Monday, September 03, 2007

Subprime mess: An Austrian Explanation.

Bottom line: Fine-tunning by the Fed is the culprit of the current subprime mess.

Here it is, and hat tip Larry White up at Division of Labor for the pointer.

Addendum:

For those who want to know more about Austrian monetary theory and business cycle theory, visit this website. And more here.

1 comment:

said...

I think Fed lose its magic wand this time as China's productivity growth is slowing down. Do you think stagflation is likely to happen?

Accidentally, I saw your blog in Yeung's new book. Accidentally, I found that you are Ho Yeung (I like his article very much!). Will certainly be one of your readers.