Tag: "subprime loans"

Purity, Obscurity and the Slaves of Defunct Economists

The Fed’s lending and the Treasury’s investments in banks will not cost taxpayers anything. Unfortunately, that can’t be said for the government’s stimulus program to create jobs. That is old fashioned government spending: Money spent, money gone. A large stimulus program was needed to cushion the recession and reduce job losses. But the program outsourced […]

Bailouts, Failures, and Death Panels

They are now making jokes about death panels — not to pull the plug on Grandma in the reformed health-care regime, but to pull the plug on banks and other large institutions posing risk in the reformed financial regime. Preventing failure doesn’t seem to be the goal. Triggering and punishing failure are the goals. The […]

Fed Bashing: Unfair and Costly

I ended my previous post, Jobless Recoveries: A Look Back, by raising a question; how does the same monetary policy that fosters disinflation in the general economy foster an inflationary bubble in only one sector? By easing monetary policy, the Fed intended to address a very weak labor market, a jobless recovery that threatened to […]

Bernanke Reappointed

I was about to "go to press" with the title and article that follows when I heard of the reappointment. Topics are too precious to waste; so I'm going with it anyway. Congratulations to President Obama for his good judgment. Congratulations to Ben, who must be thinking that no good deed goes unpunished. Should Bernanke […]

Guilt by Classification

We've all heard of guilt by association. I've recently come to realize that its first cousin is guilt by classification. The phenomenon isn't new to me, but the label is. It came to me last Sunday (December 14) while reading an article by Gretchen Morgenson in the New York Times. I admire her work very […]

Some Afterthoughts on the Financial Crisis

I keep looking for an appropriate analogy to describe simply how the subprime slime eventually wreaked so much havoc on our financial system. When it first surfaced, I assumed, like most people, that the damage would be limited to those associated with the bad mortgages in addition to the impact on the housing market. I […]