Tim Geithner, Secretary of Nationalization
Rewarding failure is not just for Wall Street anymore. Treasury Secretary Tim Geithner has done such an uninspiring job over the past few weeks that many in Congress have called for his head. Much like Wall Street where Washington, D.C. is rewarding failure with big bonuses and massive multi-billion dollar bailouts, the Obama Administration is following the “rewarding failure” strategy by putting forth a proposal | Read More »
Real AIG/Wall Street Solution – Shore Up Accountants
Douglas Poling, Joseph Cassano & Bernie Madoff vs. Joseph St. Denis & David Friehling The time has come for the members of the FASB to be appointed by the Federal Reserve. In the Wall Street Journal on Friday, March 20 the first paragraphs of an article titled, “Lawyer at Center of Troubled Unit Got Top Bonus” paints the picture of Wall Street and Washington’s (DC) | Read More »
AIG’s Problems Started With Liberal Regulation
This morning President Obama had a photo and Q&A session right before he left the Whitehouse for a flight out to the Left Coast to appear on Jay Leno’s show. He said something about AIG that was just plain-outright wrong! He said the reason for American International Group Inc.’s failure was the lack of government regulation. The regulators should have been able to prevent AIG | Read More »
The Fairness Doctrine fight is not over
Adam Theirer, a scholar at the Progress and Freedom Foundation, notes that the Fairness Doctrine was part of a regulatory paradigm being pushed by the left and, in particular, the group Free Press. This fight is not over. Adam’s piece is worth reading: Of course, the radicals at the (Un)Free Press weren’t about to let one of the Left’s old favorite regulations go so away | Read More »
Is More Regulation the Answer?
Regulation. We’re told that it would have saved us from this and that event associated with the current economic downturn. Well, probably not. First off, remember that we have had regulation during this period. Clinton upped regulatory oversight of businesses; so did Bush. Next, the mere fact that there are regulations doesn’t make them effective. Take Bernard Madoff. What Madoff engaged in was a swindle | Read More »
Bush Drops Out of Marathon at 26.1 Miles
Last year in a speech at Heritage, President Bush proudly proclaimed: “I’m looking forward to working with you for the next 14 months, but you better put on your running shoes because my spirits are high, my energy level is good and I’m sprinting to the finish line.” Judging from his administration’s recent actions, Bush is crawling, and certainly not sprinting. My calendar shows there | Read More »
Is Bureaucracy the Right Prescription?
This afternoon on Bloomberg Radio, Charlie Stein talked with Laurence Kotlikoff, professor at Boston University and President of Economic Security Planning Inc. The discussion was primarily framed around an article that Dr. Kotlikoff penned for Bloomberg yesterday, where he introduces his recommendation for a medium-term solution to ensuring “safe” assets make it to the markets, rather than the toxic ones that have gotten us where | Read More »
Shifting The Tone In Financial Markets
I’ll go out on a ledge and say that the financial world has taken a step back from the ledge. A semblance of non-insanity has been apparent in capital and bond markets this week. Now that governments across the world have made credible commitments to prevent financial meltdown (defined broadly as chains of insolvencies among tightly-interconnected counterparties), the violent panic attacks of last week have | Read More »
Bill Clinton tells Obama to Sit Down and Shut Up, Again
The stars moon and sun must be aligned because I actually agree with Bill Clinton on something (via WSJ ); A running cliché of the political left and the press corps these days is that our current financial problems all flow from Congress’s 1999 decision to repeal the Glass-Steagall Act of 1933 that separated commercial and investment banking. Barack Obama has been selling this line | Read More »
So, what’s next?
Monday was an historical day for taxpayers. 228 Representatives, both Democrats and Republicans, said no to the outrageous H.R. 3997, a.k.a. $700 bi unconstitutional, socialist bailout scheme. What’s going to happen next?
Government oversight – As “all wet” as bottled water
Exhibit #65,537 as to why government oversight results in behavior that defies logic: California investigates planned bottle water plant – for global warming reasons. For those of you wondering, yes, I am well aware that bottled water has quickly become the bête noire of the environmental movement, and that can be understood. If there are local concerns about what a water diversion plan of this | Read More »