Are Free Market More Dangerous than Regulated Markets?
2024-01-27
As a frequent X/Twitter user, I follow a variety of accounts that touch on a number of niches: whether that is economics, finance, Catholicism, college football . . . or in this case, Lord of the Rings. A popular Twitter account that regularly shares content related to J.R.R. Tolkien’s work broke from character to offer an insight on another tweet. In the tweet he refers to, a food inspector is shown interrupting the business of a diner, which the poster laments. Middle-Earth Mixer, the Lord of the Rings account, offers insight:
The problem with Libertarianism is it leans on the old Marxist adage, “You have to break a few eggs to make an omelet.” Except in this case the idea is, “A few people need to die of food poisoning before we know which diners are good.”
While this may be too much
The Fed Prepares for a Bank Crisis While Telling Americans the Economy is Strong
2024-01-25
Last Thursday, Bloomberg reported that federal regulators are preparing a proposal to force US banks to utilize the Federal Reserve’s discount window in preparation for future bank crises. The aim, notes Katanga Johnson, is to remove the stigma around tapping into this financial lifeline, part of the continuing fallout from the failures of several significant regional banks last year.
This new policy is reminiscent of the Fed’s actions during the 2007 financial crisis, where financial authorities encouraged large banks to tap into the discount window, taking loans directly from the Federal Reserve, to make it easier for distressed banks to do the same. The hesitancy from financial institutions to tap into this source of liquidity is justified. If the public believes a bank needs support