paradise Lost as a minion | Read More »
Quotes That Catch My Fancy
No excerpt. Just read this. Those who want to read the Zingales paper without the hassle of dealing with a (short) PDF file need only go here.
Of Silver Linings
If Man. U. really becomes a wholly-owned subsidiary of the United States government (I have to think that the United States government and its various agencies do not need advertising through the uniforms of an English Premier League team–in exchange for getting ad revenues, Man. U. will have to give up control of its team, especially given certain recently established precedents), Chelsea fans like me | Read More »
Shortsighted Crisis Management
So now, the Federal Government is going to take on all mortgage debt in order to bring the credit crisis to an end. The good news is that this is causing a major rally on Wall Street and in financial markets overseas. The bad news is that it is going to make it that much harder to resist the spread of government. The government’s bailout | Read More »
In Which I Go On Another Rhetorical Bender About Regulation
Notice this story. Notice the fact that Democrats are on the rhetorical offensive with claims that if only it weren’t for nasty Republicanses and their deregulatory practices, we wouldn’t be in this mess. And notice that there is little to no Republican pushback whatsoever countering this nonsensical rhetorical point. I have asked before and will again: What kind of magical powers are regulators supposedly endowed | Read More »
The Definition Of Pure Agony
Reading the excerpt in this post and hanging one’s head in shame in response to the U.S. government’s abandonment of free market thinking. We are going to regret this. We are in for a lot more pain than we sought to avoid through these nationalization procedures and we are going to regret all of this in a major way. Just watch.
A Contrarian View On The Fannie Mae/Freddie Mac Bailout
I know that the decision by the Bush Administration to put Fannie Mae and Freddie Mac into government conservatorship is being hailed in corners wide and far as being a splendid decision. Certainly, the move did wonders to rally the stock market today and to cause people to think that the worst of the mortgage crisis may well be over, that credit and mortgage rates | Read More »
I Don’t Like Jon Henke Very Much At All
He done gone and wrote something very smart and equally depressing. Personally, I go for very smart and tremendously cheerful in my choice of reading and if wishing made it so, I would wish and write that Jon Henke is dead wrong in his arguments. But of course, he isn’t. He’s identified the dynamic he discusses quite effectively. It will play out with Swiss watch-precision | Read More »