Booms and Busts

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Savings vs. Money: Which Is More Important?

Booms and BustsMoney and Banks

Blog01/29/2020

It is not money that funds economic activity, but the saved pool of consumer goods. The existence of money only facilitates the flow of savings. Any attempt to replace savings with money ends in economic disaster.

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Why Bad GDP Metrics Lead to Bad Policy

Booms and Busts

Blog01/22/2020

Our flawed economic measure called GDP leads to a flawed and skewed view of the economy in which consumer spending is the most important metric.

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How to Avoid Secular Stagnation

Booms and BustsMoney and Banks

Blog01/21/2020

In order to remove the threat of secular stagnation what is required is to shrink government outlays and to close all the loopholes for the creation of money out of thin air.

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Are Housing Markets Still Clearing Out the Trash of the Last Bust?

Booms and BustsFinancial Markets

Blog01/20/2020

Many mortgages have not just been modified once, but twice, and sometimes more. Loan servicers are holding higher-end mortgages rather than foreclosing a decade after the crash. Thus, there is plenty of shadow inventory lurking, waiting for the next crash.

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Subprime Loans Will Be Back with a Vengeance in 2020

Booms and BustsFinancial Markets

Blog01/14/2020

After lying dormant for several years in the aftermath of the Great Recession, the subprime market has returned with a vengeance. Subprime has become prevalent in every facet of the credit industry, and we should be terrified.

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Money, Expectations, and Economic Growth

Booms and BustsMoney and BanksBusiness Cycles

Blog01/06/2020

Even if the central bank policymakers could implement policies without error, Milton Friedman’s and Robert Lucas’s monetary schemes could not secure stable economic growth.

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Economic Stats Won't Tell Us What Really Causes Recessions

Booms and BustsMoney and Banks

Blog12/31/2019

The mainstream National Bureau of Economic Research definition of recessions is of little value. Real saving, not consumer demand, is the real driver behind economic growth.

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The Wealth Redistribution Scam that Is "Inflation"

Booms and BustsMoney and Banks

Blog12/24/2019

As money loses its purchasing power, income and wealth are stealthily redistributed. Some individuals and groups of people are enriched at the expense of others.

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A History of Inflationary Money: From 1844 to Nixon

Booms and BustsGlobal EconomyBusiness Cycles

Blog12/11/2019

It is a huge mistake to call the repeating cycle of boom and bust a business cycle. That name implies the bust is the failure of markets and capitalism. But it is really due to monetary and credit inflation licensed and promoted by governments and central banks.

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Why this Boom Could Keep Going Well Beyond 2019

Booms and BustsFinancial Markets

Blog12/07/2019

As long as there is still room for pushing the market interest rate down even further, the chances are reasonably good that the boom continues, and that the bust will be postponed into the future.

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