Topic: Regulation

“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 …


“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 …


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 …


“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 …


“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 …


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 …


“Break Up the Banks”

– March 29, 2010

“Big banks are bad for free markets. Far from being engines of free enterprise, they are conducive to what might be called ‘crony capitalism,’ ‘corporatism,’ or, in Jonah Goldberg’s provocative phrase, ‘liberal fascism.’ There is a free-market case for …


“Bailout Bonanza”

– March 22, 2010

“Sen. Chris Dodd’s latest bill to fix the financial system is another failure. After months of negotiation, he’s produced a “reform” of the regulatory system that simply fails to deal with the causes of the 2008 crisis — which nearly saw the collapse …


“Placing our faith in economic oracles”

– March 18, 2010

“One of the sadder categories in the history of human misfortunes is the list of those things that are obvious, but wrong. By definition, if something is obvious, most people agree with it, and thus, it is likely to win the day – but lose the verdict o …


“More Muscle to Fed”

– March 15, 2010

“Mr. Dodd’s bill would allow the Fed to examine any bank-holding company with more than $50 billion in assets, and large financial companies that aren’t banks could be lassoed into the Fed’s supervisory orbit. This came after Treasury officials pushed …


Change Policy, Not Blame

– January 22, 2010

The Obama administration thinks it has found the cure all for its economic woes. The solution: regulate, restrict and play God in the economy. (Not exactly a new strategy for government.) In usual fashion, government regulations and Fed policies bring …


Price “Stability” for Venezuela

– January 13, 2010

In something of a reversal of the usual government policies to keep prices high, the government of Venezuela is going to great lengths to keep prices low, even in the face of inflation. According to CNN, The Venezuelan bolivar currency, which had been …