Fannie and Freddie are going to be bailed out by taxpayers, I told the host, and the resulting inflation will make a weak dollar weaker and prop up corrupt banks that market forces would otherwise force out of business.
So, don't be so quick to take the plunge buying bank foreclosure properties and forget traditional stocks and bonds. It's not for the faint of heart, but the road to riches is with junior mining shares.
Even some professional economists — don't really have a good intertemporal mental construct of the market, they can't really fathom how prices would guide people to properly allocate scarce resources.
Government and its henchmen are anxious to relegate into oblivion the fact that this rise is produced by an increase in the amount of money and money substitutes. They never mention this increase.
Envy-based policies seem to persist, whether in the form of progressive taxation or in assumptions that a state like New York can decide something as subjective as the reasonableness of salary contracts freely agreed upon.
If Congress wants to end speculation, then I would suggest beginning with the deal makers at the Federal Reserve.
The government wants to shape perceptions in order to minimize dissatisfaction with its irresponsible monetary and fiscal policies. When the financial press goes along and parrots statements that are obviously false, it fails in its duty to its readers.
The US House of Representatives will hold hearings on energy markets trying to determine who is causing oil prices to rise.
As with everything else in life, competition among conceptual frameworks is very healthy, since it can quickly highlight when an economist is likely abusing his favorite technique.
Gordon is incensed that a few "analysts," including myself and Professor Stan Liebowitz of the University of Dallas, have argued that the bursting of the housing bubble has caused the chickens to come home to roost, so to speak, after thirty years of government policy pressuring banks to make tens of billions of dollars in bad loans to people with low (or nonexistent) credit ratings.
