All Articles of 2007

Harry Markowitz’s 1952 essay Portfolio Theory broke new ground in developing ways to diversify financial portfolios. By the time he won the Nobel Prize nearly four decades later, countless financial innovations to help spread risk had been introduced, making the risks associated with investing more acceptable -- particularly to the American middle class. Sure the markets are taking a hit now, but those with diversified portfolios are certain to weather this downturn better than those without.

U.S. economic public policy would… more

To understand the implications of Benazir Bhutto's assassination for Pakistan, first imagine what that country would look like without her Pakistan People's party. It has been overwhelmingly a dynastic party and she was the last politically viable representative of the Bhutto dynasty. Without her to hold it together, it is highly probable the PPP will disintegrate.

In the short term, this is likely to benefit President Pervez Musharraf and the army but, in the longer term, Islamist extremists may have the… more

Looking back well over two decades ago, it is impossible to isolate a defining moment in a dark-horse, long-shot, improbable presidential campaign in the nation's first primary. There were so many months of travel, so many hands to shake, so many questions to answer in so many living rooms and restaurants across New Hampshire that the temptation is to treat it all as a long-ago blur of memory.

Yet events and circumstances do still stand out these many years later: the… more

In American history, Christmastime has been wartime many times. And yet, in past conflicts our country seemed more motivated to win than it does today.

On Christmas Day 1776, Gen. George Washington crossed the Delaware River into New Jersey to attack the Hessian mercenaries at Trenton. The password for the day was "Victory or Death." 'Nuff said.

During the Civil War, on Dec. 20, 1864, Union General William T. Sherman completed his legendary -- Southerners say infamous -- March to the Sea.… more

'Tis the season for giving. Yet, as Peter Drucker knew so well, the rewards from such actions flow two ways -- not just to those in need, but to those who get a lift from making a difference in an all-too-troubled world.

That is why on Christmas day I went over to a church not far from my house to help dish up dinner for the hungry and homeless. Dozens of volunteers from my synagogue and elsewhere passed out about 1,000… more

With the Annapolis conference and the Paris fund-raising effort to aid the Palestinians behind us, the Middle East peace process is now in need of constant vigilance. President George W. Bush will visit the region in January, but it is Condoleezza Rice who will be looked upon to provide a guiding hand.

The new peace effort is very much her baby. A look at the war in Lebanon last summer, and Rice's management of it, provides some clues to the challenges… more

What do the Hillary Clinton campaign and comedian Michael Richards have in common? When feeling insecure, both appeal to social prejudices to delegitimize their adversaries.

Three weeks ago, two Clinton campaign volunteer county coordinators in Iowa forwarded an e-mail that accused Illinois Sen. Barack Obama of being a stealth Muslim intent on bringing jihad to the United States. Last week, former Nebraska senator and Clinton supporter Bob Kerrey borrowed a page from Rush Limbaugh when he made a point of highlighting… more

With foreclosures reaching record levels and predictions for further trouble ahead, the Federal Reserve Board on Tuesday unanimously approved potentially sweeping changes to how mortgages are marketed, made, and serviced, especially in the nonprime market. Will the Fed be able to meet its goal of a "comprehensive set of protections to consumers" when the comments come flying?

The proposed revisions to regulations under the Truth in Lending Act are designed to realign relationships in the mortgage business, so borrower and lender… more

Is Mike Huckabee a fascist? That's the insinuation from Ron Paul, one of Huckabee's rivals for the Republican presidential nomination.

And it's a cheap shot. One needn't agree with, or even like, Huckabee to know that throwing around the f-word "fascism" is a low blow.

This story is important, because it speaks to the larger question of whether Christians can fully participate in politics without being slurred. Here's the context: Huckabee ran a TV spot in which the former Arkansas governor wishes… more

Inside the mind of Mike Bloomberg, mayor of New York City:

Could the Democratic nomination really go to Barack Obama -- you know, middle name Hussein?

And could the Republican nomination really go to Mike Huckleberry? I mean Huck Finn; I mean Huckabee. Whatever.

This is the best the two parties can do? In which case, maybe I should reactivate my own presidential ambitions -- because I can beat those two, running right down the middle, in between the Third Worlder and the… more

Last week, the Bush Administration released declassified extracts from a new National Intelligence Estimate about Iran’s nuclear program. The passages landed in Washington like a religious scroll; they radiated revelation. The N.I.E. drew upon new intelligence, collected last summer, to report with “high confidence” two facts that were previously unknown, or at least heavily disputed: that Iran’s Islamic revolutionary government had commissioned a secret, military-run atomic-weapons program, in addition to its open nuclear-power program, and that, in 2003, Iran halted… more

Last Wednesday, a car-bomb blast on a crowded Beirut street killed Brig. Gen. Francois Hajj, one of Lebanon's top generals. The capital began buzzing with speculation that Hajj had been assassinated in retaliation for his role as the operational commander of the army's bloody three-month battle with an armed Islamic group last summer. In May, Fatah al-Islam -- a foreign jihadist group inspired by al-Qaeda, led by veterans of the struggle in Iraq and made up mostly of Saudis, Syrians… more

So is Mike Huckabee an "easy kill" for the Democrats? And are the Republicans the distinct underdogs, no matter whom they nominate for the presidency?

