AEI.Org: Scholar: Alex J. Pollock

No Regulation without Risk

Mon, 09 Nov 2009 00:00:00 +0100

After having observed financial regulation fail time after time, its adherents still believe that it will work next time if we just make it more pervasive and more intrusive.

Deposit Insurance a Persistent Problem

Wed, 07 Oct 2009 00:00:00 +0100

The FDIC Improvement Act of 1991, based on the lessons of FSLIC and the 1980s, was thought to have solved the problems of deposit insurance--obviously, it did not.

Truth in Lending Proposed Rule

Thu, 01 Oct 2009 00:00:00 +0100

The Federal Reserve's proposed mortgage disclosures correctly focus on presenting key information to borrowers, but the information presented should be more oriented around whether the borrower can afford the loan in question.

The HotSeat: Alex Pollock

Wed, 30 Sep 2009 00:00:00 +0100

Alex Pollock examines the future of the current financial crisis as it relates to the housing industry.

Paying Off Crises One Decade at a Time

Tue, 29 Sep 2009 00:00:00 +0100

We have two decades left to pay on the U.S. savings and loan bailout of 1989, let alone that of 2008-2009.

It Wasn't a Bubble--It Was a Double Bubble

Sat, 12 Sep 2009 00:00:00 +0100

Many are accustomed to thinking in terms of a 'housing bubble.' But this is only part of the story. In fact, the first decade of the twenty-first century brought us a real estate double bubble--one in housing, and one in commercial real estate.

Greenspan Fed in No Way Libertarian

Fri, 04 Sep 2009 00:00:00 +0100

It is ridiculous to call the theory of the Fed under Alan Greenspan "libertarian."

Bubble and Bust Bound to Continue

Tue, 18 Aug 2009 00:00:00 +0100

Since no banker, or regulator, or politician, or fund manager, or rating agency, or accountant, or economist can know the future, the long historical series of financial mistakes called bubbles and busts is bound to continue.

Ten Ways to Do Better in the Next Financial Cycle

Tue, 28 Jul 2009 00:00:00 +0100

We can do better next time provided we take these steps.

Toward Creating a Systemic Risk Adviser

Fri, 17 Jul 2009 00:00:00 +0100

A systemic risk adviser is distinctly worth a try, and, if it is properly structured, we should try it.

Trading in the "Fever of Boom"

Sat, 11 Jul 2009 00:00:00 +0100

As Walter Bagehot said, it is "the ablest and cleverest the most" who in the fever of the boom "trade far above their means."

The Greenspan Gamble

Wed, 03 Jun 2009 00:00:00 +0100

In the wake of the burst tech stock bubble and the shock of the terrorist attacks, the Greenspan Gamble was to purposefully ignite a housing boom. Ex ante, it was a reasonable gamble, and it almost worked.

Ten Thoughts on the Causes of the Bubble and Bust

Fri, 29 May 2009 00:00:00 +0100

Economic and financial cycles are natural and cannot be avoided.

Faulty Logic That Fails Shareholders

Thu, 28 May 2009 00:00:00 +0100

"Shareholders" are individuals who personally own shares of stock; agents should not be included in this category.

Why Not Negative Interest Rates?

Thu, 21 May 2009 00:00:00 +0100

It may seem unlikely that there could be a negative nominal interest rate to combat potential deflation, but it is not impossible.

Is a "Systemic Risk Regulator" Possible?

Tue, 12 May 2009 00:00:00 +0100

Political reaction to financial crises is usually accompanied by what proves to be greatly overstated expectations about its future effectiveness.

A Nice Melodrama

Thu, 07 May 2009 15:08:29 +0100

The stress tests have definitely achieved their principal purpose.

Did They Really Believe House Prices Could Not Go Down?

Thu, 09 Apr 2009 00:00:00 +0100

A wise saying is, "Many things previously considered impossible nevertheless came to pass."

An Old Lesson on Bank Reserves

Wed, 11 Mar 2009 00:00:00 +0100

In the wake of the global bust, loss reserve levels have become a matter of global debate.

N.Y. Fed's Remarkable Transformation

Wed, 04 Mar 2009 00:00:00 +0100

Do we care if the New York Federal Reserve does not have much capital relative to its assets?

Fannie and Freddie Are Already Part of the State

Thu, 26 Feb 2009 00:00:00 +0100

Fannie and Freddie have already become part of the government.

Out With the Old Banks, In With the New

Fri, 20 Feb 2009 00:00:00 +0100

Creating new banks deserves to be a priority, but regulations make it difficult.

Bank to the Future

Mon, 02 Feb 2009 00:00:00 +0100

With talk of a "Bad Bank" we are back where we were with the original TARP.

Was There Ever a Default on U.S. Treasury Debt?

Wed, 21 Jan 2009 00:00:00 +0100

In 1933, the United States intentionally defaulted on its Treasury debt, an action supported by both Congress and the Supreme Court.

A Theory of Two Big Balance Sheets

Fri, 16 Jan 2009 00:00:00 +0100

The recent period of bubbles, busts, and bailouts--with lessons for improving the financial system.

Two Ways to Improve TARP for Taxpayers

Fri, 16 Jan 2009 00:00:00 +0100

We need improvements in the bailout plan to make it reflect the interests of the taxpayers.

Improving the Financial System for the Next Cycle

Mon, 12 Jan 2009 00:00:00 +0100

There are several modifications that can be made to the financial system that may help mitigate the severity of future downturns.

