Monthly Archives: August 2009

George Bush Owns The Depression of 2008-2009

As some of you are well aware, I was explaining how Bush and the Fed were creating the conditions for an inevitable economic bust throughout the mid-2000s, specifically identifying Bush’s unsustainable Keynesian policies, Bush’s Keynesian advisers, and Bernanke’s flawed arguments … Continue reading

Posted in Boom & Bust | 1 Comment

A Reality Check for Scott Sumner

From economist Kenneth Rogoff: The overwhelming consensus in the policy community is that if only the government had bailed out Lehman, the whole thing would have been a hiccup and not a heart attack. Famous investors and leading policymakers alike … Continue reading

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Arnold Kling Punts Keynes, Re-Discovers Hayek

Arnold Kling learned his macroeconomics from the same folks who trained Paul Krugman.  Kling’s response is somewhat different.  Kling has determined that the old “mainstream” macro is pseudo-scientific junk, and he’s happily dumped it in the garbage can of bad … Continue reading

Posted in Uncategorized | 1 Comment

Hayek & The Cuban Toilet Paper Shortage

There’s the famous tin story.  There’s the famous pencil story. Now — joining the pantheon of divided knowledge economics — make way for the Cuban toilet paper story.

Posted in Division of Knowledge | 1 Comment

Hayek in 1931 on Post-Bust “Secondary” Deflation

Just to set the record straight, I’d like to point out that Friedrich Hayek was well aware of the problem of the sort of “secondary” deflation which often occurs after the onset of an economic bust made inevitable by a … Continue reading

Posted in Boom & Bust, Deflation, Keynes | 2 Comments

What Happened? — Deepak Lal on the Bust

Written text here.  The rest of the video can be found here. This is one of the more thought provoking accounts of what went wrong, why it went wrong, and what should be done about it.  Here’s a particularly interesting … Continue reading

Posted in Boom & Bust | 1 Comment