by Chidem Kurdas “A just war” is how Treasury Secretary Timothy Geithner describes the movement to expand financial regulation. “It's a war of necessity, not a war of choice,” he is reported as saying about the battle to impose greater government control on the financial sector. This is the man who presided over the New … Continue reading Regulatory War of Choice
by Gene Callahan Brian Doherty quotes Treasury Secretary Geithner: "I would say there were three types of broad errors of policy and policy both here and around the world. One was that monetary policy around the world was too loose too long. And that created this just huge boom in asset prices, money chasing risk."
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 Chidem Kurdas After causing a debacle by flooding the system with oodles of easy money, the Federal Reserve is to morph into the enforcer of systemic prudence. We’re told that Treasury secretary Tim Geithner wants to create a single systemic risk regulator to oversee the whole financial system and the Fed will probably … Continue reading Rewarding the Punch Provider
by Mario Rizzo In an under-appreciated book, The Foundations of Morality (1964), the Wall Street Journal and New York Times economic journalist, Henry Hazlitt, wrote that the price system does not send accurate signals in the absence of private property rights. “It is important to insist that private property and free markets are not separable … Continue reading The Quality of Price Signals