The crisis has forced economists and policy makers to go back to their drawing boards. Where did they go wrong, and what implications does the crisis have for both macroeconomic theory and macroeconomic policy making?
Congressional Democrats are in a very strong position with respect to the tax/budget issue that they are about to tackle. They -- and the White House -- should remember that before they start negotiating.
While most professionals believe the market is headed higher, George Huntley disagrees. He's convinced the pieces are in place for continued deterioration of the economy, and he offers some persuasive reasons to document his case.
The principles of clarity, transparency, accountability, and protecting the common good against private greed are not just economic policy matters. On a more transcendent level, they provide the metrics of real repentance.
The recent crisis was a failure of risk management -- a diagnosis widely shared among the members of the IIF. But we are also starting the next crisis: the public finance crisis in Europe, the United States and Japan.
The financial reform bill is virtually designed to institutionalize "too big to fail." And when it's reconciled we'll lose another battle in the ongoing war between global financial markets and democratic nation-states.
In response to the worst stock market crash in the nation's history, lawmakers in 1934 made a bold and inspiring decision to require full disclosure from publicly listed companies. It was the centerpiece of the SEC.