Disappointment And Confusion: A Bad Combo
October 09, 2008
Let's start with a basic assumption: The only thing worse in a market than disappointment is confusion. Investors can live with, and if they're smart profit from, bad news, as long as they understand it. But if things are confusing--say, a great, healthy company turns in horrible quarterly earnings, with no clear reason why--then investors get confused, and they panic. Over the last day, Treasury Secretary Henry Paulson offered up a helping of disappointment, topped by a dollop of confusion. First, the disappointment.
A Matter Of Trust
September 23, 2008
Clay Risen is managing editor of Democracy: A Journal of Ideas and a contributing editor at World Trade. His first book, A Nation on Fire: America in the Wake of the King Assassination will appear in January. It's tempting to watch today's Senate Banking Committee hearings, with Democrats and Republicans alike tearing into Federal Reserve Chair Ben Bernanke and Treasury Secretary Henry Paulson, and feel pangs of sorrow for the beleaguered duo.
The Rtc: What You Need To Know
September 19, 2008
Clay Risen is managing editor of Democracy: A Journal of Ideas and a contributing editor at World Trade. His first book, A Nation on Fire: America in the Wake of the King Assassination will appear in January. In recent days, policymakers and financial experts have circled around the idea of creating a government entity--in the model of the Resolution Trust Corporation (RTC)--to buy up failing assets of financial institutions.
August 13, 2008
Earlier this summer, when the Obama campaign announced that Jason Furman was joining its staff as director of economic policy, the storyline seemed to write itself: Centrist adviser will pull Obama to the right. Furman had first made a name for himself as a wonky twentysomething wunderkind in the later years of the Clinton administration--a period when, to the consternation of many liberals, Clinton emphasized balanced budgets, free trade, and welfare reform.