KeithHennessey.com

Can the government compete on a level playing field with private firms?

Sometimes it helps to zoom way out. Here is a summary I would give to someone who had missed the past six months, including the good, the bad, the non-existent, the uncertain, and the too-soon-to-tell.

There is much debate about whether a health care reform bill should include a government-run health insurance plan, a so-called “public option.”  Advocates argue that such a plan can compete fairly with private health insurance, and that this competition would “keep insurers honest.”  They also argue that more choices are a good thing.
I fall in [...]

The big banks (and some large non-banks like AIG, Fannie Mae, and Freddie Mac) have two problems, not one:

They don’t have enough capital.
They have on their balance sheet downside risk that is creating uncertainty about how much the firm is worth and is scaring away investors.

I will use a simple example constructed by former [...]

Yesterday on his blog the President’s Budget Director, Peter Orszag, asks himself and then answers the question, “How much does the federal government owe?”
This sounds like a technical question of concern only to “those of us wearing the green eyeshades,” but the Director’s suggested answer has dangerous ramifications, and could mislead or at [...]

In part one of this series, I explained why I think the Obama Administration will soon run out of TARP money and need to ask Congress for more.
Several weeks ago the Obama team began to lay the groundwork for such a request.  Here are four signs.
1.  In his February 24th Address to the Nation, the [...]

About Keith Hennessey
About this blog
About the National Economic Council
About my work in the White House
Photo credits
Technical credits

About Keith Hennessey

I served as the senior White House economic advisor to President George W. Bush.  My job was to coordinate economic policy for the President, including macroeconomic issues, financial markets and institutions, tax [...]

President Bush spoke today about the financial crisis to the U.S. Chamber of Commerce.
I’m going to use the President’s speech as an opportunity to explain to a non-financial audience what the Federal government did this week and why.  I will oversimplify in many cases, and will gloss over many details.  I don’t claim that the [...]

President Bush gave a major policy address on the State Floor of the White House this evening.
THE WHITE HOUSE
State Floor
9:01 P.M. EDT
THE PRESIDENT:  Good evening.  This is an extraordinary period for America’s economy.  Over the past few weeks, many Americans have felt anxiety about their finances and their future.  I understand their worry and their [...]

Here’s what President Bush said at 10:45 AM today in the Rose Garden.
This is really important.
Good morning.  I thank Treasury Secretary Hank Paulson, Federal Reserve Chairman Ben Bernanke, and SEC Chairman Chris Cox for joining me today.
This is a pivotal moment for America’s economy.  Problems that originated in the credit markets — and first showed [...]