The default belief of our economic history of the last 100 years has been an acceptance of the dynamic growth of capitalism punctuated by excesses of market greed that have to be corrected by the singular wisdom of government regulation.…
Read MoreIn the Wall Street Journal, Culprits From Beltway Casting- The financial inquiry commission lets a crisis go to waste, (subscription required), takes exception to the partisan conclusion of the commission. The Financial Crisis Inquiry Commission reached a conclusion that…
Read MoreEver since Michael Douglas’s character Gordon Gekko in the movie Wall Street declared “Greed is Good” capitalism has been cast in a sinister role that it has yet to overcome. The movie speech was rumored to be taken from a…
Read MoreStudying the financial bubbles we can see several common characteristics. During the bubble inflation we see markets taken to an extreme by financial greed, but as Walter Sowell so appropriately metaphored on the housing bubble, “blaming the crash on greed…
Read MoreIn a New York Times Article Paul Krugman took exception to another who laid blame for the financial crisis on Fannie Mae. In Contending with Paul Krugman, part II, Charles Lane takes exception to Krugman. An excerpt: What is the…
Read MoreTo blame the mere shortage of cash for the evils caused by incompetence and corruption is the favorite lie of socialists and crony capitalists everywhere. Socialists always say there is no problem of inequality or poverty that can’t be solved…
Read More“In moving, even tentatively, into this new area of lending (subprime) Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government -subsidized corporation may run into trouble in an…
Read MoreWhile banks are returning TARP money, some having taken it under duress, Fannie Mae continues to lose money and receive more bailout. In return for such dismal performance executives are getting pay raises and bonuses. It is a growing contention…
Read MoreCongressional supporters of Fannie Mae and Freddie Mac accepted extraordinary moretgage risks in order to facilitate the American dream of home ownership. Did they succeed? With the drop in home values many American home owners saw their home equity drop…
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