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Sovereign wealth funds: Should governments invest in private businesses?
President Trump recently signed an executive order to study creating a sovereign wealth fund for the US government. If the proposal comes to pass,…
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Department of Education bails out of student loan bailout
For the second time in the past month, the Biden administration withdrew a proposed rule that CEI had opposed. The Department of Education has…
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Proposed student loan bailout rule makes no sense
As the Federal Register approached its previous record of 95,894 pages in a year (set in 2016), the Biden administration devoted a few more…
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CEI Podcast for August 23, 2012: Bailouts as Corruption
Senior Fellow Matt Patterson argues that when government is big and powerful enough to dispense favors like bailouts, special interests will flock to Washington to…
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New Moody’s Standards Give Clearer Picture Of Public Pension Crisis
The public pension funding crisis has led to a vigorous debate over how those pension liabilities are valued and how large they are. The debate…
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Is Government Motors Headed For Bankruptcy Again?
The tens of billions of dollars in taxpayer money spent on the auto bailouts did not fix the automakers' underlying problems, but rather helped…
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My Fox News Interview On GM’s Losses To Taxpayers And Obama’s Auto Dealer Job Shaft
On Tuesday, I was on Fox News’ “Special Report with Bret Baier” answering Doug McKelway’s questions on the Treasury Department’s upward revision of taxpayers' losses…
Fox News
Taxpayer losses tied to auto bailout rise
From Doug McKelway's article on Fox News: John Berlau of the Competitive Enterprise Institute argues the stock decline reflects the liability of the…
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Maryland’s Public Pension Debacle Is Likely to Repeat Itself
The Maryland public employee pension system announced this week that it had achieved a dismal return rate on its investments of 0.36 percent — a…
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New Regulations Threaten To Wipe Out Community Banks
The new Basel III capital requirement regulations are supposed to strengthen the international financial system, with their avowed effect being to: improve the banking…
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Billions of Tax Dollars Spent Raising False Hopes Among Homeowners
The Obama Administration's Home Affordable Modification Program (HAMP) gave "banks $1,500 bonus payments and servicers $1,000 bonus payments for each loan modification they processed. This…
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Pension Fund Activism Threatens Workers’ Retirement Security — And Taxpayers
While the underfunding of union pensions cannot be ascribed to any one cause, there is one that is troubling because it is so avoidable: pension…
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To Fix The PBGC, Free Its Premiums
Setting the heavily underfunded Pension Benefit Guaranty Corporation (PBGC) on a sound financial footing has got to be one of the toughest jobs anywhere. The…
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The Coming Public Pension Meltdown
While the impact of the Governmental Accounting Standards Board’s (GASB) new public pension reporting requirements won’t be known for some time, some indications of its…
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Unions: Political by Nature
Two items in The Wall Street Journal today highlight a feature of organized labor that distinguish it from other special interests: Unions, as they have existed in…
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Former GAO Auditor: Public Pension Underfunding Worse than Pew Estimates
This week, GASB approved new standards that would require state pensions that are less than 80 percent funded to base income projections on lower — more…
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Highway Bill Would Continue Pension Underfunding Shell Game
As if the Senate Highway Bill (S. 1813) could not become more of a lumbering monster, along comes its Section 40312, which allows "pension…
News Release
Threat of Pension Fund Bailouts Lurks in Senate Highway Bill
Washington, D.C., June 27, 2012 – Hidden in the ever-expanding Senate Highway Bill (S. 1813) is a provision that would make the already serious…
Blog
The Growing Threat of a PBGC Bailout
Everyone hates a bailout. Or at least that's what everyone says, until circumstances force some business leaders to seek them and politicians to grant them…
Blog
Will New GASB Rules End States’ Fuzzy Pension Math?
