Daniel Gross

Stories by Daniel Gross

  • gal-tease-recession-winners-losers

    The $2.3 Trillion Garage Sale

    Having waged a battle against financial mayhem for the last two years, the Federal Reserve is tentatively declaring victory. As it guaranteed debt and swapped cash for all sorts of assets, the Fed's balance sheet grew—from about $850 billion in assets before the crisis to about $2.3 trillion this spring. The binge included the purchase of $1.25 trillion of mortgage-backed securities issued by Fannie Mae and Freddie Mac. But in testimony to Congress in March, Federal Reserve Chairman Ben Bernanke said the purchases were coming to a close and that the Fed was now seeking to lessen its burden. The Fed is now discussing how to sell off these new assets.
  • A Cop on the Beat

    As part of financial-regulation reform, congress is pushing for derivatives—the complex financial instruments behind many of the recent debacles—to be traded on centralized exchanges, where data and activity could more readily be seen by investors. Predictably, Wall Street opposes calls for change. JPMorgan Chase CEO Jamie Dimon told analysts that such proposals could cost his bank from "$700 million to a couple billion dollars," and industry players warn that investors would suffer if trading becomes more transparent. But history has shown that banks often don't know what's good for them. ...
  • India’s Tata: Making Globalization Work

    The Colombian office of an Indian consulting firm staffed partly with Uruguayans and reporting to a boss in Argentina; Now that's globalization
  • Prof. Gingrich’s Faulty History Lesson

    One of the strangest, and yet most predictable, comments about the passage of health care came from former House speaker Newt Gingrich. Gingrich told The Washington Post that Obama, by pushing for health care, "will have destroyed their party much as Lyndon Johnson shattered the Democratic Party for 40 years" by pushing through Great Society programs. ...
  • Fiscal Follies

    Some people have ideas about how to change things in Washington. And some people like to give the appearance of having ideas about how to change things in Washington. For example, Reps. Mike Pence and Jeb Hensarling in Wednesday's Wall Street Journal laid out a plan for recapturing the political and moral high ground on spending and, by the way, saving the nation from impending fiscal collapse. Don't raise taxes. Simply enact a Constitutional amendment. "This amendment would limit spending to one-fifth of the economy (our historical spending average since World War II). The limit could only be waived by a declaration of war or by a two-thirds congressional vote." If spending were to come in at a level of 21 percent of GDP in a particular fiscal year, the Constitution would require Congress to reduce spending by 1 percent of GDP—about $150 billion or so based on 2009's figure. ...