Jeffrey Miron: No bailout; abolish Fannie Mae & CRA

September 30, 2008

“Talk of [financial] Armageddon . . . is ridiculous scare-mongering. If financial institutions cannot make productive loans, a profit opportunity exists for someone else. This might not happen instantly, but it will happen.” So says Harvard economist Jefffrey A. Miron, writing today at CNN. What does Miron say government should do now?  For starters, stop […]

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Bank bailout commentary: Not so fast!

September 29, 2008

Haste makes waste. Any time 535 people reach an agreement this quickly, you know most of them did not even read it before signing off. That, sports fans, is how we got into this mess to begin with. What remains to be seen is whether the measure will pass (probably) and whether the markets will […]

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New bailout draft: devil in the details

September 25, 2008

The bank bailout “Agreement on Principles” now circulating is, at best, a broad outline. It is easily foreseeable that a final agreement will yet fail over disagreements about detailed implementing language. For example, the Agreement specifies that the “Treasury Secretary is prohibited from acting in an arbitrary or capricious manner or in any way that […]

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IBD wrong on bailout: Bill is too short, gives too much power to Treasury

September 24, 2008

“The market is waiting. The time to act is now.”  So said Investors Business Daily, yesterday.  In support of their call for Congress to just “sign off now” on Secretary Paulson’s plan to rescue U.S. banks, IBD’s editors point to the proposal’s brevity and “focus” and imagine — how is impossible to say — that […]

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Bank bail out creates Hugo Chavez of U.S. banking

September 22, 2008

Too much power to the Treasury. Once you get past the sticker shock and the idea that a huge chunk of U.S. banking is on the verge of nationalization, the most troubling feature about the bank bail-out bill now before Congress is Section 8.

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Lynn Turner: Fair value accounting didn’t cause banking crisis

September 22, 2008

As fur flies in Washington over technicalities of the government’s proposed bank bailout, ordinary mortals may feel left out of the conversation if for no other reason than the rarified vocabulary of the debate. What, for example, is this thing called “fair value accounting”? Why should anyone but accounting geeks care? One answer comes courtesy […]

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Stressed over AIG & Lehman Brothers? Learn before you burn!

September 19, 2008

“Sue them, jail them, make them pay,” cries Ann Woolner. “I’d fire Chris Cox,” shouts John McCain. Floyd Norris chimes in, “Had the S.E.C. gone over the records of Lehman and Bear Stearns with the vigilance it now promises for the shorts, we might not be in this mess.” Steve Covey: “Seek first to understand.” […]

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D.C. Circuit Court: McCain’s right, the President can “fire” the SEC Chairman

September 18, 2008

While I disagree with John McCain that Chris Cox should be “fired” over recent market turbulence, the D.C. Circuit Court of Appeal agrees with McCain that the SEC chair can be dismissed by the President of the United States.  An unattributed ABCNews blog is reporting otherwise on the authority of an unnamed source.

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McCain wrong to call for firing SEC chairman Cox

September 18, 2008

John McCain has lost his marbles or his principles. The guy who so courageously faced down public criticism of the Iraq War “surge” is now just another member of a pack irresponsibly yammering for some kind of vengeance against someone over the sub-prime mortgage and stock market mess.  Simply pathetic.  Reuters reports:

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IFRS vs. U.S. GAAP: Porsche controls Volkswagen

September 16, 2008

Since the SEC’s announcement of a proposed timetable for implementing IFRS in the United States, a variety of commentators have come forward asserting that IFRS would be “bad” for the United States because, among other things, U.S. GAAP supposedly offers “higher quality” financial accounting standards than IFRS and a smoother, more transparent standards-setting process than […]

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