Monthly Archives: May 2013

Fed ‘Tapering’ Won’t Butcher Bondholders

(Originally published here.) A real estate bust battered the banking system and household balance sheets, so the Federal Reserve responded by cutting inflation-adjusted interest rates to their lowest levels in many years. Meanwhile, tax hikes and cuts in government spending … Continue reading

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General Petraeus, the General Partner

(Originally published here.) David Petraeus, the four-star general and former head of the Central Intelligence Agency, has recently been hired by the private equity firm KKR & Co. Bloomberg News reports that Petraeus will be leading a new unit called the KKR … Continue reading

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Tax Reformers Must Kill Subsidies for the Rich

(Originally published here.) The nonpartisan Congressional Budget Office has released a new report making clear what many have long suspected: The U.S. tax code is rigged in ways that end up rewarding the rich at the expense of the middle class. Source: … Continue reading

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How Businesses’ Bad Investments Drag Us All Down

(Originally published here.) In my previous post, I noted that bad investments create losses that always find a way of showing up somewhere in the economy. Most of the time, the harm caused by these wasteful endeavors is outweighed by the … Continue reading

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Who Should Bear the Pain?

(Originally published here.) Michael Kinsley has received a great deal of grief for an essay in The New Republic about fiscal policy. The piece was predicated on a mistaken set of beliefs about the nature of government debt that have been rightly … Continue reading

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Instead of Low Rates, Let’s Have Bigger Deficits

(Originally published here.) Ben Bernanke, the chairman of the Federal Reserve, recently expressed concern that investors were taking too much risk. To some investors, this was heavy with irony — most of the risk-taking can be attributed to the policies that Bernanke has pursued during his … Continue reading

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How Obama Should Pick the Next Fed Chairman

(Originally published here.) Ben Bernanke has repeatedly said that he wants to leave his post as Federal Reserve chairman once his term ends early next year. The consensus among economists and journalists is that Janet Yellen, the Fed’s current vice … Continue reading

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