A Warranted Buy-In

A Warranted Buy-In Speaker Pelosi on Sunday finally figured out the right rhetoric to describe a good rescue plan for the financial system: It needs to be a buy-in, not a bailout. Unforunately, the Paulson/Frank/Dodd bill defeated on Monday might well have ended up being almost entirely bailout with only a token buy-in element. To […]

Revolting Economists

Economists are not famous for agreeing with each other. (“The First Law of Economists: For every economist, there exists an equal and opposite economist. Second Law: They’re both wrong.”) So it is striking that publicly expressed opinions among non-Wall-Street economists on the Paulson/Frank plan range basically from former-Wall-Streeter Henry Blodget’s “it stinks” to Luigi Zingales’s […]

What To Do (and Not To Do) In A Financial Panic

If I were asked by a member of Congress for advice in the current mess, here’s what I would say. 1. Don’t Panic. The events on Wall Street seem terrifying partly because the U.S. has not been through a financial panic like this since the Great Depression. But plenty of other countries, even rich countries […]

Capitalism and Skepticism

As each new day brings word of another Wall Street bailout more colossal than the last, one question presents itself with ever-increasing force: Why does the economy perform so badly under Republican Presidents? The facts are hard to dispute; indeed, the historical record is now so stark that diehard Republicans are probably starting to wonder […]