Booms and Busts

The Social Security and Medicare trust funds will both soon be bankrupt, putting additional strains on the federal budget and American taxpayers.

Here are the fateful words that set the stage for years of high unemployment: “We believe in the principle of high wages.”

The Fed is already living dangerously with its recent hike, and further rises will all but guarantee a credit crisis. 

Behind the scenes, the great machine of government churns along, often in complete disregard to the president or his stated policies.

We're in a boom period, but housing construction is scant — which is making housing less affordable.

The Austrian theory of the business cycle has many critics.

Letting data drive theory is like groping in the dark hoping to find not only a light switch, but the very idea of a light switch as well. 

Central banks can put in motion a prolonged deviation of expectations from the facts of reality. But they can't keep it up forever. 

Here are two ways to gauge the strength of the world economy.