Christopher Whalen

In defense of free market fundamentalism

June 10, 2011

“Extremism in the defense of liberty is no vice. And moderation in the pursuit of justice is no virtue.”

Are Americans really benefitting from TARP repayments?

May 26, 2011

Talking about the profits earned from the various rescue packages managed by the Treasury is a popular pastime under President Barack Obama. But we need to ask: Are the American people really profiting from this exercise in recovering the monies advanced by the Treasury, particularly in terms of job creation and the performance of the economy?

Putting “trust” back in American housing finance

May 17, 2011

News reports suggest that New York prosecutors are preparing fraud charges against a number of large investment banks for defrauding insurance companies with respect to mortgage loans. These allegations and many civil claims with precisely similar predicates illustrate one of the most important aspects of the subprime financial crisis, namely the construction and collapse of the non-bank financial sector.

More debt and inflation will not create economic prosperity

May 5, 2011

“[F]or many philosophers, conflict is inevitable in politics because a government should seek both to make its people equal in wealth and opportunity and also to safeguard their liberty, but it cannot do both because people can be made equal only through serious constraints on their freedom. This is not simply a statement of the obvious fact that different people and different communities hold different values. The argument claims that even a single sensitive person cannot express, either in how he lives or how he votes, all the ideals he knows he should recognize.”

Why the Fed must let rates rise

April 26, 2011

This week all eyes are on the Federal Open Market Committee (FOMC) and Federal Reserve Chairman Ben Bernanke. The FOMC must decide whether to stop monetizing the federal debt issued by the Treasury, which is what the U.S. central bank calls “quantitative easing.”

Default, debt ceilings and democracy

April 18, 2011

“The growing question is whether the exceptional role of the dollar can be maintained … The growing sense around much of the world is that we have lost both relative economic strength and more important, we have lost a coherent successful governing model to be emulated by the rest of the world … Instead, we’re faced with broken financial markets, underperformance of our economy and a fractious political climate.”

Why Congress should vote no on raising the debt ceiling

April 13, 2011

By Christopher Whalen
The opinions expressed are his own.

“A spectre is haunting Europe — the spectre of communism. All the powers of old Europe have entered into a holy alliance to exorcise this spectre: Pope and Tsar, Metternich and Guizot, French Radicals and German police-spies.”

As Obama and Congress fiddle, America liquidates housing sector

March 29, 2011

Republicans in the House of Representatives are busily assembling several legislative proposals to reform the housing sector and reduce government support for the secondary market in home loans used by banks to manage their liquidity.

Is the Fed blowing bubbles in structured finance and insurance?

February 23, 2011

A number of commentators have raised the question of whether the low-interest rate policies of the Federal Reserve are stoking global inflation in commodities, food and energy. The answer to that question seems to be yes, but the inflationary pressure caused by the Fed’s purchases of US Treasury debt and zero short term interest rates is being manifested in many sectors and features the appearance of new “special purpose vehicles” in the insurance sector.

Revolution, reform and the law of unintended consequences

February 14, 2011


In George Orwell’s classic book, 1984, the restriction of language and especially public discourse is a means of authoritarian control. The social explosion in Egypt illustrates an extreme reaction to years of silence enforced by the American puppet regime under Hosni Mubarak. Americans are just as constrained, just as oppressed as the people of Egypt. But in our case the repression is self-inflicted.