Banking's Past, Present, and Future
The Wall Street Journal has demonstrated nostalgia for the gold standard by publishing two pro-gold standard opinion pieces this week. Both are long on nostalgia and short on analytical content. On Tuesday, long-time gold enthusiast Lewis Lehrman made his pitch, arguing that a return to the gold standard was necessary to restore fiscal balance. I … Read more
John Taylor’s op-ed in today’s Wall Street Journal bashes the White House budget proposals of February 14 and April 13 and lauds the House Republican budget proposal of April 5. I understand–or am coming to understand–that when writing for a non-specialist audience, a certain amount of simplification is necessary: I’m guessing that the Journal has … Read more
The Interim Report of the UK Independent Commission on Banking was released yesterday. In his opening remarks, Commission’s chairman Sir John Vickers enunciated three key points. First, banks need to hold more capital. According the Commission, the Basel III proposal of 7%–possibly more for especially large and important banks–is a step in the right direction. … Read more