No Fair

Mon, 22 Dec 2008 00:00:00 +0100

Companies should be permitted to publish pre-fair-value accounting statements as well as marked-to-market balance sheets, which would offer investors multiple perspectives on firms' financial health.

Coolidge Radios Ahead

Mon, 01 Dec 2008 00:00:00 +0100

Calvin Coolidge was the first president to master the use of radio as a medium for broadcasting his message.

History, and Panic, Repeat Themselves

Wed, 26 Nov 2008 00:00:00 +0100

The current financial crisis is not unprecedented, but rather a repetition of basic patterns found throughout financial history.

Long-Term Debt

Mon, 03 Nov 2008 00:00:00 +0100

David Hume correctly predicted 250 years ago that the government would infallibly abuse the privilege of incurring debt.

The British Way Is Better

Fri, 10 Oct 2008 00:00:00 +0100

Only more capital can solve a capital problem.

The $700 Billion Man

Thu, 25 Sep 2008 00:00:00 +0100

What should we make of the proposed government bank bailout?

When the Bust Comes

Wed, 17 Sep 2008 00:00:00 +0100

History proves that when government officials are faced with potential financial chaos, they always decide to intervene and support the market with a government bailout.

Most Radical Part of the Bailout

Tue, 09 Sep 2008 00:00:00 +0100

We need to start planning now how to put the recent government balance sheet expansion into reverse.

Let's Codify Treasury's Link with GSEs

Fri, 29 Aug 2008 00:00:00 +0100

The Treasury should invest about $10 billion of capital in both Freddie Mac and Fannie Mae.

Brutus' Advice Not Helpful for Investors

Mon, 18 Aug 2008 00:00:00 +0100

Going with the flow is not necessarily the best policy.

Proposed Rules for Nationally Recognized Statistical Rating Organizations

Thu, 24 Jul 2008 00:00:00 +0100

The SEC should revoke its requirement that Nationally Recognized Statistical Rating Organizations must make the records of their rating actions public.

A Plan for Fannie and Freddie

Tue, 22 Jul 2008 00:00:00 +0100

The government should become a subordinated investor in Fannie Mae and Freddie Mac, buying a significant amount of the senior subordinated debt.

Clear and Simple Mortgage Disclosure

Fri, 11 Jul 2008 00:00:00 +0100

Alex J. Pollock explains the need for and the essential elements of a clear, one-page mortgage disclosure form.

The Long and Short

Fri, 27 Jun 2008 00:00:00 +0100

The U.S. should emulate the Financial Services Authority's disclosure requirements policy.

FSA Has It Right about Disclosure of Short Positions

Fri, 27 Jun 2008 00:00:00 +0100

Alex J. Pollock explains that the U.S. should emulate the Financial Services Authority’s disclosure requirements policy.

Thoughts on GSEs, Discipline

Fri, 13 Jun 2008 00:00:00 +0100

Alex J. Pollock writes a letter to the editor on the Federal Deposit Insurance Corp.

Let Investors Rate the Agencies

Tue, 03 Jun 2008 00:00:00 +0100

Credit rating agencies should be rated by investors, not the government.

The Deflating 21st Century Housing Bubble

Sun, 01 Jun 2008 00:00:00 +0100

Thetwenty-firstcentury has seen the housing cycle bubble and bust. Historical precedent says it will happen again.

Why (Financial) History Repeats

Mon, 19 May 2008 00:00:00 +0100

History repeatedly shows that the government intervenes when faced with potential financial collapse.

Conflicted Agents and Platonic Guardians: Interview with Alex Pollock

Tue, 13 May 2008 00:00:00 +0100

Independent bodies like the Financial Accounting Standards Board need a system of check and balances.

Your Guide to the Housing Crisis

Mon, 05 May 2008 00:00:00 +0100

With the financial world in turmoil, there is a lot to know about thebursting of the housing market bubble.

Fair-Value Accounting's "Truth" Is Dubious

Fri, 25 Apr 2008 00:00:00 +0100

Theunfair and faulty"fair-value" accounting theory isdetrimental to themarket economy.

The Greenspan Gamble

Thu, 10 Apr 2008 00:00:00 +0100

A reason frequently given for financial market behavior in recent years is the belief that the Fed will bail out the market's mistakes.

Housing Bubble and Current Bust Are Not Unique--We Have Been Here Before

Thu, 03 Apr 2008 01:00:00 +0100

The financial markets constantly have to relearn from the past.

Grading Bernanke: A Symposium

Thu, 27 Mar 2008 01:00:00 +0100

Amid widespread financial turmoil and talk of recession, fivescholars atAEI graded and assessed the Federal Reserve’s recent policy decisions.

Educating Mortgage Consumers

Wed, 26 Mar 2008 01:00:00 +0100

Borrowers need to understand the obligations ofa mortgage. The HUD four-page disclosure form is a step in the right direction, butit does not contain certain essential elements.

Bagehot Put It So Eloquently

Tue, 18 Mar 2008 01:00:00 +0100

Bear Stearns had a credit crisis and neededa bailout.

A 1930s Loan Rescue Lesson

Fri, 14 Mar 2008 01:00:00 +0100

A temporary housing intervention during the Great Depression offers lessons for how to deal with our current crisis.

Government Guarantee the Critical Factor

Fri, 08 Feb 2008 00:00:00 +0100

In times of crisis, everybody wants a government guarantee, and those who have one have a fundamental advantage.

