Posts Tagged ‘recession’
An excellent post from SFE blogger Nathan Biller on this whole credit crunch, market crisis, housing bubble, recession or whatever you want to call it.
Here’s an excerpt:
So is there a credit crunch? Absolutely! If you define a credit crunch as a situation where more people want loans than can obtain them. What about all the other crunches? Don’t you have a vacation crunch? A nicer car crunch? As a child I experienced many candy crunches (and not the good kind from Nestle). My parents knew, though that if I was given everything I wanted, I would never learn to appreciate those things. People definitely want credit, and it would sure make things easier if everyone were able to get everything they wanted: unfortunately, as one will learn in Econ 101, economics is about how limited resources get distributed to individuals with unlimited wants. If another business or individual is unwilling to loan you money, that’s really the end of the story. You’re not entitled to loan just as a child is not entitled to candy.
Now go read the whole thing!
Tags: Biller, bubble, credit, crisis, crunch, economy, fannie, fed, financial, freddie, housing, inflation, monetaryl, recession
Posted in From The Blogs | 2 Comments »
From SFE Blogger James Hohman:
Here’s the secret about what’s going on in the economy: nobody knows exactly what’s going on. Not the Fed. Not Congress. Not some high-level hedge fund manager. No one. So while we all know that something is bad, we don’t know why it is bad. But without knowing, is it even a “crisis�
That’s why I enjoyed Russell Roberts’ editorial in the Wall Stree Journal today, “Don’t Just Do Something. Stand There!†Check it out here.
As Russell shows, there’s the impetus to do something and there are no rules for what should be done. There’s no model that definitively explains everything here, so any plan seems justified.
It could end up as a battle over the narrative. Was it Herbert Hoover that caused the Depression or monetary policy? It seems the most common explanation today is that deregulation caused it. James Gattuso if the Heritage Foundation clearly shows that this is a big lie. The deregulation of anything stopped in the 80s. You can read his piece here.
Tags: bailout, credit, crisis, depression, fannie, FDR, financial, freddie, hoover, market, recession, russell roberts, wall street
Posted in From The Blogs | No Comments »
Tags: bailout, crisis, economy, fannie, fed, financial, freddie, housing, inflation, lender, loan, mortgage, recession, russel roberts, Video
Posted in Morehouse, Less Government | 1 Comment »
