Tag: Federal Reserve

The U.S. Congress should consider switching from a federal debt ceiling as a nominal value to one fixed as a percentage of GDP. This debt ceiling should, on the one hand, be high enough that the government cannot reasonably cross it, but punitive enough that it disincentivizes profligate spending. This will save the U.S. from the annual political theater that occurs around debt ceiling talks and focus the discussion on the federal budget (and potentially taking revenue and spending decisions to actually control the deficit)…

There are some simple life lessons in business: It is hard to be liked by all people and it is hard to be liked all the time.  Leaders at central banks and investment firms know this very well… today’s economic crisis will likely end with a simple reminder of these lessons…