Has anyone been following Robert Higgs at Lew Rockwell's site?
In his recent articles he has pointed out that based on the data the credit markets are indeed not "frozen."
Personally, I cannot understand why, if true, he is the only one to have observed this.
Does anyone care to comment?
Surely the US economy is set to collapse, but do we make a mistake by accepting the fed's diagnosis just because, this time, it happens to be in line with Austrian predictions. I can never quite shake the feeling that we think what the fed wants us to think.
It depends on what you mean by frozen. There is credit available at some price, just not the price that some people want. Mises discusses how this is a market response to the bust.
Publisher, Laissez-Faire Books
From the looks of it, credit is not contracting:
http://research.stlouisfed.org/fred2/fredgraph?chart_type=line&s[1][id]=TOTBKCR&s[1][range]=5yrs
Or did the fed begin injecting mad amounts of money into the system near the beginning of the plateau?