by Roger Koppl The Supreme Court upheld “Obamacare” because Chief Justice Roberts changed his mind. (It seems that “Obamacare” is no longer a pejorative.) In this curious situation, a stalwart of the Federalist Society has become a Big Player in healthcare markets. A Big Player is a powerful actor who uses discretion to influence a … Continue reading Is Justice Roberts a Big Player?
by Roger Koppl At the Cobden Centre's website (and here), Steve Baker discusses recent Fed signals in the context of Big Players theory. The more active the Fed (or other central bank), the greater the fraction of entrepreneurial attention devoted to Fed watching rather than productive activity. As Baker says, “traders must pay attention to the … Continue reading Bleeding the Economy
by Roger Koppl Greg Mankiw quotes a recent WSJ article: "Like many others I made the mistake of buying what I believed was 'value,'" Mr. Gwin says, adding that investors who bought at the time believed the loans were worth more than their market price. "We did not contemplate having our first liens invalidated by … Continue reading Big Players and the Rule of Law
by Roger Koppl In the mathematics of “optimal control theory” you can sometimes get a system to slam violently between two extremes. You alternate between stepping on the gas as hard as you can and slamming the brakes on full. Mathematicians call such violent swings a “bang bang solution.” With today’s bill to tax the … Continue reading Bang Bang Policy