Gerald O’Driscoll, Jr., Senior Fellow at the Cato Institute and former Vice President at the Federal Reserve of Dallas, joined us last year for a McCuistion TV program: What Is the True State of the Economy?
He and our other guests addressed the Fed’s role in the current economic situation and whether or not the present and anticipated government policies have a possibility of working.
Gerald O’Driscoll, featured in an August 16, 2010 Wall Street Journal article entitled: The Fed Can’t Solve Our Government Woes, addresses the policy of low interest rates, why this policy is sometimes justified, and he comments, “While these effects are theoretically plausible, this textbook policy does not apply to our present situation.”
He states, “Markets are resilient, but their recovery can be impeded by bad policies. At present, both monetary and fiscal policies are on the wrong track.” The article is thought provoking and well worth a full read. And you may want to click on the program link, to see what he had to say on the McCuistion Program.
Joining him on the program were:
- Stan Liebowitz, PhD – Author: Anatomy of a Train Wreck, Director for the Analysis of Property Rights and Settlement, University of Texas School of Management
- Richard Bitner – Author: Confessions of a Subprime Lender, Associate Publisher: Housing Wire Magazine
- Ira Silver PhD – Texas Christian University, Neeley School of Business
As always thanks for joining us as we talk about things that matter with people who care…
Niki Nicastro McCuistion
Executive Producer
Friday’s news roundup includes updates on China, the economy, the fed and health care and its effect on the Democratic Party.
China Pledges Support for Economic Recovery, Urges Free Trade
China’s President Hu Jintao says his country is working hard to increase domestic demand and that Asia-Pacific economies must work together to open up trade.
In a speech at the Asia Pacific Economic Cooperation forum in Singapore, the Chinese president listed his country’s efforts at fighting the global economic crisis.
PENPIX-A look at Fed voters this year and next
Nov 13 (Reuters) – The voting lineup on the Federal Reserve’s policy-setting Federal Open Market Committee is about to shift once again.
Every year, four regional Fed bank presidents rotate out of voting seats, making way for four others. The current voting lineup will hold for the FOMC gathering on Dec. 15-16 before the new voters come in at the Jan. 26-27 meeting.
2010: Health care hurting Dems?
“The healthcare battle appears to be helping Republicans running for the Senate,” The Hill notes. “Two Quinnipiac polls released Thursday show the leading GOP candidates in Connecticut and Ohio growing their leads. Former Rep. Rob Simmons (R-Conn.) leads Sen. Chris Dodd (D-Conn.), 49-38, and former Rep. Rob Portman (R-Ohio) has opened his first leads over two potential Democratic opponents.”
In this segment of McCuistion, host Dennis McCuistion is joined by a panel of experts:
- Stan Liebowitz, PhD., author of Anatomy of A Train Wreck & Director for the Analysis of Property Rights and Settlement
- Richard Bitner, author of Confessions of a Subprime Lender and Associate Publisher for Housing Wire Magazine
- Robert Higgs, author of Crisis and Leviathan and Senior Fellow in Political Economy at The Independent Institute
Unemployment is rising, stocks have fallen 35%, every area of industry is challenged, credit is tight, foreclosures are on the rise, and no-one admits responsibility. This program explores the greed, fraud and incompetence in all areas of business and government. It asks if the remedies being applied by the Treasury and the Federal Reserve System (Fed) are the right ones and if, in fact, those in charge have any idea what they are doing to America’s economic future.
Experts point toward the mortgage industry and Wall Street as the source of the recession we’re in today and explain how the recession actually started. Approximately 30-40 years ago getting a loan consisted of one loan recipient going to his or her local bank and completing the entire transaction through that one bank. With the introduction and growth of securitization, which in itself isn’t a bad thing, a new era of issues were created.
In the early 1990s in an effort to get more Americans into homes, the Fed lowered lending standards to increase home ownership. People no longer had to have verifiable income, strong credit history, and more. This caused the demand for houses to go up and the prices of those houses increased right along with it. The panelists further explain the types of decisions and misinformation that took place during this time that led to the mishandling of the situation.
The experts cover the role investment banks have played, look critically at Wall Street and rating agencies, and examine the issues surrounding both entities decisions and actions.
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02.08.09 – 1722
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