Bernanke facing revolt over inflation?
According to the Times, U.S. inflation hit a 27 year high in June: Inflation jumped by 0.8 per cent in the month of June, the most since February 1981, when prices rose by 1.0 per cent, according to...
View ArticleFutures vs CDSs: the case for regulated markets
In less than a month, NYMEX crude oil futures have dropped about 15% in value. Other commodities ranging from precious metals to agriculture have had significant drops as well. Even for the...
View ArticleLinks of the Day 8/6/08
Now we’ve hit crisis proportions!Hobbit Crisis: The Shire in Foreclosure Citi may be the first to cut a deal with the states over auction-rate securities. Could others follow? And how much will the...
View ArticleProject Turquoise: Priming the pump for the next bailout
One of the primary lessons we are learning from the current financial debacle is that the lack of transparency in the OTC derivatives markets is one of the big reasons for the complete breakdown of...
View ArticleGuest Post: Moral Hazard Now Biting GM
Submitted by Lune This blog and many other authors have pointed to the large moral hazards that the federal government’s actions have created so far. It was typically expected that these moral hazards...
View ArticleGuest Post: UK Embarks on Quantitative Easing
Submitted by Lune On March 5th, the Bank of England announced that for the first time in its >300 year history, it will begin quantitative easing to lower interest rates and increase the UK’s money...
View ArticleGuest Post: The Taxman Cometh, and a Brewing Revolt by Congress?
Submitted by Lune Roll Call is reporting (subscription required) that the House and Senate are taking up measures for taxing bonuses paid out by companies in 2009 that accepted bailout money: House and...
View ArticleGuest Post: The Fed’s New Tool to Fight Inflation?
Submitted by Lune. As the Fed embarks on quantitative easing, a large number of economists have voiced concerns about the resulting inflation that we may face once the economy starts to recover. The...
View ArticleGuest Post: Congressional Hearings, the New American Kabuki
Submitted by Lune (N.B.: this post, and a subsequent Part II regarding the legislative process, are focused on the political processes of DC rather than economics per se. However, to the extent that...
View ArticleGuest Post: Congressional Legislation Part II
Submitted by Lune. As promised, the following is part II about the legislative process. While the first post was primarily about how Congress gathers information, this post will look at some of the...
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