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    Government Bailouts Fail Again

    The Corner‘s Iain Murray flags a valuable new study out of the University of Chicago on Treasury Secretary Hank Paulson’s bank recapitalization plan: We calculate the costs and benefits of the largest ever U.S. Government intervention in the financial system. We estimate that the revised Paulson plan increased the value … More

    Morning Bell: Redistribution Does Not Create Growth

    On Aug. 1, then-candidate Barack Obama announced a $50 billion “emergency” economic stimulus plan. Now that he’s been elected, President-elect Obama’s advisers are pushing for a $500 billion spending plan. That number is not a mistake. In just three months the size of Obama’s emergency spending plan has risen tenfold. … More

    Progressive Corporatism Is Here

    There was no bigger media cheerleader for Barack Obama over the past year than MSDNC. Hardball host Chris Matthews famously admitted that Obama sent “a thrill going up my leg” and Keith Olbermann’s over the top boosterism was even recently parodied by Saturday Night Live. MSDNC could have tried to … More

    Free Lunches for Everybody!!!

    Reporting on the latest incarnation of the Wall Street Bailout, The New York Times managed to discover the concept of moral hazard today: As the Treasury Department prepares a $40 billion program to help delinquent homeowners avoid foreclosure, it confronts a difficult challenge: not making the plan too tempting to … More

    Morning Bell: You Thought You Owned Your 401(k)

    This week Argentina’s leftist president, Christina Kirchner, announced she would move forward with her plan to seize the nation’s private pension funds. Kirchner claims government seizure of the funds is needed to protect Argentinians from the global market crisis. But most observers believe her real motive is to use the … More

    The Return of Progressive Corporatism

    Could the current crisis usher in a new “New Deal”, with a new brand of corporatism to replace the free market system? Certainly European leaders are arguing that case. The current economic “crisis,” may itself have been caused by bad policy. Yet, is provides a great pretext for an expansion … More

    Morning Bell: Stop Digging

    Since it appears more and more likely that Congress will approve another economic stimulus package within the next couple of months, every special-interest group under the sun is swarming Capitol Hill for handouts. Yesterday it was the nation’s governors turn as Govs. David Patterson (D-NY) and Jon Corzine (D-NJ) came … More

    Did Over-Regulation Cause the Market Meltdown?

    This week “60 Minutes” highlighted an obscure statute that some say is at the root of the recent market meltdown: the Commodity Futures Modernization Act of 2000. The CFMA exempted certain derivatives from existing state and federal regulation. But “60 Minutes” failed to ask the most interesting question: Why was … More

    If Governments Are Always 'Behind the Curve'...

    …then how can we trust them to better manage the economy? A few weeks ago famed currency speculator George Soros made news complaining that financial regulators had been “consistently behind the curve” during the unfolding financial crisis. But why is Soros surprised? It seems that “behind the curve” is one … More

    Connecting the Dots: Fannie, Freddie and ACORN

    Since the housing bubble first began to burst, we have been quick to note the integral role that government-sponsored entities Fannie Mae and Freddie Mac played in distorting the housing market. However, we have also been skeptical of some claims that the Community Reinvestment Act (CRA) played in facilitating the … More