Skip to main content

The Advantage Of Inaction

  • Author:
  • Updated:

Unsurprisingly, The Beard wants nothing to do with lending to big auto. Who does? (No one we hope). Still, its surprising to see someone with some backbone out there. To wit:

While the Fed has used emergency-lending authority over the past year to aid financial firms, short-term debt markets and mutual funds, those decisions were aimed at financial stability and the broader economy, Bernanke said. By contrast, Congress is "best suited" to determine whether to assist a specific U.S. industry, he said.
"Even if the companies have sufficient collateral, lending to an auto manufacturing company would represent a marked departure from that policy, and would take us into distinctly new realms of policymaking," Bernanke said. "In particular, it would raise the question as to whether the Federal Reserve should be involved in industrial policy, which has traditionally been outside the range of our responsibilities."

Finally, Herr Professor begins to sound suited to the task (by doing nothing and making noise about it).
Fed Opposes Auto Aid Without Congressional Action [Bloomberg]


The Art Of The Farewell

Not everyone gets to write a New York Times Op-Ed when they quit their job, however disaffected. It’s also easier to quit a job after twelve years of cashing investment banking paychecks. No matter how “morally bankrupt” Goldman Sachs is, Greg Smith isn’t giving his bonuses back. Unlike Smith, who quit his job on his own terms and got to publish most of his resume in the Times, most of corporate America isn’t as lucky – and almost everyone in corporate America really wants to quit their job. So what are you supposed to do if you can’t get any above-the-fold space in a major newspaper? You have to burn bridges the old fashioned way – by writing a farewell email.