Quotes of the day

The illusion that [Fannie Mae and Freddie Mac] were doing virtuous work made it impossible to build a political case for serious regulation. When there were social failures the companies always blamed their need to perform for the shareholders. When there were business failures it was always the result of their social obligations. Government budget discipline was not appropriate because it was always emphasized that they were "private companies.” But market discipline was nearly nonexistent given the general perception -- now validated -- that their debt was government backed. Little wonder with gains privatized and losses socialized that the enterprises have gambled their way into financial catastrophe.--Larry Summers

In economics, it is given that people have different tastes. In happiness policy, the assumption is the opposite.--Arnold Kling

No matter what, do not let yourself become a wine expert who can tell the difference between cheap and expensive wines. When it comes to your pocketbook and wine, ignorance is bliss.--Steven Levitt

Females, older people, working people, people who live in high-crime areas of their country and people who are at the bottom 50% of their country's income distribution are more vengeful.--Naci Mocan

One reason we might have a "health care crisis" and rising medical costs is that we turn away almost 97% of the applicants to medical schools. There are now more than half a millions applicants annually to U.S. medical schools (546,817) for about 17,750 openings, meaning that 529,000 prospective physicians are now turned away every year from the necessary training to become a doctor. Now that's a real medical cartel, which significantly restricts the supply of physicians, and thereby gives its members monopoly power to charge above-market prices for their services.--Mark Perry