Did Lobbying Contribute to the Financial Crisis?
The answer is a firm yes, at least according to three IMF economists who studied the correlation between firms’ lobbying efforts, financial risk-taking, and default rates. Their findings (abstract here; full report here) show that:
Read More »[L]obbying was associated with more risk-taking during 2000-07 and with worse outcomes in 2008. In particular, lenders lobbying more intensively on issues related to mortgage lending and securitization (i) originated mortgages with higher loan-to-income ratios, (ii) securitized a faster growing proportion of their loans, and (iii) had faster growing originations of mortgages. Moreover, delinquency rates in 2008 were higher in areas where lobbying lenders’ mortgage lending grew faster.
DSK Collateral Damage
The Dominique Strauss-Kahn affair has been good business for many journalists and writers, but it’s caused some blowback too. Consider this IMF bloggers’ event that bit the dust:
And then there’s the admiring DSK cover story in Washingtonian magazine, called “The Invisible Man.” From the Washington Examiner:
Read More »“It was actually sitting at the printer, printed, when he was arrested,” explained the publication’s editor, Garrett Graff. … “The most ironic part of this is that the reason we were writing the piece is that nobody had ever heard of this guy,” Graff said. “You could be standing next to him at the supermarket check-out line and not recognize him.”
Google’s New Correlation Mining Tool: It Works!
You may have heard of Google Trends. It’s a cool tool which will show you the ups-and-downs of the public’s interest in a particular topic—at least as revealed in how often we search for it. And you may have even heard of the first really important use of this tool: Google Flu Trends, which uses search data to try to predict flu activity. Now Google has released an amazing way to reverse engineer the process: Google Correlate. Just feed in your favorite weekly time series (or cross-state comparisons), and it will tell you which search terms are most closely correlated with your data.
So I tried it out. And it works! Amazingly well. Read More »
Another Chance to Win a Free Copy of SuperFreakonomics
Yesterday, we ran a contest to give away five copies of the new paperback edition of SuperFreakonomics (which can be bought on Amazon and elsewhere). There were more than 640 entries! Thanks for all the support, and for betraying your thirst for free stuff.
So let’s have another contest right now. Last week, when we asked the best way to give away books, your second preference was “really hard contests on blog.” Okay then. But instead of having a quiz here on the blog, we’ve put it on our new Facebook page. So go ahead and “like” our page (if indeed you like it), and try your hand at the quiz. We’ll send a free SuperFreakonomics paperback to the first five people who receive perfect scores. (The tricky part is that you’ll do much better on the quiz if you’ve read the book but hey, the world’s not perfect is it?) Good luck!
and 
. If you haven’t seen it yet, the movie features Steven Levitt and Stephen Dubner, and was made by a dream team of documentary directors. Paste Magazine named it one of the 