Crisis Intervention in Housing Finance

Fri, 01 Feb 2008 00:00:00 +0100

The current U.S. housing bust has been described as the worst since the Great Depression, butthe financial and economic collapse in 1933 is virtually impossible for people today to even imagine.

Reflections on the Mortgage Bust and the Inevitable Political Reaction

Fri, 01 Feb 2008 00:00:00 +0100

As the deflation of the housing and mortgage bubble continues into the new year, it is as much political as financial news.

Q with Alex J. Pollock

Fri, 01 Feb 2008 00:00:00 +0100

The underlying problems that have caused the current credit crunch need to be addressed.

Lessons on "Fair Value"

Fri, 11 Jan 2008 00:00:00 +0100

The tendency of financial markets to relearn the same lessons every decade or so is one of the most intriguing things about them.

The Payer Makes the Rules

Sat, 29 Dec 2007 00:00:00 +0100

If the government pays for you, then the government tells you what to do.

One Banker's Real Definition of Risk

Sat, 22 Dec 2007 00:00:00 +0100

Jumbo Guarantees

Mon, 03 Dec 2007 00:00:00 +0100

Helping increase liquidity in the jumbo-mortgage market in the short run would fundamentally improve the mortgage-finance system for the long run.

Fannie Mae and Freddie Mac Can Justify Their Existence

Thu, 29 Nov 2007 00:00:00 +0100

The only real excuse for Fannie and Freddie to exist at all is to help in times of housing finance crisis.

The Elected and the Electors in Corporate Board Governance

Tue, 02 Oct 2007 00:00:00 +0100

Corporations today are based on "agency capitalism" rather than "shareholder democracy".

The Subprime Mortgage Bust Goes Global

Mon, 01 Oct 2007 00:00:00 +0100

The optimistic forecasts of subprime recovery have not panned out.

How Lehman Profit Proved Absurdity of Fair Value Accounting

Mon, 24 Sep 2007 00:00:00 +0100

Pollock explains that "fair value" accounting theorists havearrived at absurdity.

What Happened to Liquidity?

Fri, 21 Sep 2007 00:00:00 +0100

The subprime mortgage bust and why “liquidity” is often a misleading metaphor.

Marking to this Market is No Mean Feat

Mon, 10 Sep 2007 00:00:00 +0100

How can positions be marked to market when there is no active market?

A Buyer Beware Form for Mortgage Borrowers

Tue, 04 Sep 2007 00:00:00 +0100

Pollock proposes a form, "BasicFacts About Your Mortgage Loan,"be given to potential borrowers.

Liquidity Is a Figure of Speech, Hence the Confusion

Tue, 28 Aug 2007 00:00:00 +0100

The term liquidity can be ambiguous and is better understood as a figure of speech.

It Could Be Worse

Mon, 20 Aug 2007 00:00:00 +0100

Is the current situation "the worst bust in housing in this nation's history"?

Subprime Bust Expands

Mon, 06 Aug 2007 00:00:00 +0100

To the students of history, the vicious cycle around the bust is all too familiar.

On the History of the Savings and Loan Industry

Mon, 09 Jul 2007 00:00:00 +0100

A clarification concerning a recent Wall Street Journal article.

Misleading Accounting

Wed, 27 Jun 2007 00:00:00 +0100

Freddie Mac's new accounting methods are misleading, not stricter.

U.S. Subprime Mortgages: Boom and Bust; Politics and Regulation

Fri, 01 Jun 2007 00:00:00 +0100

In order to overcome the subprime mortgage bust, we must help borrowers to become more competent and informed.

Fix GSE Loan Limits--in All Markets

Fri, 25 May 2007 00:00:00 +0100

The loan limits should be adjusted to match current market conditions.

A Proposal: The One-Page Mortgage Disclosure

Mon, 14 May 2007 00:00:00 +0100

Borrowers should be better educated and better equipped when signing on a mortgage loan.

Send Sarbanes-Oxley to the Court of Investors

Fri, 04 May 2007 00:00:00 +0100

Do the benefits of the Sarbanes-Oxley Act outweigh its drawbacks?

To Make Mortgages Fair, Keep Disclosures to a Page

Wed, 02 May 2007 00:00:00 +0100

Modern Accountant's Odd Sense of Rigour

Mon, 09 Apr 2007 00:00:00 +0100

How is "fair value" affecting the accounting and financial sectors?

Don't Tinker with FASB, Just Remove Its Monopoly

Tue, 03 Apr 2007 00:00:00 +0100

Accounting is an art, not a science.

How Sharp Minds Got Lost in Subprime Bust

Fri, 30 Mar 2007 01:00:00 +0100

Those burned in the subprime lending bust thought they could manage risk, but they neglected to consider the human factor.

Subprime Mortgage Scandals and Lawsuits Are a Certainty

Fri, 16 Mar 2007 01:00:00 +0100

The risk inherent in the subprime mortgage sector is not a new phenomenon.

Oversight of Credit Rating Agencies

Mon, 12 Mar 2007 01:00:00 +0100

Awritten comment submitted to the Securities and Exchange Commission with regard to oversight of credit rating agencies, File No. S7-04-07.

Credit Crack-Up

Mon, 12 Mar 2007 01:00:00 +0100

The subprime mortgage bust is a typical example of a credit over-expansion, and does not warrant intrusive Congressional and regulatory oversight.

Subprime Time

Thu, 08 Mar 2007 00:00:00 +0100

Recent trouble in the riskiest part of the mortgage market fits a surprisingly consistent historical pattern.

Charter Conversions in Context

Mon, 26 Feb 2007 00:00:00 +0100

Opponents ofcredit-union charter conversion to banks do not havea reasonable position.

