Tag Archives: banks

Lessons from 85 Years of Movies about Finance

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August 26, 2024 — Over the past 85 years, Hollywood has had much to say about financial markets and institutions – often reflecting a distinctly populist perspective. At a time when both populism and financial volatility are much in evidence, what lessons might these movies hold about regulation?

  1. Wall Street speculators

Start with the Wizard of Oz.  The 1939 movie was a populist allegory about money, though most devotees don’t know it.  The Emerald City represents Wall Street, while the yellow brick road symbolizes the gold standard.   The Cowardly Lion represents William Jennings Bryan, who, when the original book was written in 1900, was an agrarian populist candidate running for president against the monetary austerity of the gold standard and on behalf of western farmers (the Scarecrow) and eastern factory workers (the Tin Man). read more

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Who is right on US financial reform? Sanders, Clinton, or the Republicans?

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(Feb. 27, 2016) Eight years after the financial crisis broke out in the United States, there is as much confusion as ever regarding what reforms are appropriate in order to minimize the recurrence of such crises in the future.

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Reactions to Geithner’s Public-Private Investment Program

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Secretary Tim Geithner announced today the long-awaited details on the financial repair plan that he promised on February 10.   Some reactions have been negative, both from the left and the right.  Paul Krugman, for example, argues that the plan does not go far enough in forcing banks to recognize the fallen value of their assets.  

But the stock market was “dazzled” by Geithner’s explanation of the PPIP proposal, with prices up strongly.    The  plan has no shortage of defenders.  Brad DeLong makes some good points, and responds to Krugman.   The Geithner Plan is an improvement over the Paulson plan in that when “toxic assets,” now called “legacy assets,” are bought from the banks, their prices are set by private bidding (from hedge funds and private equity companies), rather than by an overworked Treasury official pulling a number out of the air and risking that the taxpayer grossly overpays for the assets.   On similar grounds, Nouriel Roubini has surprised the cynics by giving (qualified) support for the plan, and points out that its design appears to follow a recent proposal by my Harvard colleage Lucien Bebchuk.   read more

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