Comment: Second Thoughts Oct 12, 2009
Is there any evidence of market failure or consumer dissatisfaction compelling TRAI to act. Does a per second offering by incumbents constitute predatory pricing for new entrants. (India Times, India)
RedState Morning Briefing Oct 10, 2009
Taken as a whole, it represents a total market failure. 5. (Human Events Online)
Moral Hazard Lights Go Out Oct 7, 2009
But this crisis was not the result of deregulation and market failure. In reality, it was born of a highly distorted financial market, in which excessive concentration, excessive leverage, spurious theories of risk management and, above all, moral hazard in the form of implicit state guarantees, combined to create huge ticking time-bombs on both sides of the Atlantic. (The American Conservative)
Republicans Ask Genachowski For 'Market Analysis' Before Proposing Any Net Neutrality Regulations Oct 6, 2009
"The FCC bears the responsibility to prove a market failure," they wrote, according to a copy of the letter supplied by Stearns's office, "especially since its 2002, 2005, 2006, and 2007 decisions on cable-modem service, digital subscriber line service, broadband over power line service, and wireless broadband service were predicated on the notion that the broadband market nationwide is competitive and that regulation is unwarranted." Those decisions were all under Republican chairmen. Saying... (Multichannel News)
Workplace pensions 'under threat' Sep 25, 2009
But a spokesman for the Department for Work and Pensions said: "There has been a market failure to provide pensions for moderate and low earners, our reforms will result in between six to nine million people saving in a workplace pension, many for the first time. "The Personal Accounts scheme is designed to complement not compete with existing pension provision. We want to get the details right and keep costs low. (BBC News -- Business)
We need to ask how it came so unstuck Sep 19, 2009
Although on the one hand the study of economic history has fallen out of fashion in university economics courses, on the other some academics have sought to prove that the Dutch Tulip Bubble of 1624 and the South Sea Bubble of 1720 were examples of wrong-headed government intervention in markets, not market failure. All this means academic economists tend to focus their attention on what happens when everything is going right - when markets are in equilibrium - and give little thought to the... (Sydney Morning Herald -- Business)
Labor's blitzkrieg of regulations Sep 15, 2009
Of course, from time to time, business will need support and the Government should be ready and willing to assist the market temporarily in the face of market failure. But Governments must resist the temptation to continually tinker where markets are functioning well. (Sydney Morning Herald -- Opinion)
Big Labor Is Cashing in at Workers' Expense Sep 14, 2009
What great market failure is to be corrected by this discriminatory intervention. Thousands of federal construction projects, valued at $147 billion, have been constructed during the last eight years when a Bush Executive Order prohibited government mandated PLAs on federal and federally funded construction. (Human Events Online)
NJIT expert on market failure says letting Lehman go was good thing Sep 11, 2009
Approaching the anniversary of Lehman Brothers' demise, NJIT Finance Professor Michael Ehrlich, an expert on market failure, says that the Feds made the right move when they allowed the investment firm to go bankrupt. "It would have been much worse had the Federal Reserve and Treasury officials allowed Lehman Brothers to stay in business," said Ehrlich. (EurekAlert!)
