NCPA Media: NCPA in the News
Oct 19, 2008
Oct 10, 2008
One of the victims of the prolonged financial crisis has been my comfort with my belief system. I grew up reading Milton Friedman and taking classes from like-minded professors. When an unfamiliar issue came along, I was quick to ask myself, "What would Friedman think about this?" The answer was usually self-evident, seemed correct to me and fit nicely with my answers to other questions. I came to regard my economic philosophy as "classical liberal" or "economic conservative" to friends who wouldn't be familiar with the first term.
Oct 08, 2008
The Federal Reserve has played whack-a-mole in its efforts to hold back the financial tsunami engulfing the United States and now the world. After an aggressive easing of traditional monetary policy (reducing the target federal funds and discount rates), it then invented and implemented a series of special auction facilities featuring relaxed terms and collateral requirements. These have recently been expanded further. Then only Tuesday it announced that it would try to unfreeze the commercial paper market by lending directly to corporations. Wednesday morning it announced a half-point cut in the federal funds and discount rates coordinated with the European Central Bank, the Bank of England and several others.
Oct 07, 2008
As if the federal government does not have enough to pay for, the recently negotiated bailout deal has further added to the government's tab. Understandably, the estimated price tag of $700 billion to buy the mortgage-based assets of struggling banks is leaving politicians and taxpayers alike shuddering. After all, the thought of plunking down taxpayer dollars to carry out what the private market should be doing in the first place (not including the $25 billion that will been doled out to the auto industry) just makes people wonder if government should be allowed to handle money at all.
Oct 01, 2008
Maybe it's a good thing the "consensus" rescue plan failed on Monday. That gives Congress a chance to pass a plan that helps resolve the current crisis rather than just demonizing Wall Street.