Operation Choke Point was illegal and, most likely, unconstitutional. But many of the targeted businesses were small and unable to file a lawsuit. While I usually oppose class-action cases, this program is crying out for a few good attorneys. Continue Reading →
The short answer is, “Yes, the CRA caused risky lending.” That means the housing bubble originated in the government — not excessively risky private lending as has been alleged by way too many people in Washington, D.C. Continue Reading →
This is only one of the eerily accurate predictions in Shteyngart’s novel. The mystery is why no hedge fund or forecasting company has hired this guy as a consultant. Continue Reading →
What does the future hold for the euro? Here are the options outlined by Prof. Krugman:
(1) Toughing it out
(2) Debt Restructuring
(3) Full Argentina
(4) Revived Europeanism
“WASHINGTON — Senior staffers at the Securities and Exchange Commission spent hours surfing pornographic websites on government-issued computers while they were being paid to police the financial system, an agency watchdog says.” Continue Reading →
The fault, dear reader, is not the models. It’s their abuse by people who knew the results they wanted and used the models to justify those results. Continue Reading →
Some banks have a bit of an incentive to delay delivery of 1099 forms. Continue Reading →
Huge numbers of economists, politicians, and people in the street are all calling for one policy: make the biggest banks smaller. A common refrain is, “If it’s too big to fail then it’s too big period.” Overlooked in the hue and cry is the issue of cost. It’s quite likely that shrinking the biggest banks will drastically increase the price of banking services to the public. Continue Reading →