Politicians Flee Good Economic Policy
Don Boudreaux at Cafe Hayek has posted a letter he sent to the WSJ today: V. Nagarajan suggests that the financial turmoil on Wall Street combines with the fact that most winners of the Nobel Prize in Economic Science are Americans to reveal that economics is a discipline unworthy of Nobelity (Letters, September 30). While .. read more
Radio Interview
I will be a guest on the Mandy Connell talk radio program tomorrow morning. Here’s a link to the site where you can listen live: http://www.winknewsradio.com/
Why Was the Market Up Today?
The stock market recovered 485 points of yesterday’s selloff. Why? I think it was because of the SEC annoucement regarding mark to market accounting, but it could also be anticipation that Congress will eventually pass something. Frankly, I don’t know and I don’t think it makes any difference. Whatever is done or not done, the .. read more
Our Money is Broken
A more worthy selection in today’s WSJ is this selection from Judy Shelton: The world is not ending. Despite the wrenching turmoil in global financial markets and morbid allusions to the death throes of capitalism, it ain’t over. Not until people quit believing in themselves, not until people quit believing in a better future. But .. read more
Safe in My Think Tank
My article yesterday got a big response, most of it positive. Several emails accused me of being a comfortable rich person who doesn’t give a damn about poor people. Several, who apparently can’t read my bio, accused me of being some ivory tower academic. Today, the WSJ, supposed bastion of free markets, takes a similar .. read more
More on the SEC and Mark to Market
Via Bloomberg: Sept. 30 (Bloomberg) — The U.S. Securities and Exchange Commission and the Financial Accounting Standards Board may issue additional guidance on fair-value accounting rules, people familiar with the matter said. The SEC may say companies can rely more on assumptions such as expected cash flows in assessing how much assets are worth, said .. read more
Lombard Agrees
Lombard Street Research agrees with me (via Barrons): U.S. CONGRESS STRUCK A BLOW FOR FREEDOM yesterday, giving the lie to its critics on Wall Street and the administration, who have shown a far weaker grasp of principle. My colleague Brian Reading argued for a buyout rather than a bailout a few days ago, and that .. read more
More on Mark to Market
The bill that failed yesterday had a provision that allowed the SEC to suspent mark to market accounting rules. This story from MarketWatch has details: SAN FRANCISCO (MarketWatch) – Congress is looking at playing with mark-to-market accounting rules as part of the now-stalled $700 billion-dollar bailout plan for the U.S. financial system. A provision in .. read more
