Volcker and The Capital Asset Pricing Model: Enforcing Ineffective Regulation Since 2013?
Economy / Fiscal policy / Regulation / U.S. Domestic Policy

Volcker and The Capital Asset Pricing Model: Enforcing Ineffective Regulation Since 2013?

One fundamental principle of financial markets is the relationship between risk and return. This tenet is reflected in the Capital Asset Pricing Model (CAPM), the workhorse of security pricing, where the return required by investors is measured by adding the risk free rate (such as a treasury bond) to a market risk premium, adjusted for … Continue reading

HUD’s Latest Proposal Brings Moral Hazard into Rental Housing
Debt / Economy / Politics

HUD’s Latest Proposal Brings Moral Hazard into Rental Housing

The 2008 Financial crisis was a costly lesson in the dangers that come with subsidizing risk. Fannie Mae and Freddie Mac are well recognized as the principal creators of moral hazard by reimbursing investors that held mortgage-backed securities when homeowners failed to make payments on their mortgages. Yet only five years after the worst of … Continue reading

The Problem With Wellness Initiatives
Affordable Care Act / Constitution / Economy / Healthcare / Labor Force / Politics / Regulation

The Problem With Wellness Initiatives

In an attempt to decrease health care costs, wellness initiatives have become increasingly popular programs offered by corporations. Health and wellness is an extremely important issue and when it comes to health care reform there should to be a larger personal responsibility component. Unhealthy lifestyles, such as inactivity, poor nutrition, tobacco use, and excessive alcohol … Continue reading

ACA Individual Mandate: Penalty Finalized
Affordable Care Act / Healthcare / Regulation

ACA Individual Mandate: Penalty Finalized

On Tuesday, August 27, the IRS issued its final rule regarding the individual mandate to purchase health insurance under the Affordable Care Act (ACA). The rulemaking formally establishes the IRS requirement for most Americans to be subjected to a financial penalty if an individual does not acquire “minimum essential coverage.” The rule will be published … Continue reading

Obamacare Oversights: Implementation Problems Due to Enrollment Obstacles
Affordable Care Act / Healthcare / Politics

Obamacare Oversights: Implementation Problems Due to Enrollment Obstacles

The recent announcement that the White House will delay enforcement of the employer mandate until 2015 has stirred a polemic argument among the American public about the reality and stability of the Affordable Care Act (ACA) – and this isn’t the first roadblock the new legislation has faced, nor will it be the last. Since … Continue reading

A “Leak” in CAFE Raises Questions Over Regulatory Analysis
Environmental Regulation / Regulation

A “Leak” in CAFE Raises Questions Over Regulatory Analysis

The federal government employs people of many different professional backgrounds, but among them you will not find fortunetellers. Yet scientists, analysts, and lawyers could sometimes use an assist from seers in completing the work they are asked to do.  Conducting cost-benefit analyses of agencies’ proposed regulations necessitates predicting their impact on the economy, an unfathomably … Continue reading

Regulations: Another Front in the War Between the Branches
Economy / Regulation

Regulations: Another Front in the War Between the Branches

While politics and partisanship are the primary forces driving the discord in Washington today, it is power that will ultimately determine the outcome of such conflict. In our government, power is shared between branches, which in times of divided government like the present, essentially means shared between parties. With each side empowered to block the … Continue reading