Archive for September, 2008

…and then there were none.

Sunday, September 21st, 2008

This evening, Goldman Sachs and Morgan Stanley both received approval from the Fed to convert from investment banks to bank holding companies. With this, the great majority of the US investment banking sector has effectively re-regulated itself. To quote Tyler Cowen, “Whew! I’m sure glad they repealed the Glass-Steagall Act.” The repeal of Glass-Steagall has […]

Dear Wall Street Journal, Please Learn the Definition of ‘Moral Hazard’

Monday, September 15th, 2008

From the WSJ: A Chaotic Sunday Opens Wall Street’s Week Moral Hazard’s Exit Leaves Investors To Sort Out the Mess By ANNELENA LOBB September 15, 2008; Page C1 Investors are going to be staring in the face of moral hazard when markets open Monday. The collapse of Wall Street firm Lehman Brothers Holdings Inc. coupled […]

Economics, Energy, and the Environment.