The Keynesians’ New Clothes

Since early 2010 I have been arguing in my reports against the core neo-Keynesian precepts of the economic and monetary policy mainstream. In general I have not been optimistic that, notwithstanding their abject failure to foresee the global financial crisis, and their ongoing, failed responses thereto, the mainstream would reconsider its views. But some interesting [...]


Fraud: Why The Great Recession

Free markets are not to be blamed for the Great Recession. On the contrary, its origins rest upon the deep government and central bank intervention in the economy. Through fraudulent mechanisms, this causes recurrent boom and bust cycles: bad policies create phases of irrational exuberance, which are then followed by economic recessions, a result [...]


Real Estate Opportunities For The Next Decade (Part 1 of 3)

Real estate investors typically have longer investment time horizons than investors in publicly traded equities, bonds and funds. While it is possible to buy and sell a stock within a few hours, and typical to liquidate these investments within several months, real estate investments are typically held for a decade or more. Consequently, it makes [...]


The Mess We’re In

“The genius of our ruling class is that it has kept a majority of the people from ever questioning the inequity of a system where most people drudge along, paying heavy taxes for which they get nothing in return.”

- The late Gore Vidal.

“It’s a mess, ain’t it, [...]


Two Different Stories About The Economy

Guest Post

As you may know I am a big fan of Cafe Hayek, the blog of Russ Roberts and Don Boudreaux, professors of economics at George Mason. Both write clearly and logically, often with a touch of humor and a bite of sarcasm. I always learn something from them. Here [...]


“The Great Abdication” — Of Responsibility


Perhaps the most constant theme in Paul Krugman’s recent columns has been his unwavering belief that the only way out of this depression is for governments to borrow and spend, and for central banks to inflate. He continues to beat the old drum that (1) there is not enough regulation of business, (2) [...]


“Disappointing” Employment And Manufacturing Data

What kind of economic theory is one in which economists look at data from a past period of time (say, one month, or two months, or …) and conclude that the next period will be the same? That is the “theory” on which almost all economics rely on. So, today, when ADP reported employment gains [...]


Monetary Policy, The Real Economy, And Asset Prices: Where Are We?

In the wake of recent market volatility and the Federal Reserve’s Open Market Committee meeting on April 24-25, calls for another round of Fed easing, ”QE3,” have again been stoked. It is worth sorting out the pros and cons of such a move for both the U.S. economy and financial markets.



Hayek vs. Keynes Rounds 1 and 2

I have featured these videos before, but for those of you who haven’t seen them, this is a very fun look. Russ Roberts, an econ professor at George Mason University and well-known Hayekian, put these two videos together with producer John Papola to popularize Austrian economic thought and to contrast it with Keynesian economics. The [...]


Germans Channel Austrians As They Prepare To Do What the U.S. Should Have Done Last Decade

The Germans, who along with the French took the lead last decade in violating the Maastricht Treaty’s limitations on fiscal deficits for eurozone member states, are uniting to reject pleas from advocates of loose monetary and fiscal policy in Europe (allegedly to “save” improvident debtor nations).  In doing so, they are looking not to Keynes [...]


Conventional Wisdom And Our Stagnating Economy

Gallup came out with a recent poll that revealed an interesting sentiment held by our fellow Americans:

More Americans say it is important that the federal government enact policies that grow the economy and increase equality of opportunity than say the same about reducing the income and wealth gap between the rich and the poor. [...]