Those lobbyists doing their darndest
To convince you and me
That risk should be free,
A view of which Wall Street is fondest.
Andrew Ross Sorkin, writing the The New York Times' Dealbook, reports on an "independent" study, sponsored by the Business Roundtable and other lobbying groups, that purports to show the "job-killing" dangers of requiring users of derivatives to reserve more capital against the risks of those trades. Within hours, some of the economists whose names were misleadingly attached to the study had disavowed it. One, Joseph Stiglitz, derided the "particularly foolish" argument that US corporations, sitting on $2 trillion of cash, would have to forego hiring in order to afford more robust margin requirements. (Hat tip to Simon Johnson's Baseline Scenario blog.)