Sunday, February 10, 2008

Freezing loan rates = bad idea

Freezing prices in a free market is never a good idea. Here Richard Thaler argues why Hilary Clinton's idea to freeze interest rates on subprime loans is just bad economics. I'm inclined to agree with him.

For those who are not familiar with Thaler - he is a renowned behavioral economist from U. Chicago.

Thanks to Newmark's door for this link
at
Labels:

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

What's going on with inflation?

I recently posted an article on the Poole College Thought Leadership page titled: " What's going on with inflation?" .  This w...

  • Beanie Babies
    There are a lot of similarities between the boom and bust of the Beanie Baby market in the 1990s and booms and busts in financial markets.  ...
  • Doing nothing is an option
    Real options are common in business - they represent the value of being able to choose to do something in the future.  An example of a real ...
  • Does beta predict returns?
    Fama and French answer the age old question: do high beta stocks outperform low beta stock s?   Their answer is yes, but not by as much as t...