Sometimes reality shines through even in Cuba.
The Soviets sure did love infrastructure. Worked out well for them.
These are opposites, not similars.
Federal Reserve “independence” is a convenient untruth for the Fed and for many in the Washington political class. The Fed is absolutely influenced by politics. This is evident even to the fairly casual observer.
(From The Dallas News)
Carnegie Mellon University’s Allan Meltzer, a distinguished monetary economist, had this to say about Fed policy during the crisis: “Under Mr. Bernanke, the Fed has sacrificed its independence and become the monetary arm of the Treasury.”…
…Bernanke’s Fed seemed to care just as much about the health of prestigious financial houses as the state of the economy.
Another great report out of Caracas. I have to say that these guys have got to be at least a little nuts. Though we are thankful for the light they are shining on the situation in Venezuela.
Funny how socialism makes one appreciate the finer things in life, like simple price discovery.
During the Crash the Fed should have let things fall. It would have been painful. Very painful for some. But the market would have cleared. Some people would have picked up deals and many people would be in houses now, even many who would have hurt in 2008/2009, with positive equity.
Instead the Fed intervened and tried to put a bottom under house prices. As such we have the situation we have now. Millions of homeowners still underwater and a much less mobile workforce.
This is pretty great. Apparently it’s a hit. Who ever thought a game about standing in line to get old potatoes would be well received?
Perhaps some people know how important it is to never forget.
Venezuela is seeing some challenges. But this is what happens when planners try to deny the natural tendency of prices to ebb and flow.
Prices must be able to move. They are how we derive inormation about what is valuable and what is not. When the price discovery system is skewed or abolished (it’s never really abolished) the economy becomes highly inefficient.
From the master.
Why private cartels are always “floperoos,” and why businesses must have crony arrangements with government to maintain cartels.
When oil prices collapsed after the Saudis opened the spigots and dropped the “oil bomb” on the world (and they still have bombs to drop if need be) ACC (and others) warned that this could be very damaging to the American economy. Though the lower gas prices were welcome, the engine of the post Crash “recovery” in the USA was the fracking revolution which spread down the Rocky mountains and into parts of the Midwest. Now an economic slowdown is spreading the same way.