Lessons Unlearned

– July 2, 2010

On Wednesday, I posted a link to F.A. Hayek’s “The Use of Knowledge in Society”. Like Leonard Read’s “I, Pencil”, Hayek’s knowledge paper explains why it is impossible for an economy to be centrally planned. I have mentioned this idea in earlier posts, …

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“The Use of Knowledge in Society”

– June 30, 2010

“The peculiar character of the problem of a rational economic order is determined precisely by the fact that the knowledge of the circumstances of which we must make use never exists in concentrated or integrated form but solely as the dispersed bits o …

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“Text of Dodd-Frank Wall Street Reform and Consumer Protection Act”

– June 28, 2010

“A summary of the Dodd-Frank Wall Street Reform and Consumer Protection Act, released Saturday by the House Financial Services Committee. The legislation is expected to come before Congress next week for a final vote. 1. Dodd-Frank Wall Street Reform a …

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What Financial Re-Regulation?

– June 3, 2010

“In two weeks, I am supposed to speak on a panel entitled “Financial Re-regulation.” My question is, what re-regulation? To me, re-regulation means you would reverse some step that you took toward deregulation. But the new financial reform bill does no …

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“Financial Reform Bill is a ‘Disaster’: Sen. Gregg”

– May 25, 2010

“The financial regulatory bill is a “disaster,” and its proposed consumer protection agency would create a Fannie and Freddie “on steroids,” Sen. Judd Gregg, R-N.H. told CNBC on Monday. “The bill is a disaster because it doesn’t address the fundamental …

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“Can the Government Regulate Inflation?”

– May 20, 2010

“In a recent column, Nobel Prize winning economist Paul Krugman claimed that the government needs to have two important duties in finance. First, it must keep interest rates low; second, it must strictly regulate where the newly created money goes. Now …

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“Gambling with Other People’s Money”

– May 3, 2010

“Beginning in the mid-1990s, home prices in many American cities began a decade-long climb that proved to be an irresistible opportunity for investors. Along the way, a lot of people made a great deal of money. But by the end of the first decade of the …

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“A Three-Point Plan to Save the Euro”

– April 30, 2010

“The rescue package requested by Greece will, if endorsed, buy the eurozone six months, perhaps a year at most. By then, the Greek government will have exhausted the aid and be forced to ask for more or to borrow at astronomical rates. This assumes tha …

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An Economy of Liars

– April 20, 2010

Free markets depend on truth telling. Prices must reflect the valuations of consumers; interest rates must be reliable guides to entrepreneurs allocating capital across time; and a firm’s accounts must reflect the true value of the business. Rather tha …

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“Fed Kohn Paper: Crisis Early Warning Requires Better Data”

– April 20, 2010

“While, in hindsight, some of the data available to the Federal Reserve and other authorities gave notice of the financial crisis, more data and a different approach to analyzing them are needed if a reliable ‘early warning system’ for future crises is …

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“Irresponsible lending prohibited by OTF”

– April 1, 2010

“The new requirements form part of new guidance from the Office of Fair Trading (OFT) to counteract irresponsible lending. ‘[We] expect all consumer credit businesses to fully comply with both the word and spirit of this guidance,’ the OFT said. The re …

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Obama’s Mortgage Plan Won’t Bring Relief

– March 31, 2010

“Alan Greenspan, Ben Bernanke, and the rest of the crew running economic policy somehow could not see the housing bubble as it grew to more than $8tn. It really should have been hard to miss. Nationwide house prices had just tracked overall inflation f …

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