Viewpoint: three commentators on the legacy Sep 11, 2009
Market failure cannot be blamed for the Great Crisis. At the top of my list was policy failure reckless and irresponsible conduct by the US Federal Reserve. (FT.com -- Markets)
Wall Street Fox Beds Down in Taxpayer Henhouse: David Reilly Aug 26, 2009
He added, We must not immediately jump to the conclusion that failures of firms in the marketplace or the unavailability of credit in the marketplace is caused by market failure, or indeed regulatory failure. . (Bloomberg -- Columnists)
Self-regulation has failed to stem scandals Aug 26, 2009
The new powers 00004000 of ASIC seem highly appropriate in the wake of the market failure induced by the global financial crisis. Dr Vince Hooper senior lecturer in banking and finance at the Australian School of Business at the University of NSW.. (Sydney Morning Herald -- Business)
Wall Street `Corruption' Might Buy Crook a Break Aug 22, 2009
Butlers lawyer says he will appeal, and blamed market failure -- not his client -- for the losses. Everybody in the financial community believed that the bonds sold in this case were of the highest quality and were safe short-term investments, attorney Paul Weinstein said in a post-trial e-mail. (Bloomberg -- Columnists)
Research and Markets: Spain Telecoms, IP Networks and Digital Media - A Comprehensive Overview of the Trends and Developments in the Telecommunications and Digital Media Markets in Spain Aug 19, 2009
In mid-2009 the government resurrected DVB-H mobile TV, two years after its initial market failure, with a digital mux to provide twenty channels. Uncertain business model will provide operators with considerable challenges in coming years. (Yahoo! Wire -- Entertainment News)
Shonky schools face reckoning: Baird Aug 14, 2009
The review needed to look at a ''market failure'', which had been covered extensively in the media. You could see shrinkage in the short term. (Sydney Morning Herald -- Australia)
Push for regulation changes to help self-funded retirees Aug 14, 2009
But an academic expert said there was a strong case for government intervention to provide lifetime pensions or annuities because of market failure. The Government's tax review panel, headed by the Treasury Secretary, Ken Henry, is examining a proposal for a ''public annuity'' as an alternative to the account-based pensions that dominate the self-funded retirement incomes market. (Sydney Morning Herald -- Australia)
Sophomoric Debate on Health Care is Distressing Aug 13, 2009
Health care as we know it is a market failure. Government intervention is ABSOLUTELY necessary to promote competition and a healthier health care market. (Atlanta Journal-Constitution -- Opinion)
Top-up plan for low super Aug 13, 2009
Only one Australian financial services firm offers lifetime annuities and there are concerns the shortage of these products is a case of ''market failure. But industry super funds and the managed investment sector are divided over how the Government should tackle the problem. (Sydney Morning Herald -- Business)
Not in your best interest Aug 12, 2009
"It does suggest a market failure and generally what you do with market failures is you try and address them.". The fee plays another, more insidious role: once borrowers are lured into a loan by a low rate, the lender can raise the rate substantially without fear of losing the customer. (Sydney Morning Herald -- Business)
Banking reform 'largely cosmetic' Jul 31, 2009
The report even suggests that this "market failure" be addressed by a "tax on size". The committee also argues that prohibiting deposit-taking banks from making risky investments should not be ruled out at this stage. (BBC News)
Subverse: For a greater common good Jul 29, 2009
For a greater common good - Subverse - OPINION - The Times of India. For a greater common good. (India Times, India)
Darling threatens banks over loans Jul 28, 2009
Ministers have warned Britains banks to increase the supply of affordable loans to businesses or face the threat of a competition probe if evidence of market failure emerges. Alistair Darling, chancellor, has ordered ministers to hold a series of one-to-one meetings with bank chiefs through August to establish whether margins and fees have risen excessively on loans to small and medium-sized companies. (FT.com -- Markets)
Pro & Con: Do consumers need a new financial protection agency? Jul 16, 2009
But from a market perspective, the agency s two-pronged approach to consumer protection may bring about the market failure it presumes to try to stem ... This is market failure. (Atlanta Journal-Constitution -- Opinion)
Alton Drew: "We don't need a Consumer Financial Protection Agency" Jul 15, 2009
From a market failure standpoint, such an agency, given its two-pronged approach to consumer protection, may not only find itself a regulatory schizophrenic but it may also bring about the market failure it presumes to stem ... This is market failure. (BusinessWeek)
Socialized medicine takes away freedom Jul 1, 2009
" Please explain what the government did here.wcf reader wrote on JUN 30, 2009 3:48 PM:"so when you don't like what a company is providing you, you can go elsewhere""Washington, DC Senator Charles Schumer (D-NY) joined Health Care for America Now (HCAN) the nations largest health care campaign in releasing a new report today that shows extreme health insurance industry consolidation has resulted in a market failure where a small number of large companies use their concentrated... (Waterloo Courier, IO)
