1. Tim Harford explaining Thomas Schelling.
2. Richard Posner on the financial crisis; a good overview of his new book.
3. Profile of Andrew Sullivan.
4. Lane Kenworthy critique of Goldin and Katz on inequality and education.
Assorted links
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If you ask me, what Schelling should be remembered for is his observation that rationality does not explain economic equilibria. How different would economics look if rational theory had been dropped in favor of doing statistics on group dynamics back when he wrote The Strategy of Conflict? I guess we’ll find out soon enough.
Better late than never when it’s a federal judge, especially this one.
Consistently erratic is how I would describe him, at least any more. He seems to doubt himself as much as he doubts anyone else, turning rabidly on his own opinions when he feels his intellect rather than his ideologies are in question. I did not like him as a cheerleader for Bush, I like him even less in whatever it is he has become.
Posner = Poppycock…
What was deregulated?
Nonbanking mortgage companies were never regulated. Now, government wants to slam the door after the horses are out of the barn.
Fannie Mae and Freddie Mac were never properly regulated. This was opposed by Democrat politicians.
Tax laws and government subsidies encouraged over investment in real estate.
Cheap money created by the Fed dared private equity companies and investment banks to leverage up to the hilt.
19th century system of insurance regulation encouraged irresponsible actions by insurers like AIG. Their products were not properly priced for the risk.
Investment banks were never properly regulated. Now they don’t exist.
By some estimates, subprime mortgage fraud approached 70% by the BORROWERS.
The bond raters were paid by the issuers, not the purchasers. A failed business model.
The Fed merged healthy banking companies creating huge mega-companies resulting in massive layoffs.
Granted the uptick rule should have been kept.
Easy credit means easy bankruptcy. The road to hell…..
Its amazing that Robert Merton still has credibility despite LTCM and the present crisis.Something is very rotten in the state of Academia.
I ordered Posner’s book. We’ll see if it lives up to jorod’s review above…haha.
This economic cycle, and the roll wall street and the mortgage market played in imbalancing capitalism is going to be an intriguing research and historical topic for economic students for generations.
Andrew Sullivan is an interesting study in the politics of an inquisitive mind crossed with personally conflictual behavior.
Great links.
Enjoyed reading it nice post Thanks
Very interesting book. Looking forward to reading it.
Well bulbman, I don’t think that’s the opinion for the majority of Americans at all (who all happen to be democrats). Only the lunatics at the far corners of the spectrum would want America to fail. If that’s the message you got from Andrew Sullivan, that’s fine. But he speaks for himself, he is in no way a popular thinker.
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