Why is it that no one in America seems able to say what Willem Buiter, a professor at the London School of Economics, sets forth at his blog at the Financial Times, namely, that we Americans are far too timid in dealing with right wing extremists? Does being liberal in America mean you can’t point […]
Read more...Asking good questions is half the battle in advancing knowledge, and a clever and timely piece by Andreas Georgiadis and Alan Manning of the London School of Economics does just that. The post looks into why rising income inequality isn’t strongly correlated in democracies with more concerted efforts at redistribution. After all, as wealth becomes […]
Read more...Michael Tomasky in The New York Review of Books uses two new releases to probe the question of whether the Republicans can restore their credibility and popularity. The first, Comeback: Conservatism That Can Win Again by David Frum lays out a tactical program of how the party can reposition itself towards the center. His ideas […]
Read more...Yesterday, I took advantage of this (hopefully) quiet week to share some things I have come across that affected how I view the world. I can’t recommend strongly enough that you view the four-part 2002 BBC documentary, The Century of the Self. Creator Adam Curtis said, “This series is about how those in power have […]
Read more...Dani Rodrik has managed to be able to debunk the economic orthodoxy, most notably in his area of expertise, namely trade and development, and still retain the respect of his peers. Of course, having tenure at Harvard (Kennedy School) doesn’t hurt. But Rodrik is also unfailingly articulate, fair-minded, and rigorous. His latest post takes issue […]
Read more...Oh frabjous day! America appears finally to be getting on the climate change bandwagon, rather than taking a page from the Japanese negotiating handbook and playing obstructionist at every turn. BBC reports this as breaking news; I’m sure we’ll have better analysis in a few hours. So far, this merely looks like an agreement to […]
Read more...The quality of debate in America has become so debased that for the most part we have become desensitized to the use of ad hominem attacks. In logic and rhetoric, an ad hominem argument, which attempts to discredit the person mounting the criticism, is considered invalid, since the substance of the charge has not been […]
Read more...We wrote earlier this week that the subprime relief deal orchestrated by the Administration was an effort to forestall a bill sponsored by Democrats that would, among other things, give judges the ability to change some mortgage terms in consumer bankruptcies. Elizabeth Warren at Credit Slips confirms this view in her assessment of the subprime […]
Read more...Dear readers, I had wanted to go through the geeky American CoreLogic Mortgage Resets study, which gives mind-numbing detail on what type of mortgages reset when to come up with a more refined guesstimate of how many borrowers might be eligible for the formerly-Paulson, now Administration subprime program. The Administration claims its program could help […]
Read more...As some cynics speculated, the subprime freeze proposal, scheduled to be unveiled early this afternoon, got a considerable push from worries about legislation sponsored by Barney Frank which would have allowed judges in bankruptcy some ability to change mortgage terms in bankruptcy. Note that these proposed rules merely put consumers on the same footing as […]
Read more...This story, about how are supposedly close allies are now buying weapons from Russia, most decidedly not one of our good buddies, has gotten almost no notice in the media. It’s a sign that US power is waning. Economic historian Niall Ferguson, in his book The Cash Nexus, pointed out the importance of sound national […]
Read more...As much as I would like to leave the matter of Hank Paulson and his dubious subprime rescue plan alone, the latest developments demand comment, first my own, followed by a roundup of other views. One tidbit later on to induce you to read the entire and admittedly long post: successful implementation of the program […]
Read more...Yesterday, we posted some thoughts about the subprime rescue plan under development among the Treasury, some leading servicers, other regulators, and some investors (most notably Freddie and Fannie). A few additional items: We had commented that the plan would be limited to only borrowers who were current on payments. That appears to be incorrect, or […]
Read more...The Wall Street Journal’s page one story, “Rate Plan Has Skeptics, Fans,” offers little new information about the substance of the program (not surprising) but gives mainly positive reviews. In case readers somehow haven’t figured it out, I believe this program to be a Bad Idea in any form, although some variants could be worse […]
Read more...Today’s GDP release showed third quarter growth at 4.9%. That number was such a howler that it promptly elicited the contempt it deserved. From Barry Ritholtz, in “GDP=4.9% (also, I have a bridge for sale in Brooklyn)“ This 4.9% number is one of the more “fanciful” government releases you will see in your lifetime, (outside […]
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