Retirement Redefined

Mon, 01 Jan 2007 00:00:00 +0100

As average life expectancy continues to rise, we must move away from "traditional" definitions of retirement.

Sarbox Reform Is Not Even the End of the Beginning

Tue, 19 Dec 2006 00:00:00 +0100

The reform of Sarbanes-Oxley must march on, cutting the bureaucracy and reducing the monopoly profits of the accounting firms that the act has so unfortunately engendered.

The SEC Takes a First Step Toward Reform

Fri, 15 Dec 2006 00:00:00 +0100

The Sarbanes-Oxley Act, particularly the notoriously inefficient implementation of its Section 404, has become a synonym for wasteful expense, bureaucracy and paperwork.

SEC's Sarbanes-Oxley Fix Needs Fixing

Fri, 01 Dec 2006 00:00:00 +0100

Perhaps reform of the excessive cost and bureaucracy created by the Sarbanes-Oxley Act will be a bipartisan effort, just as the original act was a bipartisan overreaction to the scandals of its day.

Protecting Our Last International Advantage

Thu, 16 Nov 2006 00:00:00 +0100

Enhancing the international competitiveness of the American economy and capital markets needs to be a priority for both parties.

What If Market Set the Deposit Insurance Price?

Fri, 10 Nov 2006 00:00:00 +0100

You can have arguments this way and that about deposit insurance premiums, but for price discovery, such arguments are a pretty worthless substitute for market transactions.

Live Long, Work Long

Sun, 01 Oct 2006 00:00:00 +0100

What are we to make of the problems of pension finance?

It's Time for a Deal on GSE Reform

Fri, 08 Sep 2006 00:00:00 +0100

A common regulator for housing GSEs would regulate three of the largest debt issuers in the world.

Bubbling Credit

Mon, 04 Sep 2006 00:00:00 +0100

Letter to the editor in Barron's.

Comment on Concept Release Concerning Management’s Reports on Internal Control over ...

Fri, 01 Sep 2006 00:00:00 +0100

Statement to the U.S. Securities and Exchange Commission on addressing the problems of Sarbanes-Oxley Section 404 that cause excessive and wasteful expense, bureaucracy and paperwork.

Sox Has Created a Morass of Expense and Paperwork

Thu, 03 Aug 2006 00:00:00 +0100

But thebill introduced by Congressman Tom Feeneywould mandate a number of key corrections to these implementation mistakes.

Cartel to Competition

Tue, 18 Jul 2006 00:00:00 +0100

The outlook for the future structure of the credit rating agency sector improved greatly when the House passed the "The Credit Rating Agency Duopoly Relief Act."

Visa Restructuring Makes Sense in New Environment

Fri, 14 Jul 2006 00:00:00 +0100

Visa's governance change is a step in the same right direction. It should be praised, not attacked.

What Is CU "Ownership" Worth to Members?

Fri, 07 Jul 2006 00:00:00 +0100

The recently announced acquisition of Nationwide Federal Credit Union by Nationwide Bank brings a whole new perspective to the credit union conversion issue.

Financial Interest Disclosures Can Protect Markets from "Short & ...

Fri, 02 Jun 2006 00:00:00 +0100

The SEC cannot regulate the capital markets from an empyrean height.

Undoing SOX's Unintended Consequences

Thu, 25 May 2006 00:00:00 +0100

Debates about the Sarbanes-Oxley Act continue, but one thing is clear: its implementation has created unintended consequences.

Undisclosed Interests

Wed, 24 May 2006 00:00:00 +0100

How should the SEC deal with the fact that other people wish to use it to change the price of certain stocks?

Financing a Society of Property Owners

Fri, 12 May 2006 00:00:00 +0100

How effective is bond-based housing finance?

GSEs

Tue, 09 May 2006 00:00:00 +0100

The American housing finance system is unique in the world for the predominant role played by the housing government-sponsored enterprises (GSEs).

No Reason to Tighten Dividend Rules for FHLBs

Fri, 28 Apr 2006 00:00:00 +0100

Is the Federal Housing Finance Board's newest regulation a wise one?

The Next Big Bailout?

Thu, 20 Apr 2006 00:00:00 +0100

By protecting some individual pension beneficiaries, the Pension Benefit Guaranty Corporation has become exposed to huge financial risks and has put all American taxpayers at risk.

Time to Reform Sarbanes-Oxley

Thu, 30 Mar 2006 00:00:00 +0100

The Sarbanes-Oxley Act of 2002imposes huge costs on shareholders, whether they wish to bear these costs or not.

Achieving Balance in Corporate Governance

Wed, 29 Mar 2006 00:00:00 +0100

History is clear that as an empirical matter, booms induce fraud and swindling.

SEC Regulation of Credit Agencies a Problem for Past Decade

Mon, 20 Mar 2006 00:00:00 +0100

Is SEC regulation always effective?

FASB Fesses Up to Derivatives Disaster

Fri, 10 Mar 2006 00:00:00 +0100

Bank of America is the latest victim of the conceptual incoherence and labyrinthine demands of FAS 133, the U.S. accounting standard for derivatives.

Permit Credit Unions to Convert? Of Course!

Fri, 03 Feb 2006 00:00:00 +0100

Should credit unions be able to choose to convert to mutual savings banks and change their charter accordingly, if they think that would be better?

End GSEs' Perpetual Charters

Mon, 23 Jan 2006 00:00:00 +0100

GSEs, if they are created at all, should always have limited-life charters and never be granted perpetual ones.

