Economics

So, that big emergency bailout that Treasury Secretary Paulson said we needed in such a hurry? Now he's saying we didn't need it after all. WASHINGTON - The government has abandoned the original centerpiece of its $700 billion rescue effort for the financial system and will not use the money to purchase troubled bank assets. Treasury Secretary Henry Paulson said Wednesday … [Read more...] about The Indecision Will Continue Until the Economy Improves

A few months ago, John McCain was lambasted by some of the punditry for his commenting that the fundamentals of our economy are strong. I never had a problem with what he said. The fundamentals of our economy were strong: Unenployment wasn't very high by historic standards, our farms and factories and business offices were still well-maintained and up-to-date, our workforce was … [Read more...] about More On My Theory of Our Current Economic Crisis

A few days ago, Treasury Secretary Paulson was using heavy-handed tactics to make banks take billions of tax dollars. Now there's this: WASHINGTON - An impatient White House served notice Tuesday on banks and other financial companies receiving billions of dollars in federal help to quit hoarding the money and start making more loans. "What we're trying to do is get banks to … [Read more...] about You Know Your Economic Recovery Plan Sucks When…

Economist and New York Times opinion columnist Paul Krugman just won the Nobel Prize for economics. Despite his controversial opinions in the Times, he really does deserve this award. I was going to explain why, but Arnold Kling does a much better job of it. His theories on international trade tend to recommend more government intervention than traditional trade theory did, but … [Read more...] about Congratulations to Paul Krugman

It started with Bear Stearns. Just a few billion dollars to take the edge off. Then Fannie and Freddie gave their lives over to the drug completely, followed by AIG. Suddenly everbody wanted a hit, they soaked up the drug to the tune of $700 billion dollars, and we thought it was over, but they kept wanting more, and the pushers keep supplying them: The Federal Reserve … [Read more...] about Welcome to Our Junkie Economy