Posts Tagged ‘crisis’

Thomas Mayer: “I am an Austrian in Economics”

September 16, 2011

by Andreas Hoffmann

In today’s publication Thomas Mayer writes that he is “an Austrian in economics.” Mayer is the chief economist of Deutsche Bank Group and head of Deutsche Bank Research. Mayer argues that Austrian theory fits recent events well.  He suggests that

“Failure of the liquidationists to overcome the Great Depression of the early 1930s prepared the ground for an era of interventionist economic policies. Modern macroeconomics and finance nourished the belief that we can successfully plan for the future. But the present crisis teaches us that we live in a world of Knightian uncertainty, where the ―unknown unknowns dominate and our plans for the future are regularly thwarted by unforeseen and unforeseeable events. Read the rest of this entry »

The bailout is not supposed to help you

December 17, 2008

by Roger Koppl

The Los Angeles Times reports that the “Federal bank bailout isn’t trickling down.”  No kidding.  I remember Dušan Mramar telling me years ago that the purpose of privatization in the old Soviet block was restribution, not economic efficiency.  We’re looking at something similar with the bailout.  The purpose of the bailout is redistribution, not economic recovery.  A Reuters report flagged by TheAustrianEconomists supports this view.  The report says what Bob Higgs and others have been arguing, namely, that credit is flowing abundantly contrary to what Paulson says.  The crisis is real enough if you’re a normal working person losing your house or your job.  If you are, however, the bailout is not meant to help you.