Ben Clark: Broun wrong on energy bill Jun 29, 2009
But it should surprise us that our congressman is ignoring market failure and a pending ecological and public health disaster, not to mention the vast majority of American citizens. Ben Clark. (Athens Banner-Herald)
Bending the back office: Open source CRM and ERP Jun 26, 2009
And such a market failure wouldn't be as catastrophic as it can be with a proprietary company because the open source code is still out there and you're still welcome to maintain it with your own budget. The companies like to brag that they don't lock you in. (Yahoo News -- Technology)
School vouchers Jun 25, 2009
One supposed expert 00004000 says education is an area of market failure, so the state must make provision. This simply shows how illiterate supposed experts are. (India Times)
Banks 'face deluge of litigation' Jun 25, 2009
"We are looking at market failure because the consumers are not thinking about banking charges and banks can raise their charges without losing customers," he said. He said there was no justification for the banks' suggestion that the OFT should use competition law rather than consumer contract regulations if it was worried about overdraft charges. (BBC News -- Business)
Setanta goes into administration Jun 24, 2009
The failure of Setanta throws into stark relief the market failure in pay TV in the UK ... Sean Williams, managing director of strategy at BT Retail, said: "The failure of Setanta throws into stark relief the market failure in pay TV in the UK. "Competition in pay TV in the UK is not working effectively. (BBC News -- Business)
Crocodile Tears From Obama's Economic Team Jun 21, 2009
What irony that Summers, who as Bill Clinton's treasury secretary pushed through legislation guaranteeing "legal certainty for swap agreements" and banning the regulation of securitized mortgage debt, should now admit that "securitization led to an erosion of lending standards, resulting in market failure that fed the housing boom and deepened the housing bust.". ADVERTISEMENT. (Paragould Daily Press, AR)
Obama tip-toes on regulatory reform Jun 18, 2009
The essay states: "Second, the structure of the financial system has shifted, with dramatic growth in financial activity outside the traditional banking system, such as in the market for asset-backed securities. In theory, securitization should serve to reduce credit risk by spreading it more widely. But by breaking the direct link between borrowers and lenders, securitization led to an erosion of lending standards, resulting in a market failure that fed the housing boom and deepened the housing... (Asia Times Online)
* Officials outline US financial regulatory plan Jun 16, 2009
It was this that had resulted in a market failure that had deepened the bust of the housing sector. That is why, they said, the administrations plan would impose new reporting requirements on the issuers of asset-backed securities, reduce investors and regulators reliance on credit-rating agencies. (Taipei Times, Taiwan -- Sports)
US financial regulatory system to be bolstered Jun 16, 2009
Geithner and Summers further argued that the dramatic growth in financial activity outside the traditional banking system, such as the spread of asset-backed securities, has led to "an erosion of lending standards." It was this that had resulted in a market failure that had deepened the bust of the housing sector. That is why, they said, the administration's plan would impose new reporting requirements on the issuers of asset-backed securities, reduce investors' and regulators' reliance on... (Yahoo! Asia News)
Britain’s Socialists Nothing to Admire Jun 1, 2009
But, whatever the details, it is clear that they start from the same assumptions as Mr Brown s. Namely, the (Federal) Government must step in to rectify market failure, greater centralised regulation is required, and, by implication, the promotion of self-help is a lost cause. These assumptions are, of course, recognizably socialist, even if the mechanisms adopted are not. (Human Events Online)
Global institutions need to be accountable - Judge Davis May 27, 2009
"It is regarded as the key proponent of minimal antitrust regulation to promote the free market. Posner writes that the crisis was caused by market failure and questions the social value of a deregulated financial system. Solow is not a member of the Chicago School. The point Solow makes is that if he said this, it would not be news. The fact that Posner makes the statement is news.". Davis is a legal polymath. (Business Report, South Africa)
* Identifying the successes, failures of Thatchers economic policy May 24, 2009
The Thatcherite assumption, in other words, was that government failure is far more menacing to prosperity than market failure. This was always bad history. (Taipei Times, Taiwan -- World)
TARP's Evolving Legacy May 20, 2009
You had as close to a market failure as any of us can remember, said Craig Peckham, equity trading strategist at Jefferies & Co.. A Moment of Panic. (Fox News)
Credulity caughtin stress test May 13, 2009
The differential between the two values in a market failure can be more than the total for assets to become "toxic" because of the interconnectedness of structured finance instruments. In other words, a bank exposed to counter-party default on one single credit instrument can affect the mark-to-market value of all other credit instruments in its possession and also those held by other institutions, even those to which it had no direct counter-party exposure. (Asia Times Online)
