In addition to the Mises Institute's Bailout Reader and the Ayn Rand Center's Financial Crisis page, Canterbury economist Paul Walker is writing and linking to some excellent stuff at his Anti Dismal blog. Head there now to read up on the basics of property rights and, in a crucial historical lesson, how Franklin Roosevelt's meddling and utter economic ignorance extended a five-year depression into a fourteen-year worldwide disaster.
All this and more, including cartoons ...
... and limericks:
There was a Fed head named Bernanke
Whose money supply hanky panky
Created inflation
And beggered the nation
All for the love of his banke.
7 comments:
Fantastic! I vote you post more limericks! :-)
This week will be very interesting.
Look out of an announcement from one of the '4 pillars' of our banking system. Something is going to go to the block.
It's all very well to chant ideology - but people are scared now - really scared. More and more form the right of the spectrum are asking and pressuring for govt intervention and deposit guarantees -- which we hope to stave off. Why should govt guarantee bank deposits?
For those who are asking "is my bank safe?" - Kiwibank is awash with cash - people see it as govt guaranteed. Which I guess it is, morally, if not legally.
So Anderton may have the last laugh.
Now I hope you don't delete this Cresswell. Or maybe your readers have no money so they don't care.
Pete. In some of the stuff you have, kindly, linked to I refer to work by the economic historian Robert Higgs. Now Eric Crampton has sent me this link to an audio, from the Ludwig von Mises Institute, of an interview with Robert Higgs. Higgs is interviewed by Jeffrey Tucker and they start by talking about the parallels between the current financial problems in the US and the Great Depression. Its an interesting talk.
Is Robert Higgs by any way related to Physicist Peter Higgs, who developed the theory of Higgs Boson? the Higgs Boson is a theoretical particle that scientists are going to test or investigate its existence at CERN's LHC (Large Hadron Collider) in the coming months and years?
FF
Yeah and if they don't find it in time the whole economy will fall apart and civilisation will collapse.
LGM
The problem I have is that it's not very clear how things are related.
As I see it, the problem areas are the US and EU. Asia is just reactingn to what's happening.
Because it happens in both the US/EU the problems seem to be related or the same, so it might indeed be the credit expansion versus housing bubble. Interesting is that it hit the EU completely out of the blue.
There's talk about bank insolvency, but they were they insolvent? What's the cause?
And besides the credit expansion we have the CRA in the US, so the enormous amount of bad mortgages over there. There's no such thing in the EU as far as I know, or did they have lots of 100% mortgages as well? I'm not aware of it.
In the EU we had Iceland crash, was that the trigger over there? Or just the first of many?
Why are banks not loaning to each other? It just means they don't trust each other. I.e. they think the other might be insolvent. But why?
Why would it hit NZ? Our banks don't have problem mortgages, and most financial institutions are already broke. The withdrawal protection might make sense given everyone does it, but I can't see a bank run having much effect here.
Pointers welcome.
If it is indeed mainly credit expansion than it's going to be very bad. Else we might survive a bit longer.
Ruth
That's an interesting post you've contributed. You say: "More and more form the right of the spectrum are asking and pressuring for govt intervention and deposit guarantees -- which we hope to stave off."
How?
LGM
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