Why is my hair still wet?

[pacotelic.livejournal.com]

Comments

[pacotelic.livejournal.com]

The main reason for the housing crisis was that Greenspan kept interest rates artificially low to avoid inflation. Lending was so cheap banks couldn't help but lend, to anyone. They never took the haricut classic economics says they should have.

Otherwise, I do appreciate it.

[michael barnett (from livejournal.com)]

It's the main reason for the dot com bubble before that. Whenever you see what Austrians refer to as "a cluster of errors", you can bet your ass that some misinformation has been disseminated. In this case, the artificially low interest rate is telling people at all levels to borrow because the price of money is so cheap. But it's not the underlying economic conditions telling people to borrow -- it's the inauthentic interest rate. That's when the trouble starts.

[pacotelic.livejournal.com]

The fundamentals of the dot com bubble were different. We had Andresson's and Berners-Lee's actual innovation to divvy up, and a lot of speculative wealth got created then.

Reagan's S&L and Bush's Mortgage Crisis were much more funny money chasing bad policy.