Category Archives: Banana republic

NY Fed’s Bogus Estimate of Return on College and the Neglect of the Intellectual Commons

Yesterday, the New York Fed released a new report by Jaison R. Abel and Richard Dietz, Do the Benefits of College Still Outweigh the Costs? which is getting good coverage in the mainstream media. Its major finding is that despite the fall in wages to college graduates due to the crappy economy, a college degree is still worth the expense because wages of high-school graduates have fallen too, keeping the wage premium of a college education high while reducing the opportunity cost of staying in school.

But while the media is repeating the findings of this report uncritically, in fact it relies on a discredited methodology for calculating returns, and also promotes the view that the only reason to get a higher education is to get a better job.

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Bill Black: The EU Center-Right and Ultra-Right’s Continuing War on the People of the EU

The New York Times has provided us with an invaluable column about the interactions of the EU’s rightist and ultra-rightest parties. It is invaluable because it is (unintentionally) so revealing about the EU’s right and ultra-right parties and the NYT’s inability to understand either the EU economic or political crises. The NYT article illustrates its points by presenting a tale entitled “A German Voice, Hans-Olaf Henkel, Calls for Euro’s Abolition.” It treats Henkel, an open racist and austerian, as a reputable figure, apparently because he is wealthy.

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New York Times Snipes at Neil Barofsky Yet Again

I was naive enough to think that the New York Times’ vendetta against former SIGTARP prosecutor Neil Barofsky was limited to bank propagandist Andrew Ross Sorkin and Administration mouthpiece Jackie Calmes, who penned a particularly ham-handed hit piece on Barofsky’s book Bailout.

It turns out the depth of loyalty of reporters at the New York Times is much deeper than I imagined. Ben Protess and Jessica Silver-Greenberg work hard to snigger and finger-wag at Barofsky for being about to land a plum assignment that will again make him a big bank nemesis: that of serving as monitor to miscreant Credit Suisse.

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US to Fine BNP $8+ Billion, Suspend Access to Dollar Clearing

While it is refreshing to see the authorities man up a bit in dealing with a miscreant bank, it’s also critical to recognize that the US show of spine with BNP is all about the US tightening control over international payments. In other words, the harsh settlement is all about the US projecting its power overseas via financial services. It is not a precedent for how the authorities will deal with other types of bank

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Peter Van Buren: Taking Down the First Amendment in Post-Constitutional America

Van Buren continues his examination of what he calls the “post-Constitutional era”. He focuses on the steady erosion of freedom of speech, particularly in the media, including limits on the ability of journalists to protect sources to more self-censorship and increased antipathy towards reporting that involves the use of confidential material.

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Bill Black: How Hayek Helped the Worst Get to the Top in Economics and as CEOs

Libertarians are profoundly anti-democratic. The folks at Cato that I debate make no bones about their disdain for and fear of democracy. Friedrich von Hayek is so popular among libertarians because of his denial of the legitimacy of democratic government and his claims that it is inherently monstrous and murderous to its own citizens.

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Larry Summers’ Contradictory and Dishonest Defense of Administration’s Bank-Focused Crisis Response

Larry Summers, like Tim Geithner, wants the public to believe that rescuing banks and leaving citizens to rot was the right crisis response. But neither experts, nor people who followed the crisis, nor voters at large are buying what Team Obama is trying to sell.

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The SEC’s Mary Jo White Punts on High Frequency Trading and Abandons Securities Act of 1934

SEC chairman Mary Jo White made clear in a new speech that she’s not going to do much about high frequency trading.

SEC chairman Mary Jo White spoke on Thursday about high frequency trading. She made clear that she not going to do much to curb it but will engage in more studies so as to look to be Doing Something.

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Bill Black: OCC as Case Study of How Regulators Decide to Fail

Yves here. I’m highlighting this post for a basic reason: there’s a lot of cynicism about regulation. Many Americans have bought the right-wing line that regulations can’t work. But here, whether by accident or design, a reform program at a key bank regulator, the OCC, is going off the rails due to bad strategic choices.

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