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Browsing Category
Political Economy
Australia bans short selling too
It seems incredible - this rollback of the free markets. But, six countries have now banned short sellers of financial shares as if they are solely responsible for the market meltdown we suffered in the wake of the Lehman bankruptcy. The…
Definition of the day: the law of unintended consequences
Given the fact that the regulatory authorities in the U.S. and the UK have taken the unusually manipulative step of banning all short sales of financial institutions outright, it bears remembering that all actions have consequences, both…
Presidential debates crucial in test of economic leadership
Edward Harrison here.In the last post, Marshall commented on the need for the U.S. Presidential candidates to show their mettle in a time of financial volatility. As I write this, the Dow Jones Industrial average has just finished the day…
The Federal Reserve bails out AIG
At 9:00 PM EDT, the Federal Reserve posted a statement on its website that it has decided to offer AIG an $85 billion line of credit at a penalty rate in return for all of AIG as collateral. In addition, the Federal Reserve will receive an…
No Fed cut
The Fed has not cut interest rates and is still worried about inflation as much as economic growth. I certainly felt the Fed was going to cut and was going to have a more dovish comment than it has. The investor reaction was to send…
Healthcare in America and eating our young
I just read a post on the blog Duck's Pond about how the crisis in health care in the U.S. will lead to some sticky problems for baby boomers. It's an interesting take because it's not the straightforward…
Lehman’s bankruptcy: putting the cart before the horse?
Update Mar 2009: There is a pernicious little piece of historical revisionism going around that the Lehman bankuptcy did not matter. I am reposting this as a retort.
Note the piece by James Suriowiecki which induced me to re-post:
In…
Congress ready with second stimulus package
Apparently the U.S. House of Representatives is looking to get another stimulus package going. In the wake of a financial meltdown, the U.S. Government has decided to act forcefully and take a stand against the forces buffeting the U.S.…
Palin: Videos from ABC interview with Charlie Gibson
Republican Vice Presidential nominee Sarah Palin spoke with Charles Gibson of ABC News last night about national security. This is her first major media interview since being picked as John McCain's running mate. The video is in two parts…
The nationalization of America’s mortgage problem
This is a topic I first broached in May. The United States has a mortgage problem in that house prices have fallen so much and the financial sector is so leveraged that the U.S. faces systemic banking risk from a vicious circle in the…