Even those who don't agree with all five policy initiatives outlined in Andrew Haldane's "The Dog and the Frisbee" should embrace the underlying theme: It is never too late to rethink basic problems and policy prescriptions, and achieve better economic outcomes.
Even those who don't agree with all five policy initiatives outlined in Andrew Haldane's paper should embrace the underlying theme: It is never too late to rethink basic problems and policy prescriptions, and achieve better economic outcomes.
The law radically expands the power of the Fed and banking regulators. It gives the institutions that created the crisis more ability to cause bigger problems in the future.
An increase in capital requirements may reduce earnings, minimize returns and contribute to a stagnant environment where loan production is at a minimum and bank acquisitions are very few.
Market participants will quickly fill the home finance gap. Financing homes is an excellent business. The S&Ls were successful in this market for 50 years before they were destroyed by government policy.
The Federal Reserve chairman has the correct diagnosis, but limited tools to solve the problem. Meanwhile, inflation hawks are trying to cure the nation from a disease it doesn't have.
Fincen must be independent enough to be an honest broker in its rulemaking and enforcement network roles, while remaining responsive to the policy objectives of Treasury and statutory mandates from Congress.
Adequate communication, data retention, requests for approval and, ultimately, cooperation can minimize a company's risk of being investigated by the CFPB or state attorney general's office.
As long as the federal government can print money at will, the politicians (both Democrats and Republicans) will accumulate debt until the United States experiences a financial collapse.
