The Mess That Greenspan Made - Part 19

Keynesian vs. Austrian Economics

Here’s a pretty neat infographic from the Austrian Insider detailing the key differences between two very different schools of thought on economics – Keynesian and Austrian.

After working as an engineer for many years before even looking closely at this, I never understood the fixation on supporting aggregate demand regardless of how you got to the position where aggregate demand needed to be supported (i.e., reckless credit expansion leading to asset bubbles), which is why I’d guess that most engineering-types who look at this sort of thing favor the Austrian view.

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Wednesday Morning Links

MUST READS
World leaders meet with multiple crises on agenda – AP
Islamic State crisis: New strikes near Syria-Turkey border – BBC
A Month of Bombs Dropped in One Night of Strikes on Syria – Bloomberg
Why ISIS Hasn’t Really Scared the Stock Market – Fisca Times
Did Alibaba’s IPO signal a top in the stock market? – MarketWatch
Yellen Warns on Market Calm Before ‘Considerable Time’ Up – Bloomberg
Dudley Opens New Front for Fed Doves With Dollar Warning – Bloomberg
Dollar Hollers – What does it say? – Market Anthropology
Credit Warnings Starting To Penetrate – Alhambra Partners
The Euro and Commodity Prices – Marc to Market
Billionaires are hoarding more cash – CNN/Money
The short-sighted US buyback boom – FT
America Out of Whack – NY Times

MARKETS/INVESTING
Stocks drift as divergent economic fates weighed – AP
Draghi helps halt European stock sell-off – Reuters
A Coming Winter of Investor Discontent – Real Clear Markets
On The Market’s Central-Bank-Induced Bipolar Disease – Zero Hedge
Here’s what will happen to stocks before and after rates rise – MarketWatch
Gold steadies as dollar rally halts, wary ahead of US data – Reuters
Gold: Why ‘golden’ is worse than ‘death’ when it comes to crosses – MarketWatch
50 tonne gold smuggled into India in 10 days, 30% reached Mumbai – Hindu Times
What’s behind the current silver disconnect? – Mineweb
Silver Loses its Shine – Syncubate
Iron ore price below $80 – Mining.com

ECONOMY/WORLD/HOUSING/BANKING
Inflation Watch as Fed Hawks Retire – Fox Business
Markets and the economy: Losing momentum – Buttonwood
ECRI recession call: unhappy three year anniverary – Bonddad
Developing a Narrative: The Great Recession and Its Aftermath – NY Fed
New U.S. tax rules chill ‘inversion’ deal-making; shares dive – Reuters
German Business Confidence Drops for Fifth Month – Bloomberg
Moscow’s ‘Mr. Yuan’ Builds China Link as Putin Tilts East – Bloomberg
Subprime loans are making a comeback, and it’s a disaster – Vox
After Mucking up Housing Market, Investors Flee – Wolf Street
The Fed’s Credit Channel Is Broken And Its Bathtub Economics Has Failed – Contra Corner
Explaining Why U.S. Rates Have Suddenly Gone Negative – WSJ
Mathew D. Rose: “We Need A Banking evolution” – Naked Capitalism

 

Renewed Interest in World Population

The story Climate change isn’t the problem. A population bomb is killing us at Marketwatch that was prompted by a new study in the journal Science that is currently making the rounds (also see The New Population Boom Could Easily Be a Dud at the WSJ) prompted a quick look at world population growth as shown below via this item at worldometers.

Recall that a few decades ago, this was the world’s number one problem, however, the recent flattening of the curve has eased those concerns substantially. The Science report argues that expectations of world population stabilizing during this century are likely wrong and that there could be more than 12 million people on the planet by 2100.

A couple of rather remarkable stats from worldometers:

  • During the 20th century, world population has grown from 1.65 billion to 6 billion.
  • In 1970, there were roughly half as many people in the world as there are now.

Tuesday Morning Links

MUST READS
Israel shoots down Syrian jet – Guardian
Why Bombing Syria to destroy ISIS won’t work – Vox
Julian Robertson sees TWO bubbles brewing – CNBC
Could ‘front running’ be the next banking scandal? – BBC
Yahoo emerges as biggest Alibaba loser as investors dump stock – Independent
They Do Ring A Bell At The Top: Alibaba Proves Wall St. Is Off Its Rocker – Contra Corner
Dropping Prices, Supply Glut Sends Oil Into Storage At Sea – Wolf Street
Climate change isn’t the problem. A population bomb is killing us – MarketWatch
Why 80% of Women Take Social Security Too Early for Full Benefits – Main Street
Bread, Circuses, & Bombs – Decline of the American Empire – Burning Platform
Student homelessness hits another record high – CNN/Money
Bees and Ants on How to Make Decisions – WSJ
Why Isn’t Housing A Bubble? – Dollar Collapse

MARKETS/INVESTING
Soft data, Syria strikes knock European markets – AP
Fear factor: Investors are scared again – CNN/Money
The Dollar’s Impact on the S&P 500 – Reformed Broker
Would a Repeat of the 1987 Crash Be That Bad? – Wealth of Common Sense
Everyone is a genius in a Fed-induced stock rally – MarketWatch
Treasuries Gain for Fourth Day on Geopolitical Tension – Bloomberg
Gold rises 1.5 percent on softer dollar, equities – Reuters
Has The Gold Price Drop Run Its Course? – GoldSilverWorlds
Established rivals may keep Shanghai gold exchange in check – SCMP
Gold, Silver Bullion Coin Sales Robust Despite Sell Off – GoldCore
Buying gold has never been this easy – CNN/Money

ECONOMY/WORLD/HOUSING/BANKING
Is the economic recovery real? – CNN/Money
Credit Card Delinquencies at Historic Low – St. Louis Fed
Germany’s Economic Mirage – Project Syndicate
Eurozone business growth slows in September, PMI survey finds – BBC
Manufacturing Rebound Relieves Growth Concerns in China – Bloomberg
Economists React: Surprising Signs of an Uptick in China’s Economy – WSJ
China’s Housing Bubble Puzzle Isn’t So Confusing After All – WSJ
Why First-Time Homebuyers Should Get Their Checkbooks Ready – Fiscal Times
Analyst Predicts Home Price Decline In Report to White House – DSNews
A Few Comments on August Existing Home Sales – Calculated Risk
Plosser, hawkish chief of Philadelphia Fed, to retire in March – Reuters
Dudley: ‘I would love to’ raise rates in 2015 – CNBC

 
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