Booms and Busts

Recorded in front of a live audience at the 2024 Mises University, Bob discusses recent market turbulence with Mark Thornton.

More than two decades ago, the Federal Reserve joined with the federal government to make housing more affordable. The first housing bubble popped in 2008, and a second bubble is on its way to bursting.

The great train wreck seems to be happening. Mark Thornton shares his latest guesses and outlook.

Even as the Federal Reserve continues to manipulate interest rates to “fight” the results of the business cycle, Austrian economics teaches that business cycles occur because of the manipulation. They never learn.

Contrary to Milton Friedman’s thesis that the decline in the money supply caused the Great Depression, the real reason was the collapse of real savings, which was due to loose monetary policies by the Federal Reserve.

Do we have a market situation primed for everyone to head for the exits? What would ignite such a problem?

Even as the Federal Reserve continues to manipulate interest rates to “fight” the results of the business cycle, Austrian economics teaches that business cycles occur because of the manipulation. They never learn.

Contrary to Milton Friedman’s thesis that the decline in the money supply caused the Great Depression, the real reason was the collapse of real savings, which was due to loose monetary policies by the Federal Reserve.

Oklahoma City recently approved the construction of the Legends Tower at a record-setting height of 1,907 feet.

The endless bubble economy has a new lending craze: loans backed by AI chips. The problem is that while the chips serve as collateral, companies right now cannot make enough revenue to cover their costs.