How Real Estate Credit Bubbles Lead to Crisis

How is finance killing the economy? Credit is a powerful tool of capitalism. It can be used to stimulate economic growth, or it can be used to deter capital investment by shifting money creation into the Finance, Insurance, Real Estate (FIRE) sector. The latter will inevitably cause the economic system to go into crisis.

Lessons Lost In The Sequester

There is something that those who lend money have learned over the years. If you physically punish someone who owes you an outstanding loan, you severely restrict their ability to pay it back. This is why certain measures in society were done away with like poorhouses and debtors prisons. (Interestingly the mafia never came to…

Matt On China, Is Bad On China

In my travels through the internet I’ve come across a lot written on China. This is a prime example of it; it’s from a blog called Matt On China[1]: “I’d like to pause for a moment to reflect on these two criticisms: indebted to banks; and dependent on migrant workers without equal rights. Sound familiar?…