Bernie Madoff, James Madison and public virtue

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James Madison saw Bernie Madoff 220 years in advance. That so many supposedly bright people were duped by Madoff testifies to their ignorance or disregard of history and to what may be an approaching nadir in the cycle of American public virtue. At the Convention called by the Commonwealth of Virginia to debate the newly […]

Not so fast, Johnathan Weil: Citigroup & the fair value illusion

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Johnathan Weil called on Citigroup today to “properly confess” the “rot on Citigroup’s $2.1 trillion balance sheet.”  Weil is sure the rot is there because if it weren’t Citigroup “wouldn’t have needed last week’s government rescue [including] a new $20 billion investment by the Treasury Department, plus a guarantee covering about $306 billion of the […]

Senate bailout: Where’s the oversight?

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If you buy the notion that a bank bailout is necessary — and many of us do not — the bill passed last night by the Senate is seriously deficient in terms of governance and oversight.  It should, therefore, be rejected by the House.