November 2 is fast approaching, and the nation is awaiting the election results to see whether the Tea Party Movement will be revealed to be a force in American politics or an over-hyped media sensation.  This week’s “Best of the Blogs” feature provides everything a political junkie needs to learn more about the Tea Party Movement. The [...]

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Tea Party Economics

Posted by: | October 4, 2010 | 9 Comments

Readers of this Blog know that I have a longstanding interest in the debate over the scope of the federal government’s power to regulate the economy under the Constitution.  I am also inclined to take the Tea Party Movement seriously as a political phenomenon rather than writing them off as a group of buffoons or [...]

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This is the third post on the topic.  As promised, I will attempt to address whether the currently proposed regulatory overhaul can help mitigate against the risk of excessive risk-taking and speculative behavior.  That is, can the prevention of “too big to fail,” increased capital ratios among large banks, and the 2,315-pages of financial regulatory [...]

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This is the second post on this topic.  Good to see you back for more!  Based on all of the notes that I received following my first post, the readership levels of this site are much higher than I expected.  Thanks for all of the kind feedback and responses. I think that some of my former [...]

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It is with a bit of fear that I take over the podium as a guest blogger. The thought of coming up with enough substance to satisfy the cravings of an unnamed and faceless reader base is a bit frightening. So, please excuse me if my nervousness shows through in my writing. So, first a [...]

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Section 1 of the Sherman Act prohibits concerted actions unreasonably restraining trade, but exempts collective actions by separate business entities who share a complete unity of interest.  Whether § 1 applies to the major professional sports leagues has long been a matter of debate.  On the one hand, each team is separately owned and seeks to [...]

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It is a peculiar characteristic unique to our country that Americans talk about political issues in constitutional terms, thereby turning every policy debate into an argument over basic principles.  That was my thought when I read about Senate candidate Rand Paul and his “Constitutionalist” view that the federal government has no right to dictate the [...]

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Tech nerds and media junkies have been buzzing lately about Google’s announcement that it will soon rollout Google-TV — a new device/platform that will turn people’s televisions into portals for online video and other web content. Google representatives unveiled the project last week at a developers conference where they staged a Steve Jobs-like showcase that [...]

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3L Douglas Hoffer has a new paper on SSRN describing and defending “PIPE financing” — a form of corporate financing that has taken off in the past fifteen years.  PIPE financing permits corporations to raise money by selling equity through a two-step process that diminishes the regulatory burdens normally associated with public offerings.  PIPE deals [...]

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While reading through news on the SEC’s case against Goldman Sachs, I can’t help but wonder if the charge would have been brought regardless of what happened in the market. The action against Goldman Sachs comes from their arrangement and sale of mortgage backed collateralized debt obligations (CDOs).  In 2006, John Paulson, approached Goldman Sachs [...]

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No one wants a replay of the financial meltdown of the past couple years, but can new regulations really provide a long-term solution?  Periods of heightened regulatory oversight seem inevitably followed by periods of deregulation, while the prospect of government bailouts may create a moral hazard that promotes excessive risk-taking.  Thus, in an interesting new article on [...]

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The Business of Bigness

Posted by: | March 18, 2010 | 1 Comment

Last summer, Eric Dash of the New York Times wrote an excellent article on the problems associated with big business in the U.S.  Dash noted that almost 100 years ago, Supreme Court Justice Louis Brandeis wrote prophetically about the “curse of bigness.”  Justice Brandeis denounced generally the influence that big business had on U.S. politics [...]

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