Hardly a day goes by without the Federal Reserve featuring prominently in the day's events - economic and otherwise. How did it ever come to pass that the handful of people on the Fed's Open Market Committee could play such a huge role in the world's largest economy, and the well-being of more than 300-million people? More trenchantly, does this scenario even make sense in a country that cons
Legendary college football coach Paul "Bear" Bryant gave a rather simple explanation for his success as a coach. He said,
"If anything goes bad, I did it.
If anything goes semi-good, we did it.
If anything goes really good, then you did it.
That's all it really takes to get people to win football games for you."
Economics has long been called 'the dismal science.' One of the myths around the origin of this name goes back to the economic ideas of Thomas Malthus. Malthus believed that human ingenuity was no match for an increase in human population. Malthus - with mathematical precision that would make a physicist blush - predicted a future of collapsing living standards, mass starvation and huge swat
Recently, the financial news has been dominated by the Federal Reserve's massive intervention in the 'repo' market. Repo is short for repurchase, and the repo market is essentially a market dedicated to huge volumes of very short term - often overnight - loans. The loans are not used to fund legitimate wealth producing activities. Instead, their purpose is to allow financial service firms an
Today, September 15, marks the anniversary of Lehman Brother's failure in 2008. Many people believe the financial crisis developed over the "Lehman weekend" in 2008. Lehman failed on a Monday morning, and over the preceding weekend there was an industry wide effort - led of course by the Treasury Department and the NY Fed - to organize a bailout of Lehman. It was over this weekend that Bank