Larry Summers

The Broken-Window Fallacy Is Still Alive And Well

As in the wake of every disaster, pundits and politically biased economists - including Larry Summers who declared Japan's 2011 Tsunami would boost economic growthwill wax elequently on how Harvey will end up being a boon for "the economy." As usual, these types of talking heads forget Frederic Bastiat at their own peril...

The Secret History Of The Banking Crisis

"Accounts of the financial crisis leave out the story of the secretive deals between banks that kept the show on the road. How long can the system be propped up for?"

Central Bankers 'Are' The Crisis

"If there’s one myth - and there are many - that we should invalidate in the cross-over world of politics and economics, it‘s that central banks have saved us from a financial crisis. It’s a carefully construed myth, but it’s as false as can be. Our central banks have caused our financial crises, not saved us from them."

Weekend Reading: Yellen Lets Doves Fly

The problem for the Fed remains the rising risk of a monetary policy error against a backdrop of an over valued, over leveraged and overly bullish financial market. Historically such combinations have tended not to turn out well.

Who's Really To Blame For America's Accelerating Home Prices?

Fed Chairs Ben Bernanke and Janet Yellen re-blew the Alan Greenspan initiated housing bubble. However, the trend towards higher and higher home prices started well before that dynamic trio made a mess of everything. The following charts show the true origin of escalating home prices...

Inside The So-Called 'Resistance'

"Entropy never sleeps. It works remorselessly to transform things of value into useless, dissipated waste and heat...Hence, the intellectual decay of American life in which spin is everything, anything goes, and nothing matters."

The Final Show Of The Greatest Country On Earth

Yesterday, the Greatest Show on Earth held its final performance in Uniondale, New York, after 146-years in the business. A century ago this would have seemed impossible... And just like how people viewed Ringling Brothers 100-years ago, it’s difficult for anyone to imagine a world in which the US isn’t the dominant superpower...

SocGen: Beware The Ghost Of 1993

"The comparison with 1993 is worthwhile too - it ended badly for asset markets, after all. Whether the Fed should worry about over-frequent excursions to the zero lower bound, or focus on financial sector stability, the risk is plain – super-easy monetary policy is creating artificially low volatility and driving money into trades and investments that are mispriced as a result."

The Real Barack Obama Is Finally Exposed To Everyone

"Denial is an extremely powerful thing, and tens of millions of Democrats were completely bamboozled by Obama due to their personal obsession with the man. This is precisely why cult of personality worship is so dangerous and counterproductive when it comes to politics."