- Sep 29, 2000
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Take issue with the Karl Marx if you like, but I found this quote interesting:
"As Friedrich Hayek wrote in 1932, ?Instead of furthering the inevitable liquidation of the maladjustments brought about by the boom during the last three years, all conceivable means have been used to prevent that readjustment from taking place; and one of these means, which has been repeatedly tried though without success, from the earliest to the most recent stages of depression, has been this deliberate policy of credit expansion. ... To combat the depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about ...?"
People say that the government didn't do enough in the great depression to extend credit, but this statement seems like it could easil be written in 2011 based on what's going on now.
Also, here:
I'd not thought of that. It makes sense, doesn't it? Perhaps this is a key reason why credit has been massively squeezed in the past four weeks?
Take issue with the Karl Marx if you like, but I found this quote interesting:
"As Friedrich Hayek wrote in 1932, ?Instead of furthering the inevitable liquidation of the maladjustments brought about by the boom during the last three years, all conceivable means have been used to prevent that readjustment from taking place; and one of these means, which has been repeatedly tried though without success, from the earliest to the most recent stages of depression, has been this deliberate policy of credit expansion. ... To combat the depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about ...?"
People say that the government didn't do enough in the great depression to extend credit, but this statement seems like it could easil be written in 2011 based on what's going on now.
Also, here:
Further, the current credit freeze is likely due to Wall Street's hope of a bailout; bankers will not sell their lousy assets for 20 cents on the dollar if the government might pay 30, 50, or 80 cents.
I'd not thought of that. It makes sense, doesn't it? Perhaps this is a key reason why credit has been massively squeezed in the past four weeks?