Attaching the crisis blame: what would Friedman do? May 4, 2009
The view that the financial crisis is a market failure is cropping up in the most unlikely places, including that bastion of free market capitalism, Chicago. The latest convert to the cause is Richard Posner, a judge on the US Court of Appeals for the Seventh Circuit, and the author of a new book: A Failure of Capitalism: The Crisis of '08 and the Descent into Depression. (Business Report, South Africa)
'Crisis is critical period for competition regulators' May 3, 2009
"These days one hears much - and rightly so - about market failure, but it is often forgotten that the underlying reasons for widespread acceptance of liberal economic policies reside mostly in state failure. In developing countries, this was manifest in the shockingly poor service delivered by corrupt and incompetent states and state-owned enterprises." ... Policymakers will be pressed to "subordinate pro-market competition policies to state-centred social and industrial policies, demands that... (Business Report, South Africa)
Capitalism Still Has Legs That Are Long and Sexy Apr 30, 2009
The view that the current financial crisis is always and everywhere a market failure is cropping up in the most unlikely places, including that bastion of free-market capitalism, Chicago. The latest convert to the cause is , judge on the U.S. Court of Appeals for the Seventh Circuit, senior lecturer at the University of Chicago Law School and author of a new, A Failure of Capitalism: The Crisis of 08 and the Descent into Depression. (Bloomberg -- Columnists)
The great crash of the "Chicago school" of economics Apr 28, 2009
Which is exactly what John Thanassoulis, a university lecturer at Oxford, argues in the fresh-off-the-digital-presses issue of Excessive banker compensation is proof of market failure, which thus requires government intervention to set things right ... The problem is that poor corporate governance cannot rectify a market failure created by the competition for trader talent between two very different types of institutions: hedge funds and investment banks ... This is a market failure which... (Salon)
Brown 'won?t be distracted from e... Apr 20, 2009
Lord Mandelson said the plan would mark concerted action to back businesses by clearing obstacles in the path of businesses or correcting market failure. Mr Darling's second Budget is understood to include 200 million to fund more wind turbines, hydro-electric power and other renewable energy technologies, as well as tax incentives for North Sea oil companies to explore old or inaccessible fields. (New York Post -- Business)
A Personal Bailout Plan For Retirement Apr 20, 2009
My characters concluded that the market failure has served as a means to raise the retirement age for Boomers. Maybe there is no retirement in sight. (CBS News -- 60 minutes)
Rexburg 'tea party' to take place Wednesday Apr 15, 2009
Thanks For the Laugh wrote on Apr 14, 2009 1:10 PM:" Man, you small town conservatives are too easy to pick on.Yeah, I understood that you only "organized" the Rexburg event. Three years? Try the last eight. No better yet, try the last thirty. The current economic/financial collapse was caused by the policies championed by Ronald Reagan, and that collapse (i.e. market failure) created the need for fiscal and monetary stimulus. I know the term "market failure" is anathema to some conservatives.... (Rexburg Standard Journal, ID)
Cable eye to the future Apr 11, 2009
It is not just about operating a business to sell broadband capacity but stepping in to correct what Labor identifies as market failure to build the infrastructure for future economic growth, health care and education. The Government believes broadband can even help fight climate change, with projections it can slash greenhouse gas emissions by 5 per cent a year and save $6. (Sydney Morning Herald -- Technology)
Bankrupt planet Apr 8, 2009
On top of low and inconsistent funding for renewable energy, the shift to a low carbon economy is being further frustrated by another market failure in the trade for carbon seen, for example, in the EU's Emissions Trading Scheme ... There seems to be a hard-wired link between memory failure and market failure. (BBC News)
* Science of capitalism crashes on the shores of human hubris Apr 3, 2009
If the universe didnt oblige, it wasnt because our models were wrong; market failure was to blame. It is not clear how we could know that markets were failing whenever they fell significantly, but believed that we had no business second-guessing them when they climbed. (Taipei Times, Taiwan -- Sports)
The New Deal dollar and the Obama dollar Apr 1, 2009
The banks and financial institutions that own these assets are caught by market failure as buyers cannot be found at any price ... The central ideological consequence of this fatal market failure, Summers says, is that there "is a need for extraordinary public action at those times ... The debate over whether you can love your country and hate your government has been settled with a negative answer." Love of country is now congruent with love of government, albeit smart government, which to... (Asia Times Online)
Year Up students learn business and life skills Mar 29, 2009
"I was raised by my mom and my grandmother. There were a lot of people who gave me opportunity because they thought it was the right thing to do. I think of my first employer, my scholarship to Stanford, my start at Oracle. What I've seen in my career is that there is a market failure on one side and a community failure on the other side.". Year Up, on Spear Street, not far from the Financial District, has seven full-time employees and a first-year budget of $660,000. (San Francisco Chronicle -- Business)
