Thomas, thanks for the recounting of history of the financial crisis, concerning which Chiarman Bernanke stated, "Subprime will be contained". Ha ha, Ben, thanks.
A book you might benefit from is America's Great Depression by Murray Rothbard, available free on-line from Mises.org. Over the years I read all Rothbard's books, he was not right about everything, but mostly correct I think. This particular book is a revisionist history of the Depression years, based on Austrian School economic insights. This perspective holds that a free (unregulated) economy is a natural and benevolent productive order benefiting all participants, as much as nay natural order could. Coercive interventipons into the natural productive order of a free economy benefit a few political associates but hurt the masses of folks. Rothbard explained how monewtatry inflation of the 1920's depressed artificially interest rates thereby making temporily profitable malinvestment, all rationally explained and understandable edue to distortion of relative prices (consumer goods versus producer (capital) goods. He explains how Hoover inteferred with corrective business failures of the corrective bust, prevented prices from falling in response to bank failures and contracting money supply and thereby guaranteed unemployment and surpluses of unsold goods. Roosevelt intensified and broadened Hoover's coerciv e interventions into th4e economy, thereby preventing any economic adjustment and recovery from the wasteful boom years and causing 10 years of Depression. The Depression needed due to the monetary inflation used to fund America's entry into world war II.
Greenspan never tightened and Bernanke never eased. The money stock can never be properly managed by any attempt to control the cost of credit.
Agreed.
Please expound on how the market started to "sour" :
"In late Spring of 2006, the US housing market boom started to sour"
Fall, as shown in the figure and in the text.
Thomas, thanks for the recounting of history of the financial crisis, concerning which Chiarman Bernanke stated, "Subprime will be contained". Ha ha, Ben, thanks.
A book you might benefit from is America's Great Depression by Murray Rothbard, available free on-line from Mises.org. Over the years I read all Rothbard's books, he was not right about everything, but mostly correct I think. This particular book is a revisionist history of the Depression years, based on Austrian School economic insights. This perspective holds that a free (unregulated) economy is a natural and benevolent productive order benefiting all participants, as much as nay natural order could. Coercive interventipons into the natural productive order of a free economy benefit a few political associates but hurt the masses of folks. Rothbard explained how monewtatry inflation of the 1920's depressed artificially interest rates thereby making temporily profitable malinvestment, all rationally explained and understandable edue to distortion of relative prices (consumer goods versus producer (capital) goods. He explains how Hoover inteferred with corrective business failures of the corrective bust, prevented prices from falling in response to bank failures and contracting money supply and thereby guaranteed unemployment and surpluses of unsold goods. Roosevelt intensified and broadened Hoover's coerciv e interventions into th4e economy, thereby preventing any economic adjustment and recovery from the wasteful boom years and causing 10 years of Depression. The Depression needed due to the monetary inflation used to fund America's entry into world war II.
Most welcome. Yes, we know that it's one of the primary functions of central bankers to lie. 🤦
Tnx for the link. I know the book, but have not had time to read it. Will check it