Comments on: AEI: Preventing the Next Bubble http://alephblog.com/2010/06/15/aei-preventing-the-next-bubble/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Sun, 12 Feb 2012 22:02:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: RedSt8rhttp://alephblog.com/2010/06/15/aei-preventing-the-next-bubble/comment-page-1/#comment-26880 RedSt8r Wed, 16 Jun 2010 14:32:48 +0000 http://alephblog.com/?p=2629#comment-26880 @DM: another well thought out post but it misses the mark just a bit - or rather only hits part of the bullseye. This also applies to @mlb. Our political system is geared towards a short term horizon. Two year turnover in the house, 4 years in the white house and 6 in the senate. Every politician who desires a political career is oriented towards a short term gain in order to facilitate winning the next election. When the political class ordered the fed to ALSO promote employment (instead of just maintaining the value of the currency) they pulled the fed directly into this short term event horizon. Not that the fed - a political beast to be sure - complained much. @mlb - the "market" will only force reform if the political class permits it to work. So far they have not. @DM - I fully agree the fed is a major culprit in our boom/bust cycle. I don't think we can craft rules to prevent this until "we" force the fed to think (e.g., benefit) from a long term event horizon. @DM: another well thought out post but it misses the mark just a bit – or rather only hits part of the bullseye. This also applies to @mlb.

Our political system is geared towards a short term horizon. Two year turnover in the house, 4 years in the white house and 6 in the senate. Every politician who desires a political career is oriented towards a short term gain in order to facilitate winning the next election. When the political class ordered the fed to ALSO promote employment (instead of just maintaining the value of the currency) they pulled the fed directly into this short term event horizon. Not that the fed – a political beast to be sure – complained much.
@mlb – the “market” will only force reform if the political class permits it to work. So far they have not.
@DM – I fully agree the fed is a major culprit in our boom/bust cycle. I don’t think we can craft rules to prevent this until “we” force the fed to think (e.g., benefit) from a long term event horizon.

]]> By: mlbhttp://alephblog.com/2010/06/15/aei-preventing-the-next-bubble/comment-page-1/#comment-26871 mlb Tue, 15 Jun 2010 13:40:57 +0000 http://alephblog.com/?p=2629#comment-26871 Nice post. Unfortunately, I think it will take a crisis several times the magnitude of 2008 to inspire any thoughtful reform. I think the market will force reform way before we get around to it. Nice post. Unfortunately, I think it will take a crisis several times the magnitude of 2008 to inspire any thoughtful reform. I think the market will force reform way before we get around to it.

]]> By: Jay Weinsteinhttp://alephblog.com/2010/06/15/aei-preventing-the-next-bubble/comment-page-1/#comment-26868 Jay Weinstein Tue, 15 Jun 2010 10:04:21 +0000 http://alephblog.com/?p=2629#comment-26868 Good luck david---like your other regular readers, I have no doubt you will end up in a great situation. OT--what is your take on the Mercer-State of Alaska case and settlement? Have you followed it? Good luck david—like your other regular readers, I have no doubt you will end up in a great situation.

OT–what is your take on the Mercer-State of Alaska case and settlement? Have you followed it?

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