“Pretty soon we’ll get to the point where almost everything in this economy of ours is booming: All over sunny San Diego, tough economic times have forced people to cut back on their $4 lattes and sushi dinners. But one…”
via Marginal Revolution
“I’m all for bank capitalization but the problem is this: the Fed has been lending hundreds of billions to banks for many moons. Right now the banks are just sitting on the money, for the most part. To be sure,…”
via Marginal Revolution
“It turns out there won’t be one. In fact we are seeing the opposite: “We will work cooperatively and in a coordinated way within the European Union and with our international partners,” it [the statement] added. “In the spirit of…”
via Marginal Revolution
“Via Craig Newmark: QUICK: If you imagine where things will go with Fannie and Freddie, and you think about the regulators, where were the regulators for what was happening, and can something like this be prevented from happening again? Mr….”
via Marginal Revolution
“Forget about particular details for a moment, in conceptual terms what led so many financial institutions to take so much excess risk? Bob Frank addresses that question and here is my list of major factors: 1. Collective stupidity: A lot…”
via Marginal Revolution
“Paul Krugman, Brad DeLong, and Matt Yglesias are all endorsing the Swedish plan for partial bank nationalization. Maybe it’s better than what we’ll get (I haven’t read through the latest draft), but I don’t think they are addressing the weaknesses…”
via Marginal Revolution
“This is one of the queries I receive, in varying forms, every day. Did policies such as the Community Reinvestment Act significantly worsen the housing bubble and the subsequent collapse? Basically not, although in my view these were bad policies…”
via Marginal Revolution
“The best case scenario: The bad banks continue to be bought up, there is no run on hedge funds next Tuesday, only mid-sized European banks fail, money market funds keep on buying commercial paper, and the Fed and Treasury continue…”
via Marginal Revolution
“R: “I’m quite pessimistic about the current financial system. I’ve been buying gold.” A: “Gold? That’s not pessimistic enough. I’ve been buying rice.”"
via Marginal Revolution
“A few inattentive malcontents are complaining that I haven’t stated my views. I have, but if you want them, or some of them, in one neat place, devoid of subtlety or explanation, here they are: 1. Glass-Steagall repeal was not…”
via Marginal Revolution