Yet there is not the slightest hint that the author has considered the possibility that the origin of these "excesses" -- what Austrians call malinvestments -- is purely economic and avoidable. ❋ Unknown (2008)
In his latest call, he makes reference to Gold, to western central bank sales, and of the significant global movement towards government run economies which will result in increased overheads caused by malinvestments resulting from political dogma, slower growth and higher unemployment. ❋ Unknown (2009)
In coming months this new standard will force companies to expose all of their malinvestments and the increase in reported write offs will be absolutely huge in comparison to the losses they have already admitted. ❋ Canadian Silver Bug/Green Assassin Brigade (2007)
It stimulates over-consumption at the expense of viable capital formation, and it stimulates or maintains malinvestments at the expense of viable capital projects. ❋ Unknown (2009)
Eventually this reality caught up with the malinvestments, and the house of cards crashed. ❋ Unknown (2009)
When the malinvestments caused by credit injection start becoming apparent, that triggers the doubt about the validity of the signals being sent. ❋ Unknown (2009)
The solution is to let prices fall until they correctly signal the boom's malinvestments. ❋ Unknown (2009)
Monetary inflation counterfeits the signs of a boom and that causes investors, manufacturers, etc. to build excess capacity or other malinvestments. ❋ Bill Kerr (2009)
But the bottom line, we will never get out of this current economic downturn until the government gets out of the way and the creative powers of the market society are unleashed to correct the previous malinvestments caused by government distortions, and to adjust to changing circumstances to coordinate the creative innovations of producers with the demands of consumers to live more enjoyable and comfortable lives. ❋ Unknown (2008)
Rothbard contends that the Great Depression was brought about by the malinvestments (like our housing bubble) financed by the inflationary monetary expansion created by the Federal Reserve Board. ❋ Unknown (2008)
Libertarians have been greatly influenced by the Austrian school of economics which holds that the increase in the money supply by the Federal Reserve will lead to malinvestments (e.g. subprime mortgages) that will be exposed as such leading to painful corrections as they are liquidated. ❋ Unknown (2008)
The question is: "Are the malinvestments created during the boom being liquidated?" ❋ Unknown (2008)
A recession is nothing more than the liquidation of all the malinvestments that occured during the boom. ❋ Unknown (2008)
Rather than them taking a proper hit from their malinvestments in sub-prime mortgages. ❋ RobW (2008)
If so, I agree completely: technology and globalization can keep malinvestments hidden. ❋ Unknown (2007)
Are we seeing more and more malinvestments that would not have occurred in the absence of credit expansion? ❋ Unknown (2006)
What I am calling for is a great deal of pain and soul searching and correction of obvious malinvestments when anyone that can breathe qualifies for a 0% down no-doc loan on properties that have risen 100% in three years while real wages have shrunk. ❋ Unknown (2005)
From my perspective Noland fails to correctly analyze the aftermath of what will happen to those malinvestments and overcapacity once the global housing bubble collapses. ❋ Unknown (2005)
