are lukewarm at best. Today’s Wall Street Journal op-ed (“The Geithner Asset Play“) raises the appropriate objections. The goal of the plan, which is to rid banks’ balance sheets of unmarketable assets, really is something that has to be done if credit relations are to be restored. But it seems that Geithner wishes to accomplish…Continue Reading “Responses to the Geithner Plan…”

The recently announced Fed action has been characterized as a massive exercise in printing money, in “pumping liquidity“. But such characterizations, once again, are misleading. Take a Wall Street Journal article from March 19th, 2009, by John Hilsenrath. In “Fed in Bond-Buying Binge to Spur Growth” he wrote, The Fed had already cut its benchmark…Continue Reading “What the Fed is Up To”

The solution to the toxic asset problem, and the credit crisis, may well be the one propounded by Holman W. Jenkins in his Wall Street Journal column of March 18 2009: “Needed: A Bailout That Doesn’t Look Like One.” The root of the crisis is bad assets (securitized subprime loans) on banks’ balance sheets. Mr….Continue Reading “And We Have a Winner”

There is another Bible verse we should remember during this time of troubles: “The king’s heart is in the hand of the LORD, as the rivers of water: he turneth it whithersoever he will” (Proverbs 21:1). The king is the sovereign; in our Republic, it is the people who are sovereign. So, to paraphrase Solomon,…Continue Reading “The King's Heart”

If election politics are getting you down, just recall Psalm 93: 1 ¶ The LORD reigneth, he is clothed with majesty; the LORD is clothed with strength, wherewith he hath girded himself: the world also is stablished, that it cannot be moved.2 Thy throne is established of old: thou art from everlasting.3 The floods have…Continue Reading “A Psalm for the Times”