William K. Black

Arnold Kling’s Cunning Hairdresser Theory of the Financial Crisis – Bill Black

Arnold Kling is a libertarian economist who once worked for Freddie Mac. This article discusses a blog and an article he wrote about the causes of the crisis. Both (unintentionally) illustrate key theoclassical economic positions critical to understanding the origins of the crisis. Kling’s blog was in response to a January 29, 2013 post by Thomas J. Sugrue. Sugrue provided data demonstrating that blacks and Latino homeowners suffered far greater wealth losses in the crisis than did whites.

Bank Failures are “Inconceivable” under the Latest Neoclassical Fantasy – Bill Black

Bank Failures are “Inconceivable” under the Latest Neoclassical Fantasy

By William K. Black (Cross posted at Benzinga.com) Only theoclassical economics constantly recycles variants of its worst ideas that have proven disastrous when they have influenced policy.  Other fields advance because they embrace the scientific method.  Theoclassical economists repeat their … Continue reading

Bank Failures are “Inconceivable” under the Latest Neoclassical Fantasy

Sorkin’s Paradox: Elite Bank Officers are “Worse” than “Repugnant” but Never Criminal – Bill Black

This is the third installment in my Sorkin Saga. The saga was prompted by Andrew Ross Sorkin’s (ARS) video in which he “outed” himself as the leader of an undercover effort by the journalists of the New York Time’s “Dealbook” and CNBC to discover and “out” the “criminal element” among the elite bankers. Here is the key passage from his video.

Why do Conservatives Oppose Prosecuting Elite Corporate Frauds? – Bill Black

There are at least four principles that virtually all conservatives purport to support – except when the potential defendant is socially elite. I have written previously about two of these principles on several occasions – the need for accountability and “broken windows” theory that calls for the prosecutors to make the prosecution of even minor street crimes a high priority if they have, even indirectly, a material effect on the community.

The Wall Street Journal Pines for the Return of Liar’s Loans – Bill Black

This is a syndicated repost courtesy of New Economic Perspectives. To view original, click here. Reposted with permission. Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the direction of the next big…

My “Idiotic” Insistence on Being Fair in Criticizing Larry Summers – Bill Black

This is a syndicated repost courtesy of New Economic Perspectives. To view original, click here. Reposted with permission. Follow the money. Find the profits!Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the direction of the next big…

Larry Summers Got a Bad Rap on Stimulus: Obama is the Problem – Bill Black

Larry Summers Got a Bad Rap on Stimulus: Obama is the Problem

By William K. Black I am a strong supporter of Janet Yellen and believe her support for the fiscal and monetary policies best designed to produce a stronger, prompter recovery from the Great Recession makes her the superior replacement for … Continue reading

Larry Summers Got a Bad Rap on Stimulus: Obama is the Problem