Booms and Busts

The drop in interest rates makes unrealizable projects appear profitable and realizable. Entrepreneurs embark upon the execution of such projects.

When the influx of silver and gold from the Spanish colonies in the New World dried up, little or nothing remained. But that was not all.

The average range of tuition inflation is normally 8% annually, and prices have not fallen or stabilized once since 1977, regardless of economic cl

"Make no mistake, this supposed 'containment' boondoggle was yet another bailout of the world's largest banks. A majority of the PIIGS's debt is held by large French and German banks."

"The risk associated with loan obligations are shifted to the taxpayer. Consequently, the act removes obligation and creates a moral hazard with the creation of a virtual backstop."

In a depression, all prices must be allowed to adjust downward. Wages are no different. First and foremost, the government's artificial wage floor should be removed.

"While it would be more comfortable to get money for nothing, this would not be the wisest long-run policy solution to unemployment."

"The Keynesian model can't capture the fact that during the boom period, society 'eats the seed corn' through malinvestment."

"These guys weren't just taking a position and keeping their fingers crossed, they had to keep feeding their bets, even when the financial world (and their investors) thought they were nuts."