Hillary subprimes it

I've heard that students in the U.S. have a new word to use when they fail a test: "I subprimed it."

Senator Clinton subprimes economics.

Senator Hillary Clinton she's got the experience to serve "from day one" if elected president. She's know as the candidate most knowledgable about public policy. She's also got plenty of hubris when it comes to her understanding of economic policy. She wants to abrograte home mortgage contracts when the terms hurt the "homeowner." Richard Thaler and Susan Woodward writing at The National Review take her on:

Senator Clinton's policy amounts to a command-and-control approach to economic policy in which the government announces prices and tells suppliers what to produce. Undertaking such an intervention can only raise interest rates on mortgages (and maybe other interest rates as well) as markets attempt to incorporate risk premiums to cope with possible future interventions. Promising the American people that you can fix things by just lowering their interest rates is dishonest, a fairy tale that won't come true.

Thanks to Newmark's Door for the pointer.

You'll remember Hillary and the cattle futures contract with no downside for Hillary the investor. But that was because her sugardaddy was willing to eat it.