Roger Alcaly is a hedge fund manager and author of The New Economy. (June 2014)

The Right Way to Control the Banks

The most pressing task of financial reform must be to strongly limit the risks posed to the economy by large banks and other financial institutions that borrow so much. The best way to achieve this goal is to explicitly limit the extent to which they borrow to fund their operations. Rather than interfere with how banks operate, as does the Volcker Rule or proposals to break up large banks, such requirements restrict only the way banks finance themselves.

How They Killed the Economy

The United States economy is slowly reviving: it grew by 2.2 percent in the third quarter of 2009 and by 5.7 percent in the fourth quarter, a trend that may signal an end to the worst recession we have had since the Great Depression. The country avoided a much more …

He’s Got the Whole World in His Hands

There are essentially three perspectives on the current state of America’s continually expanding economy and the dilemmas it poses for policymakers.[^1] The first, the so-called “new era” view, holds that the spread of computers, the Internet, and other forms of information technology have increased productivity so much that we no …

How to Think About the Stock Market

Are stocks overvalued? Federal Reserve Board Chairman Alan Greenspan raised the issue most famously in December 1996 when he said he was worried about “irrational exuberance” in the stock market.[^1] At that time, the Dow Jones Industrial Average,[^2] the oldest and most popular index of stock prices, was about 6500.

Reinventing the Corporation

During the past decade, a major new development in the relations between American workers and businesses has been quietly taking place. Ignored by most business leaders and government officials, it has also been overlooked by the press, which has been preoccupied with the damage downsizing has done to workers’ lives.

The Golden Age of Junk

Michael Milken was released from prison to a halfway house on January 4, 1993, after serving twenty-two months in jail for securities fraud and other crimes. His original ten-year sentence was reduced in 1992, because he cooperated, although only in a small way, with the government investigation. A month later, …