We Need GSE Reform Legislation

Thu, 12 Jan 2006 00:00:00 +0100

The House Financial Services Committee and Senate Banking Committee bills are generally consistent, although a few points of controversy must be addressed.

Revoke All Perpetual GSE Charters

Tue, 20 Dec 2005 00:00:00 +0100

History teaches an essential lesson: GSEs, if they are created at all, should always have limited-life charters and never be granted perpetual ones.

Dollar Depreciation

Mon, 07 Nov 2005 00:00:00 +0100

No government of any constitution or party, once it has established a fiat currency regime, can resist using the implicit tax of inflation to enhance its spending, activity and power.

Reasonable Alternatives for Curbing GSEs

Fri, 04 Nov 2005 00:00:00 +0100

The House has passed its GSE reform bill by 331 votes to 90, but the Senate bill is stalled.

Let FHLBs Run Fannie and Freddie Funds

Fri, 30 Sep 2005 00:00:00 +0100

One of the most controversial elements delaying GSE reform legislation is the provision in the billthat would direct 5% of Fannieand Freddieprofits to an affordable-housing fund.

This Much Is Clear: FAS 133 Needs to Go

Fri, 09 Sep 2005 00:00:00 +0100

FAS 133 is so deeply flawed that it should be scrapped altogether and re-thought from scratch.

Can You Afford to Retire?

Mon, 05 Sep 2005 00:00:00 +0100

On this Labor Day, we see an important part of the compensation for a lifetime of work placed in doubt.

Social Security Ad Detached from Reality

Wed, 10 Aug 2005 00:00:00 +0100

One doesn’t expect serious thinking in such an advertisement, but this one is utterly detached from reality.

A Personal Lock Box for Risk-Free Bonds

Fri, 22 Jul 2005 00:00:00 +0100

LawrenceHunter does not mention what I believe is the most important advantage of this plan--it will be very popular with the American people.

What Is Accounting Truth?

Fri, 01 Jul 2005 00:00:00 +0100

What is accounting truth? This is the best we can do.

Freddie, Set to Die Young, Lived On and Got Rich

Mon, 27 Jun 2005 00:00:00 +0100

Perpetual government-sponsored charters are simply a mistake. Let's at least relearn that lesson.

A Lock Box of Personal Retirement Assets

Sat, 18 Jun 2005 00:00:00 +0100

Instead of issuing bonds into the Social Security trust fund,the Treasury should issue the bonds directly into your own personal account:your own trust fundofrisk-free assets.

Fed Reserve Banks Have Own Rules

Mon, 23 May 2005 00:00:00 +0100

While GAAP is required of everybody else, the Federal Reserve banks choose to follow their own special accounting rules created by the Federal Reserve itself.

A New Approach to Personal Social Security Accounts

Tue, 17 May 2005 00:00:00 +0100

When the First Continental Congress proclaimed that it stood for "Life, Liberty and Property," it was linking ownership of property to liberty in a free society.

U.S. Housing Finance Isn't the World's Model

Wed, 04 May 2005 00:00:00 +0100

Anyone conversant with international discussions of housing finance knows that the rest of the world does not admiringly look to Fannie and Freddie as the model.

Let Firms Apply Sarbanes-Oxley to Themselves First

Mon, 25 Apr 2005 00:00:00 +0100

There is little doubt that Sarbanes-Oxleyis causing a huge wastage of shareholders' money under the Orwellian motto of protecting the shareholders.

Shame and Pain

Mon, 18 Apr 2005 00:00:00 +0100

The Sarbanes-Oxley Act should be rigorously applied to public accounting firms, the SEC, the Public Company Accounting Oversight Board, and the federal government.

In the Imprecise World of Accounting Standards, Here Is How to Work toward Global Convergence

Wed, 16 Mar 2005 00:00:00 +0100

The notion that accounting standards are purely objective matters for "experts" is simply wrong.

Encouraging Competition among All Housing GSEs

Fri, 04 Mar 2005 00:00:00 +0100

The Federal Housing Enterprise Regulatory Reform bill introduced gets halfway to the needed housing government-sponsored enterprisereform.

American "Housing GSEs"

Tue, 01 Mar 2005 00:00:00 +0100

Now exists the opportunityto begintransitioning to a new housing finance paradigm, toone built on competitive secondary markets instead of a government-sponsored duopoly.

FAS 133 Gets a D-

Mon, 28 Feb 2005 00:00:00 +0100

The consensus is that it is time at a minimum for major revisions, if not for Financial Accounting Standard 133 to be scrapped altogether and replaced.

Fixing Fannie Mae

Wed, 12 Jan 2005 00:00:00 +0100

The turmoil at Fannie Mae signals it is time for Congress to reconsider the structure of the federally chartered Government Sponsored Enterprises.

No Accounting for Hedging

Mon, 29 Nov 2004 00:00:00 +0100

Without in any way making excuses for Fannie and Freddie, the questionable character of Financial Accounting Standard 133 is the ghost at the feast of their accounting scandal.

Power and Marching Orders for a Strong New GSE Regulator

Fri, 19 Nov 2004 00:00:00 +0100

The best answer to the housing GSEs, whichinvolves the privatization of Fannie Mae, Freddie Mac,and the Federal Home Loan Banks, remains politically improbable.

The 2004 Election

Mon, 15 Nov 2004 00:00:00 +0100

With the re-election of President Bush and increased Republican majorities in the Congress, legislation addressing stronger regulation of the housing GSEsis now highly probable.

