Monthly Archives: July 2013

Goldman Made a Mint Hoarding Metal. So What?

(Originally published here.) Over the weekend, the New York Times ran a long investigative story explaining something that market insiders have known for years: Keeping industrial metals in warehouses can be profitable. It can be even more profitable if — like Goldman … Continue reading

Posted in Uncategorized | Leave a comment

Young, Rich Real-Estate Dummies

(Originally published here.) The Wall Street Journal reports that well-to-do young Americans prefer to put their savings into “safe” luxury real estate rather than “risky” equities. Some are wealthy heirs and heiresses who have nothing better to do with their money. Others … Continue reading

Posted in Uncategorized | Leave a comment

A Better Way to Measure Inflation

(Originally published here.) At what was almost certainly his final appearance before Congress as the chairman of the Federal Reserve, Ben Bernanke was asked whether government statisticians are undercounting the “real” rate of inflation. He responded by discussing the difficulties … Continue reading

Posted in Uncategorized | Leave a comment

Larry Summers’s Billion-Dollar Bad Bet at Harvard

(Originally published here.) Lawrence Summers hasn’t always picked winners. Photographer: Andrew Harrer/Bloomberg President Obama has only a few months to pick a candidate to replace Ben Bernanke as chairman of the Federal Reserve, and while the betting website Paddy Power has Fed … Continue reading

Posted in Uncategorized | Leave a comment

A Fed Bailout for Main Street

(Originally published here.) Illustration by Annie Choi & Tala Kernan Ever since the economy stopped shrinking, there has been a persistently wide gap between the fortunes of the wealthy few and everyone else. Today, Federal Reserve Chairman Ben Bernanke was twice asked by members … Continue reading

Posted in Uncategorized | 1 Comment

Derivatives and the Danger Myth

(Originally published here.) There is a myth that derivatives trading is more dangerous than bank lending. For the most part, these products are benign. Mostly they allow people to recreate the same risks they would take by lending money without … Continue reading

Posted in Uncategorized | Leave a comment

Old Glass-Steagall Worked. New One Won’t.

(Originally published here.) The U.S. financial system of the mid-20th-century had positive qualities that we should seek to restore, but the separation of commercial banks from securities dealers isn’t one of them. Advocates of bringing back the so-called Glass-Steagall act … Continue reading

Posted in Uncategorized | Leave a comment