Kenneth Rogoff, the creator of the fictional 90% budget deficit cliff, is back spreading new myths.
The reason we have recurrent, intensifying financial crises is because we learn the wrong lessons from our prior crises and actively make things worse.
The Wall Street Journal has editorialized about Credit Suisse’s guilty plea in a piece entitled “If Credit Suisse really is a criminal, why protect it from regulators?”
Timothy Geithner is usually smart enough to say as little as possible about his disastrous leadership of the Federal Reserve Bank of New York (NY Fed). Geithner was supposed to regulate most of the largest banking holding companies. The NY Fed was singled out by its peers and the Financial Crisis Inquiry Commission (FCIC) for its terrible regulation,
As I will explain, however, the seeming strength of the label “lawbreaker” is undercut by the rest of the title, the text of the article, and the reality of the Justice Department’s refusal to apply the rule of law to powerful domestic corporations and their controlling officers.
“Chutzpah is when a foreign corporation that commits tens of thousands of criminal acts that sicken and kill humans and animals and pollute the environment demands that a Kangaroo (faux) court order the government …
Geithner’s claim that Barofsky had no “financial knowledge or experience” takes about five seconds of search time to falsify. SIGTARP’s successes under Barofsky’s leadership and the quality of SIGTARP’s reports also expose Geithner’s claims as false. Virtually all the elite bankers convicted after the crisis were convicted due to SIGTARP’s investigations – often over Geithner’s obstruction.
Bernanke, enraptured by his triumphs, was clueless to all of the most important economic developments of his life that turned his triumphs to tin.
I have had so little success that today’s James Stewart column reached the pinnacle of unintentional self-parody of Deal Book’s zealous efforts to remove any concept of ethics from its reportage of elite white-collar crime.
Conservative economists love “creative destruction.” They can’t wait to “get their Schumpeter on” when a business fails and thousands of workers lose their jobs. There is no more “creative destruction” conceivable than when we put a bank that has become a fraudulent enterprise into receivership, remove the controlling officers leading the fraud, and sell the bank through an FDIC-assisted acquisition.