Is It Possible to Reprivatize the U.S. Financial System?

Thu, 12 Nov 2009 14:00:00 +0100

This Time Is Different: Eight Centuries of Financial Folly

Thu, 29 Oct 2009 10:00:00 +0100

The Deflating Bubble, Part VI: The Lessons of the Bubble and Crisis

Thu, 22 Oct 2009 14:00:00 +0100

The Global Financial Crisis: A Plan for Regulatory Reform

Tue, 22 Sep 2009 10:30:00 +0100

Sarbanes-Oxley and the Financial Crisis

Tue, 08 Sep 2009 09:30:00 +0100

Addressing Systemic Risk

Wed, 03 Jun 2009 12:00:00 +0100

The Impact of Deregulation and Financial Innovation on Homebuyers

Fri, 15 May 2009 10:00:00 +0100

Retirement Finance in the Wake of the Bubble and Longer-Term Implications

Wed, 06 May 2009 14:00:00 +0100

Can Elements of the Danish Mortgage System Fix Mortgage Securitization in the United States?

Thu, 26 Mar 2009 10:00:00 +0100

The Deflating Bubble, Part V: Forecast and Policy Recommendations for the Next Six Months

Tue, 17 Mar 2009 14:00:00 +0100

Bust, Bankruptcy, Bailouts: What Should We Do Now?

Wed, 28 Jan 2009 15:30:00 +0100

Mr. Market Miscalculates

Thu, 06 Nov 2008 17:30:00 +0100

The Deflating Mortgage and Housing Bubble, Part IV: Where Is the Bottom?

Thu, 30 Oct 2008 15:00:00 +0100

The Theory and Practice of Bailouts

Wed, 08 Oct 2008 10:00:00 +0100

Can Covered Bonds Compete with Fannie and Freddie?

Fri, 19 Sep 2008 09:00:00 +0100

The Largest Municipal Bankruptcy Ever?

Tue, 09 Sep 2008 14:00:00 +0100

How to Improve the Credit Rating Agency Sector

Tue, 24 Jun 2008 12:00:00 +0100

The Deflating Mortgage and Housing Bubble, Part III: What Next?

Wed, 12 Mar 2008 16:00:00 +0100

Is the Rating Agency System Broken or Fine?

Thu, 15 Nov 2007 14:00:00 +0100

The Deflating Mortgage and Housing Bubble, Part II

Thu, 11 Oct 2007 15:00:00 +0100

Improving Mortgage Disclosure

Fri, 15 Jun 2007 09:00:00 +0100

Has the Pursuit of "Independence" in Corporate Governance Become Exaggerated?

Tue, 12 Jun 2007 10:00:00 +0100

The Privatization of Sallie Mae and Its Consequences

Wed, 30 May 2007 15:00:00 +0100

The Federal Home Loan Banks and State and Local Revenue Bonds

Wed, 11 Apr 2007 09:30:00 +0100

Mortgage Credit and Subprime Lending: Implications of a Deflating Bubble

Wed, 28 Mar 2007 16:00:00 +0100

Credit Unions in the Broader Financial System

Wed, 29 Nov 2006 14:00:00 +0100

The PBGC and Structural Reform

Wed, 05 Apr 2006 14:00:00 +0100

HR 2990

Tue, 27 Sep 2005 14:00:00 +0100

A New Approach to Personal Social Security Accounts

Tue, 29 Mar 2005 12:00:00 +0100

Do Fannie and Freddie Charge Too Much for Guaranteeing Mortgage-Backed Securities?

Tue, 15 Feb 2005 14:00:00 +0100

Joint Shadow Financial Regulatory Committee

Mon, 15 Nov 2004 12:00:00 +0100

Joint Shadow Financial Regulatory Committee

Mon, 15 Nov 2004 10:00:00 +0100

Joint Meeting of the Shadow Financial Regulatory Committees

Mon, 15 Nov 2004 10:00:00 +0100

Privatizing Fannie Mae, Freddie Mac, and the Federal Home Loan Banks

Mon, 04 Oct 2004 14:00:00 +0100

Does the United States Really Have the Best Housing-Finance System in the World?

Tue, 23 Mar 2004 10:00:00 +0100

Thinking about the Future of Fannie Mae and Freddie Mac

Tue, 23 May 2000 09:00:00 +0100

TARP on a Businesslike Basis

Thu, 19 Nov 2009 00:00:00 +0100

The Troubled Asset Relief Program should be run like a business with a goal of returning as much of the involuntary investment as possible to its owners--the taxpayers--along with a reasonable overall profit.

One Good Idea and a Number of Bad Ones

Wed, 24 Jun 2009 00:00:00 +0100

Any proposals that substantially increase regulatory burden and regulatory risk must be considered in light of the government's intense need to attract very large amounts of additional private equity capital into the banking system.

The Science of Insolvency

Tue, 19 May 2009 00:00:00 +0100

Economics and finance might be science, if it were not for people.

Enhancing the Performance of Credit Rating Agencies Through Competition

Tue, 19 May 2009 00:00:00 +0100

In the housing and mortgage bubble of the twenty-first century, the government sponsored credit rating agencies turned out to be a notable weak spot.

Does Changing Boxes on the Regulatory Organization Chart Alter Minsky's Financial Fragility?

Fri, 17 Apr 2009 00:00:00 +0100

In the wake of every bust comes the political reaction.

