A couple of commenters have pointed me to Robert Reich’s list of “Criteria for TARP II.” Nos. 3-6 seem the most important: 3. Prohibit any bank that gets TARP II funds from issuing dividends, purchasing other companies, or paying off creditors. 4. Bar any bank that gets TARP II funds from paying its executives, traders, [...]
Freddie Mac said today that the average rate on a 30-year fixed-rate mortgage is down to 4.96%, the lowest rate on record (their records go back to 1971). In recent weeks, low mortgage rates have kicked up applications to refinance, though that’s not translating too smoothly into actual refis. This morning the WSJ had a [...]
When I interviewed Milton Friedman for my book back in 2004, I asked him at one point what he thought of behavioral economics. “Oh, it’s great,” he said. I was surprised. Milton Friedman had been following the research being done by Dick Thaler and Colin Camerer and David Laibson and a zillion others working along [...]
Here’s the rundown on spending, courtesy of the House Appropriations Committee. My first take is that if you have spend $550 billion (the tax cuts will add up to $275 billion), it’s a sensible-enough plan for doing it. It’s a mix of things that make long-term sense (energy efficiency, infrastructure) and things that can have [...]
Here is the smartest thing I’ve read yet about how to stabilize the housing market through loan modifications. If you want the short version, check out the testimony Columbia Business School’s Christopher Mayer gave in front of the House financial services committee on Tuesday. The argument, made with colleagues Edward Morrison (from Columbia Law) and Tomasz Piskorski [...]
