Distorted Hayekian Triangle Reality
In 1935 Friedrich A. Hayek presented the following diagram of the productive stages of an economy’s production. The insights drawn from this depiction of an efficiently allocated economy form the basis of Austrian Business Cycle Theory. A voluntary decrease in consumption and commensurate increase in savings lowers the slope of the hypotenuse, thus the .. read more
Weekly Economic And Market Review
Well, at least August is finally over. The S&P 500 lost a bit over 5% on the month but that doesn’t begin to tell the whole story. It was one of the most volatile months on record with 15 daily swings of more than 1%. S&P downgraded US debt to AA. The European debt situation .. read more
What Credit Crunch?
I’ve blogged about this before here and here. There seems to be a disconnect between what the Fed and Treasury are telling us about credit conditions and the data that is compiled by the Fed about credit. Reuters has a story today about a study by Celent that comes to the conclusion that the credit .. read more
