A New York Times article by Louise Story asks, “Do widening gaps between rich and poor necessarily lead to financial crises?” (Aug. 21) The answer is yes, for a reason observed over 100 years ago by American economist and reformer Henry George: Economic growth enhances the value of titles to real estate and . . . → Read More: Income Inequality and Financial Crises, NYT, Aug 21
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Economists conventionally attribute the Great Depression to blunders by the then-new Federal Reserve Bank. According to this story, promoted by Milton Friedman and the Chicago School, after the stock market crash of 1929, the Fed kept interest rates too high, strangling the economy. This story made most economists confident that it couldn’t . . . → Read More: The Great Real Estate Bubble of the Roaring Twenties This crash is The Big One; it has signs of becoming a Category 5. How do we know? We’ve “been there and done that” so many times before, roughly every 18 years over the last 800 or more. Major wars and, rarely, plagues have broken the rhythm, along with the little ice age, . . . → Read More: The Great Crash of 2008, by Mason Gaffney Mike Hudson has scored the cover story in the May Harper’s: “The New Road to Serfdom: An Illustrated Guide to the Coming Real Estate Collapse.” Our hapless middle class real estate speculators, or innocent homebuyers, pursue the dream of “economic freedom,” taking on ever greater debt to snap up appreciating real estate. . . . → Read More: Bubble, CPI and CEO Bonuses |
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