Archive for December, 2008

New Year’s Resolution

New Year’s Resolution

By Aaron T. Knapp • on December 31, 2008

Most of us make New Year resolutions.  Do you follow through on them? One website lists as its top resolution “Spend more time with family and friends.”  That’s a good one, and telling.  Our obsession with our careers, money, tasks, errands, American Idol,

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A Life of Lies?

A Life of Lies?

By Aaron T. Knapp • on December 28, 2008

There’s an underlying theme to the fall of Wall Street as we knew it.  It is deception, perpetrated in furtherance of self-interest.  The Madoff Ponzi scheme is a powerful example of this.  Bernie Madoff was living a lie.  He knew it.  His wife knew it.  Many others knew it too including,

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Thinking Global

Thinking Global

By Aaron T. Knapp • on December 25, 2008

How are we going to fix big finance?  The current thinking is that regulatory measures can do it.  But we have regulatory measures in place already.  Wall Street is prohibited from defrauding investors, as are mortgage brokers, and other banks.  Most conduct that harms the public is already illegal. The

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A House Divided?

A House Divided?

By Aaron T. Knapp • on December 24, 2008

Organized labor cheered as President-elect Obama nominated Rep. Hilda Solis for Labor Secretary last week. The consensus seems to be that the Solis pick will be good for labor. She’s a life-long supporter of workers’ rights and backs the pending Employee Free Choice Act, which makes it easier

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Bigger Problems Lurked Behind Deregulatory Measures

Bigger Problems Lurked Behind Deregulatory Measures

By Aaron T. Knapp • on December 23, 2008

On November 12, 1999, President Clinton signed into law the Gramm-Leach-Bliley Financial Services Modernization Act, repealing the Glass-Steagall Act of 1933 and permitting commercial banks, investment banks and insurance companies to merge, mix and, eventually, melt. At the signing, Senator Phil Gramm

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Back to Basics

Back to Basics

By Aaron T. Knapp • on December 23, 2008

People are getting back to basics. I have a friend living in LA who is an avid musician.  But to pay the bills he runs a cleaning business.  Nothing extravagant, just a simple business.  They’re offering a basic service and people are appreciative of the tangible benefits in their lives and

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Indecipherable Exuberance

Indecipherable Exuberance

By Aaron T. Knapp • on December 21, 2008

If a person can’t understand something, the person usually blames it on himself.  It’s gotta be my fault.  Funny how those things that have desired effects, but that are difficult or impossible to understand, wield such significant control in our lives.  We end up deifying them.  We deified

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The Bush Backpeddle

The Bush Backpeddle

By Aaron T. Knapp • on December 18, 2008

When our President (Bush not Bama) announced after the congressional auto bailout failed, that TARP funds might be made available, I suspected it was more about making sure the markets didn’t plunge than reality.  I think I was right.  Bush is already

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To Churn or not to Churn

To Churn or not to Churn

By Aaron T. Knapp • on December 18, 2008

Roger Cohen writes a thoughtful column in the NY Times.  The problem with all these bailouts is that they are buttressing the status quo.  The choice, according to Cohen, is between European-style “life-support” and

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Psycho-Bubble-Babble.

Psycho-Bubble-Babble.

By Aaron T. Knapp • on December 17, 2008

Virginia Postrel writes about the psychology of financial bubbles in this month’s Atlantic Magazine.  Why is it that economic bubbles are created?  Over and over again?   What’s the psychological component? Postrel references

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