MedWorm provides a medical RSS filtering service. Over 6000 RSS medical sources are combined and output via different filters. This feed contains the latest medical blog items that have been tagged with 'bernanke'. Sat, 03 Sep 2011 02:56:17 +0100 http://www.medworm.com/index.php?rid=4883558&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FOQRfT8bXzW4%2F By Mark A. CalabriaOn July 8th, Sheila Bair will step down as Chair of the Federal Deposit Insurance Corporation (FDIC).  While I believe she’s gotten a lot wrong (such as not preparing the fund for the coming crisis), she has been about the only voice among senior bank regulators for actually ending too-big-to-fail.  With her departure, we might lose that one voice.  Later this year, Kansas City Fed President Tom Hoenig is also scheduled to leave his current position. Hoenig has actually gone beyond Bair in trying to address too-big-to-fail, having called for the largest banks to be broken up.  While I don’t believe that should be our first approach, having an advocate for both the taxpayer and the overall economy at the helm of the FDIC could make a significant difference... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4883558 Tue, 31 May 2011 16:09:00 +0100 4883558 http://www.medworm.com/index.php?rid=4862514&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FBrZgMjl4-q0%2F By Mark A. CalabriaThere’s a great piece in the spring issue of The Independent Review on Federal Reserve Chairman Ben Bernanke by San Jose State Professor Jeffrey Rogers Hummel.  Although a bit long, its well worth the read for anyone wanting to understand both Bernanke’s thinking and his actions during and since the financial crisis. First, Prof. Hummel discusses the differences between Bernanke’s and Milton Friedman’s explanations for the Great Depression.  Those that debate whether Bernanke’s actions, especially the quantitative easings, would be approved of by Friedman will get a lot out of this discussion.  From this comparison, you get the point that Friedman was concerned about overall credit conditions and liquidity, whereas Bernanke is less focuse... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4862514 Tue, 24 May 2011 19:15:18 +0100 4862514 http://www.medworm.com/index.php?rid=4828862&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FIwlo5uy3QJk%2F By Daniel J. MitchellThere’s a lot of buzz about a Wall Street Journal interview with Stanley Druckenmiller, in which he argues that a temporary delay in making payments on U.S. government debt (which technically would be a default) would be a small price to pay if it resulted in the long-term spending reforms that are needed to save America from becoming another Greece. One of the world’s most successful money managers, the lanky, sandy-haired Mr. Druckenmiller is so concerned about the government’s ability to pay for its future obligations that he’s willing to accept a temporary delay in the interest payments he’s owed on his U.S. Treasury bonds—if the result is a Washington deal to restrain runaway entitlement costs. “I think technical default would... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4828862 Mon, 16 May 2011 13:48:30 +0100 4828862 http://www.medworm.com/index.php?rid=4780292&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F-bKAEJ36A_Q%2F By Mark A. CalabriaThe Wall Street Journal has pointed out that in his recent press conference Federal Reserve Chair Ben Bernanke used the words “inflation expectations” (or some variation) 21 times. His argument is that we need not worry about inflation because we will see it coming, and then the Fed will do something about it. Such an argument relies heavily on the ability of inflation expectations to predict inflation. Which of course raises the question, just how predictive are inflation expectations? The graph below compares inflation, as measured by CPI, and inflation expectations, as measured by the University of Michigan consumer survey, the longest times series we have on inflation expectations. Clearly the two move together. For instance, the correlation between c... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4780292 Tue, 03 May 2011 17:17:37 +0100 4780292 http://www.medworm.com/index.php?rid=4758740&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FAL-eC2nmqmc%2F By George Scoville New research suggests that there has been more monetary and macroeconomic instability since the Federal Reserve’s inception than in the decades preceding it. New thinking about the usefulness of government programs will help us from restore fiscal balance and economic well-being in America. New geopolitical circumstances should make us wonder: why are we still a part of NATO? New Deal-era jurisprudence may soon be overturned as challenges to the Affordable Care Act reach the U.S. Supreme Court. New means of funding public roads will increase efficiency by confronting drivers with the costs of using them, and reducing congestion: Reminder: If you’re in the DC area, please join us this Friday at 4:00 p.m. Eastern for a special sneak preview of Free or Equal a... