No Safety In Numbers, by Roger Lowenstein (NYT)
In times of financial and economic distress, people run after government securities, which has long been dubbed as risk-free. But as the demand for Treasuries reach excessive levels, perhaps it is time that we think twice again about what has been held as a long-time fact.
Tax Havens Exist Because of the Hypocrisy of Larger States, by John Kay (FT)
Tax havens have been under spotlight, facing condemnation from different states, where some of the biggest scams of the recent times have been unveiled. And the hypocrisy is that these states, in fact, have allowed the tax havens to continue to exist. Simply because the rich always find a way to have the havens continue to exist.
Now Is No Time To Give Up On Markets, by Mary Anastasia O’Grady (WSJ)
In an interview with Nobel economist Gary Becker, O’Grady asks him to weigh in on some of the biggest issues including the fall of Lehman Brothers, the sources of the housing bubble, and the stimulus package. As he talked about the seemingly growing dependence of the public to government, I can’t help but remember Minsky and his discussion of the negatives of being in this situation. Also in the article is Becker’s discussion of the multiplier effect of government spending.