New to Austrian Theory, and after reading Austrian literature/watching YouTube, I have some questions: The main pitfall of artificially lowering interest rates is that it inspires consumption of houses that would normally never be purchased by the same people. From what I gather, the trouble comes …

I’m not sure where you got the idea that lower interest rates only entice a bubble in housing…but if you take out those two words, your statement is basically true. It’s not. That’s not the trouble. Again I’m not sure where you got that idea. Well if you want to get technical, anyone with a big…

Great links by John James, please do read them. In particular though pay attention to Time Preference, Uncertainty, Risk, and Savings. A loan is a promise about an uncertain future. When the 99% are railing about the growing gap, they should go look at the initiatives to put every person into a hom…

Don’t forget that the central banks, government bureaucrats and other uses of force not only create the Business Cycle but are also unable to perform Economic Calculation.

Strapping on more regulations just solve the symptoms, not the underlying problem. The fed’s low interest rates distorted the market and placed resources to where it should not have went. This means that if the fed DIDNT manipulate the interest, then spending, investments, savings, resources would a…

Regulated Spending A Solution to Inflated Housing Market?

Economics Economics Questions

John_James August 29, 2012, 9:47am 4

And here I thought the term was “link spam”. Silly me.

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Regulated Spending A Solution to Inflated Housing Market?

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