Nobody Knows

“Economists, like royal children, are not punished for their errors.”

James Buchan.

We lost another client last week. This makes a grand total of two clients who have left us over the past year, not because we lost them money, but because apparently we didn’t make them enough. [...]

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Systemic Risk Council

By Jeff Harding

Another “you read it here first.”

Senator John Warner criticized the Obama Administration’s grant of power to the Fed to regulate financial risk, saying that would put too much power in the hands of one institution. Instead he proposes a Systemic Risk Council to regulate economic risk:

He proposed, based on consultation [...]

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The Wall Street-Washington Financial Complex

By Jeff Harding

Larry Summers worked for hedge fund D. E. Shaw for one day a week for a year and received $5,200,000. Assuming they gave him a couple weeks off, that’s 50 days of work. $104,000 per day is pretty good work if you can get it. He also made a lot of money [...]

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The Chinese, Part II

In my Tuesday article on the Chinese response to the Fed’s profligate ways, I noted the problems of the US may have selling its debt.

Yesterday it happened, as reported by the Wall Street Journal and Bloomberg:

 The U.K. government failed to find enough buyers in a bond auction for the first time in 14 [...]

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President Obama Appoints Nobel Laureate McFadden to Head New Financial Risk Commission

A recent annual conference of Nobel laureates in economics featured debates on the current financial market crisis and the role of government regulation. As noted in the Wall Street Journal: 

Many of the Laureates’ criticisms focused on the notion that banking has drifted from its fundamental purpose. Amid a rush to profit, “what’s been lost [...]

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