tag:blogger.com,1999:blog-3758330678390419129.post1336811266055870978..comments2024-02-13T02:39:22.756-05:00Comments on EconomicPolicyJournal.com: Setting the 'Palm Beach Post' Straight on the Boom-Bust CycleRobert Wenzelhttp://www.blogger.com/profile/14296920597416905488noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-3758330678390419129.post-91554549235185258742018-01-09T07:31:26.271-05:002018-01-09T07:31:26.271-05:00Ah, I get it. The "boom" cycle is "...Ah, I get it. The "boom" cycle is "a cluster of errors" where everyone is misled by government's distortions. And it's not just mistakes or errors of judgment ("mis-investment" if you will), as would occur in any business, but rather, it is "MAL-investment."Anonymoushttps://www.blogger.com/profile/08236071066075535008noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-70256098467669649012018-01-08T08:41:19.858-05:002018-01-08T08:41:19.858-05:00Your second notion is correct. There will always ...Your second notion is correct. There will always be individual entrepreneurial error in any market system, completely free or partially free. But in a market free of state interference with the money supply, you wouldn't expect to see the "cluster of errors" that you see today in earlier stages of production across so many industries at once. The only (material) common element The NAPsterhttps://www.blogger.com/profile/16631781625841157567noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-26269676515048457782018-01-08T08:29:20.676-05:002018-01-08T08:29:20.676-05:00You're confusing simple bad decisions and bad ...You're confusing simple bad decisions and bad calls by entrepreneurs--which lead to bankruptcy, and actual misallocation capital. Misallocation of capital is the result of manipulation of the interest rate by a rapid increase of the money supply. The direct effect of increasing the money supply in the market is to fool all actors into thinking there are more savings (thus more capital) than OldMexicanhttps://www.blogger.com/profile/16111465436836633221noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-60387549794335373492018-01-08T06:36:03.279-05:002018-01-08T06:36:03.279-05:00I thought boom-bust cycles DO (would) occur natura...I thought boom-bust cycles DO (would) occur naturally in a free-market, except on a much smaller and less extreme scale? Since even in a free-market there would still be at least some small amount of misallocation of capital (imperfect knowledge), and so, periodic adjustments (the bust cycle) would still be necessary. Or maybe I'm incorrect, in that the adjustments---the reallocation of Anonymoushttps://www.blogger.com/profile/08236071066075535008noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-54204250621439924522018-01-07T20:12:19.455-05:002018-01-07T20:12:19.455-05:00That's great! And in a despicable left wing ra...That's great! And in a despicable left wing rag like the Palm Beach Post!!!Capn Mikehttps://www.blogger.com/profile/08133441332228302495noreply@blogger.comtag:blogger.com,1999:blog-3758330678390419129.post-12923038904976278982018-01-07T19:17:57.075-05:002018-01-07T19:17:57.075-05:00I love how "When will Krugman be accountable?...I love how "When will Krugman be accountable?" Is the next letter to editor! <br /><br />We have to keep fighting the good fight. One idea at a time. One conversation at a time.Markie Oleshttps://www.blogger.com/profile/02614512515024777979noreply@blogger.com