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4758740 Wed, 27 Apr 2011 15:01:48 +0100 4758740 http://www.medworm.com/index.php?rid=4753665&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FEysqe_Q8ZR0%2F By Mark A. CalabriaApril 27th begins a new chapter in Federal Reserve history: the Fed joins other major central banks in having a press conference after its monetary policy meetings (the Federal Open Market Committee).  Apparently the record lows in public support for the Fed, along with rising gas and food prices, have driven Bernanke to attempt to change the narrative.  After all, his appearance on “60 Minutes” did wonders for the Fed’s reputation.  I’m excited to hear even more about his childhood in Dillon, South Carolina or his time working at South of the Border.  Maybe an enterprising reporter could ask how much menu prices at South of the Border have increased since Bernanke took over the Fed. Perhaps you’ve noticed that I don’t have high ex... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4753665 Tue, 26 Apr 2011 19:57:13 +0100 4753665 http://www.medworm.com/index.php?rid=4719883&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F34bI-IHWah4%2F By Daniel J. MitchellBy taking advantage of  “must-pass” pieces of legislation, Republicans have three chances this year to restrain the burden of government.  They didn’t do very well with the “CR fight” over appropriated spending for the rest of FY2011, which was their first opportunity. I was hoping for an extra-base hit off the fence, but the GOP was afraid of a government shutdown and negotiated from a position of weakness. As such, the best interpretation is that they eked out an infield single. The next chance to impose fiscal discipline will be the debt limit. Currently, the federal government “only” has the authority to borrow $14.3 trillion (including bookkeeping entries such as the IOUs in the Social Security Trust Fund). This is a ver... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4719883 Fri, 15 Apr 2011 16:57:04 +0100 4719883 http://www.medworm.com/index.php?rid=4540555&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FXQm6dn1vw6Y%2F By Daniel J. MitchellEarlier this week, the Washington Post predictably gave some publicity to the Keynesian analysis of Mark Zandi, even though his track record is worse than a sports analyst who every year predicts a Super Bowl for the Detroit Lions. The story also cited similar predictions by the politically connected folks at Goldman Sachs. Zandi, an architect of the 2009 stimulus package who has advised both political parties, predicts that the GOP package would reduce economic growth by 0.5 percentage points this year, and by 0.2 percentage points in 2012, resulting in 700,000 fewer jobs by the end of next year. His report comes on the heels of a similar analysis last week by the investment bank Goldman Sachs, which predicted that the Republican spending cuts would cause even greater... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4540555 Wed, 02 Mar 2011 18:56:44 +0100 4540555 http://www.medworm.com/index.php?rid=4300537&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F2bPnfCZSqhY%2F By David BoazCato senior fellow Johan Norberg, author of In Defense of Global Capitalism and Financial Fiasco, has the cover story in this week’s issue of The Spectator, the eminent 182-year-old British weekly. Titled “The great debt bubble of 2011,” it warns that governments are repeating their mistakes of the past decade: There is a broad consensus that the financial crisis of 2007 was at least in part a result of record-low interest rates, huge deficits and large-scale credit-financed consumption. Today, governments across the world are trying to solve the crisis — by means of record-low interest rates, huge deficits and large-scale credit-financed consumption. This time, they are also using more novel means of creating easy money: bank bailouts, stimulus packages an... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4300537 Thu, 30 Dec 2010 18:43:47 +0100 4300537 http://www.medworm.com/index.php?rid=4245288&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F0CMv_mxQ5SM%2F By Mark A. CalabriaMuch of what drives the policy choices of Ben Bernanke and the Federal Reserve is a belief in the ability to trade higher inflation for lower unemployment, known within the economics profession as the “Phillips curve.”   But does this trade-off actually exist?  