Nomi Prins’ most recent book begins with the 1907 banking crisis and the double myth that it was ended by J. P. Morgan while the U.S. government stood helpless. She shows that it was a double myth in that the crisis was not ended – the underlying banking pathologies grew – and Morgan’s intervention would have failed even as a short-term measure but for Treasury’s largely funding “his” extensions of credit. She begins with the 1907 crisis both because it illustrates her central themes and because it is essential to understand how, when, and why the Federal Reserve System was created in 1913.
|By: William Black Saturday April 26, 2014 1:59 pm|
|By: William Black Saturday January 5, 2013 1:59 pm|
I am hosting the Firedoglake discussion of my colleague Randy Wray’s new “Primer” on macroeconomics. Macroeconomics is the study of the overall economy – economic growth, recessions, depressions, inflation, unemployment, and employment are big issues that macroeconomics studies. The key policies it addresses are usually divided into fiscal (tax and spending) and monetary policies (the growth of the money supply and setting interest rates).
The concept of monetary tools has broadened as we have seen the Federal Reserve change what had been a severely constrained “lender of last resort” function of the central bank into the most massive bailout program in history. Similarly, the central bank’s interest rate setting function that was long focused on short-term rates has expanded into large experiments that attempt to lower long-term interest rates (“quantitative easing”).
|By: William Black Sunday October 21, 2012 1:59 pm|
Jeff Connaughton has authored a powerful, and chilling insider’s perspective on the financial crisis and the pathetic governmental response to it. The second part of his title sums up the result and the first half explains why Wall Street always wins. Many, perhaps most Americans are likely to agree with both parts of Connaughton’s title so this book will not transform the public’s view of the issues. The public largely has this set of issues correct. Connaughton gives the readers unique access to the facts because he had a front row seat to many of the key discussions and he has the analytical abilities and expertise to explain the significance of those facts.
|By: David Dayen Friday February 17, 2012 11:00 am|
In the aftermath of the foreclosure fraud settlement, and as we look ahead to the working group on securities fraud co-chaired by Eric Schneiderman, one of the best people to look to for answers on how this whole thing could have gone – how it could still go – is William K. Black. The author of The Best Way to Rob a Bank is to Own One, and a central figure in exposing fraud among both financial executives and members of Congress during the S&L scandal, Black has been relentless on exposing the lax nature of regulation and prosecution during the past decade and more. His latest scoffed at the new task force on securitization fraud.
|By: William Black Saturday October 23, 2010 1:59 pm|
Dr. Raghuram G. Rajan, is a distinguished professor at the University of Chicago’s business school and former chief economist of the International Monetary Fund (IMF). Readers familiar with Chicago school economics will see that the crisis has not led to a fundamental reevaluation of that school’s policy recommendations. The title of his book captures his thesis – Fault Lines: How Hidden Fractures still Threaten the World Economy. Rajan writes clearly and his book is intended for the intelligent lay reader. His book contains no charts, graphs, or equations, doubtless at the urgings of the Princeton University Press. It is an ambitious book, for it seeks to explain the global crisis and different trends in the real economy and the financial sector in many nations.
|By: William Black Saturday July 17, 2010 2:00 pm|
Dr. Wolff is a prominent Marxist economist who teaches at U. Mass and The New School. The book is composed of scores of short essays he did for Monthly Review beginning in 2005. The publicity blurb sent to potential reviewers states that Dr. Wolff “predicted the economic meltdown years ago.” The book does not contain specific predictions of the meltdown beyond the omnipresent Marxist prediction that capitalism is inherently unstable. Dr. Wolff’s articles take note of the bubble and nonprime assets in the articles in the book after the collapse of the bubble and after the crisis in nonprime assets were obvious. Readers interested in the scholars that predicted the specific crisis should consult Jamie Galbraith’s article.
Dr. Wolff’s emphasis is explaining his overall Marxist critique of capitalism’s defects. The articles can be read easily by the general reader. No economic expertise is required and Dr. Wolff writes in English without the Marxist jargon that non-specialists find confusing.
|By: William Black Wednesday April 21, 2010 7:46 am|
The Senate Banking Committee released the findings from its investigation of Washington Mutual – the largest S&L and largest bank failure. My research specialty is “control fraud.” These are frauds led by those that control seemingly legitimate entities and use them as a “weapon” to defraud. Financial control frauds’ “weapon of choice” is accounting. Lenders optimize accounting fraud by following a four-part recipe:
Making bad loans at high interest rates
Trivial loss reserves
|By: Jane Hamsher Tuesday April 20, 2010 2:59 pm|
FDL Contributor Bill Black scorched everyone with his testimony on the failure of Lehman Brothers when he testified before the House Financial Services Committee today.