Hi all, I was wondering how the Austrian School would explain the behaviour in financial markets regarding the creation of sub-prime mortgages, mortgage backed securities, and irresponsible behaviour of those involved. My knee-jerk reaction was “Oh, if there had been more regulation, tighter contr…

The Marxists do so for no good reason. Do you want articles explaining the Austrian view? -Jon

Thanks for replying. Yes please, that would be great.

There’s a great many articles on the topic, so I’ll have to look up a couple. If no one else does so before me, I’ll link a few later on. -Jon

A good one: http://network.nationalpost.com/np/blogs/fpcomment/archive/2008/09/29/bailout-marks-karl-marx-s-comeback.aspx

Hi Herne, Good question. One of the major problems that most have in understanding the current issues is realising that the problem is systemic and on a macro economic scale. Government intervention and bailouts (also known as market maniupulation) is part of the reason we are where we are today. I…

Hi Herne, In order of questions asked will try and simplify for you: Sub prime mortgages: In 2000/2001 the US for various reasons was headed into a long and drawn out recession after excess investment within the technology sector during the preceeding 10 years. The bubble burst. In order to save t…

The long of it: http://www.independent.org/pdf/policy_reports/2008-10-03-trainwreck.pdf The short of it: [image] We Told You So - LewRockwell DIGG THIS This article was excerpted from a chapter in a forthcoming book, u201CThe Economics of Housing Bubbles,u201D in America’s Housing Cri…

Begginer's question on the current Financial Crisis

Economics Economics Questions

krazy_kaju October 11, 2008, 4:21pm 6

Right here.

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Begginer's question on the current Financial Crisis

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