While its true that many have found a negative correlation between inflation and unemployment prior to 1960, looking at U.S. data, this relationship appears to have broken down in the mid-1960s, just about the time policy-makers thought they could exploit it (Lucas critique anyone?). It is hard, looking at the graph, which displays the annual change in consumer prices over the previous year and unemployment, to see much of a relationship.  In fact, since 1960, the correlation between changes in CP... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4245288 Thu, 09 Dec 2010 16:38:09 +0100 4245288 http://www.medworm.com/index.php?rid=4151750&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FJzZhhZ7EcRY%2F By Daniel J. MitchellEarly in the Obama Administration, there was an amusing/embarrassing incident when Chinese students laughed at Treasury Secretary Geithner when he claimed the United States had a strong-dollar policy. I suspect that even Geithner would be smart enough to avoid such a claim today, not after the Fed’s announcement (with the full support of the White House and Treasury) that it would flood the economy with $600 billion of hot money. Here’s what my colleague Alan Reynolds wrote in the Wall Street Journal about Bernanke’s policy. Mr. Bernanke…believes (contrary to our past experience with stagflation) that inflation is no danger thanks to economic slack (high unemployment). He reasons that if people can nonetheless be persuaded to expect higher infl... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4151750 Wed, 10 Nov 2010 16:01:13 +0100 4151750 http://www.medworm.com/index.php?rid=4133668&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FEfYspog-5P8%2F By Mark A. CalabriaWhile it’s been obvious for years, Bernanke showed his rationale for more easing in today’s Washington Post.  He believes we are in danger of too little inflation.  While common sense might imply that price stability means neither inflation nor deflation, in Bernanke’s book, anything below the Fed’s target of 2 percent is bad. First of all, there really needs to be a public debate over the Fed’s 2% target.  After all, a 2% rate of inflation over, say, 30 years erodes almost half of one’s wealth.  How that can seriously be viewed as “price stability” is beyond me.  While a 2% rate of inflation is not going to bring the economy to a halt, it is still a massive theft of wealth over the long haul. Bernanke has also express... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=4133668 Thu, 04 Nov 2010 16:52:49 +0100 4133668 http://www.medworm.com/index.php?rid=3929430&cid=t_244866_136_f&fid=37852&url=http%3A%2F%2Fdonnatrussell.com%2F2010%2F09%2F02%2Fanother-depression-the-fed-and-ben-bernanke-to-the-rescue%2F New cartoon by Trussell & Trussell on Politics Daily. Another Depression? The Fed and Ben Bernanke to the Rescue! Filed under: Politics Daily Tagged: ben bernanke, cancer humor, comics, economy, political cartoon, recession, robert donna trussell, unemployment (Source: Donna Trussell) Donna Trussell blogs http://www.medworm.com/rss/comments.php?id=3929430 Thu, 02 Sep 2010 16:00:20 +0100 3929430 http://www.medworm.com/index.php?rid=3914984&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FPEdWlxY7HdM%2F By Gerald P. O'DriscollEvery August, the Federal Reserve Bank of Kansas City sponsors a conference on monetary policy. It is the most valued invitation of the year for central bankers and Fed watchers. The Fed Chairman typically presents his views on monetary policy and the economy, and his talk inevitably makes headlines. (A select few reporters are invited.) This year, Ben Bernanke promised the Fed will do whatever it takes to aid the faltering U.S. recovery, and most of all to prevent deflation. The problem for the Fed Chairman is that the central bank is plainly running out of options, as some had the cheek to observe. He suggested the Fed could do more of the same (purchase long-term securities), or try something new and untested (tweak the interest rate it pays on bank reserves). Ber... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3914984 Mon, 30 Aug 2010 11:18:38 +0100 3914984 http://www.medworm.com/index.php?rid=3482883&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FyAt8AlivMAo%2F By Mark A. CalabriaSeveral commentators have reacted to Senator McConnell’s floor statement regarding the Dodd bill as a defense of “doing nothing”.  And accordingly argue that such a position would be, in the words of Simon Johnson, both dangerous and irresponsible.  This familiar canard is based upon the oft repeated assertion that the failure of Lehman proved that we cannot simply let large financial companies enter bankruptcy. The simple, but important, fact is that we have no idea what would have happened had we let AIG and Bear go into bankruptcy proceedings.  Nor do we know what would have happened if Lehman had been saved.  Macroeconomics does not have the luxury of running natural experiments to determine the impact of a corporate failure.   Scholars have a... