Browsing Tag

regulation

The Case for Human Ingenuity

There are essentially three reasons why I think oil prices will go through a rather dramatic correction over the next several years: 1. Many investors who, in recent years, have added commodities to their portfolios as a hedge will…

Sidelights to 1994

LURING THE UNSOPHISTICATED into the stock market was considered a risk by Federal Reserve Chairman Alan Greenspan in 1994. So much so, that protecting the individual investor was a mandate of the Fed. (The Fed advertises and then omits new…

What is the optimal leverage for a bank?

The global crisis has called into question how banks are run and how they should be regulated. Highly leveraged banks went under, threatening to drag down the entire financial system with them. Here, David Miles of the Bank of England’s…

Einmal ist Keinmal

I can no longer say that not a single senior executive of one of the major nonprime lenders whose frauds hyper-inflated the housing bubble and caused the Great Recession has been convicted of his frauds. A single senior executive of one of…

Too much finance?

Over the last three decades the US financial sector has grown six times faster than nominal GDP. This column argues that there comes a point when the financial sector has a negative effect on growth – that is, when credit to the private…

Fiat Justitia Ruat Caelum

It is one of the paradoxes of life that the most practical means to ensure that the system does not collapse is to insist on justice for all and to ignore demands for special treatment premised on claims that justice places the system at…

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