Recently President-Elect Obama blamed the economic downturn on the poor housing industry.
This entry was posted
on Thursday, December 4th, 2008 at 10:40 am and is filed under Econ 101.
You can follow any responses to this entry through the RSS 2.0 feed.
You can skip to the end and leave a response. Pinging is currently not allowed.
One Response to “Root of the Housing, Auto and Economic Crisis”
There are a lot of factors that played into the crisis, but the single largest contributor, the federal reserve — and our monetary policy in general — is rarely discussed in the mainstream.
Economist from the austrian school of thought correctly attribute the cause of the business cycle — the violent booms and busts like we are experiencing now — to the federal reserves manipulation of the interest rates. they saw this coming years ago, and no one listened:
the crisis is now being erroneously blamed on the free market. if we had a free market, we would not have a federal reserve meddling with the market and printing money to bailout failed banks and businesses. that is the antithesis of a free market and that is what led to the mess that requires a costly correction. any attempt by the government to prevent this correction will delay and worsen it…and that’s exactly what they’re doing.
There are a lot of factors that played into the crisis, but the single largest contributor, the federal reserve — and our monetary policy in general — is rarely discussed in the mainstream.
Economist from the austrian school of thought correctly attribute the cause of the business cycle — the violent booms and busts like we are experiencing now — to the federal reserves manipulation of the interest rates. they saw this coming years ago, and no one listened:
http://uk.youtube.com/watch?v=2I0QN-FYkpw
the crisis is now being erroneously blamed on the free market. if we had a free market, we would not have a federal reserve meddling with the market and printing money to bailout failed banks and businesses. that is the antithesis of a free market and that is what led to the mess that requires a costly correction. any attempt by the government to prevent this correction will delay and worsen it…and that’s exactly what they’re doing.