EXPANDING ON THE PREVIOUS QUOTE ...: American economists are as dumb as the rest of them. They all seem to believe capitalism needs to be carefully controlled. By them, of course. Then they control and pervert the system... it blows up... and they blame it on capitalism. I think there is a catastrophic episode of that coming down the pike. They distort asset prices with QE and ZIRP. Then people invest their money foolishly – because they are reacting to the distorted asset prices. Just look at the US stock market. It is near an all-time high... even though the economy is barely growing. The prices are based on two things that cant possibly continue: cost cutting and zero-interest-rate policies. Stock prices could easily be cut in half. But this time, its not just a few foolish investors who will lose money. It will be millions of ordinary investors and business people... and households... and governments that depend on tax revenues. We could be looking at a major problem. And it will be blamed on capitalism... Fere libenter homines id quod volunt credunt.
Posted on: Mon, 11 Aug 2014 21:23:02 +0000
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