-
Was the Federal Reserve's monetary policy the proximal cause of the financial crisis of 2007-2008? Also, what are the best free market sources for information and argumentation on this mechanism (e.g. published papers, data, forecasted predictions, etc)?
-
Economists of the Austrian School understand that monetary expansion has the effect of making things more expensive than they otherwise would have been. At the root of the real-estate bubble was Federal Reserve monetary expansion funneled into the purchase of mortgages by Fannie Mae, Freddie Mac, and...
-
I was having a discussion over the weekend about what would have happened if there had been no financial bailout (Emergency Economic Stabilization Act of 2008). We are told that without the bailout we would have suffered "an economic meltdown". It seems even those who support a free market...
-
A friend of mine curious about the financial crisis seeks to hear the other side of the stimulus story: "I think it's very easy to say, "let the banks fail", but my question is what does that really mean? Does that mean the individuals and businesses invested with them would lose it...
-
I think that President Obama plans to borrow more US dollars back from the Foreigners that earned the US dollars manufacturing US consumable products and then provide temporary jobs for unemployed US citizens to construct "Pork Barrel" projects, or rake leaves, or dig a hole today and then...
-
Thank you so much I'm finally starting to understand. But can you elaborate on the ways the money would be frittered away had the Glass Steagall not been repealed? This is so interesting to me!
-
Please elaborate on the article. I do not understand how exactly it answers the questions posted above. I also do not understand the phrase 'monetizing government debt to use as an asset to pyramid more credit'.
-
Could the recession have been prevented if the Glass Steagal Act was not removed? How do you counter socialists who say Glass Steagall is necessary? I find it hard since Glass Steagall does not have any bad effects even if it is unnecessary. So is the argument against Glass Steagall is purely on principle...
-
The S&L crisis occurred because of bad deregulation. Under previous regulation, S&Ls were limited to loan on owner-occupied single-family residences and their deposits were insured by the Federal Savings and Loan Insurance Corporation (FSLIC). In the 1980's, the S&Ls were permitted to...
-
I just finished the lecture course by Peter Klein and Joe Salerno, the Causal-Realist Approach to Economics, and the last lecture on banking and the business cycle was very fascinating. However, I was confused when Mr. Salerno said that the costs go up in the capital goods industry. Firstly, bank reserves...