Free Republic

Pursuit of an Edge, in Steroids or Stocks By ROBERT H. FRANK ASSET bubbles like the one that caused the current economic crisis have long plagued financial markets. But like hurricanes in the Gulf of Mexico, these disasters have been occurring with increasing frequency. If we want to prevent them, we must first understand their cause. It isn’t simply “Wall Street greed,” which Senator John McCain has blamed for the crisis. Coming from Mr. McCain, a longtime champion of financial industry deregulation, it was a puzzling attribution, squarely at odds with the cherished belief of free-market enthusiasts everywhere that unbridled...

AUSTIN - Under electricity deregulation, Texans have paid some of the highest rates in the nation -- a reversal of at least a decade of relatively cheap electricity under the state's old regulated system. That's the conclusion of a national utility expert, who also reports that those in deregulated states typically have had larger rate increases than customers in states still under regulation. Separate academic reports likewise show, after making adjustments for inflation and other factors, that electricity prices in Texas have gone up since 1996, while those in regulated states have gone down; and that in general terms, electricity...