{"id":1861,"date":"2009-01-08T09:26:22","date_gmt":"2009-01-08T14:26:22","guid":{"rendered":"http:\/\/2parse.com\/?p=1861"},"modified":"2009-01-08T09:26:22","modified_gmt":"2009-01-08T14:26:22","slug":"reflective-policy-making","status":"publish","type":"post","link":"https:\/\/2parse.com\/?p=1861","title":{"rendered":"Reflective Policy-making"},"content":{"rendered":"

Michael Lewis, in a decidedly mediocre follow-up<\/a> (with David Einhorn) to his excellent initial piece on the Wall Street collapse<\/a>, has at least one good suggestion:<\/p>\n

Stop making big regulatory decisions with long-term consequences based on their short-term effect on stock prices<\/span>. Stock prices go up and down: let them. An absurd number of the official crises have been negotiated and resolved over weekends so that they may be presented as a fait accompli \u201cbefore the Asian markets open.\u201d The hasty crisis-to-crisis policy decision-making lacks coherence for the obvious reason that it is more or less driven by a desire to please the stock market. The Treasury, the Federal Reserve and the S.E.C. all seem to view propping up stock prices as a critical part of their mission \u2014 indeed, the Federal Reserve sometimes seems more concerned than the average Wall Street trader with the market\u2019s day-to-day movements. If the policies are sound, the stock market will eventually learn to take care of itself.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Michael Lewis, in a decidedly mediocre follow-up (with David Einhorn) to his excellent initial piece on the Wall Street collapse, has at least one good suggestion: Stop making big regulatory decisions with long-term consequences based on their short-term effect on stock prices. Stock prices go up and down: let them. An absurd number of the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[544,1032],"tags":[1234,1232,130,1233],"class_list":["post-1861","post","type-post","status-publish","format-standard","hentry","category-economics","category-financial-crisis-economics","tag-david-einhorn","tag-michael-lewis","tag-new-york-times","tag-portfolio"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p8qcx-u1","jetpack_likes_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/2parse.com\/index.php?rest_route=\/wp\/v2\/posts\/1861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/2parse.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/2parse.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/2parse.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/2parse.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1861"}],"version-history":[{"count":1,"href":"https:\/\/2parse.com\/index.php?rest_route=\/wp\/v2\/posts\/1861\/revisions"}],"predecessor-version":[{"id":1862,"href":"https:\/\/2parse.com\/index.php?rest_route=\/wp\/v2\/posts\/1861\/revisions\/1862"}],"wp:attachment":[{"href":"https:\/\/2parse.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/2parse.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/2parse.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}