... carries. And it will give me the cash
I need to meet the next two years’ worth of monthly mortgage
payments.
28 • T
HE
C
OST OF
C
APITALISM
Figure 3 .1
16
14
12
10
8
6
4
2
0
Year over Year % Change, 12 -Month ... better going forward.
The Markets Stoke the Boom and Bust Cycle • 23
6 • T
HE
C
OST OF
C
APITALISM
Figure 1. 2
010 09998979695949392 919 0898887868584
40000
30000
20000...
... disappointments. And so it was in
the early 19 90s.
Mainstream Economists and the
19 90 Soft Landing That Wasn’t
The widely held view in the late 19 80s focused on climbing wage and
price pressures. ... into Full View in January of 2008
Nonfarm Payroll Employment
08070605
Figure 5.4
15 000
14 000
13 000
12 000
11 000
10 000
9000
Index
Recession Would Be Avoided, Consensus Asser...
... Treasury and the Fed, I was convinced,
Domino Defaults, Global Markets Crisis • 15 3
• 16 1 •
Chapter 13
ECONOMIC ORTHODOXY ON
THE EVE OF THE CRISIS
[Classical] theorists have at their command an ... keep the Fed focused on delivering low inflation, and let
the markets and the private sector deliver the jobs and economic
growth as best they can.
In 19 79, President Jimmy Carter...
... holiday weekend in 19 98. At the
conclusion of a hockey tournament, I was driving my eldest son and
One Practitioner’s Professional Journey • 19 7
midterm and an easy A for the course. Economics, thereafter, ... more complex. One of the
courses required for my major was entitled Resource Management
and Conservation. To take the course, I had to take a year of
economics. And in 19 7...
... Washington in 19 81, I sat in a committee hearing in
which Larry Kudlow, then the chief economist of OMB, presented the
Reagan administration’s forecast for real growth and inflation in 19 81
and 19 82. ... Milton and Rose. Free to Choose: A Personal Statement. New
York: Harcourt Brace Jovanovich, 19 80.
Gilder, George. Wealth and Poverty. New York: Basic Books, 19 81.
Goetzmann...
... recessions in 19 90,
20 01, and 2008 all reflected violent swings in attitudes about invest-
ment and the financing of that investment. Likewise the rise and
collapse of Japan Inc. and the boom and swoon ... carries. And it will give me the cash
I need to meet the next two years’ worth of monthly mortgage
payments.
28 • T
HE
C
OST OF
C
APITALISM
Figure 3 .1
16
14
12
10
8
6
4
2...
... VA
3%
Alt-A
13 %
Subprime
20%
Jumbo Prime
16 %
2007
Jumbo Prime
10 %
Subprime
3%
Alt-A
6%
FHA & VA
7%
Home Equity
Loans
13 %
Conventional,
Conforming
Prime
61%
revalue their assets to current market ... that the boom and bust
cycle is worth the ride.
Free Market Capitalism: Still the Superior Strategy • 59
Financial Markets as a Source of Instability • 51
Figure 4.3
40
35
30...
... disappointments. And so it was in
the early 19 90s.
Mainstream Economists and the
19 90 Soft Landing That Wasn’t
The widely held view in the late 19 80s focused on climbing wage and
price pressures. ... My
final time? An embarrassing four hours and 16 minutes.
But the lesson was learned. Don’t be seduced by the notion that
your fastest sprint can be sustained. Your best time, over...