Penn Press Log

Bachmann Is Back: A Guest Blog Post by Kirsten Marie Delegard

01/25/2012

On Sunday, the anniversary of the Roe vs. Wade decision, U.S. Representative Michele Bachmann made her first public appearance since pulling out of the presidential race on January 4. At a protest against abortion at the Minnesota State Capitol, the conservative congresswoman was in her element as she rallied the faithful.
Bachmann’s last-place finish in the Iowa caucuses and subsequent withdrawal from the presidential running had undoubtedly disappointed that audience.
Outside of those circles, many observers viewed Bachmann’s candidacy as a manifestation of our collective political dysfunction. Yet any relief at her poor showing needs to be tempered by caution.

The Worst Regulation in History? Jeffrey Friedman and Wladimir Kraus on the Recourse Rule

01/05/2012

It may seem, then, that the Recourse Rule offers us no lessons. It failed only because of unavoidable human ignorance. The regulators did not anticipate a nationwide housing bubble. Prescience about the bubble was rare, and nobody can be blamed for lack of omniscience. Testifying before the Financial Crisis Inquiry Commission, former FDIC Chair Sheila Bair expressed regret for the Recourse Rule and admitted that regulators had not understood the risks. Neither had most investors.
However, the danger of a fallible regulator is much greater than the danger of a fallible investor.
A prudent response to our fallibility is to spread our bets. The Recourse Rule contradicted this principle by encouraging all banks to invest in one category of “safe” assets. Herd behavior is always a danger in markets, but this particular herd was corralled by the regulators.

Winter Meeting Wonderlands

12/23/2011

The Penn Campus is relatively quiet now that classes are over, but winter break doesn't mean that things cool down at Penn Press. Some of the biggest humanities and social… READ MORE