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Author: William K. Black

Finance Refuses to Take Akerlof and Romer Seriously about Looting – Bill Black

I have often written and spoken of my frustration that economists refuse to read George Akerlof and Paul Romer’s classic 1993 article (“Looting: The Economic Underworld of Bankruptcy for Profit”) and apply it to an analysis of the current financial crisis. Note that their title expresses the paradox they were reporting – the best way to loot the bank is for its controlling officer to cause it to make extraordinary amounts of terrible loans that will typically cause the bank to fail.

The Eurozone’s “Nascent” Recovery – Bill Black

The Eurozone’s “Nascent” Recovery

By William K. Black On January 19, 2014 I posted a column entitled “Deflation: The Failed Macroeconomic Paradigm Plumbs New Depths of Self-Parody” that discussed the insanity of the Eurozone’s approach to “the threat of deflation.”  The EU’s troika cannot … Continue reading

The Eurozone’s “Nascent” Recovery

The Powerful “Black Effect” v. Peltzman’s Hyped Effect – Bill Black

My title extends the humorous theme of I found in an article by Dr. David S. Pisetsky’s (M.D., Ph. D). Pisetsky’s riff is that he was eager to become famous by announcing “Pisetsky’s Rules” about rheumatology treatment risks and discovered to his great disappointment that Sam Peltzman had got their first and the risk phenomenon Pisetsky wished to warn about was already known as the “Peltzman effect.”

The AEI Takes its Regulatory Advice from Alan Greenspan – Bill Black

Mark J. Perry and Robert Dell’s February 24, 2011 article (“More Equity, Less Government: Rethinking Bank Regulation”) claims that the government caused the crisis and that the solution is to increase capital requirements and reduce government regulation. The authors are at an ultra-conservative “think” tank (AEI) dedicated to protecting elite CEOs from the “regulatory cops on the beat.”

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