Economy
I don’t know a whole lot about the world of high-finance, but I do understand a bit about probability and in probabilistic terms, the government’s proposed $700 billion bailout of U.S. financial markets bears some uncanny similarities to the use of a “martingale” strategy to make money. That is not a good thing. Gamblers have…
The Providence Journal’s in-print lead for this Business section story yesterday about the bailout: Investors are nervous about apparent resistance to the plan in Congress. My initial reaction: Good. Maybe next time they’ll be nervous about apparently risky business ventures.
The eye-opening thing is how many people believe that something as extensive as the current financial crisis can be analyzed simply and placed at the door of a particular political party — even a particular individual! By the time one gets to such specific and flatly stated explanations as Froma Harrop’s, it is likely that…
“How the Democrats Created the Financial Crisis” by Kevin Hassett is getting heavy play in conservative circles (talk radio, the blogosphere), mostly because it is both an accurate piece of the story and attractively partisan. However, Victor Davis Hanson reminds us that, while there is plenty of blame to put on Wall Street and Washington,…
With the Fed’s announcement that it will bail out insurance behemoth AIG, taxpayers are left asking, “Who’s on first?” It’s as if most corporations were asleep at the wheel during the subprime mortgage boom earlier this decade. And now, everyone’s looking at each other trying to figure out where to cast blame and unsure of…
Charles Pinning’s op-ed in today’s Providence Journal may present an awkward blend of maudlin setting and ideological sneer, but perhaps it offers a chance for productive conversation. Pinning puts the following in the mouth of an older male character from Providence’s west side, speaking of the regular schmoes whom his elderly sweetheart just encountered at…
John McCain today (via The Corner): The financial crisis we’re living through today started with the corruption and manipulation of our home mortgage system. At the center of the problem were the lobbyists, politicians, and bureaucrats who succeeded in persuading Congress and the administration to ignore the festering problems at Fannie Mae and Freddie Mac.…
Last night, Andrew took up the topics of economics and taxation with Matt Allen on 630AM/99.7FM WPRO. Stream by clicking here, or download it. ADDENDUM: The audio links weren’t working when I first posted this in the a.m. They’re fixed.
We simple-minded humans often like to boil things down to a simple cause/effect (ie; reductionism). It makes it easier for us to understand complex issues. The recent financial crisis is a case in point. Liberals and Democrats are predisposed to blame greedy Wall Street and are calling for more regulation. (And some have added this…
George Will: The spontaneous emergence of social cooperation—the emergence of a system vastly more complex, responsive and efficient than any government could organize—is not universally acknowledged or appreciated. It discomforts a certain political sensibility, the one that exaggerates the importance of government and the competence of the political class. Jeff Jacoby: … you don’t have…