Maybe. After all, in public opinion surveys, the critical "right track/wrong track" question shows negative feelings predominating by a 2-1 or even 3-1 margin. That's bad news for the incumbent party, in terms of holding the White House.

But some Democrats maintain that the former Arkansas governor, in particular, has a "glass jaw." Hence the headline in… more

Proper classification of workers for tax purposes is important as different rules apply to employees versus independent contractors. Contractors may deduct expenses for adjusted gross income (AGI), owe self-employment tax and take advantage of tax-favored benefit plans for those who are self-employed. Employees have unemployment benefits, split payroll taxes with the employer and can be covered under employer-provided benefit plans.

Some employers misclassify workers to reduce employment tax liabilities. Tax compliance by contractors is not as high as it is for… more

Is Mike Huckabee too Christian to be president? Is Mitt Romney Christian enough? We'll find out soon.

The former governor of Arkansas is on the cover of Newsweek, and though the headline, "Holy Huckabee: The Unlikely Rise of a Preacher Politician," might suggest a mainstream media hatchet job -- in which yet another Southern Baptist gets the full Elmer Gantry-Pat Robertson treatment -- the article itself comes as a pleasant surprise.

Perhaps Newsweek, too, was surprised to discover that Huckabee's political views… more

Regardless of one’s view on the issue of climate change and how high priority it should be on national and international agendas, the topic, as well as ideas for reducing greenhouse gas (GHG) emissions, is getting much attention by legislators, governors, mayors and others. One idea that has been suggested for changing manufacturer’s behavior to reduce GHG emissions is a carbon tax (for more information on carbon taxes and examples of current proposals,… more

In the wake of the new National Intelligence Estimate on Iran's nuclear program, Democrats and others are criticizing President Bush for again having "hyped" a nuclear weapons threat. This criticism, while deserved, does not address the critical policy question: What do we do now?

Clearly, the United States cannot ignore Iran. Tehran may have suspended the purely weapons-related aspects of its nuclear program, but it continues to master uranium enrichment, with no agreed limits in place. And Iran is well… more

About two years before he died, Peter Drucker told an interviewer that among the things he regretted in the course of his long and productive career was not writing a book -- it would have been his 40th -- called Managing Ignorance. He added, tantalizingly, that it was bound to have been his best, but otherwise he didn't elaborate.

I've been thinking a fair bit lately about Drucker's work-that-wasn't, wondering what such a volume might have explored. Most likely, it seems,… more

There's a rule that politicians are reminded of: “do no harm.” In recent months, politicians have implicitly amended the rule to say “do no harm -- unless immigration is involved.” The rancor sparked by a failed New York plan to permit illegal immigrants access to driver's licenses and the fallen federal and state versions of the DREAM Act highlight a dangerous obsession with keeping illegal immigrants from accessing the supposed privileges of citizenship at any cost.

In today's debates, considerations of… more

The latest National Intelligence Estimate on Iran's nuclear program raises questions once again about the Bush administration's veracity in describing a nuclear threat. But President Bush's worst misrepresentations about the Iranian nuclear issue do not focus on whether Tehran is currently pursuing a nuclear weapons program or when Bush knew the U.S. intelligence community was revising its previous assessments. Rather, the real lie is the president's claim that his administration has made a serious offer to negotiate with the Islamic… more

No doubt, taxes are complicated. A good example of this complexity is the Alternative Minimum Tax or AMT which is part of our income tax. This is a flawed tax that ignores principles of good tax policy and generates revenue beyond expectation. While Congress is currently trying to keep millions of individuals from paying AMT in 2007, outright repeal would be best.

The income tax has always had "preferences" that reduce one's tax bill. Today these include deductions for dependents,… more

The latest National Intelligence Estimate on Iran -- suggesting that Mahmoud Ahmadinejad's government is not an imminent nuclear threat -- will undercut some of the tough-talking foreign policy positions staked out by most of the Republican presidential candidates. Still, Democrats must beware, because the American people, inclined toward hawkishness since 9/11, will be suspicious of too-eager doves.

In the meantime, the seeming stand-down with Iran brings back memories of past presidential elections, won and lost.

I worked for George H.W. Bush in… more

As the college football season nears its final showdown between Ohio State and LSU, the media-stoked frenzy over which teams were selected for the Bowl Championship Series has reached a fever pitch.

Penn State is in the Alamo Bowl, with less money and media attention. But if team academic performance were considered by the BCS, Penn State would have fared much better.

Over all, the academic performance of big-time college football is dismal. Only 56 percent of Division I-A… more

Our politics lesson for today is tertius gaudens -- Latin for "the happy third." That is, the one who gets to sit on the sidelines as two others duke it out. We can see the main event happening now in Iowa.

So the smart strategy in a crowded presidential caucus is this: Stay out of the way of enemies destroying each other -- and then dash to victory.

The idea of tertius gaudens goes way back, of course, to ancient… more

What will Putin’s legacy amount to? For starters, let us dispense with a giant "red herring" that too many Western commentators have pursued for far too long.

What I am referring to is the question of whether Putin is a “democratic reformer” -- or a “Soviet authoritarian.”

The answer, of course, is that Putin is an authoritarian reformer. He is profoundly committed to reforms intended to make Russia into a successful modern state. But at the same time,… more