Category Archives: Boom & Bust

Best article yet

on the reality of current economic situation and how we got here.

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Vernon Smith on housing & the trade cycle

Housing production* is exactly the kind of thing Hayek identified as a time delayed production good which can absorb credit, capital, and leverage in a bandwagon of false expectations, only revealed as structural malinvestments at the end of the artificial … Continue reading

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“[During the artificial boom] credit expansion has gone to where government directed it”

Edward Leamer and Russ Roberts have explained how the boom/bust cycle has been shaped by government policy, and directed into such sectors as housing and finance.  In Hayek’s economics housing is a long-term production good, an open target for malinvestment … Continue reading

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Video — how the Fed caused the bust

Mark Calabria and Steve Hanke explain.

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The “Global Savings Glut” Sham

Steve Hanke takes a look at the evidence and concludes that Alan Greenspan is simply b*llsh*tt*ng the public when he directs attention to a “global savings glut” and claims that the Federal Reserve has no responsibility for the current boom … Continue reading

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Understanding the Crisis

Marius Gustavson explains how Hayekian macro helps.

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