Current Events

Re: The observations of Robert Higgs

UsernamemanresU — Thu, 09 Oct 2008 20:14:56 GMT

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?

Re: The observations of Robert Higgs

jtucker — Thu, 09 Oct 2008 19:45:39 GMT

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.

Re: The observations of Robert Higgs

UsernamemanresU — Thu, 09 Oct 2008 19:24:42 GMT

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.

The observations of Robert Higgs

UsernamemanresU — Thu, 09 Oct 2008 06:50:10 GMT

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?