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washingtonpost.com - 10/15/2008

What Went Wrong

— washingtonpost.com — How did the world's markets come to the brink of collapse? Some say regulators failed. Others claim... deregulation left them handcuffed. Who's right? Both are. This is the story of how Washington didn't catch up to Wall Street. By Anthony Faiola, Ellen ... (more) What Went Wrong

Government

Comments vote downundo vote up Paul Kedrosky's Infectious Greed found this 10/15/2008found this

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VoxEU.org - 10/22/2008

The wrong financial crisis

— VoxEU.org — J. Bradford DeLong , 10 October 2008 Catastrophic failures of risk management throughout the entire banking sector... multiplied a relatively minor collapse in housing prices into a paralysis of the global finance system not seen since the Great ... (more) The wrong financial crisis

Comments vote downundo vote up naked capitalism found this 10/22/2008found this

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economist.com - 10/10/2008

Publish and be wrong

— economist.com — One group of researchers thinks headline-grabbing scientific reports are the most likely to turn out to be... wrong. IN ECONOMIC theory the winner’s curse refers to the idea that someone who places the winning bid in an auction may have paid too much. ... (more) Publish and be wrong

Comments vote downundo vote up Marginal Revolution found this 10/10/2008found this

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Misleading Story
EconLog: Library of Economics and Liberty — Today's Washington Post gives us the inside story of how some regulators sought to put derivatives under and exchange. They met with resistance from other regulators. It is all very entertaining, but at the end of the day, an organized derivatives exchange would not have prevented the crisis. If anything, it would have facilitated the use of derivatives to securitize more mortgages, and securitization was the main cause of the crisis. Counterparty risk in derivatives was simply not the main issue here. The main appeal of the Post 's story will be to people who want the ...

The Biggest Economic Nonsense Since the Great Depression
Cato @ Liberty — ... An otherwise interesting Washington Post front-pager on “What Went Wrong” claims the current situation “has erupted into the biggest economic crisis since the Great Depression.”  On the contrary, that honor surely goes to 1980-82, with 1973-75 as a close runner-up. ...

Covering All Possibilities, From A to B (by Don Boudreaux)
Cafe Hayek — ... You ask "How did world markets come to the brink of collapse?" ("Washington Failed to Catch Up to Wall Street," October 15).  You answer: "Some say regulators failed.  Others claim deregulation left them handcuffed." You wonder: "Who's right?" Perhaps the answer is 'none of the above.' ...

Biggest Economic Nonsense Since Great Depression
CARPE DIEM — ... An otherwise interesting Washington Post front-pager on “What Went Wrong” claims the current situation “has erupted into the biggest economic crisis since the Great Depression.” On the contrary, that honor surely goes to 1980-82, with 1973-75 as a close runner-up. ...