So it begins: Boeing Announces Big Layoffs in Defense Division

Ha! You take up Mises, but hesitate to call Galbraith an economist?

I've come to the personal conclusion you don't understand mainstream economics at all. Fair, you're an Austrian, and your go-to for concepts you don't understand are just letting them fly by and quoting Austrians. I will not attempt to explain for why dynamic disequilibirum models account for half of the quotes you're putting out there. Lesson learned.

Here, I'll take a page out of your book and just quote other people. It'll save me some time.

I'll list the key problems with Austrian Business Cycle methodology one by one. Come with me, it'll be fun.

http://econlog.econlib.org/archives/2008/01/whats_wrong_wit_6.html

a) Inconsistency with market agents being godly with market conditions, but terrible with government (like Goldman Sachs MDs suddenly forgetting how to count when confronted with monetary policy).

The author---

I'll wait your Mises-typed response to this one before venturing onto other massive flaws. I'll be quoting some big boys---Keynes, and hell, Freidman. It'll be a hell of a ride, if you just leave Mises.org for a few hours.

 

I'm still flabbergasted the Freepers claim extraneous defense systems are as relevant to domestic economic growth as domestic automobiles.

 

Nothing on loan officers handing out sub prime mortgages, nothing on ABACUS, nothing on "too big to fail", nothing on "socializing the risk, privatizing the gains."

It's the Fed that caused that Great Recession. Somehow I'm not entirely surprised.

Let's dive into this further. What does the Fed do again? Set Fed Funds rate for other banks? If banks are handing out loans to unqualified individuals, whose fault is that again? The government? I'm sure banks would have some self-interest in making sure those loans are legit, no?

NO! says the Austrian School of economists. It's the fault of the Fed! Banks that do dumb stuff? The government made me do it because they set interest rates too low!

Banks that create opaque derivatives and flat out deceive clients? That's the Fed's fault!

 

Why would the banks worry about borrower legitimacy if they have fed backing?

Fannie/Freddie own/guarantee half of all mortgages.

 

My theory is that the Fed did all of the heavy lifting in disguise. Greenspan slipped stupid serum into Joe Cassano's coffee, and went out to market make for the unlimited amount of stupid AIG FP was going through. Then he got caught because he underregulated the market, but secretely he was overregulating it, by forcing a certain percentage of bankers to go stupid by the imposition of monetary policy levers (seriously a plank of Austrian business cycle theory).

 

Very simple. Checking for loan eligibility is the law.

 

...because they're supposed to be ethical and s**t?

we live in a world where banks and lawyers manufacture sometimes-fradulent foreclosures out of thin air, then hold large ass parties mocking the foreclosed, and no one cares. surprising.

Does this fit into your magical contract-making, mutual consent world, btw?

http://www.globalresearch.ca/docume...ment-highlight-lawlessness-of-the-banks/29811

 

Basso, now can you tell me if defense companies make more money before War, During War, or After War?

I'm thinking were at the point between During War and After War.. So money slows down from the Federal Government?

 

The thing about Austrian Theory is that most believers of it secretly hope for boom/bust cycles. In an unmanaged economy, the highs are higher and the depressions are deeper. In perfectly managed economy and with perfect information, there should never be boom/bust cycles. We'll of course never get that, but I'd much rather take the flaws of a managed economy, than the flaws of an unmanaged economy.

 

As a derivatives professor once said, Wall Street and ethics is an oxymoron.

 

Not gonna create another thread...

 

https://bbs.clutchfans.net/threads/dei-must-die.321805/page-3#post-15015745

 

Didn't see it at first cause he on block...

It was still a great article nonetheless...