Matters Financial

24 March 2003


US Takes Iraq's Money
The Bush administration has announced that it will confiscate funds in the US that belong to the Iraqi government -- the first time this has been done since World War II. The US Treasury Department has sent letters to no fewer than 18 US banks ordering them to turn over to the Fed some $1.5 billion that was frozen during operation Desert Storm more than a decade ago. One wonders where the money will go. Click here to read more.

Artist Study Abuses Economic Science
Professor David Galenson has a great deal for which to answer. He has put out a "study" that claims to measure when an artist hits his peak using quantifiable, economic criteria for the assessment. In Life Cycles of Modern Artists, he perpetrates a sin against reason and economics. His tenure should be at risk, but as he teaches at the University of Chicago (which itself has much for which to answer), the winters are punishment enough. Click here to read more.

Volcker Cautions Auditors on Tax Advice
Before there was Alan Greenspan, there was Paul Volcker, Chairman of the Fed and true conqueror of inflation. Mr.c Volker is now acting in less public capacities, but he made a public statement to the Big Four (remember when there were Eight?) warning them against providing tax advice to their audit clients. The hemming and hawing were almost enough to drown out the war drums because he was telling them to give up on 30% of their revenues. Yet, there is no other way for them to go and still retain their credibility. Click here for our view.