Economy
Mind the Gap
Should we care about economic inequality? That question is the subtext for most debates in American politics. It just remains below the surface because the party that thinks we shouldn't care about inequality--I'll give you one guess--has an endless string of obfuscations ("death tax," "small business," "tollgate to the middle class") to avoid admitting that it doesn't care about inequality. READ MORE >>
The Real Reason China Will Surpass Us
The usual concern about the U.S.-China balance of economic and political power is couched in terms of our relative international payments positions. We've run a large current account deficit in recent years (imports above exports); they still have--by some measures--the largest current account surplus (exports above imports) even seen in a major country. They accumulate foreign assets, i.e., claims on other countries, such as the U.S. We issue a great deal of debt that is bought by foreigners, including China. READ MORE >>
Credit Conditions In The Absence Of Consumer Protection
Even some of our most sophisticated commentators doubt a link between consumer protection and any macroeconomic outcomes. Consumer protection, in this view, is microeconomics and quite different from macroeconomic issues (such as the speed and nature of our economic recovery). Officially measured interest rates are down from their height in the Great Panic of 2008-09 and the financial markets, broadly defined, continue to stabilize. But are retail credit conditions, i.e., the terms on which you can borrow, getting easier or tougher? READ MORE >>
The Future Of Sushi: Farms?
Is the end of sushi upon us? It may well be. Bluefin tuna stocks all over the world are on the verge of collapse, thanks to overfishing. The World Wildlife Federation has estimated that Northern bluefin could get wiped out within three years, while the Southern bluefin is critically endangered. If those two species vanish, fisherman will set their sights on the only-slightly-less-beleaguered Pacific bluefin, which, presumably, won't appreciate the newfound attention. READ MORE >>
Who's Afraid Of Consumer Financial Protection?
The debate over re-regulation of the financial sector has finally, and irreversibly, turned partisan. This helps define issues in ways that may be more familiar and thus easier to understand. READ MORE >>
Secretary Geithner's China Strategy: A Viewer's Guide
On Monday and Tuesday of this week, Treasury Secretary Geithner--and Secretary of State Clinton--meet with a high-level Chinese delegation. According to official previews (i.e., the apparent contents of background briefings given to wire services), the economic topics are China's concerns about the value of the dollar (i.e., their investments in the U.S.) and the amount of debt that the U.S. will issue this year. This is absurd. READ MORE >>
After Peak Finance
There are three kinds of "bubbles"--a term often used loosely when asset prices rise a great deal and then fall sharply, without an obvious corresponding shift in "fundamentals." READ MORE >>
Stimulus Vs. Bailouts?
Cit Down
At the end of the day, CIT had nothing. Their asset quality was poor, their systemic risk implications seemed limited, Sheila Bair dug in her heels, and Jeffrey Peek (CEO) didn't have sufficiently strong connections to READ MORE >>
