Mises Wire

Europe's Bailouts Risk a Full-Blown Financial Crisis

Global EconomyMoney and Banks

Blog2 hours ago

Euro governments are planning to use the banking system for widespread bailouts in the wake of the COVID-19 shutdowns. This could bring about a new financial crisis.

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Why the Central Bank "Bailout of Everything" Will Be a Disaster

Cronyism and CorporatismThe FedMoney and Banks

Blog06/24/2020

The largest fiscal and monetary support plan since WW II has been instigated with two dangerous collateral effects: the rise of zombie companies and the collapse of small businesses and startups.

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Why the European Recovery Plan Will Likely Fail

Corporate WelfareCronyism and CorporatismWorld History

Blog06/16/2020

The problem of the European Union has never been a lack of monetary and fiscal stimulus, but rather an excess of these. This has failed to produce real growth, and now we're getting more of the same, but even bigger.

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An L-Shaped Recovery Is Not an Anomaly, It Is the Norm.

Booms and BustsGlobal Economy

Blog05/30/2020

The massive bailout of indebted sectors that already had overcapacity and were in process of obsolescence may also drive the largest wave of malinvestment in decades. If the previous recoveries came with poor wage and capital expenditure growth and high debt, the next one will likely be even...

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The ECB Has Been Hiding Risk. They Won't Be Able to Do It Much Longer.

Global EconomyTaxes and SpendingMoney and Banking

Blog05/18/2020

The ECB can disguise the risk for a while, but the reality of the mounting debt and tax burden ahead is probably going to end in a debt crisis.

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Three Reasons Why the Eurozone Recovery Will Be Poor

Big GovernmentGlobal EconomyTaxes and Spending

Blog05/11/2020

The eurozone needs to understand that if it decides to increase taxes to address the rising debt due to the COVID-19 response, its ability to recover will be irreparably damaged.

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How Governments Broke the Oil Market

Corporate WelfareCronyism and CorporatismGlobal Economy

Blog05/05/2020

The oil industry became one of the main areas of malinvestment in the years of massive liquidity and low yields. This perpetuated excess capacity and kept inefficient companies unnecessarily alive.

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Central Banks and the Next Crisis: From Deflation to Stagflation

Global EconomyMoney and BanksMoney and Banking

Blog04/22/2020

When governments and central banks announce massive stimulus packages at the very beginning of a crisis, they bet on a speedy recovery and a return to normal as if nothing had happened. This is far from the case.

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