Barack Obama has been compared to almost every American President of the last hundred years--favorably to Franklin Delano Roosevelt, John Kennedy, and Ronald Reagan; and unfavorably to Jimmy Carter and George H.W. Bush.
In a year when the government enacted one of its largest-ever stimulus bills, guaranteed hundreds of billions of dollars in bank debt, bought hundreds of billions more in mortgage-backed securities, took 60 percent ownership of one car company and put up billions in financing for another, it’s not obvious why you’d dwell on an initiative that basically cost nothing.
Senator David Vitter submitted one of my questions to Federal Reserve Chairman Ben Bernanke, as part of his reconfirmation hearings, and received the following reply in writing (as already published in the WSJ online): Q. Simon Johnson, Massachusetts Institute of Technology and blogger: Andrew Haldane, head of financial stability at the Bank of England, argues that the relationship between the banking system and the government (in the U.K.
Matt Yglesias, among others, responds to my piece from Friday about the long-term decline in U.S. managers' competence when it comes to running manufacturing firms by questioning a basic premise of the piece: whether U.S.
Looks like it passed with almost everything intact--consumer protection agency, resolution authority, systemic risk provisions, etc. The only thing that looks slightly ominous to my eyes is the derivatives piece.
My colleague Noam Scheiber has parsed Federal Reserve Chairman Ben Bernanke’s testimony about the power of the Federal Reserve, but Bernanke also commented in hearings yesterday about government fiscal policy; and what he had to say was, to say the least, disturbing. Echoing the charges of economic conservatives and Wall Streeters like investment banker Peter Peterson, Bernanke took aim against what these folks call “entitlements,” but which are known popularly to be social security and Medicare. Republicans can be expected to cite his comments in the current debate over the Democratic health
Conservatives like to quip that, for the average member of Congress, spending other people’s money is the best part of the job. If that’s true, then grilling the Fed chairman after a financial crisis has to rank a close second. The members of the Senate Banking Committee didn't hold back when Ben Bernanke made his case for a second term on Thursday.
So far the members of Congress who think the Treasury Secretary should go don't quite constitute a full-blown caucus, much less anything resembling a majority. But they're expressing their opinions with increasing passion. Early this month Democratic Senator Maria Cantwell confessed that she was "not sure" why Geithner still had his job given his too-soft treatment of Wall Street.
The Fed's dual mandate is to aim for full employment and price stability, but since Paul Volcker's day, it's safe to say the central bank has been more concerned with the latter than the former.
“Banking on the State” by Andrew Haldane and Piergiorgio Alessandri is making waves in official circles. Haldane, Executive Director for Financial Stability at the Bank of England, is widely regarded as both a technical expert and as someone who can communicate his points effectively to policymakers. He is obviously closely in line--although not in complete agreement--with the thinking of Mervyn King, governor of the Bank of England. Haldane and Alessandri offer a tough, perhaps bleak assessment.