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Source link: http://archive.mises.org/8931/midweek-financial-gum-drops/

Midweek financial gum drops

November 12, 2008 by

Have twenty minutes of free-time? Then be sure to read The End of Wall Streets Boom by Michael Lewis (same guy behind Money Ball and Liar’s Poker). Well-written, engaging and informational.

And speaking of the end of booms, Randall Forsyth at Barron’s recently published “Uncle Sam’s Credit Line Running Out?

You may also be interested in a recent Bloomberg interview with Marc Faber:

And here is interesting CNBC interview with Martin Hennecke:

{ 8 comments }

Boerston November 12, 2008 at 8:08 am

{“…twenty minutes of free-time…. Well-written, engaging and informational..”}

… your post seems to be some type of mildly disguised advertising/promotion/marketing.

It would be more helpful if you at least included a brief content summary of the “promoted” material.

Exactly WHY do you think its worth twenty-minutes of one’s time ??

J Cortez November 12, 2008 at 8:38 am

Boerston:

If it wasn’t in some way pertinent or interesting to Austro-libertarian thought it wouldn’t be on this blog.

And if you think what is mentioned in this blog post is a waste or time, pointless marketing, not worth reading or just straight out trash, then don’t read it.

Nick November 12, 2008 at 9:17 am

Why so harsh? He was posting links.

Matter of fact, the first story was exactly as he described: Well-written, engaging, and informational.

And for the record, it only took me about ten minutes to read the whole thing.

Keith November 12, 2008 at 9:40 am

I think the best statement (in the second clip) was the guy saying that the chairman of S&P should be hauled in front of Congress for making statements about the bond ratings.

I liked the guy in the first clip saying that Ford and GM should be just given to Toyota. I tend to agree. For 35 years these companies haven’t been able to make a decent small car. They fall into the same category as the New Deal and Great Society as colossal failures (so, of course the government will perpetuate them forever).

Artisan November 12, 2008 at 1:01 pm

Very well written story.
Quote:
“He thought the cause of the financial crisis was “simple. Greed on both sides—greed of investors and the greed of the bankers.” I thought it was more complicated. Greed on Wall Street was a given—almost an obligation. The problem was the system of incentives that channeled the greed.”

maera November 12, 2008 at 2:20 pm

Then there’s the greed of the borrowers who couldn’t be expected to pass up on a fraudulent loan offer – not to mention the government mandate to ignore traditional lending standards.

Those who start and end with Wall Street as the blame for the mortgage crisis are more interested in garnering evidence that capitalism is evil and needs to be inhibited as much as possible than in analysing the chain of events for understanding.

I think of it more as the bad loans at the foundation of it all made to increase minority homeownership beyond historic levels as the spark that set the whole thing ablaze. For those who would advocate more regulation to prevent future crises of such magnitude, keep in mind that even Eisman didn’t realize that fraud was being committed at first. It took even longer to realize the magnitude of it.

Crafty financiers found a way to make a profit off of bad loans that were initially imposed by government intervention. Amazingly enough, the unsound lending practices at the foundation of the crisis became the basis for an ever more attenuated sense of reality. Yes, greed is at the heart of this but also a failure to recognize the consequences of failure – all predicated on schemes to make the probable outcome of a bad risk profitable.

Yancey Ward November 12, 2008 at 2:47 pm

If lenders will not lend to the treasury, we shall see a mandatory new retirement program for all workers to “protect” their retirement accounts from the evil market. It will consist of long term, low interest bonds- all for the workers’ own good, you know.

Bruce Koerber November 12, 2008 at 6:43 pm

Backed that creature into a corner!

Sounds like a threat to make the S&P official go before Congress and tell them that the U.S. is bankrupt! He already said it, Congress needs to listen, that’s all!

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