Alan Greenspan is disappointed in Dodd-Frank

I am devastated. Writing in the Financial Times today, Alan Greenspan, argues that the Dodd-Frank Wall Street Reform and Consumer Protection Act will have–indeed is already having–unintended consequences. He cites five specific cases. 1) Making credit ratings agencies legally liable for their opinions about risk made them unwilling to give Ford Motor Credit a rating … Read moreAlan Greenspan is disappointed in Dodd-Frank

On low probability-high cost events

Earthquakes, tsunamis, and nuclear accidents are low probability-high cost events. So are financial crises. There is nothing we can do to prevent earthquakes and tsunamis.  Sure, with improving technology, we are sometimes able to get a bit of advance warning.  And we can design structures that are more resistant to natural disasters.  For the most … Read moreOn low probability-high cost events

An economist at the movies

Although movies dealing with themes of economics and high finance are common, it is rare to see films with economists cast in starring roles.  This past week I managed to see two. In Freakonomics: The Movie, the economist is portrayed as hero.  Based on the book of the same name by economist Steven Levitt and … Read moreAn economist at the movies