1RuleNoRules

Could Better Capital Regulation Have Averted the Crisis?

The rules of the game make the game.
The game is a confusing jumble of distorted markets.
No surprise.
The cry for more regulation comes from the left because they believe capitalism is evil and only government can fix this. The crisis is their opportunity to win favor and the continued decline in American wealth and prosperity.

How to Fix the Fed - A Lesson from AIG

Yes the "winners curse", low interest rates in the early 2000's aided an anemic economy and pushed the housing bubble out 5 or 6 years and would have been further if not for rising oil prices that started to topple the house of cards. Alan Greenspan often warned about Fannie and Freddie flooding housing market with money and even mentioned the word bubble without causing panic by adding what a great job the banks were doing. I heard it. I remember it. Am I still the only one?

How Big Is Too Big for Banks?

Government has created an environment that businesses, not just banks, swallow smaller companies to get tax benefits, that is where the true economy of scale resides. Realigning tax structure to cause businesses to spin off divisions will solve this problem overnight. Know what caused the problem always shows the simple fix. Allow dividends paid to parent corporations to be received tax free. This simple fix would stabilize stock market prices, cause corporations to invest in profitable corporations without takeovers or buyouts, spin-off winning companies as quickly as they can create them and probably create millions of jobs.
Government created this problem of too big to fail. Undoing what government has done is the way out of most of our problems.

Outlandish CEO Pay: How to Fix the Problem

The consensus here seems to be government needs to fix it.
When we change he question, less government is the answer.

What is wrong with our economy and the labor market for CEO's that even bad CEO's get ridiculous amounts of compensation? Big government has decimated the "farm system" of small and intermediate businesses that should have been creating the super stars of enterprise.Unemployment and stagnation are only the last symptoms of an economy under stress. The first signs(that we ignored) were stagnant wages, disposable everything from cars to toasters. Before layoffs came insidious cost cutting and stagnant wages because of endless erosion of opportunity that began in the late 60's.

www.cato.org/pub_displ...

www.house.gov/jec/grow...