Category Archives: Financial Crises

When to break up the big banks

Stephen G. Cecchetti and Kermit L. Schoenholtz write, From our perspective, by raising the odds of an effective resolution, FIBA (as a complement to Dodd-Frank) boosts the credibility of the U.S. regime. Over time, foreign regulators also may be reassured … Continue reading

Posted in Financial Crises, Mark Thoma is Indispensable | 7 Comments

Needed: A March for Fiscal Responsibility

John Cochrane writes, We live on the edge of a run on sovereign debt. The US has a shorter maturity structure than most other countries, and a greater problem of unresolved entitlements. Despite our “reserve currency” status, we may actually … Continue reading

Posted in government debt crisis | 13 Comments

If I were an editor

I would be very hard on a lot of manuscripts. As a result, fewer published books would fail to meet my standards. By the same token, a lot of authors would be really frustrated, and they would give up trying … Continue reading

Posted in books and book reviews, Financial Crises | 3 Comments

Financial Policy if I were in charge

This afternoon, I am supposed to participate in a discussion of financial regulatory policy. There are so many participants, including big shots like John Taylor and John Cochrane, that I may end up not saying anything. I probably will just … Continue reading

Posted in Financial Crises, financial markets, Housing and housing finance | 32 Comments

The Source of Systemic Financial Risk

Charles Calomiris says that it is the political system. There are two important systemic threats to financial stability: government policies that subsidize mortgage risk, and government policies that insure bank debts (and, more generally, that subsidize bank default risk through … Continue reading

Posted in Financial Crisis of 2008, Housing and housing finance | 8 Comments

Biggs’ BIG for Social Security

Andrew Biggs writes, Under the plan, Social Security would guarantee that all retirees, regardless of work history or earnings, are lifted out of poverty in old age. Thus, while Social Security currently offers no minimum benefit, a strong minimum benefit … Continue reading

Posted in Economic education and methods, government debt crisis | 8 Comments

The Fiscal Outlook

The Committee for a Responsible Federal Budget reports, CBO finds debt held by the public will roughly double as a share of the economy over the next three decades, rising from 77 percent in 2017 to 150 percent by 2047. … Continue reading

Posted in government debt crisis | 7 Comments

We are not Singapore

John Mauldin writes, Forty-one percent of Americans have no savings at all. An article in Forbes cites data that shows that just 37% of Americans have savings to cover an emergency that costs over $500. …Simply put, most Baby Boomers … Continue reading

Posted in government debt crisis | 8 Comments

Revisiting My Former Life

Susan Wharton Gates, a former Freddie Mac employee, recently published a book delving into the collapse of that housing finance enterprise. In my review, I write, The fall of Freddie Mac came as a shock to those of us who … Continue reading

Posted in books and book reviews, Financial Crisis of 2008 | 3 Comments

Symposium on Low Interest Rates

From the Mercatus center. The contributions are not coordinated in any way. We wrote essays about causes, effects, predictions, …whatever we felt like, on the general subject of the implications of low interest rates and the potential for them to … Continue reading

Posted in government debt crisis, PSST and Macro | 6 Comments