American Enterprise Institute economist Peter Wallison explains why the recent JP Morgan losses are proof that the Volcker Rule is unworkable and should be abandoned.

The $2 billion loss at JPMorgan Chase (JPM) has reopened debate on the Volcker rule. The proponents of the rule have seized on the story as proof that the Volcker rule is necessary and should be quickly put into effect by regulation. In reality, however, if the facts are as thus far reported, what happened at JPMorgan is proof that the Volcker rule is unworkable and should be repealed. 

It’s depressing to watch, but it is missing the point that the Volcker rule would not have prevented the loss and is probably unworkable.

The $2 billion loss by JPMorgan Chase has reawakened debate about whether banks are taking excessive risks, but many facts have gotten lost in the breathless media coverage.

From the perspective of the corporate profit and loss statement, a trading loss is one expense item in the context of all revenues and expenses. So $2 billion should be compared to the bank's $26.7 billion in pretax profits for 2011, suggesting a reduction of something less than 10 percent in annual profit.

2012 looks to be an interesting year for the already complex political triangle among the United States, Taiwan and China, what with each country undergoing political transitions. Should we expect policy continuity from President Ma Ying-jeou and the likely new Chinese leader Xi Jinping? What about continuity in the United States?

Expanding oil exploration and drilling on public lands and offshore is likely to create jobs and help offset the negative effects of oil price shocks.

Oil shocks have different effects on energy- and nonenergy-producing states.