Fool-Resistant?

http://www.futureofcapitalism.com/2010/04/paul-krugman-on-financial-reform

The New York Times's Nobel laureate economics columnist, Paul Krugman, has a column this morning headlined "Making Financial Reform Fool-Resistant." Mr. Krugman writes, "There should, for example, be a preset maximum level of allowable leverage — the financial reform that has already passed the House sets this at 15 to 1, and the Senate should follow suit." Check out the statistics for Mr. Krugman's employer, the New York Times Company, over at Yahoo! Finance: $36.52 million in cash and $769.22 million in debt. Yes, we know the Times Company has lots of assets other than cash. But it's something for someone whose bosses are borrowing money at 14% interest from Carlos Slim to pay themselves $6 million a year to be lecturing the country about the need to impose government limits on leverage.

by Ira Stoll  |  Apr 5, 2010 at 9:58 am Related Topics:  Capital Markets Regulation, Paul Krugman, Press receive the latest by email: subscribe to the free futureofcapitalism.com mailing list