Enhancing Competition in the Credit Rating Agency Sector

Wed, 15 Apr 2009 00:00:00 +0100

End the government-sponsored cartel in credit ratings.

The Financial Services Bailout: Reprivatizing Credit Risk

Thu, 19 Mar 2009 00:00:00 +0100

We should encourage the creation and capitalization of new banks to provide new sources of private credit.

Reform of "Fair Value" Accounting

Thu, 12 Mar 2009 00:00:00 +0100

"Fair Value" accounting is not a fact. It is a theory that has had enormously damaging real world results.

TARP Accountability and Oversight

Wed, 11 Mar 2009 00:00:00 +0100

There are dilemmas when public money is used to offset the losses of banks in the name of economic and social stability.

The Future of Fannie and Freddie

Fri, 13 Feb 2009 00:00:00 +0100

Now is the time to think about fundamentally restructuring Fannie Mae and Freddie Mac.

Conceptual Problems with "Fair Value" Accounting Theory

Tue, 22 Jul 2008 00:00:00 +0100

The conceptual deficiencies of the fair value accounting theory make it a poor choice for most companies as an accounting standard.

The Goal of Mortgage Disclosure: To Underwrite Yourself

Thu, 29 May 2008 00:00:00 +0100

Mortgage disclosures need to be simplified to help borrowers understand whether or not they can afford their mortgage loan.

Regulatory Implications of the Housing and Mortgage Bubble and Bust

Wed, 14 May 2008 00:00:00 +0100

Regulatory reform will not prevent all future financial busts, but there are sensible ways to reform the mortgage finance system.

Refinancing the Mortgage Bust

Thu, 31 Jan 2008 00:00:00 +0100

We are facing the bust that inevitably followed the housing and mortgage bubble,but we can learn from the history of mortgage crises.

The Subprime Bust and the One-Page Mortgage Disclosure

Wed, 28 Nov 2007 00:00:00 +0100

Mandatory use ofa simple mortgage disclosure formwould make borrowers better able to protect themselves by understanding what the mortgage really means to them, andpromote a more efficient mortgage finance system.

The More Opinions About the Future, the Better

Thu, 15 Nov 2007 00:00:00 +0100

Ratings agency systems should promote a wealth of information and opinion about price and value.

Systemic Risk: Examining Regulators' Ability to React to Threats in the Financial System

Tue, 02 Oct 2007 00:00:00 +0100

Testimony on the prospect for long term growth and economic well being through innovation.

Legislative and Regulatory Options Regarding Mortgage Foreclosures

Thu, 20 Sep 2007 00:00:00 +0100

Regulatory options for the mortgage and housing industry problems.

The Subprime Lending Disaster and the Threat to the Broader Economy

Tue, 18 Sep 2007 00:00:00 +0100

Testimony on the subprime lending diaster and the current economic issues.

Clear and Practical Mortgage Disclosure

Fri, 08 Jun 2007 00:00:00 +0100

A scholar explains his support of the Mortgage Disclosure Amendment Act of 2007.

Has Sarbanes-Oxley Harmed Entrepreneurs?

Thu, 24 May 2007 00:00:00 +0100

Studies and experiments can determine whether Sarbanes-Oxley stimulates investment or imposes excessive costs.

Bank Consolidation, Subprime Mortgage Issues, and the One-Page Mortgage Disclosure

Mon, 21 May 2007 00:00:00 +0100

Testimonyregarding thesubprime mortgage crisis to the U.S. House of Representatives.

Subprime Mortgage Lending Problems in Context

Tue, 27 Mar 2007 01:00:00 +0100

The subprime boom in the housing marketis over; the bust is here.

Subprime Mortgage Lending Problems in Context

Tue, 27 Mar 2007 01:00:00 +0100

Reforming Sarbanes-Oxley

Tue, 13 Mar 2007 01:00:00 +0100

The Sarbanes-Oxley Act, its effects on investors, andrecommended reform legislation.

The SEC's Sarbanes-Oxley Fix Needs Fixing

Thu, 11 Jan 2007 00:00:00 +0100

Sarbanes-Oxley Act is bad for investors and for the international competitiveness of American business and American capital markets.

The Cincinnatian Doctrine

Wed, 20 Sep 2006 00:00:00 +0100

What is the proper role for the government in the financial system, and in housing finance, in particular?

Hedge Funds and Analysts: Insuring Disclosure to Control Manipulative Short Selling

Wed, 28 Jun 2006 00:00:00 +0100

Testimony to the Senate Judiciary Committee in a hearing titled “Hedge Funds and Analysts: How Independent is their Relationship?"

Sarbanes-Oxley Section 404 Roundtable

Tue, 02 May 2006 00:00:00 +0100

Participation in a roundtable hosted bythe House Government Reform Subcommittee on Regulatory Affairs on section 404 of the Sarbanes-Oxley Act.

Sarbanes-Oxley Has Been an Accountant's Bonanza

Mon, 24 Apr 2006 00:00:00 +0100

Congressional testimony on the SEC's implementation of the Sarbanes-Oxley Act.

Addressing the Unintended Burdens of the Sarbanes-Oxley Act

Wed, 05 Apr 2006 00:00:00 +0100

Testimony to the House Government Reform Subcommittee on Regulatory Affairs onthe need for action to address the unintended, but very real, excessive burdens and bureaucracy created by the Securities and Exchange Commission's implementation of the Sarbanes-Oxley Act of 2002.

Financing a Society of Property Owners

Wed, 08 Mar 2006 00:00:00 +0100

By developing mortgage and bond markets together, can they potentially reinforce each other?