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3482883 Mon, 19 Apr 2010 12:33:03 +0100 3482883 http://www.medworm.com/index.php?rid=3453888&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fv4Qyws5guZs%2F By Michael F. CannonFederal Reserve Chairman Ben Bernanke gave a speech in Dallas yesterday where he inadvertently discredited claims that ObamaCare would reduce health care costs and the federal deficit.  According to The Washington Post: Federal Reserve Chairman Ben S. Bernanke warned Wednesday that Americans may have to accept higher taxes or changes in cherished entitlements such as Medicare and Social Security if the nation is to avoid staggering budget deficits that threaten to choke off economic growth… While the immediate audience for the speech was the Dallas Regional Chamber, his message was intended for Congress and the Obama administration… Bernanke has urged Congress to address long-term fiscal imbalances in congressional testimony before, but usually only when he... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3453888 Thu, 08 Apr 2010 16:44:29 +0100 3453888 http://www.medworm.com/index.php?rid=3453889&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FsRYR1PTv2zc%2F By Daniel J. MitchellEven though I’ve been in Washington almost 25 years, I am endlessly amazed at the chutzpah of people who support higher spending and bigger government while piously lecturing the rest of us about the need to control deficits. Fed Chairman Ben Bernanke is a good (though “bad” might be a better term) example of this hypocrisy. He was an avid supporter of bailouts and so-called stimulus, yet the Washington Post reports that he is now hectoring us to be fiscally responsible: Federal Reserve Chairman Ben S. Bernanke warned Wednesday that Americans may have to accept higher taxes or changes in cherished entitlements such as Medicare and Social Security if the nation is to avoid staggering budget deficits that threaten to choke off economic growth. “Th... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3453889 Thu, 08 Apr 2010 16:40:54 +0100 3453889 http://www.medworm.com/index.php?rid=3216570&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FtMuUx7G-x2I%2F By Chris Moody Cato experts will live-blog Obama’s State of the Union Address tonight. Join in, submit questions, and watch the speech right here on Cato@Liberty at 9:00 PM EST. A quick, ten-point libertarian State of the Union Address. One “Great Canard”: Federal Reserve Chairman Ben Bernanke argues that the Fed’s monetary policy was not responsible for the U.S. housing bubble. About that non-discretionary spending… Podcast: “Obama’s Fiscal Right Fake” featuring Chris Edwards. (Source: Cato-at-liberty) Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3216570 Wed, 27 Jan 2010 20:43:17 +0100 3216570 http://www.medworm.com/index.php?rid=3149037&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F2IJvlpe-flQ%2F By Peter Van DorenDavid Leonhardt’s column today in the New York Times, in reaction to Ben Bernanke’s recent speech at the American Economic Association meetings, asks an important question: If the Federal Reserve failed to detect the housing bubble when it occurred, why should we entrust it with that role in the future? But he doesn’t follow the logic of his question far enough and instead embraces a financial equivalent of the National Transportation Safety Board, as if technical solutions exist and could be implemented if politics got out of the way. In our recent Policy Analysis, Jagadeesh Gokhale and I examine a more complete list of technical and political problems that stand in the way of asset bubble management. Can bubbles be detected using scientific techniques (econometric... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3149037 Wed, 06 Jan 2010 18:00:37 +0100 3149037 http://www.medworm.com/index.php?rid=3142523&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FE4qPMyOHaU4%2F By Mark A. CalabriaYesterday, at the annual meetings of the American Economic Association, Fed Chairman Ben Bernanke offered a continued defense of the Fed’s monetary policies earlier this decade. Essentially he believes that monetary policy did not contribute to the housing bubble.  He also makes clear that he believes that the excessively loose policy stance of the Fed after the dot-com bubble burst was appropriate given the level of unemployment at that time.   Given that today’s unemployment level is even worse, Bernanke has offered us a clear indication that monetary policy will remain excessively loose for the foreseeable future, regardless of the Fed’s inability to actually create jobs. Bernanke’s remarks also illustrate the contradictions in his own think... