In this issue

Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review Sept. 17, 2008 / 17 Elul 5768

Finance, history and politics

By Tony Blankley

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http://www.JewishWorldReview.com | As of this Monday, United States Federal Reserve and Treasury Department policies have entered presidential political debate. While, as a rule, I am in favor of candidates for high office discussing policy, I am inclined to want to make an exception for these arcane, yet vital policy zones. None of the four candidates knows much about Federal Reserve policies, and even their advisers may not be among the very few experts in this area.

But worst of all, the ambiguities and subtleties of such delicate financial crisis-management decision making are singularly unable to be comprehended by slogans and phrases.

And yet both the Obama and McCain campaigns jumped out of the box Monday with the assertions that they don't want a taxpayer-funded bailout, and they both called for comprehensive and tighter new financial regulations. I think I rather would have the candidates lying about each other's character flaws than discuss Fed policy in public. I certainly don't claim expertise, but let me point out a little bit of the history of the confusion.

Let's go back for a moment to the alleged historic mother lode of hard-learned Fed policy wisdom: the stock market crash of 1929 and the following Great Depression. Initially, in late 1929 and early 1930, the Federal Reserve did make major purchases of securities and cut the interest rate from 6 percent to 4 percent.

But by not bailing out banks in the three great runs on banks, in late 1930, spring 1931 and March 1933 (resulting in 10,000 banks going out of business), Treasury Secretary Andrew Mellon's famous (though not strictly followed) advise — "liquidate labor, liquidate stocks, liquidate real estate" — became the prime example in history of what not to do during a financial panic.

And indeed, the lesson learned from those events has been that the Fed should make sure banks have enough reserves to cover deposits. Quick and sustained intervention has been the rule.

But if one listens carefully to the public comments of the past few months, one hears praise for at least the echo of allegedly coldhearted Andrew Mellon. As Treasury Secretary Hank Paulson said just this Monday, "Moral hazard is something I don't take lightly." This currently very popular proposition correctly observes that in free markets, investors who take undue risk must pay — and be seen to pay — the price for such improvidence. This proposition is undergirded by the famous maxim of Joseph Schumpeter that failure in the marketplace is part of the creative destruction of capitalism.

Or, as old Andrew Mellon said along with his liquidation trilogy, "Values will be adjusted, and enterprising people will pick up the wreck from less competent people."

So when do we let economic nature take its healthy course, and when do we intervene with taxpayer dollars to bail out large failing institutions? This week, poor old Lehman Brothers was being cheered into bankruptcy by an unholy troika of commentators, experts and presidential candidates — as an example, "Pour encourager les autres." (The full quote from Voltaire — in translation — is, "In England, it is good, from time to time, to kill an admiral to encourage the others.")

But only last week, not only both candidates for president but also even such a free market man as Larry Kudlow called the taxpayer backing of Freddie Mac and Fannie Mae "a necessary action (to stop) a global money meltdown." But, he continued, "It raised the stakes for taxpayers once more." And Kudlow — whom I both admire and consider a friend — also backed the bailout of Bear Stearns in order to safeguard "the banking system and the whole global financial structure."

So slogans such as no more taxpayer bailouts are meaningless verbiage (although what is said in presidential campaigns sometimes — if we are not careful — actually can become government policy the following year).

In fact, it is always a matter of nice judgment whether the system needs protection or whether it can withstand the tough, but fair workings of the marketplace. This week, the consensus judgment was that Lehman fell into the latter category. Time will tell because the markets and the public mentally had to absorb not only the Lehman bankruptcy but also the Merrill Lynch purchase by Bank of America and the possible fatal illiquidity of AIG — the insurance giant. The first reaction was a 504-point drop.

As I write, Tuesday markets are not closed yet. But it may be months before we know whether it was wise or foolish to "protect the taxpayers" last weekend.

But here is the kicker. About a year ago, the Fed held about $800 billion in securities to use to finance bailouts and for other purposes. As of this week, they are down to about $475 billion in assets. If things get worse and persist, they may not have enough securities to act in the future.

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.

Tony Blankley is executive vice president of Edelman public relations in Washington. Comment by clicking here.

© 2008, Creators Syndicate