Bob Cropf

Posts Tagged ‘Blinder’

Blinder on Nationalization of Banks

In 1 on March 8, 2009 at 10:32 AM

Blinder commented on nationalization of banks in today’s New York Times. He is an opponent and offers some good arguments. There are some reasons that his qualms may not be entirely accurate. Krugman is not pleased.

First, he states we have 8,300 banks. True, a lot of those have already collapsed and had the FDIC take over (FDIC just got a $100b credit line to cover more and bigger bank failures). A lot will collapse in the future regardless of whether or not nationalization takes place. The point is that no one is advocating (to my knowledge) nationalizing ALL banks. Isn’t it a bit nonsensical to categorize Smalltown Bank in the same category as Citi, Bank of America, JP Morgan, and Wells Fargo?

Second, Citi, BoA, JPM, and WF account for 64% of commercial bank assets (check out pie chart).

– KC

Keynesian vs. Neo-Classical

In miscellaneous on February 8, 2009 at 7:19 PM

In the January 30 show, “The New Boss” (Act Three), This American Life has a very clear break down of the neo-classical vs. Keynesian economists battle since World War II, culminating with the debate of the current stimulus. Includes interviews with Blinder and Cowen. Also includes a brief biography of Keynes – interesting guy.

This American Life also did two other shows in 2008 that were very helpful in outlining the whole mess that we are in. The first one was in May, “The Giant Pool of Money’, about the mortgage crisis. The second one was in October, “Another Frightening Show about the Economy”, about the credit market collapse.