The Role of Narratives and Transparency in Financial Markets
Trust, but Verify. This elegant expression lies at the heart of how our financial markets work. It also highlights the respective roles... Read More
The Economics Profession Chooses Ignorance
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The Economics profession is still without an explanation for why the Great Financial Crisis occurred that doesn’t leave out inconvenient facts. Specifically,... Read More
The Lies We Were and Are Being Told
For over a decade, I have written about the lies we were and are being told about the Great Financial Crisis and... Read More
Funding Guarantees End Financial Panics and Bank Runs
For the last decade, I have been pointing out funding guarantees ended the acute phase of the Great Financial Crisis. The vast... Read More
Anna Schwartz: Saving Banks Won’t End Well
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In an October 2008 Wall Street Journal interview, Economist Anna Schwartz unloaded on the Committee to Save the Banks’ response to the... Read More
Bank Troubles: Liquidity or Solvency
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As the Committee to Save the Banks continues its tenth anniversary of the acute phase of the Great Financial Crisis tour, they... Read More
Mistaken Assumptions About the 2008 Financial Crisis Remain in Circulation
As the title of this post suggests, there are many mistaken assumptions about the financial crisis still in circulation. No mistaken assumption... Read More
Bernanke and Post-Real Financial Crisis Models
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Recently, I politely referred to Ben Bernanke’s latest effort to rewrite the history of the Great Financial Crisis as garbage. The paper... Read More
“It is astonishing what foolish things one can temporarily believe if one thinks too long alone, particularly in economics.”
Professor John Harvey uses this quote from John Maynard Keynes in a must read post. It captures the essence of Nobel prize... Read More
Intellectual Honesty and Economics
After winning a share of this year’s Nobel prize in Economics, Paul Romer repeated his called for intellectual honesty in Economics (apparently... Read More
Championing Opacity Not an Impediment to Receiving a Nobel Prize in Economics
Benjamin Franklin observed “in this world nothing can be said to be certain, except death and taxes”. The Panama Papers revealed how the... Read More
Economics Profession: Continually Admired, Chronically Mistaken
I would like to expand on Gene Epstein’s article on Joseph Stiglitz and show how it really applies to much of the... Read More
How and Why did Economics Fail, Anyway?
As I was reading Noah Smith’s excellent review of Richard Bookstaber’s The End of Theory, I realized every shortfall he finds with the... Read More
What Kind of Financial System Do We Want?
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As journalists and columnists continue to churn out articles on the tenth anniversary of Lehman Brothers’ collapse, it is worth pointing out... Read More
Capitalism’s Near-Death Experience Is Still a Golden Opportunity
The tenth anniversary of the Committee to Save the Banks’ decision to put Wall Street ahead of Main Street has unleashed a... Read More