In a recent post, Congressional Budget Office Director Douglas Elmendorf takes on the admirable task of explaining federal spending to a seventh grader from Michigan. In particular, Elmendorf explains how federal deficits are essentially borrowing against the future and could … read more
The housing bubble expanded in the early 2000s as numerous new investments in housing seemed like sure bets. So sure in fact that regulators in charge of compliance for the Community Reinvestment Act (CRA) issued awards to financial institutions that … read more
Overnight the Federal Reserve Bank of New York released detailed holdings in its Maiden Lane LLC accounts, the vehicles created to take on assets from the Bear Sterns and American International Group rescues. The portfolio is a mix of distressed … read more
The recent nine-volume examiner’s report on Lehman Brothers has drawn a great deal of attention. In particular, Lehman’s Repo 105—a gimmick used to improve its quarterly earnings reports—has drawn considerable consternation. While there’s good reason to denounce Lehman’s accounting, few … read more
The House passed a recent Senate amendment to increase the U.S. debt ceiling. This raises the debt ceiling by $1.9 trillion, moving the total amount that the government can borrow up to $14.3 trillion, the highest level ever allowed. Yet … read more
