In the last two blog posts, the July 1998 hearings on derivatives were reviewed.  A generous interpretation of Lawrence Summers testimony could - with a straight face - claim that Summers was merely advancing a limited legal argument.

When Lawrence Summers testified against regulating derivatives in July 1998, it could be argued he was testifying on the basis of a limited legal point, and not on the basis of being opposed to any derivative regulation.  When the Commodities Futures and Trading Commission prepared their 'concept release' to consider regulating derivatives, the CFTC was attempting to use its authority to r

July 30th of this week marked the 21st anniversary of Lawrence Summers', (Dunce #45) testimony to Congress on derivatives.

Over the last two blog entries (07 and 14 JUL), the 'stabilationists' have been discussed.  It was their belief that an economy works best when prices remained stable.  In fact, maintaining stable prices became a 'be-all and end-all' of the stabiliationists.  Indeed, the Fed of the 1920s was singled out by the stabilationists as being particularly outstanding in this reg

Review: In last week's article, the 'stabilationists' and their ideas were introduced.  The original stabilationists included some of the world's leading economists like Irving Fisher.  They believed great benefits would be achieved if prices remained constant.  This week's article shows how this silly idea was behind enormous economic chaos and suffering in both