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3142523 Mon, 04 Jan 2010 17:26:35 +0100 3142523 http://www.medworm.com/index.php?rid=3067015&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FdKCbdP-Tp1M%2F By Mark A. CalabriaWhile both Greenspan and Bernanke merit considerable blame for helping to inflate the housing bubble, it is worth mentioning what Greenspan did get right:  bringing to the attention of Congress and the public the risk posed to our financial system from Fannie Mae and Freddie Mac. During Bernanke’s confirmation hearing last week, Banking Committee Chairman Chris Dodd criticized the Fed for not doing enough to warn Congress on systemic risks facing the economy.  Given Dodd’s attendance record, both as Chair and before, he can perhaps be forgiven if he missed one of Greenspan’s many appearances before the Banking Committee. To help remind us, on Feb. 24, 2004, Greenspan told the Banking Committee: Concerns about systemic risk are appropriately focused on... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3067015 Mon, 07 Dec 2009 22:18:00 +0100 3067015 http://www.medworm.com/index.php?rid=3056621&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FnW5hraShaXg%2F A few questions for Ben Bernanke: “Perhaps the most important question Bernanke should answer is: how will he re-build and maintain an independent Fed?” Before considering Bernanke’s role in containing the financial crisis, Congress should investigate the role of Fed policy in allowing the housing bubble to grow. Prepare to pay more: Today, an average insurance policy can cost about $2,985 for an individual or $6,328 for a family.  Under the Senate bill, those premiums will increase to $5,800 for an individual worker and $15,200 for a family plan by 2016. Why the White House “jobs summit” is unnecessary. Made on Earth: How global economic integration renders trade policy obsolete. Podcast: “ObamaCare the Budget Buster.” More, here. (Sour... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3056621 Thu, 03 Dec 2009 16:37:34 +0100 3056621 http://www.medworm.com/index.php?rid=3018979&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FRiXVruPRDAs%2F The Wall Street Journal reported that Congress likes Fed Chairman Bernanke, but not the institution that he heads. There is growing consensus that the Fed needs to be reformed and restructured.  Most notably, there are calls to strip the Fed of its supervisory authority.  In practice, the new sentiment reflects the failure of the Fed to rein in risk taking by the largest banks. The Fed is pushing back.  One reserve bank president said that removing the Fed’s supervisory authority “would affect our ability to conduct monetary authority effectively.” He went on to say that without the supervisory authority, the Fed wouldn’t know enough about risks brewing in the economy.  This argument is shop worn. The Fed had the authority. It fueled the housing boom with its m... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=3018979 Mon, 23 Nov 2009 14:01:02 +0100 3018979 http://www.medworm.com/index.php?rid=2946994&cid=t_244866_113_f&fid=38236&url=http%3A%2F%2Fwww.healthcareitnews.com%2Fblog%2Fmessage-americas-physicians-purchasing-ehr-technology-shaky-state-affairs Much of the conversation and debate about physician EHR adoption has centered on the single issue of the (high) cost of purchase.  However, we'd like to suggest that the situation is much more complex and involves several more subtle variables. (Source: Healthcare IT News Blog) Healthcare IT News Blog blogs http://www.medworm.com/rss/comments.php?id=2946994 Fri, 30 Oct 2009 18:33:54 +0100 2946994 http://www.medworm.com/index.php?rid=2890622&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FPodXECXXeLI%2F Scheduled for consideration before the House Financial Services Committee this week is a draft bill creating a Consumer Financial Protection Agency.  While there is a lot wrong with the bill — after all it is based on the premise that somehow consumers were tricked into not making a downpayment or re-financing thousands out of their homes, and then walking away — perhaps the most important provision, and the least discussed, is funding the agency by a transfer of cash from the Federal Reserve.  Section 119 of the bill requires the Federal Reserve to transfer an amount equal to 10 percent of its expenses to the new agency’s Director.  This I believe is the first time in history that Congress is using the Federal Reserve to simply fund another agency.  Why stop there, ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2890622 Tue, 13 Oct 2009 18:37:13 +0100 2890622 http://www.medworm.com/index.php?rid=2855544&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FIbmJSv49OxM%2F This past week witnessed continued debate in congressional committees over changes to our financial regulatory system.  Perhaps catching the most attention was Fed Chairman Ben Bernanke’s appearance before House Financial Services.  