Kevin_Kennedy
Defend Liberty
- Aug 27, 2008
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How so? There is an uncontrovertial corralation between deregulation and bubble economics.
OK you don't have an actual bubble between your ears. It is a figure of speach.. a discription... I'll accept that my attempt to describe your brain as insufficiently lacking in scope.
No, there isn't. When interest rates are artificially lowered you get misallocation of capital which is a bubble that inevitably pops.
No. Definitely not.
I'm afraid it's true, in simple terms of course.
How so? There is an uncontrovertial corralation between deregulation and bubble economics.
OK you don't have an actual bubble between your ears. It is a figure of speach.. a discription... I'll accept that my attempt to describe your brain as insufficiently lacking in scope.
No, there isn't. When interest rates are artificially lowered you get misallocation of capital which is a bubble that inevitably pops.
Allocation of capital is either allowed under the rules or it is dissallowed under the rules. That mechanism is regulated by statute and administered by regulators and supported by the justice system. The interest rates generally effect inflation ...not investment capital. Oportunity in the markets is the prime engine for investment. Not everyone ...scratch that...hardly anyone borrows money from a bank to invest in financial markets...that is until the Bush administration showed that there would be no meaningful regulation in banking.
I recommend you both read this article:
Business Cycle Primer - Llewellyn H. Rockwell, Jr. - Mises Institute
Along with anything else you can find on the Austrian theory of the business cycle.