Bailout in the News, Or, ‘why It is a Good Thing That Journalism is Just the First Draft.’

Michael Giberson The recent “first rough draft of history” will need some editing to smooth out the narrative. Pity the poor newspaper reporters and headline writers who daily examine stock market movements and then try to write an account of what it all means. Last Tuesday, the Wall Street Journal featured on the front page: … More Bailout in the News, Or, ‘why It is a Good Thing That Journalism is Just the First Draft.’More Bailout in the News, Or, ‘why It is a Good Thing That Journalism is Just the First Draft.’

The Fallacy, and Danger, of Blaming Deregulation

Lynne Kiesling In Monday’s Washington Post, Sebastian Mallaby argues that blaming deregulation for this financial crisis is both false and dangerous: So the first cause of the crisis lies with the Fed, not with deregulation. If too much money was lent and borrowed, it was because Chinese savings made capital cheap and the Fed was … More The Fallacy, and Danger, of Blaming DeregulationMore The Fallacy, and Danger, of Blaming Deregulation

Lessons from the Depression: Emergency Policies Can Prolong Weakness

Lynne Kiesling When Steve Horwitz says that we have to control the narrative in the wake of the bailout plan’s approval, here’s one example: following up on a link to a 2004 UCLA press release, I found this paper: “New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis” Harold Cole … More Lessons from the Depression: Emergency Policies Can Prolong WeaknessMore Lessons from the Depression: Emergency Policies Can Prolong Weakness

But at Least Gas Prices Are Falling …

Lynne Kiesling Global economic weakness and the end of hurricane season mean that gasoline inventories are rising and prices are falling. … More But at Least Gas Prices Are Falling …

Shoring Up the Commercial Paper Market

Lynne Kiesling In light of Tyler’s observation yesterday that things are going badly if the Fed guarantees commercial paper, I offer without comment this news item: The Federal Reserve announced Tuesday a radical plan to buy massive amounts of short-term debts in a dramatic effort to break through a credit clog that is imperiling the … More Shoring Up the Commercial Paper MarketMore Shoring Up the Commercial Paper Market