Sadly missing from all the noise this week was any discussion over reforming those entities at the center of the housing bubble and mortgage meltdown:  Fannie Mae and Freddie Mac. While many, including Bernanke, have identified the “global savings glut” as a prime force behind the historically low interest rates that drove the housing bubble, often missed in this analysis is the critical role played by Fannie and Freddie as channels of that savings glut.  After all, the Chinese Central Bank was not plowing its reserves into Countrywide sto... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2855544 Fri, 02 Oct 2009 16:08:38 +0100 2855544 http://www.medworm.com/index.php?rid=2851750&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F5mFvHNabPSs%2F In the last few days, we have witnessed an almost unprecedented chorus of warnings about inflation prospects by senior Fed officials. Dallas Fed President Richard Fisher said the Fed must be prepared to tighten monetary policy by raising short-term interest rates with “alacrity.” President Charles Plosser of Philadelphia had spoken of the need to raise interest rates before unemployment returns to normal in order “to prevent the Second Great Inflation.” The comments of the two Reserve Bank presidents reinforce those made by Fed Governor Kevin Warsh. Financial markets are confused because the Fed’s policy-making committee (the Federal Open Market Committee) had just indicated its intention to keep interest rates low for an extended period. The inflation warning... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2851750 Wed, 30 Sep 2009 18:24:51 +0100 2851750 http://www.medworm.com/index.php?rid=2809662&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FYN8MwjrmY-s%2F Nat Hentoff has a few tough questions for doctors who aided CIA torture. Is public option a private insurer killer? Larry McNeely and Michael Cannon debate. “Cap-and-Trade Is Dead. Long Live Cap-and-Trade!” Fed Chairman Ben Bernanke says the recession is probably over. But was he the man who saved the economy? Podcast: Should the government have the power to punish you for speaking your mind? Many Americans think it should…so long as it’s people with whom they don’t agree. (Source: Cato-at-liberty) Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2809662 Fri, 18 Sep 2009 20:37:30 +0100 2809662 http://www.medworm.com/index.php?rid=2807848&cid=t_244866_136_f&fid=37852&url=http%3A%2F%2Fdonnatrussell.com%2F2009%2F09%2F17%2Fchaos-theory-ben-bernankes-good-news%2F New cartoon by Trussell & Trussell on AOL’s Politics Daily: Ben Bernanke’s Good News. Posted in Politcal Cartoons Tagged: ben bernanke, economy, recession, unemployment (Source: Donna Trussell) Donna Trussell blogs http://www.medworm.com/rss/comments.php?id=2807848 Thu, 17 Sep 2009 20:47:21 +0100 2807848 http://www.medworm.com/index.php?rid=2803895&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FtlWqSujwMDA%2F Was it just me, or did there seem to be a whole lot of applause during Obama’s Wall Street speech?  Remember this was a room full of Wall Street executives.  The President even started by thanking the Wall Street execs for their “warm welcome.” While of course, there was the obligatory slap on the wrist, that “we will not go back to the days of reckless behavior and unchecked excess,” but there was no mention that the bailouts were a thing of the past.  Indeed, there is nothing in Obama’s financial plan that would prevent future bailouts, which is why I believe there was such applause.  The message to the Goldman’s of the world, was, you better behave, but even if you don’t, you, and your debtholders will be bailed out. The president also... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2803895 Wed, 16 Sep 2009 18:21:46 +0100 2803895 http://www.medworm.com/index.php?rid=2793134&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FHQmw2pZGlFY%2F Today President Obama took his financial reform plan to the airwaves.  While there is no doubt our financial system is in need of financial reform, the President’s plan would make bailouts a permanent feature of the regulatory landscape.  Rather than ending “too big to fail” — the President wants us to believe that with additional discretion and power, the same Federal Reserve that missed the boat last time will save us next time. The truth is that the President’s plan will result in a small number of companies being viewed by debtholders as “too big to fail”.  These companies would see their funding costs decline, allowing them to gain market-share at the expense of their rivals, making these firms even larger.  Greater concentration in our fi... