Posts Tagged ‘market’

Pop Goes the…Bubble

Posted: July 1, 2015 in Economics
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“Here again, the best way to deal with a bubble is to not let it happen in the first place. The second best way is to let it pop and allow the market to clean up the mess.” -John Rubino

Central banks have not been attempting to manage an economy for very long.  But there is no experience we know of that shows us that interest rates set by a group of bank industry insiders are better than those discovered by honest outcry in an open market….  Nowhere in the history books is there an example of it.” -Bill Bonner

Housing Recovery?

Posted: September 10, 2013 in Economics
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“In normal times, two-thirds of real estate activity is organic, meaning people buy homes to live in them. Today, that ratio is reversed: more than two-thirds of all real estate activity in the country today is by either investors or first-time home buyers.  That’s not a recovery….  I can’t even imagine what the impact on the home market would be if every investor today that owns a home decided that it was no longer profitable or worthwhile, and decided to put it on the market.  There are literally millions of homes out there that are owned by investors, and if they decided to rush for the exits, it would be scary.” -Andy Miller  Real Estate Expert

“Capitalism is about voluntary exchange for mutual benefit.  Businesses don’t “take” money.  Only government (which has a monopoly on the legal use of force) and criminals do that.  Businesses merely collect the money that consumers and other businesses voluntarily trade for products and services.” –Alex Green           May I emphasize the word VOLUNTARY!  When government forces, or even provides an incentive for, someone to purchase a certain product, it no longer becomes the voluntary choice of a citizen; thus it is no longer a “free” market.