Devin Smith

The Fraud Shotgun: The Overlapping Fields of Fraudulent Fire that Drove the Crisis- William K. Black

I have written a series of articles recently that focus on appraisal fraud.

I did so because appraisal fraud allows such “clean” tests of what (and who) drove the financial crisis and how many different private and public sector actors could have easily prevented the crisis had they acted against the fraud epidemics.

What if Bernanke Had the Character to be Candid? William K. Black

David Wessel has just published a fantasy piece in the Wall Street Journal that asks the question “what if Bernanke could be blunt” in his Congressional testimony later this week. Here are the first two things that Wessel envisions a blunt Bernanke as telling Congress:
One. [T]he U.S. is doing a heck of a lot better than the rest of the developed world.

Two. You in Congress are hurting the economy now by allowing the sequester to stick and hurting the economy in the future by refusing to deal with long-term deficits. The Fed is trying to offset this, but there’s only so much we can do.

Why did the Fed Refuse to Heed the Appraisers, Prosecutors, and Industry’s Fraud Warnings? William K. Black

Two of my recent columns have explained the effort by a very large number of appraisers to combat the “Gresham’s” dynamic that home lenders and their agents were deliberately generating by extorting appraisers to inflate appraisals. A “Gresham’s” dynamics perverts market forces. When cheaters prosper the markets drive honest firms and professionals out of business. Honest appraisers tried to block this dynamic.

Heeding the Appraisers’ Fraud Warnings Would have Prevented the Crisis – William K. Black

On July 9, 2013 I participated in a radio interview with a lobbyist for the 100 largest financial firms. The San Francisco radio program host asked me what question I would ask the lobbyist and I said that any discussion should begin with allowing him to state his view of what caused the crisis. In the course of his explanation, he bemoaned the fact that there was no warning about the crisis.

Confessions of a Confused but Privileged Right Wing, Liberal, Libertarian – William K. Blakc

I was doing an unrelated search when I stumbled across a series of articles by “Citizen K” discussing me. K explained the purpose of K’s January 26, 2013 column as: “debunk[ing] Black’s self-promotion and right wing political idea that in the virtuous past justice prevailed.” When pressed on this by a commenter, K explained:

Myerson’s Ode to Crony Capitalism- William K. Black

This is the fifth installment in my series of article about the predictive and policy failures of Roger Myerson, Nobel Laureate in economics in 2007. My first two articles critiqued his claim that capitalism’s unique advantage over communism is plutocracy because only exceptionally wealthy CEOs can be successfully bribed by their shareholders to “imitate” “good” CEOs who will not cheat the shareholders.

Myerson’s misses the Miasma that is Modern Executive Compensation- William K. Black

This is the fourth installment of my exploration of the work of Roger Myerson, Nobel Laureate in economics in 2007. It is part of what will be a broader series of articles exploring why economics is unique among the sciences in awarding the Prize to scholars whose predictive work proves profoundly wrong