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2793134 Mon, 14 Sep 2009 16:29:55 +0100 2793134 http://www.medworm.com/index.php?rid=2734014&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FXmuqbPJu1us%2F In re-appointing Bernanke to another four year term as Fed chairman, President Obama completes his embrace of bailouts, easy money and deficits as the defining characteristics of his economic agenda. Bernanke, along with Secretary Geithner (then New York Fed president) were the prime movers behind the bailouts of AIG and Bear Stearns. Rather than “saving capitalism,” these bailouts only spread panic at considerable cost to the taxpayer. As evidenced in his “financial reform” proposal, Obama does not see bailouts as the problem, but instead believes an expanded Fed is the solution to all that is wrong with the financial sector. Bernanke also played a central role as the Fed governor most in favor of easy money in the aftermath of the dot-com bubble — a policy t... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2734014 Tue, 25 Aug 2009 14:25:29 +0100 2734014 http://www.medworm.com/index.php?rid=2645267&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FAdadN9XnA6Y%2F A recent Gallup Poll surveyed the public’s impression of how various federal agencies were doing their job.  Of the agencies evaluated, on the bottom was the Federal Reserve Board.  Only 30 percent of the respondents rated the Fed’s performance as either excellent or good.  I can understand now why Chairman Bernanke felt the need to take his act on the road.  Even the IRS managed to get 40 percent of respondents to see its job performance as excellent or good. A majority of the public, 57 percent, sees the Fed’s current performance as either poor or fair. The result is not just driven by a general public disdain for federal agencies; over a majority of respondents thought such agencies as the Center for Disease Control, NASA and the FBI were doing an excellent or good... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2645267 Mon, 27 Jul 2009 16:45:32 +0100 2645267 http://www.medworm.com/index.php?rid=2625957&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2F5KElqCyhhK8%2F Here is the message members of Congress should send to Ben Bernanke during the Fed chief’s annual Capitol Hill testimony this week: He is fighting for his job. With his term up in January of next year, Bernanke needs to be called to account for the Fed’s many questionable actions during the financial turmoil of the past year. Even while correctly identifying the “global savings glut,” Bernanke sat by and did nothing about the unsustainable build-up of leverage in the housing market—the “bubble” which famously burst in late 2008. Bernanke also used Fed financing to bail out Bear Stearns and AIG—hotly political moves which should rightfully have been left to Congress—and oversaw the massive expansion of the Fed’s balance sheet from about $900 billion to over $2 trillion. ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2625957 Tue, 21 Jul 2009 18:24:29 +0100 2625957 http://www.medworm.com/index.php?rid=2625963&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fj9AVWzqNpdc%2F In today’s Wall Street Journal, Fed Chairman Ben Bernanke has outlined “The Fed’s Exit Strategy.” He tells the reader how the central bank will avoid an inflation of historic proportions resulting from all the money and credit it has injected into the economy. All of the strategies he outlines are technically feasible ways for the Fed to implement monetary restraint. The op-ed has an air of a classroom exercise, however, rather than a practical central-bank strategy. Much of the article is devoted to explaining how the Fed can now pay interest on reserves, and how it could raise that interest rate so as to dissuade commercial banks from lending the reserves out. It could do that, but what would that rate need to be in order to meet a private bank’s threshold r... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2625963 Tue, 21 Jul 2009 15:15:52 +0100 2625963 http://www.medworm.com/index.php?rid=2613838&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fk4KyMt3g-yk%2F More than 250 economists have signed an “Open Letter to Congress and the Executive Branch” calling upon them to “defend the independence of the Federal Reserve System as a foundation of U.S. economic stability.” Allan Meltzer is not a signatory to the petition and he has explained why not.  The Fed has frequently not shown independence in the past, and there is no reason to expect it to do so reliably in the future.  Professor Meltzer has just completed a multi-volume history of the Fed and knows all-too-well of the Fed’s willingness to accommodate the policies of administrations from FDRs to Lyndon Johnson’s.  I would add that the Fed’s behavior under Chairman Bernanke breaks new ground in aligning the central bank’s policy with Treasury’s.  Much of what the Fed has... