The Economics of Housing Bubbles

[Sapiens]

http://www.mises.org/journals/scholar/Thornton13.pdf

The Economics of Housing Bubbles

Nothing better illustrates government failure and the housing crisis than the housing
bubble. Government policies make homes increasingly expensive and beyond the
economic reach of first-time home buyers. Then as interest rates rise and housing prices
fall, many home buyers find themselves with bad investments that they can no longer
afford. What started as a government effort to improve the prospects for home ownership
through a policy of “easy money” ends up having unintended consequences that will
leave many Americans economically scarred for the rest of their lives.2

.pdf working paper on housing bubbles, worth a read.

[Tet]

Re: The Economics of Housing Bubbles

http://www.mises.org/journals/scholar/Thornton13.pdf


“easy money” ends up having unintended consequences
.pdf working paper on housing bubbles, worth a read.

Peter Pan economics, the above is the reason I've realized that what the author refers to as Modern Mainstream Economics, i.e. Austrian Gold Bugs, Chicago Gangsters or Keynesian Behaviorists is that all these views are full of shit and in the end any understanding you think you may have studying these views or holding these views only costs you money.

Anyone believing there is some kind of unintended consequence to "easy money" is a complete idiot. Only one thing you need to understand regarding bubbles and that's when they pop is when the money gets made. From this obviously the Fed and Wall Street is doing everything possible to create bubbles, you've got to create them in order to pop them. These Modern Mainstream Economists who believe somehow there is a way to hold all the trillions of variables in the world of economics constant while they analysis the effects that one variable over all the others do nothing but engage in a game of mental masturbation. We live in a world of Pirate Capitalism where raping, looting and plundering is how the money gets made, having that understanding is how to make money in this market.


This author goes on to claim that Greenscams testimony before conngress at times could almost be viewed as misleading. LMAO, in Zero Sum games it's to the players advantage to get a majority believing/betting the wrong direction, so of course Greenscams testimony before conngress is misleading, that's his job to be misleading, today it's Bernie's job so we'll have an idea how he does it by the end of this summer.

[Sapiens]

Re: The Economics of Housing Bubbles

Only one thing you need to understand regarding bubbles and that's when they pop is when the money gets made.

In other words banks are FOR PROFIT entities and monetary policy is dictated for the profit of those whom run the system.

[fogger]

Re: The Economics of Housing Bubbles

In other words banks are FOR PROFIT entities and monetary policy is dictated for the profit of those whom run the system.

Yes, but 95% of us believe institutions like the Fed have the public's best interests at heart. That belief must be dispelled. Their power is maintained through that deception.

[metalman]

Re: The Economics of Housing Bubbles

Peter Pan economics, the above is the reason I've realized that what the author refers to as Modern Mainstream Economics, i.e. Austrian Gold Bugs, Chicago Gangsters or Keynesian Behaviorists is that all these views are full of shit and in the end any understanding you think you may have studying these views or holding these views only costs you money.

Anyone believing there is some kind of unintended consequence to "easy money" is a complete idiot. Only one thing you need to understand regarding bubbles and that's when they pop is when the money gets made. From this obviously the Fed and Wall Street is doing everything possible to create bubbles, you've got to create them in order to pop them. These Modern Mainstream Economists who believe somehow there is a way to hold all the trillions of variables in the world of economics constant while they analysis the effects that one variable over all the others do nothing but engage in a game of mental masturbation. We live in a world of Pirate Capitalism where raping, looting and plundering is how the money gets made, having that understanding is how to make money in this market.


This author goes on to claim that Greenscams testimony before conngress at times could almost be viewed as misleading. LMAO, in Zero Sum games it's to the players advantage to get a majority believing/betting the wrong direction, so of course Greenscams testimony before conngress is misleading, that's his job to be misleading, today it's Bernie's job so we'll have an idea how he does it by the end of this summer.

a fine summary, and kudos on the three schools!

Austrian Gold Bugs, Chicago Gangsters or Keynesian Behaviorists

all crap. michael hudson makes the most sense.

[Tet]

Re: The Economics of Housing Bubbles

a fine summary, and kudos on the three schools!

Austrian Gold Bugs, Chicago Gangsters or Keynesian Behaviorists

all crap. michael hudson makes the most sense.

I'm coaching my son's summer basketball team, he's 13 and just started playing basketball, I've been coaching his younger brother for a few years now but don't know any of the kids in this new age bracket. At the try-outs about 25% of the kids don't show-up. I am completely in the dark about the abilities of the kids who haven't shown up and am told before the coaches draft the players the coaches will rank the kids who didn't show up abilities. Fortunately for me there's a kid down the street I know pretty well who plays all the time and I have him rank the kids for me.

He ranks one of the kids who didn't show up as the best player in the entire league. When the coaches get together to rank these kids one of the coaches who knows I don't know any of these kids says the kid is average. I know this guy has coached for years and he is obviously lying to me for potential personal gain of drafting this player. This is just a bullshit basketball league and the guy is lying to me. There's no money involved, no job security gained, nothing but the desire to win involved here and the guy is lying his ass off.

I can tell this story to a thousand cows here in the US and everyone will understand why the guy lied to me, so that he could have a better basketball team than me. You tell this same story regarding stockbrokers to these same cows and none of them understand that these brokers are lying their asses off for personal gain. We truly live up to the song American Idiot.