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Weekend round up: Kadlec and Strassel praise Cain; Lott and Moore on the unemployment report; Wallison on capital requirements.

From Forbes, Charles Kadlec credits Herman Cain with raising pro-growth politics above austerity.

In The WSJ, Kim Strassel applauds Cain’s growth message.

On Free Banking, Kurt Schuler agrees with Ralph Benko’s recent defense of the gold standard.

At Fox News, John Lott explains that the new unemployment numbers indicate many people leaving the job market.

On The Kudlow Report, Stephen Moore debates the unemployment numbers:


At Forbes, Nathan Lewis explains the difference between money and credit.

The NY Sun wonders if the Federal Reserve is conducting monetary policy for Europe.

On his blog, Greg Mankiw suggests ECB head Mario Draghi is offering to loosen Eurozone monetary policy in exchange for fiscal tightening.

In The WSJ, Peter Wallison argues capital requirement rules skewed US balance sheets to mortgage-backed securities before 2008, and today skew European balance sheets in favor of soverign debt:
On Rayedio Lounge, Wayne Jett discusses last week’s market upswing.

Although these rules are intended to match capital requirements with the risk associated with each of these asset types, the match is very rough. Thus, financial institutions subject to the rules had substantially lower capital requirements for holding mortgage-backed securities than for holding corporate debt, even though we now know that the risks of MBS were greater, in some cases, than loans to companies. In other words, the U.S. financial crisis was made substantially worse because banks and other financial institutions were encouraged by the Basel rules to hold the very assets—mortgage-backed securities—that collapsed in value when the U.S. housing bubble deflated in 2007.

Today’s European crisis illustrates the problem even more dramatically. Under the Basel rules, sovereign debt—even the debt of countries with weak economies such as Greece and Italy—is accorded a zero risk-weight. Holding sovereign debt provides banks with interest-earning investments that do not require them to raise any additional capital.

At The American, Alex Pollock notes the financial triangle between the Fed, the Treasury, and GSEs.

In The Washington Post, George Will explains Obamacare’s harm to the entrepreneurial economy.

On Fox Business News, John Tamny argues saving, not consumer spending, is the root of economic progress:

The WSJ reports China’s mounting economic difficulties.

At The Spectator (UK), Fraser Nelson notes Steve Forbes calling for tax cuts in England and Europe rather than austerity.

From The WSJ, Alfonso Alguilar praises Newt Gingrich’s immigration position and claims restrictionism is not conservative.

At The Washington Post, Bill Gross predicts a lower euro, and by inference, a higher dollar.

The WSJ notes GOP members of Congress blocking Sarbox reform.

CNN examines Newt Gingrich’s economic plan:


On Forbes, Jerry Bowyer advocates expelling Greece and other southern European nations from the euro.

US News features a weak analysis of Federal Reserve critics.

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