Why is it that the biggest problems always seem to encourage the worst possible solutions? The latest case in point: The Senate's housing bill, grandly titled "The Foreclosure Prevention Act of 2008."   more »

What to make of Treasury Secretary Hank Paulson's plan to rewrite regulation of the financial services industry?   more »

When a young Jack Nicklaus won the 1965 Master's, golf legend Bobby Jones said he "was playing a game with which I am not familiar." I have the same feeling about the financial markets today.    more »

Six months ago, states were predicting balanced budgets and surpluses. Virtually all had surpluses at the end of fiscal year 2007 and more than half had ending balances equaling at least 10 percent of their general funds. Governors and legislatures were happily talking about property tax relief and expanding medical coverage to the uninsured.   more »

Well, it could have been worse. President Bush and House leaders say they have cut a deal on a $150 billion stimulus package—about $100 billion for families and individuals and about $50 billion for businesses. The centerpiece of the plan: a cash payment of at least $300 for most wage earners, along with an additional $300 per child.    more »

The leaders of both the House and Senate are exploring options for an economic stimulus plan they would unveil if the economy continues to weaken in 2008, TaxVox has learned. The talks, still in their early stages, could trigger a major election-year battle over fiscal policy. While neither party has settled on a plan, congressional Republicans are likely to propose new tax breaks as well an extension of the 2001 Bush tax cuts. Democrats are looking at a mix of tax cuts and other measures that they'd attach to targeted relief for those hardest hit by the mortgage mess.    more »

In the aftermath of Sept. 11, 2001, Congress created a program in which taxpayers would backstop private insurance in the event of another major terror attack. The program, called the Terrorism Risk Insurance Act (TRIA), was supposed to be a temporary effort to both stabilize the insurance industry and prevent a broader economic meltdown after insurers stopped writing property and casualty coverage for many urban commercial developments.    more »

"Creditors would be prohibited from … extending credit without considering borrowers' ability to repay the loan." This is not a joke. It is part of proposed new Federal Reserve Board regulations aimed at stopping banks from repeating the shockingly bad lending practices that led to the still-worsening mortgage mess. Perhaps they could call the new rule "stop me before I lend again."    more »