December 10, 2008When the Germans are laughing at you, things are in a pretty serious mess. That's the case with the British version of the bailout, which the German finance minister has just ridiculed:
Criticising the UK government's decision to cut VAT from 17.5% to 15%, Mr Steinbruck questioned how effective this will be. "Are you really going to buy a DVD player because it now costs £39.10 instead of £39.90?" he said. "All this will do is raise Britain's debt to a level that will take a whole generation to work off." Saying the UK government was now "tossing around billions", Mr Steinbruck questioned why Britain was now closely following the high public spending model put forward by 20th Century economist John Maynard Keynes. "The switch from decades of supply-side politics all the way to a crass Keynesianism is...
December 9, 2008
As economists and the Wall Street Journal have noted, the Community Reinvestment Act was an important ingredient of the financial crisis, by pressuring banks to make risky loans to people in low-income, predominantly-minority neighborhoods, even if such loans were unlikely to be repaid. Now those loans, which were economically unjustifiable, are defaulting, resulting in pain for both banks and borrowers alike.
So what does the New York Times recommend as a solution? To "strengthen" and expand the Community Reinvestment Act's provisions "...
December 9, 2008
George Will has an interesting column on how the so-called "Fairness Doctrine" that many liberal lawmakers want to reimpose in order to shut down Talk Radio squelched discussion of controversial issues in the past, and how it was used as a deliberate tool of censorship by past liberal administrations. (We discussed the Fairness Doctrine operates in practice a few weeks ago). Other liberal activists wish to undermine Talk Radio by imposing "localism" requirements that would eliminate opportunities for discussion of national political issues.
The auto bailout has been justified by some as somehow protecting middle-class jobs, even though a similar...