Waves

by Cato5/4/15

world

First launch, “new economy”-fueled technology bubble. Oops.

Second launch, “affirmative credit”-fueled housing bubble. Ouch.

Third launch, central bank “QE & ZIRP”-fueled financial asset bubble. Third time’s the charm? Or three strikes and you’re out?

Graphic from Mark Perry’s AEI blog, “Carpe Diem.”


Michael Booth, often posting and commenting as Cato, lectured in finance and economics at the Univ. of Texas, and worked for 20 years as an independent contractor and managerial trainer on financial topics in the technology industry.
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4 Responses to Waves

  1. Timothy Lane says:

    Well, I’m no expert on finance, but current financial policy sounds very much like encouraging a bubble, and we know how bubbles eventually end. This is why good news causes the stock market to fall — it means the Fed may finally tighten credit and end the bubble.

  2. Brad Nelson Brad Nelson says:

    The idea that government can control the economy in a positive and stable way is another example of “settled science.” And no matter how many times it is unsettled by reality, the will to believe in the Cult of Government endures.

  3. Kung Fu Zu Kung Fu Zu says:

    As I grow older, I become more convinced that the main impetus behind all these governmental and semi-governmental “economic” programs is the self-interest of those instigating the programs. That some others may, over the short term, profit is only incidental.

    • M Farrell says:

      “First launch………….oops;
      Second launch…………ouch;
      Third launch…….”

      Never mind “third time’s a charm” or “three strikes your out”– How about “JUST DUCK AND COVER!”

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