Deflation Treatment: Stabilize Symptoms, then Address the Cause

Deflation: The Failed Macroeconomic Paradigm Plumbs New Depths of Self-Parody by William K. Black, New Economic Perspectives Patient bleeding out? Don’t treat the bleed; keep the crash cart nearby Imagine you were a doctor in the ER when a patient was brought in presenting symptoms indicating a likely internal bleed. Here are the two critical …

The Fraud Shotgun: The Overlapping Fields of Fraudulent Fire that Drove the Crisis

by William K. Black, New Economic Perspectives I have written a series of articles recently that focus on appraisal fraud. I did so because appraisal fraud allows such “clean” tests of what (and who) drove the financial crisis and how many different private and public sector actors could have easily prevented the crisis had they …

Roger Myerson’s Paean to Plutocracy

by William K. Black, New Economic Perspectives Introduction This article begins a project to critique the work by economists concerning regulation that has led to the award of Nobel prizes. The prize in economics in honor of Alfred Nobel is unique. It is not part of the formal Nobel Prize system. It was created by …

Comparing Unemployment During the Great Depression and the Great Recession

by William K. Black, New Economic Perspectives Barry Eichengreen’s and Tim Hatton’s January 1988 paper entitled “Interwar Unemployment in International Perspective” is a useful starting point for any effort to compare unemployment during the Great Depression and the Great Recession. It is useful to begin by recognizing three related cautions that the authors make in …

“Pervasive” Fraud by our “Most Reputable” Banks

by William K. Black, New Economic Perspectives A recent study confirmed that control fraud was endemic among our most elite financial institutions.  Asset Quality Misrepresentation by Financial Intermediaries: Evidence from RMBS Market. Tomasz Piskorski, Amit Seru & James Witkin (February 2013) (“PSW 2013”). The key conclusion of the study is that control fraud was “pervasive” …