In any well-publicized business failure there always is a group of “widows and orphans”—the people who feel victimized by the firm that went broke and whose plight is given great attention in the media. The widows and orphans in the…
Melding steel giants isn’t bad
A move toward more monopoly in the steel industry might help northern Minnesota and Michigan’s Upper Peninsula. If that sounds like heresy coming from an economist, let me explain. The steel industry, and regional iron mines, would benefit financially from…
Enron episode teaches investors to act like parents
It looks as though Enron will set a record as the biggest bankruptcy in U.S. history. Regardless of the final details, it is pretty clear that anyone who had stock in the company can write off most of their investment.…
Fed faces a battle in shifting policy
The Fed’s decision to send interest rates lower by one-quarter percentage point was no surprise Tuesday, although it likely capped an extraordinary year for the central bank. Next year may bring an improving economy, but policymaking by the Federal Reserve…