In twenty short minutes, this guys explains why sometimes doing nothing is the right thing to do.
Differentiates between Austrian economics and Keynesian economics.
Explains why we are in the economic difficulty we are in and how to get out of it.
Compares and contrasts the lessons learned from the Great Depression of 1920-21 -- and why you've never heard about that one -- versus the mistakes we seemed determined to repeat from the Great Depression of the late 20's and early 1930's.
Update from Market-Ticker.org and Karl Denninger re: 1920-21
Outrage(s) Of The Week
http://market-ticker.org/akcs-www?post=193091
Why doesn't anyone talk about the 1920-21 deflationary recession? It would be called a Depression except that it didn't last long enough to be classified as one. In terms of the delta on prices (some 37% at the wholesale level - downward!) and collapse in industrial output it was the most-violent that I can find a contemporary record on. The stock market was cut in half and unemployment soared.
The cause of the collapse was over-exuberant hiring post WWI and the release of a huge number of Army members back into the civilian labor pool.
What's interesting is that there was a Presidential election and Warren Harding presided over nearly all of this. Harding received counsel to intervene from one Mr. Hoover - yes, that Mr. Hoover, who was at the time Commerce Secretary.
He refused that advice and the market and economy cleared within 18 months, posting the largest single-year industrial output gain ever in the history of the United States. Not only that but unemployment returned to the full-employment level as well.
Activism by the federal government and federal reserve works and a "hands off" policy of letting those who get in over their head with leverage, overcapacity and debt doesn't, eh?
Isn't selective memory - and how it's used to block out the success of the government refusing to prop up idiots and swindlers alike a funny thing?
Hardly ever mentions Democrats or Republicans. Or this President versus that President. He puts the onus squarely where it belongs -- on the Federal Reserve.
BTW, speaking of which, the Federal Reserve and Bernanke basically did nothing today and the world didn't end. The markets seemed to breathe a sigh of relief (and by that I mean, went up) and life goes on. Let's hope that sort of behavior continues.
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Here is another highlight reel of blast's from the past.
Significant among them is Maria Bartoromo specifically asking Bernanke if a decline in housing prices could lead to a national recession (about 1 minute in) right before they actually did. Bernanke begins with his now infamous "I guess I don't buy your premise..." line.
Keynesian Economics vs. Austrian Economics
Didn't see it coming.
If you don't know where you've been, how can you possibly know where you're going?
Time to get yourself a new map.
Otherwise, you are just lost and clueless.
Get yourself a new map
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The Lew Rockwell Show 11/07/2008: Why Austrian Economics Matters More Than Ever
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Good tune. Throughout history it seems as if the trick has been to properly identify the devil first. Good tune.
The Rolling Stones - Sympathy For The Devil
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