More Stimulus, Please

Said Tim Geithner, voicing complaint, 
"A premature fiscal restraint, 
While seemingly prudent,
As a Keynsian student
Can testify, certainly ain't." 

III for Basel III

The Basel III Capital Directive,
A liquidity crisis corrective,
Gives eight years for compliance
To banks and their clients
'Til new rules are fully effective.  

The Directive has caused a commotion
'mongst the banks on both sides of the ocean;
In percentage it leavens
From four up to seven
The equity capital quotient.  

The minimum equity score,
Now seven percent 'stead of four,
Will, the bankers all fear,
Make interest rates dear
When comparing with rates heretofore.

Econ 101

A shift in demand quite suffices,
With a given supply, to raise prices;
This idea, though descriptive,
May not be prescriptive,
To guide one to virtues from vices.   


Thanks to James Kwak for provoking a passionate debate on the ethics and economics of scarce resources in his blog, The Baseline Scenario.

Mr. Hoenig's FOMC Dissent

"I've said at each meeting I've been to,
We should hike rates to one point and then two;
If recession resumes
Now there's no wiggle room
In this corner you've painted us into."

Presidential Labor Day Address

"Jobs and growth I propose to instill
With a new infrastructural bill,
So that those who've not found work
Can lay all the groundwork
For Democrats' ride to the Hill."

Harvard, Econ 10, Opening Day

To his freshmen said Gregory Mankiw,
"For your curious minds I should thankiw,
But take care when you speak
Not to give any cheek,
And never forget I outrankiw."

Metamorphosis

Stanford Business School Dean Garth Saloner
Says "we don't lack for bucks, quid or kroner;
We transform for the better
Today's student debtor
To tomorrow's munificent donor."   


Congratulations to Stanford GSB Dean Garth Saloner on the start of his second successful year of leadership.

Keynsian Lament

Said Krugman, full of reproach,
"The White House must change its approach.
If the engine needs gas
We should do it first class,
But they leave us to languish in coach."

President Salutes US Forces

"With your steadfast defense and protection,  
We can move on and alter direction:
With this troop redeployment,
A surge in employment
Would help in the midterm election."