Testing “the Bernanke Put”So, the Federal Reserve’s $1.25 trillion program to buy mortgage-backed securities officially ended yesterday. Next up: home buyer tax credits, scheduled to expire at the end of the month. But are the Fed — and U.S. Treasury — really done? In an era of too-big-too-fail, “the Bernanke put” (preceded by “the Greenspan...Read More
“Hard Lines, Not Regulatory Discretion”Senator Ted Kaufman (D-Del) has a SUPERB analysis, titled “Wall Street Reform That Will Prevent The Next Financial Crisis,” detailing exactly what caused the financial system to melt down in 2008 — and what should be done about it. Even better: he actually has a say in deciding the latter. Here’s...Read More
Too Big to Fail? Try, Too Complex to Reform Banks are like the heart that pumps blood ” credit ” to our country’s corporate muscles. If that heart is malfunctioning, any recovery will be anemic. But heart surgery is a very complex thing. You wouldn’t want yours done by a plumber or a politician. –Thomas...Read More
Volcker’s Clarion Call Imagine being able to consult Albert Einstein about a physics conundrum, or FDR or Lincoln about an existential national emergency (like the one we’re facing now, perhaps). Having Paul Volcker, the 82 year-old former Fed Chairman, still on the scene and available to advise and guide is truly a stroke of good...Read More
“Random Attacks on Enterprise & Capital” You know that Wall Street is feeling at least a little heat right now because the Op-Ed pages and blogs (at least certain ones) are ramping up their attacks on what they take to be misguided “populist fervor.” Typical on this score is David Brooks, The New York Times’...Read More
Instant Amnesia — Or Something Worse? If it exists, it’s possible.–unknown Believe me, it’s not what it is.–caption, New Yorker cartoon (what husband caught in bed with another woman says to his wife, standing in the doorway). Let’s see: as every investor, saver, employed person and sentient being knows, the U.S. financial system — indeed,...Read More
