It is generally not apparent at the time, but some years in retrospect get suffused with a golden nostalgia, as events take an unexpected and unpleasant turn afterwards that leaves them remembered as the “last good year.” In some cases, this nostalgia happens immediately, as a major war or a huge depression breaks out, cutting […]

The new liabilities tax on banks announced by President Obama last week will probably raise the revenue he wants, $117 billion over 10-12 years – but its effects on the industry will not be what he thinks. Congress’s attempts at financial sector “reform” are also doomed to add bureaucracy without providing significant additional protection against […]

Warren Buffett, whose Berkshire Hathaway owns 9% of Kraft, last week threw its takeover of the British chocolate company Cadbury PLC into more doubt when he said he would vote Berkshire’s shares against a rights issue that Kraft was proposing to consummate the Cadbury deal. His action was regarded as surprising, because the majority of […]

It being January, I am drawn irresistibly to the British prime minister Benjamin Disraeli’s only significant contribution to monetary policy thought, his comparison of a particular step to the supposed Naples miracle of the liquefaction of St. Januarius’ blood. His comparison, far-fetched though it seems, was instructive and it’s well worth considering whether there are […]