Category Archives: public policy

Redacted Version of the October 2014 FOMC Statement

September 2014 October 2014 Comments Information received since the Federal Open Market Committee met in July suggests that economic activity is expanding at a moderate pace. Information received since the Federal Open Market Committee met in September suggests that economic activity is expanding at a moderate pace. No change. This is another overestimate by the […]

Inevitable Ineffective Banking Regulation

I am mystified at why people might be outraged or surprised that the Federal Reserve does a poor job of overseeing banks.  The Fed is an overstaffed bureaucracy.  Overstaffed bureaucracies always tend toward consensus and non-confrontation. I know this from my days of working as an actuary inside an overstaffed life insurance company, and applying […]

AIG Was Broke

There’s a significant problem when you are a supremely big and connected financial institution: your failure will have an impact on the financial system as a whole.  Further, there is no one big enough to rescue you unless we drag out the public credit via the US Treasury, or its dedicated commercial paper financing facility, the […]

Redacted Version of the September 2014 FOMC Statement

July 2014 September 2014 Comments Information received since the Federal Open Market Committee met in June indicates that growth in economic activity rebounded in the second quarter. Information received since the Federal Open Market Committee met in July suggests that economic activity is expanding at a moderate pace. This is another overestimate by the FOMC. […]