The Austrians Get Noticed

Austrian economists assert the current crisis is the inevitable result of the Fed’s successive efforts to counter each previous bust. As the credit expansion pumped up asset values to unsustainable levels, the eventual collapse would result in a contraction of credit as losses decimate banks’ balance sheets and render them unable to lend. That sounds like an accurate diagnosis of the current problems.

via The Perils of Ignoring the Austrians – Mises Economics Blog.

The above appeared in Barron’s. Barron’s may not be widely read on Main Street, but it is highly respected on Wall Street. The Austrian economists are routinely ignored, but that may be about to change.

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