Posts filed under “Philosophy”

Gramm’s Unrepentant Cognitive Dissonance

 

 

Some people look at subprime lending and see evil. I look at subprime lending and I see the American dream in action. My mother lived it as a result of a finance company making a mortgage loan that a bank would not make.

–former U.S. Senator Phil Gramm

Many elected or appointed officials have a specific belief system that they may act upon in the implementation of policies. When the policies that flow from those beliefs go terribly wrong, it is natural to want to learn why. As is so often the case, that underlying ideology is usually a good place to begin looking.

In the aftermath of the great credit crisis, we have seen all manner of contrition from responsible parties. Most notably, Alan Greenspanadmitted errorsaying as much in Congressional testimony. Greenspan was unintentionally ironic when he answered a question about whether ideology led him down the wrong path when it came to preventing irresponsible lending practices in subprime mortgages: “Yes, I’ve found a flaw. I don’t know how significant or permanent it is. But I’ve been very distressed by that fact.”

Other contributors to the crisis have been similarly humbled. In “Bailout Nation,” I held former President Bill Clinton, and his two Treasury secretaries, Robert Rubin and Larry Summers, responsible for signing the ruinous Commodity Futures Modernization Act that exempted derivatives from regulation and oversight. The CFMA was passed as part of a larger bill by unanimous consent, and that Clinton signed on Dec. 21, 2000. Clinton joined Greenspan in admitting his contribution to the credit crisis, as well as saying the advice he received from his Treasury secretaries — Rubin and Summers — was wrong.

 

Continues here: The Few Who Won’t Say `Sorry’ for Financial Crisis

 

 

Category: Bailout Nation, Bailouts, Philosophy, Politics, Really, really bad calls

Press play on the bottom left.

Source: Big Think

Category: Philosophy, Science, Video

The Tyranny of the U.S. Criminal Justice System

How can the life of such a man Be in the palm of some fool’s hand? To see him obviously framed Couldn’t help but make me feel ashamed to live in a land Where justice is a game.—Bob Dylan, “Hurricane”     Justice in America is not all it’s cracked up to be. Just ask…Read More

Category: Legal, Philosophy, Really, really bad calls, Think Tank

Interview with Stanford Economist Alvin Roth

Interview with Alvin Roth Stanford economist on matching theory, kidney markets and the importance of coffee Douglas Clement | Editor, The Region Published June 15, 2015   |  June 2015 issue       Interview conducted March 11, 2015 In “normal” markets, prices adjust to equate demand and supply; the market clears. This simple premise is at the core…Read More

Category: Economy, Philosophy, Think Tank

Today in History

Source: Indexed

Category: Digital Media, Philosophy

‘Wisdom of Crowds’ is Surprisingly Dumb

I had to chuckle when I read the following on Bloomberg yesterday: Paddy Power Plc said it was left “red-faced” after paying out early to gamblers who incorrectly bet that Greek voters would back an austerity referendum. Ireland’s biggest bookmaker “paid out five figures” in winnings on July 1, days before Greece rejected further austerity,…Read More

Category: Markets, Philosophy, Real Estate

Greece Referendum Results: No, 61.31%; Yes, 38.69%

  Strap in — tomorrow is going to be a busy day:   click for Greek voting results Source: ekloges.ypes.gr  

Category: Bailouts, Philosophy

Krugman vs Austerians

Hilarious: click for interactive media    

Category: Financial Press, Humor, Philosophy

The Days Are Long, But The Decades Are Short . . .

Dictionary of Obscure Sorrows: time is passing more quickly as we get older.

 

 

Category: Philosophy, Video, Weekend

Buffett on Stock Prices

Its early in this potential correction, but let me remind you of Buffett’s interesting (1997) comments: “If you plan to eat hamburgers throughout your life and are not a cattle producer, should you wish for higher or lower prices for beef? Likewise, if you are going to buy a car from time to time but…Read More

Category: Bad Math, Investing, Philosophy