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- March report "How Revolutions, Wars and Plagues are Harbingers of 'Great Changes' in Societies and in Economics" published. http://bit.ly/2y4LJZQ
- The Aug. Empire State Manufacturing Index plunged to -14.92, its lowest level since April 2009, missing expectations by the most since 2010!
- #Obama peddling more fiction. He's taking credit for job creation when 88% of jobs created in Fed. were part-time, & 80% paid minimum wage!
- "Despite the fact that I support Trump over Hillary, I think Trump really blew an opportunity with this debate.” https://t.co/sKlJyu2pCG
- Peter Schiff, now in 60FPS!
- "Bernie Sanders on Minimum Wage" - Why are these wrong?
- In memory of my father Irwin Schiff, who died 1 year ago today, listen to this radio show aired on Father' Day 2005. https://t.co/dpLBvG6CZu
- MF Global: Heed the Warning https://t.co/hqLGtrISku @SchiffGold
- Check out my interview about gold, inflation, and government propaganda on MSNBC http://bit.ly/1IzU4VE
- @Carl_C_Icahn You're right but your analogy is wrong. The Fed has not been giving the economy medicine, but administering monetary heroine!
Sunday, November 29, 2015
Economics in One Lesson
The case against government-guaranteed loans and mortgages to private businesses and persons is almost as strong as, though less obvious than, the case against direct government loans and mortgages. The advocates of government-guaranteed mortgages also forget that what is being lent is ultimately real capital, which is limited in supply, and that they are helping identified B at the expense of some unidentified A. Gov-Guar home mortgages, especially when a negligible down payment or no down payment whatever is required, inevitably mean more bad loans than otherwise. They force the general taxpayer to subsidize the bad risks and defray the losses. They encourage people to “buy” houses that they cannot really afford. They tend to eventually to bring about an oversupply of houses as compared with other things. They temporarily overstimulate building, raise the cost of building for everybody, and may mislead the building industry into an eventually costly overexpansion. In brief, in the long run they do not increase overall national production but encourage malinvestment.