Op-Eds
How Political Clout Made Banks Too Big to Fail
The U.S. has historically kept the financial sector in check through a combination of sound principles and serendipitous decisions. But as the financial system gained strength in recent years, it also gained political influence. In the last decade, it has become too concentrated and too powerful, which has damaged not only the economy but the financial sector itself.
EU Won’t Treat Irish as Greeks If They Vote ’No’
The eyes of the world are on elections in Greece next month that could determine whether it defaults and triggers contagion throughout the euro area. By contrast, Ireland’s referendum tomorrow on whether to ratify Europe’s new fiscal treaty is passing almost unnoticed.
Governor Jerry Brown Can Do More to Green Up California
Anyone following the listing giant we call California might have noticed that the Chicken Littles have once again hoarded the microphones for their narrative of downsized expectations.
Banks’ Hyper-Hedging Adds to Risk of a Market Meltdown
JPMorgan Chase & Co.’s lost billions remind us that modern finance has changed the world, and not in ways that we should celebrate. Nothing demonstrates this more than the use of hedging.
Austerity Bites, but Fascism Won’t Snarl in Europe
Europe’s citizens are turning the tables on their ruling elites as austerity bites. In election after election, they send their governments packing and turn instead to fringe parties, some of which evoke the ghosts of Europe’s authoritarian and racist past.
Eurovision Could Prompt Azerbaijan to Change Tune
The thousands of Europeans who descended on Azerbaijan this week for tomorrow’s finals of the Eurovision Song Contest are likely to suffer from one of two common caricatures of the host country.
Facebook’s Saverin Left U.S. as a Taxpayer, Not a Traitor
Eduardo Saverin, the co-founder of the social network and Facebook Inc., stands accused of violating the social contract -- the idea that government is based on an agreement among its citizens to ensure mutual protection of person and property.
China Is a Black Box of Misinformation
To this day, many Chinese people believe that Mao Zedong didn’t know millions of people were starving in the Great Leap Forward.
An Exit From Europe Would Be Our Own Greek Tragedy
Greece is going through one of its periodic self-mutilations. After trying for decades to become a full member of the European Union, and succeeding, it’s doing its best to get thrown out.
Justice Department May Be in the Next Cubicle
The Justice Department appears to have learned a lesson in the 10 years since it indicted Arthur Andersen LLP for alleged improprieties in the firm’s Enron bookkeeping. By 2005, when the U.S. Supreme Court unanimously vacated a conviction in the case, the accounting firm had collapsed, and all but a handful of the 85,000 employees worldwide lost their jobs.
A Greek Exit Could Make the Euro Area Stronger
A Greek exit from the euro area would inflict heavy damage in Greece and throughout Europe. It could also be one of the best things that ever happened to the currency union.
College Crackup and the Online Future
In the coming decade, emerging technologies will thoroughly transform higher education. Although distance learning and computer-assisted education have been around since the 1960s, financial pressures are forcing institutions to develop aggressive online programs.