By Paul B. Farrell, MarketWatch
Bulls love bull markets. History’s most famous bull, Yale economist Irving Fisher, loved the Roaring Twenties of the Great Gatsby.
Remember, weeks before the Crash of 1929 this brilliant Yale professor told investors: “Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon, if ever, a 50 or 60 point break from present levels, such as [...]
by John Aziz, Azizonomics:
It is true that the equation I am referring to — MV=PQ, where M is the money supply, V is velocity, P is the price level and Q is output — is not exactly Friedman’s equation. It was initially theorised by John Stuart Mill, and formulated algebraically by Irving Fisher, but adopted by Friedman and his monetarist followers to the extent that Milton Friedman had it as his [...]
We’ve been in a state of mild shock since Saturday, after discovering strong support for full reserve banking from a working paper by economists at the International Monetary Fund (IMF), an institution that many have come to see as preserving the status quo and protecting the banking sector against the interests of ordinary people.
Two IMF economists have released a discussion paper “The Chicago Plan Revisited” that supports the proposals of Irving Fisher – those [...]
Great Depression happened in 1929. It took over 10 years to cure.
Effects of depression:
13 million people became unemployed.
Industrial production fell by nearly 45% between the years 1929 and 1932.
Home-building dropped by 80% between the years 1929 and 1932.
From the years 1929 to 1932, about 5000 banks went out of business.
That’s where when the buyer ran out of the market…. and this is what happening now in 2008. Investors now are [...]
The best explanation I have seen yet…of course…from Steve Keen.
See the full article at his DebtWatch page.
The argument is that a rise in debt merely indicates a transfer of spending power from a saver to a borrower. The debtor’s spending power rises, but saver’s spending power also falls, so in the aggregate there will only be a macroeconomic effect if there is a very large difference in behaviour between the saver and [...]
While Ben Hur is trying to flood the system with even more Debt, there are alternative ways of running the Economy. As with all systems, there are pros and cons, but maybe something in the middle would work. Irving Fisher’s 100% Money, A Summary;
In the United States, as in a few other countries, most of our bills are paid by check—not by money passing from [...]
Whilst the economy declined the stock market rallied â€œdelirious optimismâ€ on Wall Street, dislocation â€œdisconnectionâ€, â€œspeculative bubbleâ€ â€œpermanently high plateauâ€ on Wall Street whilst Main Street suffered, â€œthen the bottom fell outâ€ level now at Wall Street crash levels.
Main Street and Wall Street mirroring the fallout reconnected and moved along the bottom for a decade and a half, only to eventually rise due to WWII and the New Industrial [...]
We saved the world! Ben Bernanke Aug 2009
The recession is likely over, Bernanke Sep 09
I see nothing in the present situation that is either menacing or warrants pessimism… I have every confidence that there will be a revival of activity in the spring, and that during this coming year the country will make steady progress.”
- Andrew W. Mellon, U.S. Secretary of the Treasury December 31, 1929
“I am convinced that through [...]
If people don’t start to think for themselves by observing the real world around them versus this cheap talk based on nothing of substance they’re in deep trouble.
1.”We will not have any more crashes in our time.”
- John Maynard Keynes in 1927
2. “I cannot help but raise a dissenting voice to statements that we are living in a fool’s paradise, and that prosperity in this country must necessarily diminish [...]
Tuesday, May 4. 2010
Posted by Karl Denninger in Macro Economics at 12:45
In 1930 there were all sorts of statements about how it was “all under control” and “prosperity was returning.” Some examples of the 1929 and 1930 idiocy:
“Financial storm definitely passed.” – Bernard Baruch, cablegram to Winston Churchill, November 15, 1929
“I see nothing in the present situation that is either menacing or warrants pessimism… I have every confidence that [...]