Today’s Water Cooler: Clinton and the political class, Apple’s gold watch, employment stats, WaPo rushes to Rahm’s defense, Ferguson report
Friday, March 6, 2015
Topics: Water Cooler
Posted by Lambert Strether at 1:55 pm |
A new paper by Stephen Rose of George Washington University that was picked up by the New York Times created a stir by claiming that inequality fell after the crisis. While the crisis proper did hit the well-off hard, and past accounts allow for that, a large range of analyses had found that income and wealth inequality rose after the crisis. That mean the Rose paper was potentially important, and even if not, it was useful to those who’d like to claim that the new normal is benign, even virtuous, so it has gotten quite a bit of attention.
This article by Lance Taylor goes through the Rose paper and other data and finds the “lower inequality” hypothesis to be sorely wanting.
How the dubious “maximize shareholder value” thesis, an economic theory, and not a legal requirement, hurts investment and undermines growth.
Posted by Yves Smith at 6:55 am |
Mapley et al.: How the Scammers Behind Virgin Gold Mining Corporation Bit Off More Than They Could Chew (VIII)
It’s high time I updated the APGMI part of the saga of Virgin Gold Mining Corporation. Here’s a round-up of the relevant parts of this sprawling series.
HSBC’s top brass have “no idea” about Mossack Fonseca. Here’s a primer.
A potential fatal flaw arises in the Pentagon’s plans to create a killing force that didn’t involve messy, unpopular casualties and deaths. Drone operators are quitting faster than new ones can be trained. Killing is apparently not cost free; many drone pilots appear to suffer from a new form of mental disorder.
Today’s Water Cooler: Alternatives to Clinton, if any, Rahm wears a sweater for Emmanueldämmerung, DOJ Ferguson report, libertarian delusions
Is converting public property to private use what we expect and demand of a President?
Posted by Lambert Strether at 6:55 am |
The Wall Street Journal has published an important account of a behind-the-scenes power struggle at the Federal Reserve over authority for regulation. The result that the New York Fed has had significant amounts of its authority shifted to the Board of Governors in Washington, DC. This is a major win for Fed governor Dan Tarullo, who has emerged as one of the toughest critics of big financial firms at the Fed in the wake of the crisis. It is also a loss for the banks, since the New York Fed is widely recognized as close to Wall Street. Moreover, the Board of Governors is more accountable to citizens (its governors are Federal employees, the Board of Governors is subject to FOIA, although confidential supervisory of all financial regulators is exempt), while the regional Feds can best be thought of as public/private partnerships with weak governance structures,* so this move in theory is also a gain in terms of accountability to the public. However, since Greenspan holdover, deregulation enthusiast and Dodd Frank opponent Scott Alvarez remains as the general counsel of the Board of Governors, it’s unlikely that any newfound serious intent by the Board of Governors will go all that far in practice, given the powerful role that Alvarez exerts over matters regulatory.
Wolf Richter: “Default Monday”: Oil & Gas Companies Face Their Creditors as the Fracking Bubble Bursts
Lambert here: Who woulda thunk the Fed’s easy money policy — no, not for you! — would contaminate millions of gallons of water and create exploding “train bombs”? Life’s little ironies…
Lambert here: I couldn’t make up my mind whether there was any redundancy in the headline or not.
Today’s Water Cooler: Obama throws Clinton under the bus on email, ADP below consensus, driverless cars, Apple Pay fraud, Santa Cruz protest
Why New Keynesians look a lot like Friedmaniacs.