True Lessons of the Recession

True Lessons of the Recession

A wise essay by Raghu Rajan.


30 percent of Federal loan guarantees went to individuals with connections to the Obama administration (either fundraisers or staff)

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30 percent of Federal loan guarantees went to individuals with connections to the Obama administration (either fundraisers or staff)


Does Inequality Lead to a Financial Crisis?

http://papers.nber.org/papers/w17896#fromrss


Newest Fox News piece: Obama Has Learned Nothing From the Mortgage Meltdown Mess

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Newest Fox News piece: Obama Has Learned Nothing From the Mortgage Meltdown Mess

 


America’s Next TARP Model

http://www.thedailyshow.com/watch/thu-december-1-2011/america-s-next-tarp-model


Articles on financial regulation and innovation

http://www.annualreviews.org/doi/abs/10.1146/annurev.financial.050808.114326

http://www.annualreviews.org/doi/abs/10.1146/annurev-financial-102710-144830

http://www.annualreviews.org/doi/abs/10.1146/annurev-financial-102710-144901

http://www.annualreviews.org/doi/abs/10.1146/annurev-financial-102710-144918


Can Tight and Centralized Financial Regulation Prevent Financial Crises? Czech Government Bond Seignorage in the Historical Perspective

ftp://ftp.mendelu.cz/RePEc/men/wpaper/14_2011.pdf


Lessons From and For the Class Struggle on Wall Street

http://www.forbes.com/sites/artcarden/2011/10/13/lessons-from-and-for-the-class-struggle-on-wall-street/


Wall Street’s Gullible Occupiers The protesters have been sold a bill of goods. Reckless government policies, not private greed, brought about the housing bubble and resulting financial crisis.

http://online.wsj.com/article/SB10001424052970203633104576623083437396142.html?mod=WSJ_Opinion_LEADTop


US Debt Crisis Global Economic Collapse

http://www.youtube.com/watch?v=QEtBcBDgkKA


Why didn’t the stimulus create more jobs?

http://marginalrevolution.com/marginalrevolution/2011/08/why-didnt-the-stimulus-create-more-jobs.html


Instapundit Talks with BB&T’s John Allison About How the Gov’t Caused the Financial Crisis

http://reason.com/blog/2011/08/25/instapundit-talks-with-bbts-jo


Top 3 Common Myths of Capitalism

http://www.youtube.com/watch?v=KGPa5Ob-5Ps&feature=channel_video_title


Who are the Dogmatists and Ideologues Now?

http://www.coordinationproblem.org/2011/08/who-are-the-dogmatists-and-ideologues-now.html


Reason.tv: Nobel Prize-Winning Economist Vernon Smith on Experimental Economics, Adam Smith, The Housing Bubble, and His Journey Towards Libertarianism

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Reason.tv: Nobel Prize-Winning Economist Vernon Smith on Experimental Economics, Adam Smith, The Housing Bubble, and His Journey Towards Libertarianism

 


The Stimulus Was a Failure

http://www.coordinationproblem.org/2011/06/its-time-to-call-it-a-failure.html

http://www.cato-at-liberty.org/biggest-keynesian-stimulus-slowest-recovery/


Who Watches Watchers?

 

 

 

 

Let’s see, banks offer bad products, because many consumers are too lazy to notice and choose good products. So voters should empower regulators to make rules banning bad products, or at least overly hidden products. But isn’t it also possible that regulators might offer bad regulations, because voters are too lazy to notice and choose politicians who support good regulations? Why would voters pay more attention to choosing regulators than banking customers pay in choosing banks? And if voters pay less attention, how does adding this extra layer of choice improve the overall situation?

 

http://www.overcomingbias.com/2011/06/how-regulate-regulation.html


Recalculation in the Commerical Real Estate Market

http://www.coordinationproblem.org/2011/06/recalculation-in-the-commerical-real-estate-market.html


WSJ: “Nearly 40% Who Borrowed Against Homes Are Underwater”

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WSJ: “Nearly 40% Who Borrowed Against Homes Are Underwater”

 


A Fistful of Dollars: Lobbying and the Financial Crisis — by Deniz Igan, Prachi Mishra, Thierry Tressel

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A Fistful of Dollars: Lobbying and the Financial Crisis — by Deniz Igan, Prachi Mishra, Thierry Tressel

Has lobbying by financial institutions contributed to the financial crisis? This paper uses detailed information on financial institutions’ lobbying and mortgage lending activities to answer this question. We find that lobbying was associated with more risk-taking during 2000-07 and with worse outcomes in 2008. In particular, lenders lobbying more intensively on issues related to mortgage lending and securitization (i) originated mortgages with higher loan-to-income ratios, (ii) securitized a faster growing proportion of their loans, and (iii) had faster growing originations of mortgages. Moreover, delinquency rates in 2008 were higher in areas where lobbying lenders’ mortgage lending grew faster. These lenders also experienced negative abnormal stock returns during the rescue of Bear Stearns and the collapse of Lehman Brothers, but positive abnormal returns when the bailout was announced. Finally, we find a higher bailout probability for lobbying lenders. These findings suggest that lending by politically active lenders played a role in accumulation of risks and thus contributed to the financial crisis.


The True Story of the Financial Crisis

http://spectator.org/archives/2011/05/13/the-true-story-of-the-financia


Economists as Worldly Philosophers

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Economists as Worldly Philosophers


Will Massive Inflation Cause the Next Financial Crisis?

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Will Massive Inflation Cause the Next Financial Crisis?

 


Fiscal Spending Jobs Multipliers: Evidence from the 2009 American Recovery and Reinvestment Act

http://www.frbsf.org/publications/economics/papers/2010/wp10-17bk.pdf


Fed aid in financial crisis went beyond U.S. banks to industry, foreign firms

http://www.washingtonpost.com/wp-dyn/content/article/2010/12/01/AR2010120106870.html


Of Football Helmets and Bailouts

http://www.thefreemanonline.org/headline/of-football-helmets-and-bailouts/#


Video of the Day: Daily Show on NBER and the Recession

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Video of the Day: Daily Show on NBER and the Recession



Not a fan?

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Not a fan?

 


A Contested Exchange, or First Round Knock Out in an Intellectual Boxing Contest?

http://www.coordinationproblem.org/2010/09/a-contested-exchange-or-first-round-knock-out-in-an-intellectual-boxing-contest.html


Overdose: The Next Financial Crisis by Johan Norberg

http://www.youtube.com/watch?v=4ECi6WJpbzE


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