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2613838 Fri, 17 Jul 2009 12:37:06 +0100 2613838 http://www.medworm.com/index.php?rid=2598191&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FWpZvflg_xZQ%2F Recent weeks have seen a swirl of speculation over whether President Obama will or will not re-appoint Ben Bernanke to the Chairmanship of the Federal Reserve Board, when his current term as Chair expires in January 2010. Almost all of the debate has centered on his actions as Chairman. This narrow focus misses an important piece: his actions, and words, as a Fed governor during the build-up of the housing bubble. What should have been Bernanke’s greatest strength as a Fed governor and later chair, his understanding of monetary theory and his knowledge of the Great Depression, has ended up being a weakness. While correct in his analysis of the role of “debt deflation” — where the deflation increases the real burden of debts and correspondingly weakens the balance s... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2598191 Mon, 13 Jul 2009 14:19:43 +0100 2598191 http://www.medworm.com/index.php?rid=2561212&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2Fr70NNXcLMmI%2F Last week Cato hosted a policy forum on “Bringing Transparency to the Federal Reserve,” featuring Congressman Ron Paul. As mentioned in CQ Politics, Rep. Paul’s bill, HR 1207, has been gaining considerable momentum in the House, with currently 244 co-sponsors, ranging from John Boehner to John Conyers Jr. In fact, the Senate companion bill was introduced by Senator Bernie Sanders. Fed Chairman Ben Bernanke discussed the very topic of Federal Reserve Transparency at Cato’s annual monetary conference in the Fall of 2007. After praising moves toward greater transparency at the Fed, Bernanke argued that “monetary policy makers are public servants whose decisions affect the life of every citizen; consequently, in a democratic society, they have a responsibility to give the peo... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2561212 Tue, 30 Jun 2009 19:57:27 +0100 2561212 http://www.medworm.com/index.php?rid=2556087&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FrdZiIACZYC4%2F Fed Chairman Bernanke’s term as Chair ends in January 2010. So far President Obama has offered Bernanke praise for his performance, but little else. After last week’s House Oversight Committee hearing focusing on Bernanke’s role in Bank of America’s purchase of Merrill Lynch, it is now readily apparent that the Chairman has few supporters on Capitol Hill. While his nomination will not be subject to the approval of the House of Representatives, or any of its Committees, the Senate Banking Committee’s reaction to Treasury Secretary Geithner’s plan to extend the Fed’s power serves as a useful proxy in gauging that Committee’s view of the Fed’s recent performance. Several recent polls show President Obama to be broadly popular with the American public, while the public holds ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2556087 Mon, 29 Jun 2009 17:38:24 +0100 2556087 http://www.medworm.com/index.php?rid=2473197&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FbblJhOh0tG8%2F Thursday, the House Committee on Oversight and Government Reform questioned Ken Lewis about Bank of America’s purchase of Merrill Lynch and the subsequent injection of tens of billions of taxpayer funds into Bank of America. While much of the hearing focused on Lewis’ leadership of Bank of America, the hearing also touched upon the more important questions of government regulators pressuring BoA to purchase Merrill even after BoA realized that Merrill’s losses were greater than expected. One of the basic tenets of sound regulation, exercised in the public interest, is that regulators remain at “arm’s length” from the entities they regulate. As defined by Black’s Law Dictionary, “arm’s length” relates to “dealings between two parties who are not related or not ... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2473197 Fri, 12 Jun 2009 18:00:10 +0100 2473197 http://www.medworm.com/index.php?rid=2255981&cid=t_244866_87_f&fid=36438&url=http%3A%2F%2Ffeedproxy.google.com%2F%7Er%2FCato-at-liberty%2F%7E3%2FtviCb3eW8cA%2F In a CNBC spot with Steve Liesman & Erin Burnett, I tried to explain why investors in bank stocks had good reason to be pleased with part of Fed Chairman Ben Bernanke’s speech.  Judging by the response of Steve and Erin, and others on CNBC over the following day,  I must not have been persuasive. For clarification, I am quoting the exact language from Bernanke’s talk, with my emphasis added. My main point is that Bernanke admitted that when it comes to the “financial crisis” of some big banks, this is largely an artifact of unduly harsh regulation being applied at the worst possible time: There is some evidence that capital standards, accounting rules, and other regulations have made the financial sector excessively procyclical–that is, they lead financial insti... Cato-at-liberty blogs http://www.medworm.com/rss/comments.php?id=2255981 Wed, 11 Mar 2009 19:27:45 +0100 2255981