Quantitative Easting 2.0 that is. I really found Jeremy Grantham’s letter this month particularly insightful in exploring the ways that cheap money does little to advance the economy, while creating asset bubbles all over the places that must eventually be deflated. He also makes the good point that a housing bubble is much more damaging and [...]
Posts Tagged ‘Inflation’
QE 2.0
Posted in Uncategorized, tagged Asset Bubbles, Ben Bernanke, Business Cycle, Economics, Federal Reserve, Housing Bubble, Inflation on 5 Nov 2010 | 2 Comments »
Banking and Free Markets
Posted in Economics, tagged American Prospect, Corporations, Depression, Federal Reserve, Hilliare Belloc, Housing Bubble, Housing Crisis, Inflation, Limited Liability, obama, Property Rights, Recession, Risk, Stimulus on 8 May 2009 | 1 Comment »
Banking by corporations and limited liability companies is not essential to free markets. Like bankruptcy, all of these arrangements involve shifting some of the harm caused by risk-takers onto those who did not take the risks. There may be good reasons to socialize (i.e,. disperse) risk. People may be improvident or need some paternalistic guidance. [...]
Immigration and the Housing Bubble
Posted in Economics, Housing Bubble, Immigration, Steve Sailer, tagged Affirmative Action, Community Reinvestment Act, Default, Foreclosures, George Bush, Inflation, Recession, Steve Sailer, Subprime on 18 Apr 2009 | 4 Comments »
Gaming the Geithner Plan
Posted in Banking, Economy, Geithner, obama, TARP, tagged Corruption, FDIC, Game Theory, Housing Bubble, Housing Crisis, Inflation, MBS, Treasury on 25 Mar 2009 | Leave a Comment »
There are probably a million ways to game the Geithner bailout plan, just as the TARP has already led to various unintended consequences, such as the continued provision of generous bonuses by AIG and the Merrill Lynch purchase by BofA. James Galbraith has a good article on this today. The whole premise of the bailout [...]
Community Reinvestment Act
Posted in Economics, Housing Bubble, tagged Banking, Community Reinvestment, CRA, Finance, Inflation, Redlining, Steve Sailer, Subprime on 17 Feb 2009 | Leave a Comment »
Steve Sailer and others have observed how the combination of changing demographics, Bush’s commitment to an “ownership society,” cheap dollars, securitized mortgages, and the emerging importance of the relatively obscure Community Reinvestment Act, were major factors that in combination render the housing crisis a “diversity recession.” Critics have countered that a lot of other factors, [...]
Economic History and Obamanomics
Posted in Economics, History, tagged 1873, Deflation, Depression, Economics, Federal Reserve, History, Housing Crisis, Inflation, obama, Panics on 26 Dec 2008 | 1 Comment »
The absolute craziest convention on Wall Street, at the Federal Reserve, and among academic economists is simply to ignore economic history before the Great Depression. It’s particularly wacky to do so as the Federal Reserve, which was billed as a means of avoiding economic dislocation after the Panic of 1907, was established in 1913. In [...]
The Audacity of Outdated Keynesianism
Posted in Economics, Politics, tagged Classics, Deflation, Economics, Greeks, Inflaion, Inflation, Kaldor Hicks Efficiency, Keynesianism, obama on 19 Dec 2008 | 5 Comments »
The Federal Reserve has just lowered interest rates to, in effect, zero. Obama promises to spend perhaps $850 billion in a very dubious infrastructure program, as if filling potholes and repairing bridges that were too expensive to repair in good times, can now be gold-plated in times of austerity, and that, by some alchemy, spending [...]
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