Today, the Governmental Accounting Standards Board (GASB) voted to approve new government accounting standards that will provide a clearer picture of the liabilities taxpayers across the…
Blog
Bailouts Won’t Save Europe, Only Reform Will
As European leaders panic over bailouts for Southern Europe, they miss an important reality. Comprehensive structural reform is the only long-term solution for recovery. Perversely, bailouts…
Blog
To Reform Public Pensions, Reform GASB Rules
Many public pension plans in the United States make riskier investments than plans in Canada and Europe, according to a new study by researchers…
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Auto Bailouts Incurred Extra $26 Billion in Unnecessary Expenses Due to Political Favoritism by Obama Administration
In a new report, labor economist James Sherk and bankruptcy-law professor Todd Zywicki found that taxpayers lost billions in the auto bailouts…
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In New York, a Private/Public Sector Union Rift
The fact that government employee unions have been at the center of budget debates across the nation underscores their outsize influence on state and local…
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Government Lost Tons of Money in the Auto Bailouts, Despite Benefiting from Blind Luck
As John Lott notes, “Having just $34 billion to show after a $100 billion-plus investment would get a chief executive of any private company…
Blog
European Lessons for America
George Will warns that America’s system of competitive federalism is threatened by our own “Greeces.” (“In Illinois the bills are coming due,” April 27). Europe…
Fox News
Forget France, the Greek Elections Are the Beginning of the End for Europe
While much of the world’s attention was concentrated on France’s presidential election last Sunday, the real action was in Greece. French President-elect François Hollande may…
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FDR on FDIC
Robert Samuelson’s column (April 8, 2012) discussing President Franklin Roosevelt’s reservations about the longer term implications of Social Security should not be surprising. In…
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Multiemployer Pensions, the Tragedy of the Commons, and the “Last Man Standing” Rule
The “tragedy of the commons,” as described by the late ecologist Garrett Hardin, generally refers to the depletion of a finite resource caused by…
Blog
Some Good News on Pensions, for a Change
Over the last four years, state governments across the nation have been trying to bring their labor costs under control, especially pensions, which are now…
Fox News
The JOBS Act and the Maxine Waters Test
Call it the Maxine Waters test of political moderation. Late last week, this test was failed by Senate Majority Leader Harry Reid (D-Nev.), Senate Majority…
Blog
Government Persecutes the Innocent, Turns Blind Eye to the Guilty, Rewards Corrupt Business Models
The federal government spent years persecuting a company lawyer who dutifully uncovered and disclosed wrongdoing by a company employee, as I discuss below. But…
Blog
Student Loans: America’s Next Debt Bomb
I understated things earlier when I wrote that the student loan bubble “may” explode in taxpayers’ faces, as law professor Glenn Reynolds pointed…
Blog
If PBGC Cannot Go On Taking Over Pensions, It Will Stop
Herbert Stein’s law — “If something cannot go on forever, it will stop” — is being proven right once again. This time, what cannot go…
Blog
Structural Factors of the Municipal Pension Crisis
Public employee pensions are sinking local governments. Over the last four years, they have even pushed some municipalities into bankruptcy -- from Vallejo, California, to Central…
Blog
Ma Bell Is Long Gone, but Her Pension Costs Remain
AT&T is asking the Communications Workers of America (CWA), which represents a large segment of its workforce, for benefit concessions, as it tries to rein…
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Bloomberg News: “Boom-Era Property Speculators to Get Foreclosure Aid”
"The Obama administration will extend mortgage assistance . . . to investors who bought multiple homes before the market imploded, helping some speculators who drove…
Blog
A New Wall of Separation: End Corporate Welfare
In his famous letter to the Danbury Baptists, Thomas Jefferson declared the Constitution erected a “wall of separation between church and state.” The Father of…
Forbes
The Pension Benefit Guaranty Corporation’s Real Crisis
On February 1, American Airlines—which declared bankruptcy last November—announced plans to end defined benefit pensions as part of its Chapter 11 restructuring plan. If approved…
Blog
$26 Billion Mortgage Settlement Rips Off Investors to Trim Banks’ Massive Costs of Bailing Out Deadbeat Borrowers
The $26 billion mortgage settlement announced yesterday is bad news for “bond investors including pension funds, according to Pacific Investment Management Co.’s Scott Simon,”…
Blog
Time to Pay Your Neighbor’s Mortgage, Again
The Justice Department, state attorneys general, and the biggest banks have reached an agreement to provide at least $26 billion to delinquent mortgage borrowers and…
Blog
More Bailouts for Speculators and Delinquent Mortgage Borrowers from Obama Administration; More Taxpayer Money for Certain Banks
In his State of the Union address, President Obama, a consistent supporter of bailouts and crony capitalism, hypocritically railed against them, proclaiming, “no…
Blog
Enr1 Goes Belly Up; Yet Another Solyndra
"After spending $55 million of a $118.5 million grant from" the U.S. "Department of Energy, Ener1, an Indianapolis-based maker of batteries," has just "declared…
Blog
Obama State of the Union Proposal Could Increase Mortgage Costs, Shrink America’s 401(K)s
AEI's James Pethokoukis says that the mass-refinancing plan proposed by President Obama in his State of the Union address would "result in higher financing…
Blog
Obama’s False Claims about Outsourcing and Corporate Taxes in the State of the Union Address
President Obama has spent billions of dollars in taxpayer money on subsidizing foreign firms through his failed "green energy" programs, so it was…
Blog
Eleven More Solyndras in Obama Clean-Energy Program
There are 11 more Solyndras in the Obama administration’s clean-energy program, reports CBS News. These companies are in financial trouble — five have already…
Blog
New York Times Documents the Case for Freedom
It’s not every day that the front page of The New York Times has two articles that highlight the importance of limited government, but today’s…
Blog
Abandoning the Future: The Ruinous Consequence of Debt
Mere months after President Obama and Congress last tussled over the debt ceiling, the United States has once more reached its legal borrowing limit. But it still…
Blog
Fannie and Freddie Helped Spawn the Mortgage Crisis, and So Did Affordable Housing Mandates
In a recent letter in The New York Times, I noted the role played by the government-sponsored enterprises, Fannie Mae and Freddie Mac, in…
Blog
Profits and Losses
Capitalism is a system of both profit and loss. Wishing losses away would have consequences quite different from Bhidé’s good intentions.
Blog
Rhode Island’s Bold Pension Reforms Point the Way Forward
To describe pension reform, Utah State Senator Dan Liljenquist put it best: "This is not a conservative-versus-liberal issue, this is a reality issue." Liljenquist…
Blog
Public Pensions Fuel Government Growth
The straitened finances afflicting state and local governments across the nation have brought unprecedented scrutiny to government employees’ compensation, particularly pensions. As pro-market critics have…
Forbes