Weekend Must Reads
Washington,
March 16, 2013 -
National Review: Representative Hensarling on the CFPB
The logical import of Noel Canning v. NRLB, the D.C. Circuit’s decision striking down President Obama’s unilateral, non-recess NRLB appointments, is that the president’s similar CFPB director appointment is also unconstitutional. House Financial Services Committee chairman Jeb Hensarling agrees (h/t Todd Zywicki).
Barron: The Ruling Class
The Dodd-Frank law misses the primary causes of the financial crisis.
RCP: Dodd-Frank: 'Financial Stability' On the Backs of Taxpayers
March 11 marked the start of mandatory central clearing for certain kinds of over-the-counter derivatives called swaps. The central clearing requirement, a major component of Dodd-Frank, is purportedly one of the pillars upon which the future stability of our financial system rests. That pillar, however, is not as sturdy as it looks, particularly because regulators-blinded by central-clearing-love-are leaning on it. This pillar could come crashing down with destructive force. Thanks to Dodd-Frank, taxpayers will be there to pick up the pieces.
Time: If There’s No Inflation, Why Are Prices Up So Much?
Last week, I ran out of ink for my printer and ordered some more online. My computer automatically pulled up the previous order, and I was shocked to see that the price of the ink cartridges I was buying had gone up 25%. To my mind, ink always seems overpriced. Manufacturers sell printers cheaply because they know that they can make lots of money on the ink. For the same reason, John D. Rockefeller’s Standard Oil is said to have sold millions of cheap kerosene lamps in order to make big profits selling kerosene. But since ink cartridges were already priced way above cost and official statistics show little general inflation, why had ink gone up 25% in less than a year?
Forbes: Sorry Paul Krugman, But We Still Need Say's Law
“Supply creates its own demand.” Say what? No, “Say’s Law”.
AEI: The 'Two Drunks' Model of Financial Crises
It’s unlikely that banks and government can be disentangled, but a healthier relationship could begin with a new approach to credit guarantees.
