As the market continues up – and may continue to go up – voices like Faber’s increasingly sound like the voices which warned of the impending housing bubble crash circa 2006-2007.
2 of the most interesting people in political thought. Both of whom in my experience are actually decent human beings too.
Almost everyone knows Ron Paul but more people should be familiar with Tom Woods who’s book Meltdown is a fantastic (and very accessible) explanation of the 2008 Crash. You can read his work and listen to his show at TomWoods.com.
The interviewer rightly points out that Stockman has been calling for a crash for a long time. In March he announced to the world that a crash was imminent and that he was entirely in cash. The market has been up dramatically since that call.
But fundamentally Stockman is right. All the money created by the world’s central banks is floating around out there in financeland (it might not have found its way into YOUR pockets but many Wall Street pockets are full) and that money is tinder just waiting to catch fire.
My bet is that it’s higher than this actually. And by “survive” it appears they mean to actually “survive.” That is scary. Credit is a helluva drug.
In a September 11 Bloomberg article, economist Noah Smith claims that John Maynard Keynes, the architect of today’s government economic policies around the world, wasn’t a “‘socialist’” or even a “‘progressive.’” He did not favor “a command economy.”
Yes he “was in favor of some amount of wealth redistribution and government intervention into the economy.” But “Keynesian policies are fundamentally … about economic stability,… about smoothing out the fluctuations in the economy, reducing risk for everyone concerned.”
Another good one from Charles Hugh Smith.
I wouldn’t say that we’ve ever totally had classical capitalism and truly free prices, but we have been light years closer to them than we are now.
In the attached article Glenn Reynolds examines the new, increasingly stratified America.
Most Keynesian economists do not want to admit that we are in another depression. They find the word painful.
I was talking to a fellow the other day over lunch and we both wondered how it was that Eric Holder could possibly, at this point, remain the Attorney General of the United States. It’s been one blatant abuse of power after another with this guy. Yet he remains.