Net Kings Don't Rest In Victory • Google Models Itself As Work In Progress • Sun Ties Turnaround Hope To Openness • Tech Spending Growth Seen Way Down In '09 As Economy Lags • Count Web Fraud Among Recession-Proof Endeavors• Cybersecurity's Political Football Likely Will Land In White House Mar 28, 2009
"What I'd say you've got is market failure right now the market won't provide security for a whole set of reasons," he said. "We've had a free-market Internet for 20 years and it's not secure.". (Investors Business Daily)
Letter: Once again, statements about Social Security need some fixing (March 27) Mar 27, 2009
Moreover, even though most people can t seem to understand how pay-as-you-go protects your own retirement savings from inflation and market failure, not to mention personal bad luck, the fact is that your payroll tax is NOT going to pay for greedy grannies. They already paid for their own retirement check. (Corvallis Gazette Times, OR)
Air service to BWI is back Mar 26, 2009
Some other market failure ... I see no other market failure ... Is it then your claim that the justification for this service is simply that "people have a right" to air service, and not that there is some public good problem, or other market failure, or some welfare redistribution justification. (The Herald-Mail Online)
Coos unemployment rate climbs to 13.8 percent Mar 26, 2009
The Job market failure preceded this recent disaster. That is why it is so much worse here than in many other states. (Coos Bay-North Bend The World, OR)
Market failure isn't the issue Mar 25, 2009
Market failure isn't the issue - International Herald Tribune ... Market failure isn't the issue ... The U.S. Treasury secretary, Timothy F. Geithner, is all but admitting that American banks are suffering not from market failure but from self-inflicted collateral damage. (International Herald Tribune -- Business)
Bonus backlash Mar 18, 2009
And it may be healthy, as the issue of bonuses is a classic example of a market failure that needs to be resolved ... While the going was good, the market failure was impossible to correct anyone paying bonuses on a more long-term basis would have lost talent. (FT.com -- Markets)
Clashing ideologies behind financial crisis Mar 16, 2009
At the intellectual level it's an argument about whether "market failure" - failure to act in the self-correcting way described in neo-classical economics textbooks - is, in practice, a big problem or a fairly minor one. At one extreme you have people with quite naive faith in markets; at the other you have people who seem utterly unaware that markets have any dynamism about them, that when problems arise markets respond to them. (Sydney Morning Herald -- Business)
Room for more hospitals Mar 14, 2009
Health economists call this information asymmetry, a serious market failure according to conventional micro-economic theory. Thomas of APHM explains that running a private hospital has many parallels to running a hotel. (The Star Online, Malaysia -- Business)
Politics: Mortgage Madness Mar 12, 2009
That's not evidence of market failure nor a compelling reason for government to meddle in the market or ruin a good business opportunity. It's simply evidence of a weak, or possibly burgeoning, market. (Investors Business Daily)
The greening of a Net giant Mar 12, 2009
This is a case of what economists call a market failure, where the right thing for the economy and for consumers is to buy the more efficient computer. If people were doing that in volume, the price premium would be very small, if not zero. (Globe and Mail)
Cap and Dividend, Not Trade: Making Polluters Pay Mar 11, 2009
This free ride results in what economists call a market failure ... A carbon tax, or a carbon cap-and-trade system, can fix this market failure, but because American politicians are loath to impose taxes, a cap is far more likely. (Scientific American)
Ocwen sues Citigroup Mar 11, 2009
According to the suit, Citigroup began to plan for potential widespread market failure and ending its support for the auctions, which it knew would result in SLARS becoming illiquid assets. Citigroup ended its practice of supporting such auctions on Feb. 11, 2008. (South Florida Business Journal, FL)
Church calls for 'just' recovery Mar 8, 2009
" "It is about negotiating conditions in which the most vulnerable are not abandoned," he added. Countries needed to trust each other and needed to join together to share risk and profit as an "essential element in the equitable securing of wealth for all," he said. Bankers have been criticised by some parts of the Church for pursuing "ruthless gain" and bringing on the recession. But Dr Williams said that the current problems "go deeper" than an "accumulation of individual greed exemplified by... (BBC News -- UK)
NT govt to tackle housing crisis Mar 4, 2009
"This is about providing a third way, a government step into the market where there has been market failure. "This initiative will deliver more land, put more new properties on the market and reform public housing. " Last October it was reported that some Territorians had been forced to live in sheds while low income families were facing accommodation stress not seen since Cyclone Tracy in 1974. A study by Australian Property Monitors earlier this year found Darwin was the most expensive capital... (Sydney Morning Herald -- Australia)
