The $2.2 trillion stimulus bill recently passed by Congress sensibly restricts large companies getting help under that bill from distributing capital to shareholders or paying outsized executive compensation.
What we learned from the last crisis is that bank bailouts help banks, not the rest of us. If the Fed has to step in — and it will — it should provide help directly to the real economy.
Mike Bloomberg has proposed hiking taxes on wealthy investors, imposing a levy on financial transactions, and toughening financial regulations. It is a fine list. The problem: It is the polar opposite of his past positions.
Regulators are arguing over the right metrics to use in crediting banks with Community Reinvestment Act lending. But they are failing to ask a more fundamental question.
As politicians engage in bidding wars over student debt, a more modest proposal suggests debt forgiveness of up to $10,000, which would wipe out debt for about 40% of borrowers.
Whenever there are unexpected problems in the financial markets, banks are quick to create the illusion of financial regulation as the culprit. In doing so, they divert attention from the real cause, which is all-too-often misbehavior on the part of the banks they represent.
Payments are the lifeblood of any economy. Yet the current payment system is fraught with frictions and inefficiencies. The Fed wants to fix that.
Facebook Mark Zuckerberg’s plans to launch a new, global cryptocurrency called Libra have been met with understandable alarm, particularly among regulators and consumer advocates.
Concern over leveraged loans is raising fears that they could pose a new threat to the economy as did subprime mortgages a decade ago.
A longstanding critic of the current financial system, Elizabeth Warren is one of the politicians who understands that system and has a workable plan to reform.
The biggest controllable risk to economic growth at present is the Fed raising rates too fast, according to former FDIC chair Sheila Bair.
The Fed still has massive power to bail out banks and non-banks. Last month, an inter-agency regulatory group known as the Financial Stability Oversight Council (FSOC) decided that there are no longer any large financial institutions outside the regulated banking system that pose a threat to financial stability. Interestingly, while the FSOC has eviscerated Title I designations, which were designed to prevent bailouts, it has left intact another group of systemic designations that facilitate bailouts.
To what extent should decades-old actions matter to the fitness of candidates for high office? Elizabeth Warren’s partisan critics are showing a good dose of hypocrisy in answering that question.
There are lies, damn lies, and then there are statistics. This famous saying popularized by American humorist Mark Twain aptly describes the current use of economic statistics to paint an overly rosy picture of our economic health.
While we loosen financial regulation to achieve faster short-term growth, China is tightening regulation to contain bubbles and achieve sustainable, long-term growth, even if that means slowing its economy in the near-term.
What if the Fed or other central bank issued their own digital money? Though it sounds radical, the idea is gaining credibility among an increasing number of mainstream economists and central bankers themselves.
Some argue that bitcoin performs no socially useful function, and that it should be banned. But value, like beauty, is in the eye of beholder.