How to Improve the Credit Rating Agency Sector

Tue, 07 Mar 2006 00:00:00 +0100

Testimony before the Senate Committee on Banking, Housing and Urban Affairs about how to improve the credit rating agency sector.

HR 2990: Creating a Competitive Rating Agency Sector

Wed, 29 Jun 2005 00:00:00 +0100

H.R. 2990's approach is in the best tradition of competition and disclosure, rather than regulatory prescription and government sponsorship.

Your Personal Lock Box

Thu, 23 Jun 2005 00:00:00 +0100

Personal accounts should be created with the annual Social Security surplus, with the Treasury issuing bonds (TIPS)directly to these personal accounts, thus bypassing the trust fund.

Economic Consequences of Sarbanes-Oxley

Wed, 18 May 2005 00:00:00 +0100

It's a pleasure to be here to talk about the economic consequences of Sarbanes-Oxley, a matter which we know some things about and have opinions on a great many more.

A New Approach to Personal Social Security Accounts

Thu, 12 May 2005 00:00:00 +0100

To create personal Social Security accountswithout divertingcash from payroll taxes, the Treasury could issue bondsdirectly to personal accounts.

The Federal Home Loan Banks in the Context of Housing GSE Reform

Wed, 13 Apr 2005 00:00:00 +0100

Combined oversight of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks constitutes a logical and effective regulatory domain.

The Ratings Game

Tue, 14 Sep 2004 00:00:00 +0100

This testimony before Congress suggests ways the SEC could improve the competitiveness of credit rating agencies.

The Future of Charge Card Networks

Wed, 01 Feb 2006 00:00:00 +0100

Sarbanes-Oxley in the Light of the Financial Crisis

Wed, 18 Nov 2009 00:00:00 +0100

All Sarbanes-Oxley's efforts to control risk did not avoid the tremendous financial bubble and bust of the last several years.

Advice, Not Consent

Mon, 22 Jun 2009 00:00:00 +0100

A "systemic risk adviser" independent enough to point out the systemic risks being created by the government's financial actions and policies, in addition to those of private financial actors, might be a useful institution.

The Human Foundations of Financial Risk

Mon, 12 May 2008 00:00:00 +0100

The mathematical models used to design and evaluate structured mortgage securities, using vast computer power and reams of data, did not save us from the consequences of all-too-human behavior.

Crisis Intervention in Housing Finance

Mon, 31 Dec 2007 00:00:00 +0100

The Home Owners' Loan Corporation provides a useful history lesson for those seeking interventions to solve our current housing crisis.

Will the Real Shareholders Please Stand Up?

Thu, 19 Jul 2007 00:00:00 +0100

Discussions of corporate governance today too often neglect important developments in how principals and agents interact.

Has the FASB Outlived Its Usefulness?

Thu, 18 Jan 2007 00:00:00 +0100

The Federal Accounting Standards Board has tried to make accounting into an exact science. It has failed, and will never succeed.

Retirement Finance: Old Ideas, New Reality

Mon, 25 Sep 2006 00:00:00 +0100

The American system offunding retirementis broken. The future holds out a return to historical patterns of work and leisure.

Addressing the Insolvency of the Pension Benefit Guaranty Corporation

Wed, 14 Jun 2006 00:00:00 +0100

How can the future of the Pension Benefit Guaranty Corporation be improved?

What Should Society Want from Corporate Governance?

Fri, 03 Feb 2006 00:00:00 +0100

February 2006'sFinancial Services Outlook outlines an optimal plan for corporate governance.

Revoke All Perpetual GSE Charters

Fri, 04 Nov 2005 00:00:00 +0100

The GSE reform legislation now being considered by Congress should be amended to revoke the GSEs' perpetual charters and replace them with limited-life charters.

From Making Judgments to Following Rules

Tue, 19 Jul 2005 00:00:00 +0100

Did therecent accounting scandalsoccur in spite of the rules, or did the project of expanding rules contribute to the problems?

The Government Should Not Try to Promote "Investor Confidence"

Fri, 01 Apr 2005 00:00:00 +0100

Efforts to encourage investor confidence are fundamentally misguided. A skeptical disposition is much better for investors and for the proper functioning of the economy as a whole.

End the Government-Sponsored Cartel in Credit Ratings

Sat, 01 Jan 2005 00:00:00 +0100

Steps should be taken to increase competition in the rating industry, which would increase customer choice, price competition, innovation, and the analysis available to investors.

The Next Steps in Reforming the Housing GSEs

Mon, 01 Nov 2004 00:00:00 +0100

The author recommends structural and regulatory requirements to ensure that competition is enhanced with regulation, with improvement of the American mortgage-finance system.

The Housing GSEs

Sun, 01 Aug 2004 00:00:00 +0100

By considering three government-sponsored enterprises together, we can see how developing a common regulatory framework for them could be the basis for developing a competitive market.

Do We Need a Consumer Financial Protection Agency?

Mon, 27 Jul 2009 00:00:00 +0100

AEI's Peter J. Wallison and Alex J. Pollock offer their opinions on the proposed Consumer Financial Protection Agency.

After the Subprime Lending Bust

Tue, 15 May 2007 00:00:00 +0100

The subprime boom is over; the bust is here.

A New Approach to Personal Social Security Accounts

Fri, 01 Apr 2005 00:00:00 +0100

Personal retirement accounts with a structure using inflation-indexed Treasury bonds would deliver the benefits of personal accounts without the risks or costs often cited by critics.