I noticed in the most recent crash… Construction seemed to yield at least a year or so before the bust. Would this be an example of the over-investment in capital as compared to consumer goods? And; what would be a good (or several) example of this?
I am afraid of the recent rapid incline in Dow Jones investments (a quick boom)! Does this indicate a bust will phase will occur sooner than later? And; will housing investments continue to falter?
Will the price of oil severly manipulate market prices? I know this is a medium for manipulation, and I’m not trying to wear on y’all but, I again would like more examples? The recent leak in the ocean needs to be properly adjudicaded by a belief in just compensation, and an appeal to private ownership of ocean property! I believe the increase in the costs of production in oil, should fail the company responsible by paying back the victims of that disaster. If there is a way the current failed justice system can do this I would be curious on how that took place.
I am of course curious about what y’all think are the principle indicators in a bust, and how soon the phases will occur based on previous ones.
Why don’t investors quickly react to a drop in demand, and why don’t prices drop in response? It’s manipulation but I must impose on some examples, please.
high ordercapital good price drop.. raw metals, ores, oil, all that goin’ cheap. and the drop in demand IS the response of the investers, as they see the boom created high order capital not being backed by lowered time preferences of consumers and get their money the hell outta there.
It’s a shame that just prices(free market prices) don’t apply across all markets. I feel that the distortions in interventionist markets distort the prices of products across all markets. If we had a just price, this would be the best measure of demand in my opinion, but how would I go about proving this?
I think having a just price would also bring a natural stability to aggregate markets. I am only opinionating if I can’t build a structured case.
I don’t think stock markets are a good measure. They are terribly manipulated. Aggregate markets can not measure individual demand! True/just prices would make a better measurement. “Free prices”-on like a repeating record-
In general, price differentials between consumers goods and producers goods is usually an indicator. Rises in consumers goods prices catch up and eventually exceed rises in prices of producers goods. I am talking about all relative of course, and not nominal. Nominal prices are misleading. But this is all very difficult to measure. Government and most current Academic statistics don’t measure prices of all producers goods and especially all of the intermediate capital goods in the early and intermediate stages because they think they would then be double counting. That’s what an absent of capital theory will do to you.
I don’t really see how it would be double counting, I imagine figures would be different. Surely some group out there measures investment trends? As an austrian looking in to the boom phase, how can one properly determine an over-investment in capital as compared to consumer goods. What would be some good ways of analyzing the structure of the boom. Can we say that interventions during the bust phase lead to a more fragile structure in the coming boom, as well as a prolonging of the bust?
Can one say that a decreased purchasing power of the monetary unit causes investors to percieve mixed signals?
It seems like most government actions create more problems than existed before the percieved hobgoblins were tackled. Of course instead of backtracking, the plunderers just make more rules to aggrevate the problems they have created, sort of like a lier that makes more lies.