Be wary of foreign leaders who complain they are innocent victims of bad U.S. economic policies. This is a little bit like friends who blame you for their hangovers — after they’ve spent the night dancing on tables. This is…
Bigger financial firm? Often it’s not better
Economies of scale are not guaranteed. Take that lesson from Citigroup’s sale of a controlling interest in its Smith Barney brokerage operation, and its decision to split itself into two pieces. The myth that bigger is always better is a…
Swindles go hand-in-hand with bubbles
With possible losses of $50 billion, one may exaggerate by describing Bernie Madoff’s scheme as the tip of an iceberg. If history is any guide, however, numerous other frauds will emerge before our ongoing debacle is over. The basic problem…
Armed forces need a better pay structure
One problem with economic crises is that their urgency diverts energy from less dramatic issues. With the current focus on bailouts and stimulus packages, Congress and the Obama administration probably will let issues raised by the 2008 Quadrennial Review of…