Thursday, March 7, 2019

US households see biggest decline in net worth since the financial crisis

Much of the slide came due to Wall Street's woes, as the stock market suffered a precipitous decline that started in October and briefly reached bear market status. Equities skidded as investors began to fear that the Fed would keep raising interest rates even as economic conditions began to deteriorate.


Nothing looks the same to me since I finally (I know, belatedly, and yes, I'm "educating myself in public," something that we omniscient academics are never supposed to do) got my arms around Austrian business cycle theory. It's here if you're interested.
It's a horribly plausible theory. And the Fed raising rates then scampering back when the market drops, and announcing, heck! we're just gonna keep on quantitative easing! fits only too well with Hoppe's story. But maybe it's wrong. I hope so.

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