The Daily Caller

The Daily Caller

Banking committee clears the way for continuing flawed Fed policies

Mark Calabria
Director of Financial Regulation Studies, Cato Institute
U.S. Federal Reserve Vice Chair Janet Yellen testifies during a Senate Banking Committee confirmation hearing on her nomination to be the next chairman of the U.S. Federal Reserve, on Capitol Hill in Washington November 14, 2013. REUTERS/Joshua Roberts

Lost in Thursday’s “nuclear” attack on the Senate, the Banking Committee approved the nomination of Janet Yellen to succeed Ben Bernanke as chair of the Federal Reserve. Even without the filibuster changes, her nomination was all but guaranteed. Once confirmed she will almost surely continue the Fed’s current reckless policies.

Minting a $1 trillion distraction

4:19 PM 01/09/2013

Negotiations over increasing the debt ceiling have barely begun, and already we are being hit with silly proposals to side-step the process. The latest is a proposal to have the Treasury mint a $1 trillion platinum coin. Sadly, this is just another gimmick to avoid dealing with the real issues facing our country.

Happy birthday, bank bailout!

11:58 AM 10/03/2010

Sunday marks the two-year anniversary of President Bush signing the “Emergency Economic Stabilization Act,” better known as TARP (the Troubled Assets Relief Program).

Housing problem was the bubble, not the bust

12:00 AM 02/25/2010

As sales of new homes reach historic lows, there are increasingly strident calls for Washington to do something. These demands for action, however, fail to recognize that it was government, mostly Washington, which got us into this mess in the first place. Decades of subsidies for the housing industry have resulted in booms and busts that have repeatedly undermined the strength of our financial institutions while leaving the nation with a massive inventory of vacant homes.

Bring back recourse in foreclosure plan

12:00 AM 02/17/2010

A growing chorus of voices has recently been echoing the same refrain: the Obama foreclosure prevention plan has been a failure. This should be no surprise since the Obama plan, from its very beginnings, ignored the primary drivers of default: negative equity coupled with unemployment. But the solution being proffered—mortgage write-downs—is simply another dead-end. Forgiveness, either through bankruptcy courts or the Treasury, will encourage additional delinquencies, not less. The most direct way to reduce foreclosures is expecting those borrowers who can pay their mortgages to do so, regardless of the value of their homes. We need to bring back recourse, allowing lenders to seek repayment from all of a borrower’s assets, not just the collateral behind a loan.