Economics

There is an alternative, more behavioral hypothesis for the fragility of the securitization market that does not rely on a predominance of short-term debt financing. This alternative hypothesis begins with the observation that a large proportion of ABS tranches—both in the traditional and subprime sectors—were rated AAA. The AAA rating may have encouraged investors such as pension funds or insurance companies to think of these securities as essentially riskless, and therefore to treat them as being equivalent to Treasury bonds when constructing their portfolios.

Karl Smith speculates on the origins of austerianism:

I loved this essay-style interview, Dan Klein speaking with William R. Allen, on the glory days of the UCLA economics department, under the leadership of Armen Alchian.
It is taken from the latest issue of Econ Journal Watch, (I haven't read the other pieces yet).  There is also a systematic look at economists' role in signing petitions.

There should be a betting market in how many of these projects actually end up being finished within, say, the next thirty years:  

Peter Schiff offers some interesting observations, via Interfluidity. 

But to repeat the impact of World War II today would require a truly massive effort. Replicating the six-fold increase in the federal budget that was seen in the early 1940s would result in a nearly $20 trillion budget today. That equates to $67,000 for every man, woman, and child in the country.

Here is an anonymous commentator over at Andrew Sullivan, via Conor Friedersdorf guest-blogging:

The NZX 50 Index of stocks climbed in Wellington, led by building-related companies. Insurers fell. New Zealand’s dollar rose to 72.41 U.S. cents from 72.07 cents in New York on Sept. 3. The nation’s bonds declined, pushing 10-year yields to their highest in more than a month.

Have you ever seen a more appealing table of contents?:

Introduction
Chapter 1: Nongoloza and Kilikijan
Chapter 2: The functions of violence I—Making men (and not children)

We list the key corporate and economic events for the week beginning Monday,
September 6, 2010.

In 2002 Time named Richard Sandor a "Hero of the Planet" for founding the Chicago Climate Exchange (CCX). The CCX traded permits based on voluntary but binding commitments from firms to cutback on carbon emissions and other greenhouse gases.  Without enforced limits, however, or, if you prefer, without property rights in emissions, the market is not self-sustaining and CCX is cutting workers and may be wound down.