In light of the recent allegations of trade secrets theft at Goldman Sachs, Ethan S. Burger and Kenneth Gray look at whether corporate security and policy are prepared to handle a “new generation of economic disruption”. Read Goldman Sachs’ Code and the Elephant in the Room.
Aug 042009
Let’s see if we can start by agreeing on some basic facts. First, the process of securitization was unquestionably enormously successful in the early part of this decade in attracting huge sums of capital from all around the world to fund loans to U.S. households and firms. Without securitization, it is inconceivable that we would have seen anything like the $4.3 trillion in new non-agency household mortgage loans issued between 2004 and 2006.
Second, surely we can agree today (though some may have still thought otherwise as recently as May of 2007) that this success was absolutely not
spurred in large part by innovations that reduced the costs for lenders of assessing and pricing risks. In particular, technological advances facilitated credit scoring by making it easier for lenders to collect and disseminate information on the creditworthiness of prospective borrowers. In addition, lenders developed new techniques for using this information to determine underwriting standards, set interest rates, and manage their risks.
http://www.econbrowser.com/archives/2009/07/looking_for_an_1.html
Gary Clyde Hufbauer and Jeffrey J. Schott provide detailed analysis in a policy brief on the Buy American provisions of the economic stimulus plan. They look into the three main issues that arise from the provisions in each bill: U.S. jobs, U.S. trade obligations, and U.S. foreign policy. Don’t miss Buy American: Bad for Jobs, Worse for Reputation
Aug 042009
In The Wall Street Rally: Watch Your Wallets , Robert Reich looks at the stock market, which has climbed over 9,000 for the first time since early January, and he urges caution. As employment and underemployment keep rising, the real economy suggests that Wall Street’s cheerleading of profits coming from dramatic cost-cutting is underwhelming.
Aug 042009
Before Chinese and U.S. officials sat down this week for high-level economic and strategic meetings, Rachel Ziemba and Adam Wolfe looked at “What’s on the Table at the U.S. China Strategic and Economic Dialogue (S&ED)?” China and the U.S. might be in rough agreement on short- and long-term issues, but diverge widely in the middle.
