1. The Plunge in the Stock Market The plunge in the stock market has resulted in the wiping out of pension funds economics, not to mention today’s politicians and government officials--regard the failure of socialism and success of capitalism as mere “brute facts,” that is, facts
economist Hernando de Soto to further argue that Fannie is strengthening capital markets and promoting entrepreneurship. But can Fannie Mae really make housing more purchase, retain, or guarantee more than 70 percent of the conforming mortgage market. Mortgages are originated by retail institutions such as banks. Fannie to start or expand a business. The entrepreneur always faces a risk of business failure.The borrower could reduce this risk to the lender’s principal by putting up
Following the economic stimulus, asset prices in the real estate and stock markets inflated, creating one of the biggest financial bubbles in history. The rates five times, to 6 percent in 1989 and 1990. After these increases, the market collapsed. The Nikkei stock market index fell more than 60 percent—from a high banking system and thinks that the banks need to be reformed, he believes the failure of broad monetary aggregates to expand along with narrow aggregates is not
some economists have said that there is no need to be concerned because the stock market does not reflect what is happening to the economy. (Curiously enough, when the the facts of reality. Furthermore, neither corporate scandals nor corporate failures are the main causes of the current stock market turbulence; these are just
to find any earmarks among the thousands included that solve either a serious failure of the market or a pressing need. This is especially so, given that if the needs were so
in congressional love-fests and accorded rock-star-like status by legions of stock market investors, Federal Reserve Chief Alan Greenspan is increasingly being attacked a bubble until after it burst. The current debate over Greenspan’s alleged policy failures misses the crucial question: Could anyone, no matter how capable and
depending on the circumstances, and such standards should be determined via market competition. Companies have every incentive to disclose any information that government want more controls over 401(k) retirement plans--never mind the abject failure of Social Security. The Feds now are angling to meddle further in a process
look again with a more disinterested eye. Investors: Take Thy Blame In the stock market, there are literally thousands of stocks. And when you consider the possible notes that “neither the emergence of a bubble nor its breakdown implies marketfailure; boom-and-bust cycles rest on policies that have destroyed the proper market
agenda that is more unlikely to come about? Are we just gluttons for political failure? Why not trim our ambitions to political reality? It is true that not a soul insurance, and no connection to government at any level. This is the free-market system of monetary management, which means turning over the institution of
inflation. Is inflation about price rises? The fundamental problem here is a failure to define the problem properly. For example, the definition of human action inevitable consequence of inflation, rising prices. Their ventures are doomed to failure because they do not attack the root of the evil. They try to keep prices low of bread to $1/one liter of milk. It is interesting to note that in the commodity markets, prices are quoted as dollars/barrel of oil, dollars/ounce of gold,
What is the Mises Institute?
The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard.
Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.