- Banned
- #151
'p funny'?This is p funny.
"the guts"
Hahahahahehehe
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evo
Let's hit the f*ken road!
Perhaps it has escaped your notice: governments are run by humans too.
- Banned
- #155
I wondered whether you were self-censoring 'piss'.
You are big on 'property rights', but I ponder:
Are 'property rights' essential because they are an intrinsic good, or because you think society is better off when 'property rights' are protected and upheld?
but even Goldman's could have tipped over if the overnight interbank lending became frozen as a systemic risk pattern set in. By my layperson's understanding (which is an oxymoron!)
my point was that to let banks fall over could have created that phenomenon and UK/US/Iceland banking goes, then their economies are destroyed overnight.
competent regulation would mitigate it no? The firms under regulation have looked to undermine it at every point, and the political system has been a party, so the fraud and corruption moved into that sphere, not just the market.
I don't think you have adequately answered systemic risk. Austrian School says business failure answers the optimal solution. But did this take into account the current level of integration in banking and the economy? Nassim Nicholas Taleb says the banks on Wall Street do not even understand risk.
So the bank rescues raise a moral hazard, and Goldman's is one putting on more risk. This runs counter ofcourse. But you wanted the economy to tip over in Austrian School idealogy, and let the banks fail, fear of moral hazard and an optimal efficiency, more so than a regulator? What about the wealth destruction to the real economy through the banking freeze? Firms that did not choose Kaupthing, and chose fundamentally sound banks.
I don't agree with a potential scorched earth policy, for potential future efficiency. Concede, both potential, not just one.
well I saw how they failed at all stages with regulation, and were more facilitators of the economic crisis. I would suggest, if they acted as regulators and were government actors, the crisis would have been mollified.
But as you say, they (or my point) were/was vulnerable to the same criticism I was making on theory in the market.
This is the Austrian argument ie governments via central banks hold interest rates lower than they would otherwise be, thus increasing economic growth but also ensuring monetary issues.
All governments will go for higher rather than lower growth even if this means inflation and monetary crises down the track.
but I meant how they had been co-opted, the regulators co-opted.
Chicago commodities exchange under spell of Goldman. Madoff completely weaving a spell on the SEC.
So, where Evo alluded to, this undermining of the regulators, they were always susceptible to the same human frailties that I criticised the market theorists with.
And the incentive is skewed, like Meds alludes to, and this is on both sides, the Fed, and the banks, with their incentive structure pushing for high water marks and bubbles.
- Banned
- #161
Mate, after the events of recent months, I think you'll find most Western governments now regard the nutbars of the Austrian school the same they do the flat earthers and the La Rouchians.
Which is unfair to the La Rouchians, as their economic predictions have been more accurate than the Austrians.
- Banned
- #162
Anatole Kalestky is the voice of the Austrian school in the meejya. One of Rupert's bumboys.
Some of Anatole's recent pearls of wisdom, derived using an intense analysis founded on the principles of Von Mises and those other frauds include:
"… I am one of the few economic commentators who has consistently made light of the anxieties about a “day of reckoning” for British homeowners and consumers …"[1] Predictions include that "the credit crunch seems to be ending" (June 2008) and that "there will be no US recession" (January 2008). His latest prediction is that in the United Kingdom general election, 2010, the Liberal Democrats may displace the Labour party as the "dominant party of the Left".
Some of Anatole's recent pearls of wisdom, derived using an intense analysis founded on the principles of Von Mises and those other frauds include:
"… I am one of the few economic commentators who has consistently made light of the anxieties about a “day of reckoning” for British homeowners and consumers …"[1] Predictions include that "the credit crunch seems to be ending" (June 2008) and that "there will be no US recession" (January 2008). His latest prediction is that in the United Kingdom general election, 2010, the Liberal Democrats may displace the Labour party as the "dominant party of the Left".
SLF that is utter nonsense. The Austrians were the ones who predicted this repeatedly (see Schiff et al).
They have come out of this looking far better than all others including the monetarists who forgot what monetarism was.
When all and sundry talked of a new paradigm and big increases in money supply without inflation it was the Austrian School who stood alone at the parapet.
That idiots like Rudd are unable to understand why they were right and why the ideas of Hayek have shown to be right is not their fault.
You are way, way off the mark. He is most certainly not a believer in the Austrian School.
http://www.timesonline.co.uk/tol/comment/columnists/anatole_kaletsky/article6041266.ece
Trillions of additional money will be printed and spent by governments, poured into bank balance sheets and returned to consumers via tax rebates — and this process will continue until private spending finally takes off.
One way or another, the world economy will recover and a second Great Depression will have been averted — and the Keynesian idea of “curing debt with debt” will have been shown to work
.....
And more of his nonsense (I agree with you he has utterly lost the plot, he has been a Gordon Brown cheerleader for years)
http://www.timesonline.co.uk/tol/co...rticle6041266.ece?token=null&offset=12&page=2
Many financiers have been calling, instead, for a “market solution” based on the so-called Austrian school of economic analysis: the seemingly common-sense view that a crisis created by excess debt cannot be treated with further borrowing but must instead be cured by cutting back inefficient spending and investment and liquidating insolvent businesses, households and banks. The upshot, in the words of Murray Rothbard, the leader of the Austrian school after the death of its founder Ludwig von Mises, is that “recession is a painful but necessary process by which the market liquidates unsound investments and re-establishes the investment and production structure that best satisfies consumer preferences and demands”.
One does not have to go into the economic details of this argument to see why it makes no sense.
- Banned
- #165
He has seen the light then. He worked at The Economist in the 70s when you had to be stuck on Austrian school to get through the door.
Ohhh wait, you're one of those people that think America's economic policy of the recent years is somehow what the Austrian school agrees with and supports, which is of course completely false.
Well, at least now I know not to argue with you because you don't know what you're talking about.
As you noted he has been making a total goose of himself in the last two years (and I used to rate the chap to an extent)
The Austrians were right. It is always amusing to people trying to argue otherwise.
Criticism of Greenspan and Bernanke is now widespread (even quite a few Dems are against Bernanke continuing).
Wrong or as per his housing call simply premature?
The $ has to depreciate against another currency. The UK is barely out of recession and has a huge deficit, the EU is stuffed, Japan is even more stuffed and the Swiss have intervened to stop appreciation and the Chinese wont let the Yuan appreciate.
Still does that refute the basic argument of the Austrian School re central banking?
we need some Marc Faber
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- Banned
- #171
The Austrians M.O. in any mixed economy is to say the sky is falling. One out of ten times they are right, the rest of the time they are dead wrong
Is this where Shiff needs some Soros omniscience re: geopolitical factors which will influence timing.
Dead wrong about what? When the world moved away from Keynesian witch doctory in the early 80s things got far better.
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- #174
Really? The average middle class American has seen their real income fall since then.
- Banned
- #175
It got better for bankers though, and they're the only people who matter!
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