Market Tanking After Fed Pricked Their Own Bubble
By Samuel Bryan
January 26, 2016
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“I think [Yellen] wants to elect Hillary Clinton. She doesn’t want to hand the White House over to Republicans or Donald Trump. I think she doesn’t want to have happen to Hillary what happened to John McCain. When the wheels came off the bus in the last year of the Bush administration, a Republican had no chance. Obama’s whole claim to fame is that he inherited a disaster and now everything is great. The truth is he inherited a disaster and now it’s a bigger disaster…
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It’s a shame because if we had a “true told standard”, the politicians could not mess with the “money” or the interest rate.
The boom ’n’ bust cycle is caused by the mistakes (what the Austrian School of Economics calls “malinvestment”) of entrepreneurs, investors, and corporate executives. Look at the empty cities that the Chinese have built for bad decisions.
When an entrepreneur, using his own capital, makes a bad decision, they bear the damage.
When the politicians and bureaucrats make a bad decision, it’s the taxpayers and Joe-Sixpack who are hurt.
Look at TARP which was passed to by distressed mortgages and allow Joe-Sixpack to stay in his home and work it out. Instead, it “magically” was transformed into a bailout for Wall Street and the Big Banks. They paid out big bonuses to their executives and, together with those executive, made big contributions to the politicians, their PACs, and their parties — both of them!
Argh! And, you wonder why I am cynical about all of them?
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