Booms and Busts

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Frank Shostak

The Efficient Market Hypothesis claims that financial markets process information immediately and correctly. However, since the EMH is based upon unrealistic assumptions, we also have to question the efficacy of this hypothesis, especially when central banks intervene in the markets.

Frank Shostak

A recession is defined by negative economic activity over several months with an accompanying decline in GDP. However, given the actual makeup of GDP, it is inaccurate to directly tie recessions to GDP at all.

George Ford Smith

The ruling classes and their media blamed the 2008 financial crisis on free markets and too little government regulation. However, because the Federal Reserve promised to help cover losses in financial markets, it practically invited reckless behavior.

George Ford Smith

The principle of Occam‘s Razor states that we should avoid superfluous activity. When it comes to our monetary system, however, the Federal Reserve System doesn't simplify things, but instead complicates the economy. That alone is reason for it to be abolished.