The former congressman and Reagan administration budget director lays out the case for what ails America in today’s New York Times, crony capitalism. One of the best essays to appear in an Establishment newspaper in recent years.
Archive for March, 2013
Boycott the banks and money market funds?
30
Mar
I have been teaching Corporate Finance I, the introductory Finance course at Ramapo College’s business school, since 1985. In the textbook’s chapter on interest rates, which is a standard discussion in all textbooks, students learn that the following equation, r = r* + IP. In other words, the nominal interest, rate, r, the rate earned on risk-free debt (such as three month U.S. Treasury bills) equals the real rate of interest (the rate mutually agreed upon by borrowers and lenders in a free market) plus an inflation premium. (For non-risk free debt there are additional premiums, liquidity, default, etc.)
Ron Paul is a “crank” and an “eccentric” for speaking the truth
11
Mar
In his New York Times op-ed column (“What Hath Rand Paul Wrought”), Russ Douthat applauds Senator Rand Paul’s filibuster against the nomination of John Brennan to head the CIA. Douthat believes Senator Paul has done the GOP a great service by highlighting issues it is embraced—“hair-trigger hawkishness and absolute deference to executive power”– that have made the Party a two-time presidential loser to Barack Obama.